UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

 


 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

 

January 23, 2019

Date of Report (Date of earliest event reported)

 

ABBOTT LABORATORIES

(Exact name of registrant as specified in charter)

 


 

Illinois

 

1-2189

 

36-0698440

(State or other Jurisdiction

 

(Commission File Number)

 

(IRS Employer

of Incorporation)

 

 

 

Identification No.)

 


 

100 Abbott Park Road

Abbott Park, Illinois 60064-6400

(Address of principal executive offices)(Zip Code)

 

Registrant’s telephone number, including area code:  (224) 667-6100

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

o                                    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o                                    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o                                    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o                                    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company   o

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   o

 

 

 


 

Item 2.02                                           Results of Operations and Financial Condition

 

On January 23, 2019, Abbott Laboratories announced its results of operations for the fourth quarter and full year 2018.

 

Furnished as Exhibit 99.1, and incorporated herein by reference, is the news release issued by Abbott announcing those results.  In that news release, Abbott uses various non-GAAP financial measures including, among others, net earnings from continuing operations excluding specified items.  These non-GAAP financial measures adjust for factors that are unusual or unpredictable, such as expenses primarily associated with acquisitions and restructuring actions, charges related to cost reduction initiatives, the recognition of a gain associated with the sale of the Medical Optics business, the estimated impact of U.S. tax reform, costs associated with the early extinguishment of debt, charges related to impairment of certain assets, and tax benefits associated with specified items and share-based compensation.  These non-GAAP financial measures also exclude intangible amortization expense to provide greater visibility on the results of operations excluding these costs, similar to how Abbott’s management internally assesses performance.  Abbott’s management believes the presentation of these non-GAAP financial measures provides useful information to investors regarding Abbott’s results of operations as these non-GAAP financial measures allow investors to better evaluate ongoing business performance.  Abbott’s management also uses these non-GAAP financial measures internally to monitor performance of the businesses.  Abbott, however, cautions investors to consider these non-GAAP financial measures in addition to, and not as a substitute for, financial measures prepared in accordance with GAAP.

 

Item 9.01                                           Financial Statements and Exhibits

 

Exhibit No.

 

Exhibit

 

 

 

99.1

 

Press Release dated January 23, 2019 (furnished pursuant to Item 2.02).

 

2


 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

ABBOTT LABORATORIES

 

 

 

 

 

 

Date:  January 23, 2019

 

By:

/s/ Brian B. Yoor

 

 

 

Brian B. Yoor

 

 

 

Executive Vice President, Finance

 

 

 

and Chief Financial Officer

 

3


Exhibit 99.1

 

News Release

 

Abbott Reports 2018 Results and Issues Strong Forecast for 2019

 

·                 Full-year 2018 sales growth of 11.6 percent; organic sales growth of 7.3 percent

·                 Issues financial outlook for 2019, reflecting double-digit EPS growth and 6.5 to 7.5 percent organic sales growth

 

ABBOTT PARK, Ill., Jan. 23, 2019 — Abbott today announced financial results for the fourth quarter and full year ended Dec. 31, 2018, and issued financial outlook for 2019.

 

·                  Full-year 2018 worldwide sales of $30.6 billion increased 11.6 percent on a reported basis and 7.3 percent on an organic* basis.

·                  Reported diluted EPS from continuing operations under GAAP was $1.31 in the full year 2018 and adjusted diluted EPS from continuing operations, which excludes specified items, was $2.88, reflecting 15.2 percent growth1.

·                  Fourth-quarter worldwide sales of $7.8 billion increased 2.3 percent on a reported basis and 6.4 percent on an organic basis.

·                  Reported diluted EPS from continuing operations under GAAP was $0.37 in the fourth quarter and adjusted diluted EPS from continuing operations, which excludes specified items, was $0.81.

·                  Abbott issues full-year 2019 guidance for organic sales growth of 6.5 to 7.5 percent2, which excludes the impact of foreign exchange, and diluted EPS from continuing operations on a GAAP basis of $1.80 to $1.90. Projected full-year adjusted diluted EPS from continuing operations is $3.15 to $3.25, reflecting double-digit growth at the mid-point.

·                  In 2018, Abbott generated strong operating cash flow and paid down more than $8 billion of debt.

·                  During 2018, Abbott returned $2 billion to shareholders in the form of dividends and, in December, announced a 14.3 percent increase in its quarterly common dividend.

·                  In October, Abbott received U.S. FDA approval of its HeartMate 3TM left ventricular assist device as a destination (long-term use) therapy. In January 2019, Abbott announced U.S. FDA approval of its TactiCathTM Contact Force Ablation Catheter, Sensor EnabledTM, a new catheter designed to help physicians accurately and effectively treat atrial fibrillation, a form of irregular heartbeat.

 

“2018 was another outstanding year for Abbott,” said Miles D. White, chairman and chief executive officer, Abbott. “We exceeded the organic sales growth range we set at the beginning of the year, achieved a number of significant advances in our pipeline, and significantly improved our balance sheet and strategic flexibility. We’re very well-positioned heading into 2019.”

 

—more—

 


* See note on organic growth on the next page.

 


 

FOURTH-QUARTER AND FULL-YEAR 2018 BUSINESS OVERVIEW

 

Note: Management believes that measuring sales growth rates on an organic basis is an appropriate way for investors to best understand the underlying performance of the business.

 

For 2018, Organic sales growth:

 

·                 Excludes prior year results for the Abbott Medical Optics (AMO) and St. Jude Medical vascular closure businesses, which were divested during the first quarter 2017;

·                 Excludes the current and prior year results for Rapid Diagnostics, which reflect results for Alere Inc., which was acquired on Oct. 3, 2017;

·                 Excludes the prior year fourth quarter results for a non-core business within U.S. Adult Nutrition, which was discontinued during the third quarter 2018; and

·                 Excludes the impact of foreign exchange.

 

Following are sales by business segment and commentary for the fourth quarter and full year 2018:

 

Total Company

($ in millions)

 

 

 

 

 

 

 

 

 

% Change vs. 4Q17

 

 

 

Sales 4Q18

 

Reported

 

Organic

 

 

 

U.S.

 

Int’l

 

Total

 

U.S.

 

Int’l

 

Total

 

U.S.

 

Int’l

 

Total

 

Total *

 

2,755

 

5,010

 

7,765

 

3.0

 

2.0

 

2.3

 

4.3

 

7.6

 

6.4

 

Nutrition

 

762

 

1,015

 

1,777

 

(0.9

)

(0.1

)

(0.4

)

1.5

 

5.1

 

3.6

 

Diagnostics

 

699

 

1,262

 

1,961

 

1.1

 

3.9

 

2.9

 

2.5

 

9.4

 

7.4

 

Established Pharmaceuticals

 

 

1,090

 

1,090

 

n/a

 

(4.8

)

(4.8

)

n/a

 

3.6

 

3.6

 

Medical Devices

 

1,285

 

1,635

 

2,920

 

6.6

 

6.8

 

6.7

 

6.6

 

10.9

 

9.0

 

 


* Total Q4 2018 Abbott sales from continuing operations include Other Sales of $17 million.

 

 

 

 

 

 

 

 

 

% Change vs. 12M17

 

 

 

Sales 12M18

 

Reported

 

Organic

 

 

 

U.S.

 

Int’l

 

Total

 

U.S.

 

Int’l

 

Total

 

U.S.

 

Int’l

 

Total

 

Total *

 

10,839

 

19,739

 

30,578

 

12.1

 

11.4

 

11.6

 

4.5

 

8.8

 

7.3

 

Nutrition

 

3,075

 

4,154

 

7,229

 

1.5

 

6.7

 

4.4

 

2.1

 

7.6

 

5.2

 

Diagnostics

 

2,717

 

4,778

 

7,495

 

49.6

 

25.8

 

33.5

 

3.1

 

8.3

 

6.7

 

Established Pharmaceuticals

 

 

4,422

 

4,422

 

n/a

 

3.2

 

3.2

 

n/a

 

7.0

 

7.0

 

Medical Devices

 

5,011

 

6,359

 

11,370

 

6.4

 

13.2

 

10.1

 

6.5

 

11.3

 

9.1

 

 


* Total YTD 2018 Abbott sales from continuing operations include Other Sales of $62 million.

 

n/a = Not Applicable.

 

Note: In order to compute results excluding the impact of exchange rates, current year U.S. dollar sales are multiplied or divided, as appropriate, by the current year average foreign exchange rates and then those amounts are multiplied or divided, as appropriate, by the prior year average foreign exchange rates.

 

Fourth-quarter 2018 worldwide sales of $7.8 billion increased 2.3 percent on a reported basis. On an organic basis, worldwide sales increased 6.4 percent. For the full-year 2018, worldwide sales increased 11.6 percent on a reported basis and 7.3 percent on an organic basis. Refer to pages 16 and 17 for a reconciliation of adjusted historical revenue.

 

2


 

Nutrition

($ in millions)

 

 

 

 

 

 

 

 

 

% Change vs. 4Q17

 

 

 

Sales 4Q18

 

Reported

 

Organic

 

 

 

U.S.

 

Int’l

 

Total

 

U.S.

 

Int’l

 

Total

 

U.S.

 

Int’l

 

Total

 

Total

 

762

 

1,015

 

1,777

 

(0.9

)

(0.1

)

(0.4

)

1.5

 

5.1

 

3.6

 

Pediatric

 

467

 

546

 

1,013

 

3.7

 

(0.8

)

1.2

 

3.7

 

3.7

 

3.7

 

Adult

 

295

 

469

 

764

 

(7.5

)

0.9

 

(2.5

)

(1.8

)

6.6

 

3.5

 

 

 

 

 

 

 

 

 

 

% Change vs. 12M17

 

 

 

Sales 12M18

 

Reported

 

Organic

 

 

 

U.S.

 

Int’l

 

Total

 

U.S.

 

Int’l

 

Total

 

U.S.

 

Int’l

 

Total

 

Total

 

3,075

 

4,154

 

7,229

 

1.5

 

6.7

 

4.4

 

2.1

 

7.6

 

5.2

 

Pediatric

 

1,843

 

2,254

 

4,097

 

3.7

 

6.7

 

5.3

 

3.7

 

7.2

 

5.6

 

Adult

 

1,232

 

1,900

 

3,132

 

(1.7

)

6.6

 

3.2

 

(0.3

)

8.0

 

4.6

 

 

Worldwide Nutrition sales decreased 0.4 percent on a reported basis in the fourth quarter. On an organic basis, sales increased 3.6 percent. For the full-year 2018, worldwide sales increased 4.4 percent on a reported basis and 5.2 percent on an organic basis. Refer to pages 16 and 17 for a reconciliation of adjusted historical revenue.

 

Worldwide Pediatric Nutrition sales increased 1.2 percent on a reported basis in the fourth quarter, including an unfavorable 2.5 percent effect of foreign exchange, and increased 3.7 percent on an organic basis. International pediatric sales decreased 0.8 percent on a reported basis, including an unfavorable 4.5 percent effect of foreign exchange, and increased 3.7 percent on an organic basis. Performance in the quarter was led by above-market growth in the U.S. and strong growth across several markets in Asia and Latin America, including China, Vietnam and Mexico.

 

Worldwide Adult Nutrition sales decreased 2.5 percent on a reported basis in the fourth quarter, and increased 3.5 percent on an organic basis. International adult sales increased 0.9 percent on a reported basis, including an unfavorable 5.7 percent effect of foreign exchange, and increased 6.6 percent on an organic basis. Worldwide sales performance was led by strong growth of Ensure®, Abbott’s market-leading complete and balanced nutrition brand, and Glucerna®, Abbott’s market-leading diabetes-specific nutrition brand.

 

3


 

Diagnostics

($ in millions)

 

 

 

 

 

 

 

 

 

% Change vs. 4Q17

 

 

 

Sales 4Q18

 

Reported

 

Organic

 

 

 

U.S.

 

Int’l

 

Total

 

U.S.

 

Int’l

 

Total

 

U.S.

 

Int’l

 

Total

 

Total *

 

699

 

1,262

 

1,961

 

1.1

 

3.9

 

2.9

 

2.5

 

9.4

 

7.4

 

Core Laboratory

 

260

 

893

 

1,153

 

7.1

 

4.4

 

5.0

 

7.1

 

10.1

 

9.4

 

Molecular

 

38

 

85

 

123

 

1.8

 

1.2

 

1.4

 

1.8

 

4.7

 

3.8

 

Point of Care

 

108

 

29

 

137

 

(6.7

)

(0.6

)

(5.5

)

(6.7

)

1.1

 

(5.1

)

Rapid Diagnostics *

 

293

 

255

 

548

 

(0.9

)

3.9

 

1.3

 

n/a

 

n/a

 

n/a

 

 


* Rapid Diagnostics reflects sales from Alere Inc., which was acquired on Oct. 3, 2017. Organic growth rates above exclude results from the Rapid Diagnostics business.

 

n/a = Percent change is not applicable as organic results exclude Rapid Diagnostics in 2018.

 

 

 

 

 

 

 

 

 

% Change vs. 12M17

 

 

 

Sales 12M18

 

Reported

 

Organic

 

 

 

U.S.

 

Int’l

 

Total

 

U.S.

 

Int’l

 

Total

 

U.S.

 

Int’l

 

Total

 

Total *

 

2,717

 

4,778

 

7,495

 

49.6

 

25.8

 

33.5

 

3.1

 

8.3

 

6.7

 

Core Laboratory

 

985

 

3,401

 

4,386

 

7.0

 

8.3

 

8.0

 

7.0

 

8.3

 

8.0

 

Molecular

 

152

 

332

 

484

 

(4.8

)

9.7

 

4.7

 

(4.8

)

9.1

 

4.3

 

Point of Care

 

432

 

121

 

553

 

(2.0

)

10.0

 

0.4

 

(2.0

)

9.2

 

0.3

 

Rapid Diagnostics *

 

1,148

 

924

 

2,072

 

n/m

 

n/m

 

n/m

 

n/m

 

n/m

 

n/m

 

 


* Rapid Diagnostics reflects sales from Alere Inc., which was acquired on Oct. 3, 2017. Organic growth rates above exclude results from the Rapid Diagnostics business.

 

n/m = Percent change is not meaningful.

 

Worldwide Diagnostics sales increased 2.9 percent on a reported basis in the fourth quarter. On an organic basis, sales increased 7.4 percent. For the full-year 2018, worldwide sales increased 33.5 percent on a reported basis and 6.7 percent on an organic basis. Refer to pages 16 and 17 for a reconciliation of adjusted historical revenue.

 

Core Laboratory Diagnostics sales increased 5.0 percent on a reported basis in the fourth quarter, including an unfavorable 4.4 percent effect of foreign exchange, and increased 9.4 percent on an organic basis, reflecting above-market growth in the U.S. and internationally, where Abbott is seeing continued strong adoption of Alinity TM, Abbott’s family of innovative and highly differentiated diagnostic instruments.

 

Molecular Diagnostics sales increased 1.4 percent on a reported basis in the fourth quarter, including an unfavorable 2.4 percent effect of foreign exchange, and increased 3.8 percent on an organic basis. Worldwide sales were led by growth in infectious disease testing, Abbott’s core area of focus in the molecular diagnostics market.

 

Point of Care Diagnostics sales decreased 5.5 percent on a reported basis in the fourth quarter, including an unfavorable 0.4 percent effect of foreign exchange, and decreased 5.1 percent on an organic basis.

 

Rapid Diagnostics worldwide sales of $548 million were led by infectious disease and cardiometabolic testing.

 

4


 

Established Pharmaceuticals

($ in millions)

 

 

 

 

 

 

 

 

 

% Change vs. 4Q17

 

 

 

Sales 4Q18

 

Reported

 

Organic

 

 

 

U.S.

 

Int’l

 

Total

 

U.S.

 

Int’l

 

Total

 

U.S.

 

Int’l

 

Total

 

Total

 

 

1,090

 

1,090

 

n/a

 

(4.8

)

(4.8

)

n/a

 

3.6

 

3.6

 

Key Emerging Markets

 

 

838

 

838

 

n/a

 

(6.2

)

(6.2

)

n/a

 

4.3

 

4.3

 

Other

 

 

252

 

252

 

n/a

 

0.2

 

0.2

 

n/a

 

1.3

 

1.3

 

 

 

 

 

 

 

 

 

 

% Change vs. 12M17

 

 

 

Sales 12M18

 

Reported

 

Organic

 

 

 

U.S.

 

Int’l

 

Total

 

U.S.

 

Int’l

 

Total

 

U.S.

 

Int’l

 

Total

 

Total

 

 

4,422

 

4,422

 

n/a

 

3.2

 

3.2

 

n/a

 

7.0

 

7.0

 

Key Emerging Markets

 

 

3,363

 

3,363

 

n/a

 

1.7

 

1.7

 

n/a

 

7.4

 

7.4

 

Other

 

 

1,059

 

1,059

 

n/a

 

8.1

 

8.1

 

n/a

 

5.8

 

5.8

 

 

Established Pharmaceuticals sales decreased 4.8 percent on a reported basis in the fourth quarter, including an unfavorable 8.4 percent effect of foreign exchange, and increased 3.6 percent on an organic basis. As expected, sales growth in the fourth quarter was negatively impacted by a comparison versus the fourth-quarter of 2017, when organic sales grew 14.0 percent.

 

Key Emerging Markets include India, Brazil, Russia and China along with several additional emerging countries that represent the most attractive long-term growth opportunities for Abbott’s branded generics product portfolio. Sales in these geographies decreased 6.2 percent on a reported basis in the fourth quarter, including an unfavorable 10.5 percent effect of foreign exchange, and increased 4.3 percent on an organic basis. For the full-year 2018, sales in key emerging markets increased 1.7 percent on a reported basis and 7.4 percent on an organic basis led by double-digit growth in India and China.

 

Other sales increased 0.2 percent on a reported basis in the fourth quarter and 1.3 percent on an organic basis. For the full-year 2018, Other sales increased 8.1 percent on a reported basis and 5.8 percent on an organic basis.

 

5


 

Medical Devices

($ in millions)

 

 

 

 

 

 

 

 

 

% Change vs. 4Q17

 

 

 

Sales 4Q18

 

Reported

 

Organic

 

 

 

U.S.

 

Int’l

 

Total

 

U.S.

 

Int’l

 

Total

 

U.S.

 

Int’l

 

Total

 

Total

 

1,285

 

1,635

 

2,920

 

6.6

 

6.8

 

6.7

 

6.6

 

10.9

 

9.0

 

Cardiovascular and Neuromodulation

 

1,150

 

1,240

 

2,390

 

3.3

 

2.4

 

2.8

 

3.3

 

6.3

 

4.8

 

Rhythm Management

 

241

 

264

 

505

 

(2.6

)

(6.4

)

(4.6

)

(2.6

)

(2.3

)

(2.5

)

Electrophysiology

 

200

 

243

 

443

 

23.6

 

11.6

 

16.7

 

23.6

 

15.0

 

18.7

 

Heart Failure

 

125

 

53

 

178

 

(2.8

)

20.9

 

3.2

 

(2.8

)

24.3

 

4.0

 

Vascular

 

272

 

448

 

720

 

(5.3

)

0.4

 

(1.8

)

(5.3

)

4.1

 

0.4

 

Structural Heart

 

135

 

191

 

326

 

19.6

 

7.9

 

12.4

 

19.6

 

12.4

 

15.2

 

Neuromodulation

 

177

 

41

 

218

 

1.0

 

(6.7

)

(0.5

)

1.0

 

(1.7

)

0.5

 

Diabetes Care

 

135

 

395

 

530

 

46.4

 

23.2

 

28.3

 

46.4

 

28.4

 

32.4

 

 

 

 

 

 

 

 

 

 

% Change vs. 12M17

 

 

 

Sales 12M18

 

Reported

 

Organic

 

 

 

U.S.

 

Int’l

 

Total

 

U.S.

 

Int’l

 

Total

 

U.S.

 

Int’l

 

Total

 

Total

 

5,011

 

6,359

 

11,370

 

6.4

 

13.2

 

10.1

 

6.5

 

11.3

 

9.1

 

Cardiovascular and Neuromodulation

 

4,554

 

4,883

 

9,437

 

4.0

 

7.7

 

5.9

 

4.2

 

5.9

 

5.0

 

Rhythm Management

 

1,019

 

1,072

 

2,091

 

(1.1

)

(0.1

)

(0.6

)

(1.1

)

(1.9

)

(1.5

)

Electrophysiology

 

764

 

904

 

1,668

 

25.5

 

17.1

 

20.8

 

25.5

 

15.0

 

19.6

 

Heart Failure

 

467

 

179

 

646

 

(4.8

)

17.4

 

0.4

 

(4.8

)

15.4

 

 

Vascular

 

1,126

 

1,803

 

2,929

 

(4.5

)

5.3

 

1.3

 

(4.0

)

3.6

 

0.5

 

Structural Heart

 

488

 

751

 

1,239

 

12.9

 

15.5

 

14.4

 

12.9

 

13.1

 

13.0

 

Neuromodulation

 

690

 

174

 

864

 

8.3

 

1.3

 

6.8

 

8.3

 

(0.3

)

6.5

 

Diabetes Care

 

457

 

1,476

 

1,933

 

37.7

 

36.4

 

36.7

 

37.7

 

33.9

 

34.8

 

 

Worldwide Medical Devices sales increased 6.7 percent on a reported basis in the fourth quarter. On an organic basis, sales increased 9.0 percent. For the full-year 2018, worldwide sales increased 10.1 percent on a reported basis and 9.1 percent on an organic basis. Refer to page 17 for a reconciliation of adjusted historical revenue.

 

In Electrophysiology, growth was led by strong performance in cardiac mapping and ablation catheters. In January 2019, Abbott announced U.S. FDA approval of its TactiCath Contact Force Ablation Catheter, Sensor Enabled, a new catheter designed to help physicians accurately and effectively treat atrial fibrillation.

 

Growth in Structural Heart was driven by several product areas across Abbott’s broad portfolio, including AMPLATZERTM PFO Occluder, a device designed to close a hole-like opening in the heart, and MitraClip®, Abbott’s market-leading device for the minimally invasive treatment of mitral regurgitation, a leaky heart valve.

 

In Diabetes Care, sales increased 28.3 percent on a reported basis and 32.4 percent on an organic basis in the fourth quarter, led by rapid market uptake of FreeStyle® Libre, Abbott’s revolutionary sensor-based continuous glucose monitoring system, which removes the need for routine fingersticks3 for people with diabetes.

 

6


 

ABBOTT ISSUES GUIDANCE FOR 2019

 

Abbott is issuing full-year 2019 guidance for organic sales growth of 6.5 to 7.5 percent2, which excludes the impact of foreign exchange, and diluted earnings per share from continuing operations under Generally Accepted Accounting Principles (GAAP) of $1.80 to $1.90. Abbott forecasts net specified items for the full year 2019 of $1.35 per share. Specified items include intangible amortization expense, acquisition-related expenses, charges associated with cost reduction initiatives and other expenses. Excluding specified items, projected adjusted diluted earnings per share from continuing operations would be $3.15 to $3.25 for the full year 2019.

 

Abbott is issuing first-quarter 2019 guidance for diluted earnings per share from continuing operations under GAAP of $0.25 to $0.27. Abbott forecasts specified items for the first quarter 2019 of $0.35 per share primarily related to intangible amortization, acquisition-related expenses, cost reduction initiatives and other expenses. Excluding specified items, projected adjusted diluted earnings per share from continuing operations would be $0.60 to $0.62 for the first quarter.

 

ABBOTT ANNOUNCES INCREASE IN QUARTERLY DIVIDEND

 

On Dec. 14, 2018, the board of directors of Abbott increased the company’s quarterly dividend to $0.32 per share from $0.28 per share, an increase of 14.3 percent. Abbott’s cash dividend is payable Feb. 15, 2019, to shareholders of record at the close of business on Jan. 15, 2019. This marks the 380th consecutive quarterly dividend to be paid by Abbott.

 

Abbott has increased its dividend payout for 47 consecutive years and is a member of the S&P 500 Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years.

 

7


 

About Abbott:

 

Abbott is a global healthcare leader that helps people live more fully at all stages of life. Our portfolio of life-changing technologies spans the spectrum of healthcare, with leading businesses and products in diagnostics, medical devices, nutritionals and branded generic medicines. Our 103,000 colleagues serve people in more than 160 countries.

 

Connect with us at www.abbott.com, on LinkedIn at www.linkedin.com/company/abbott-/, on Facebook at www.facebook.com/Abbott and on Twitter @AbbottNews and @AbbottGlobal.

 

Abbott will webcast its live fourth-quarter earnings conference call through its Investor Relations website at www.abbottinvestor.com at 8 a.m. Central time today. An archived edition of the webcast will be available later that day.

 

— Private Securities Litigation Reform Act of 1995 —

A Caution Concerning Forward-Looking Statements

 

Some statements in this news release may be forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. Abbott cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements. Economic, competitive, governmental, technological and other factors that may affect Abbott’s operations are discussed in Item 1A, “Risk Factors” to our Annual Report on Securities and Exchange Commission Form 10-K for the year ended Dec. 31, 2017, and are incorporated by reference. Abbott undertakes no obligation to release publicly any revisions to forward-looking statements as a result of subsequent events or developments, except as required by law.

 

Abbott Financial:

Scott Leinenweber, 224-668-0791

Michael Comilla, 224-668-1872

Lukas Szot, 224-667-2299

 

Abbott Media:

Darcy Ross, 224-667-3655

Elissa Maurer, 224-668-3309

 


1 Full-year 2018 diluted EPS from continuing operations on a GAAP basis reflects 555 percent growth.

 

2 Abbott has not provided the GAAP financial measure for organic sales growth on a forward-looking basis because the company is unable to predict the impact of foreign exchange due to the unpredictability of future changes in foreign exchange rates, which could significantly impact reported sales growth.

 

3 Fingersticks are required for treatment decisions when you see Check Blood Glucose symbol, when symptoms do not match system readings, when you suspect readings may be inaccurate, or when you experience symptoms that may be due to high or low blood glucose.

 

8


 

Abbott Laboratories and Subsidiaries

Condensed Consolidated Statement of Earnings

Fourth Quarter Ended December 31, 2018 and 2017

(in millions, except per share data)

(unaudited)

 

 

 

4Q18

 

4Q17

 

%
Change

 

 

 

Net Sales

 

$

7,765

 

$

7,589

 

2.3

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of products sold, excluding amortization expense

 

3,191

 

3,282

 

(2.8

)

 

 

Amortization of intangible assets

 

488

 

560

 

(12.8

)

 

 

Research and development

 

562

 

619

 

(9.3

)

 

 

Selling, general, and administrative

 

2,359

 

2,477

 

(4.8

)

 

 

Total Operating Cost and Expenses

 

6,600

 

6,938

 

(4.9

)

 

 

 

 

 

 

 

 

 

 

 

 

Operating earnings

 

1,165

 

651

 

79.0

 

1

)

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

152

 

211

 

(28.1

)

 

 

Net foreign exchange (gain) loss

 

26

 

 

n/m

 

 

 

Debt extinguishment costs

 

86

 

 

n/m

 

 

 

Other (income) expense, net

 

(46

)

(134

)

(65.9

)

1

)

Earnings from Continuing Operations before taxes

 

947

 

574

 

65.0

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax expense on Earnings from Continuing Operations

 

292

 

1,438

 

(79.7

)

2

)

Earnings (Loss) from Continuing Operations

 

655

 

(864

)

n/m

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (Loss) from Discontinued Operations, net of taxes

 

(1

)

36

 

n/m

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Earnings (Loss)

 

$

654

 

$

(828

)

n/m

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings from Continuing Operations, excluding Specified Items, as described below

 

$

1,444

 

$

1,303

 

10.8

 

3

)

 

 

 

 

 

 

 

 

 

 

Diluted Earnings (Loss) per Common Share from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing Operations

 

$

0.37

 

$

(0.50

)

n/m

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued Operations

 

 

0.02

 

n/m

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

0.37

 

$

(0.48

)

n/m

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted Earnings per Common Share from Continuing Operations, excluding Specified Items, as described below

 

$

0.81

 

$

0.74

 

9.5

 

3

)

 

 

 

 

 

 

 

 

 

 

Average Number of Common Shares Outstanding Plus Dilutive Common Stock Options

 

1,774

 

1,746

 

 

 

 

 

 

NOTES:

 

See tables on page 13 for an explanation of certain non-GAAP financial information.

 

n/m = Percent change is not meaningful.

 

See footnotes on the following page.

 

9


 


1)             Effective January 1, 2018, Abbott adopted Accounting Standards Update 2017-07, Compensation — Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which resulted in a retrospective reclassification of approximately $40 million of net pension-related income from Operating earnings to Other (income) expense, net for the fourth quarter of 2017.

 

2)             2018 Tax expense on Earnings from Continuing Operations includes an additional $85 million of tax expense for the transition tax associated with the Tax Cuts and Jobs Act (TCJA).

 

2017 Tax expense on Earnings from Continuing Operations includes net expense of $1.46 billion for the estimated impact of U.S. tax reform. The provisional estimate of the impact of U.S. tax reform was based on Abbott’s initial analysis of the TCJA.

 

3)             2018 Net Earnings and Diluted Earnings per Common Share from Continuing Operations, excluding Specified Items, excludes net after-tax charges of $789 million, or $0.44 per share, for intangible amortization expense and other expenses primarily associated with acquisitions and restructuring actions, as well as additional transition tax related to the TCJA.

 

2017 Net Earnings and Diluted Earnings per Common Share from Continuing Operations, excluding Specified Items, excludes net after-tax charges of $2.167 billion, or $1.24 per share, for the estimated impact of U.S. tax reform, intangible amortization expense and other expenses primarily associated with acquisitions, restructuring actions and other expenses.

 

10


 

Abbott Laboratories and Subsidiaries

Condensed Consolidated Statement of Earnings

Year Ended December 31, 2018 and 2017

(in millions, except per share data)

(unaudited)

 

 

 

12M18

 

12M17

 

% Change

 

 

 

 

Net Sales

 

$

30,578

 

$

27,390

 

11.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of products sold, excluding amortization expense

 

12,706

 

12,409

 

2.4

 

 

 

 

Amortization of intangible assets

 

2,178

 

1,975

 

10.3

 

 

 

 

Research and development

 

2,300

 

2,260

 

1.7

 

 

 

 

Selling, general, and administrative

 

9,744

 

9,182

 

6.1

 

 

 

 

Total Operating Cost and Expenses

 

26,928

 

25,826

 

4.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating earnings

 

3,650

 

1,564

 

n/m

 

1

)

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

721

 

780

 

(7.6

)

 

 

 

Net foreign exchange (gain) loss

 

28

 

(34

)

n/m

 

 

 

 

Debt extinguishment costs

 

167

 

 

n/m

 

 

 

 

Other (income) expense, net

 

(139

)

(1,413

)

(90.2

)

1

)

2)

Earnings from Continuing Operations before taxes

 

2,873

 

2,231

 

28.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax expense on Earnings from Continuing Operations

 

539

 

1,878

 

(71.3

)

3

)

 

Earnings from Continuing Operations

 

2,334

 

353

 

n/m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings from Discontinued Operations, net of taxes

 

34

 

124

 

(72.6

)

4

)

 

 

 

 

 

 

 

 

 

 

 

 

Net Earnings

 

$

2,368

 

$

477

 

n/m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings from Continuing Operations, excluding Specified Items, as described below

 

$

5,131

 

$

4,400

 

16.6

 

5

)

 

 

 

 

 

 

 

 

 

 

 

 

Diluted Earnings per Common Share from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing Operations

 

$

1.31

 

$

0.20

 

n/m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued Operations

 

0.02

 

0.07

 

(71.4

)

4

)

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

1.33

 

$

0.27

 

n/m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted Earnings per Common Share from Continuing Operations, excluding Specified Items, as described below

 

$

2.88

 

$

2.50

 

15.2

 

5

)

 

 

 

 

 

 

 

 

 

 

 

 

Average Number of Common Shares Outstanding Plus Dilutive Common Stock Options

 

1,770

 

1,749

 

 

 

 

 

 

 

NOTES:

 

See tables on page 14 for an explanation of certain non-GAAP financial information.

 

n/m = Percent change is not meaningful.

 

See footnotes on the following page.

 

11


 


1)             Effective January 1, 2018, Abbott adopted Accounting Standards Update 2017-07, Compensation — Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which resulted in a retrospective reclassification of approximately $160 million of net pension-related income from Operating earnings to Other (income) expense, net for the full year of 2017.

 

2)             2017 Other (income) expense, net includes a pretax gain of $1.163 billion from the sale of the AMO business.

 

3)             2018 Tax expense on Earnings from Continuing Operations includes an additional $120 million of tax expense for the transition tax associated with the TCJA, as well as the impact of approximately $90 million in excess tax benefits associated with share-based compensation.

 

2017 Tax expense on Earnings from Continuing Operations includes the net expense of $1.46 billion for the estimated impact of U.S. tax reform, as well as the tax associated with a $1.163 billion pretax gain on the sale of the AMO business. The provisional estimate of the impact of U.S. tax reform was based on Abbott’s initial analysis of the TCJA.

 

4)             2018 and 2017 Earnings and Diluted Earnings per Common Share from Discontinued Operations, net of taxes primarily relates to a net tax benefit as a result of the resolution of various tax positions from prior years.

 

5)             2018 Net Earnings and Diluted Earnings per Common Share from Continuing Operations, excluding Specified Items, excludes net after-tax charges of $2.797 billion, or $1.57 per share, for intangible amortization expense and other expenses primarily associated with acquisitions and restructuring actions.

 

2017 Net Earnings and Diluted Earnings per Common Share from Continuing Operations, excluding Specified Items, excludes net after-tax charges of $4.047 billion, or $2.30 per share, for the estimated impact of U.S. tax reform, intangible amortization expense and other expenses primarily associated with acquisitions and restructuring actions, partially offset by a gain on the sale of the AMO business.

 

12


 

Abbott Laboratories and Subsidiaries

Non-GAAP Reconciliation of Financial Information From Continuing Operations

Fourth Quarter Ended December 31, 2018 and 2017

(in millions, except per share data)

(unaudited)

 

 

 

4Q18

 

 

 

As
Reported
(GAAP)

 

Specified
Items

 

As
Adjusted

 

% to
Sales

 

 

 

 

 

 

 

 

 

 

 

Intangible Amortization

 

$

488

 

$

(488

)

 

 

 

Gross Margin

 

4,086

 

520

 

$

4,606

 

59.3

%

R&D

 

562

 

(2

)

560

 

7.2

%

SG&A

 

2,359

 

(91

)

2,268

 

29.2

%

Net foreign exchange (gain) loss

 

26

 

(28

)

(2

)

 

 

Debt extinguishment costs

 

86

 

(86

)

 

 

 

Other (income) expense, net

 

(46

)

13

 

(33

)

 

 

Earnings from Continuing Operations before taxes

 

947

 

714

 

1,661

 

 

 

Tax expense on Earnings from Continuing Operations

 

292

 

(75

)

217

 

 

 

Earnings from Continuing Operations

 

655

 

789

 

1,444

 

 

 

Diluted Earnings per Share from Continuing Operations

 

$

0.37

 

$

0.44

 

$

0.81

 

 

 

 

Specified items reflect intangible amortization expense of $488 million and other expenses of $226 million, primarily associated with acquisitions, restructuring actions and other expenses, as well as $85 million of additional transition tax related to the TCJA. See page 18 for additional details regarding specified items.

 

 

 

4Q17

 

 

 

As
Reported
(GAAP)

 

Specified
Items

 

As
Adjusted

 

% to
Sales

 

 

 

 

 

 

 

 

 

 

 

Intangible Amortization

 

$

560

 

$

(560

)

 

 

 

Gross Margin

 

3,747

 

694

 

$

4,441

 

58.5

%

R&D

 

619

 

(90

)

529

 

7.0

%

SG&A

 

2,477

 

(266

)

2,211

 

29.1

%

Interest expense, net

 

211

 

(5

)

206

 

 

 

Other (income) expense, net

 

(134

)

69

 

(65

)

 

 

Earnings from Continuing Operations before taxes

 

574

 

986

 

1,560

 

 

 

Tax expense on Earnings from Continuing Operations

 

1,438

 

(1,181

)

257

 

 

 

Earnings (Loss) from Continuing Operations

 

(864

)

2,167

 

1,303

 

 

 

Diluted Earnings (Loss) per Share from Continuing Operations

 

$

(0.50

)

$

1.24

 

$

0.74

 

 

 

 

Note: The As Reported and As Adjusted amounts reflect the impact of adopting the new accounting rules related to the recognition of retirement benefits — See Footnote 1 on page 10 for additional information.

 

Specified items reflect intangible amortization expense of $560 million and other expenses of $426 million, primarily associated with acquisitions, restructuring actions and other expenses, and the estimated net impact of U.S. tax reform of $1.46 billion. See page 19 for additional details regarding specified items.

 

13


 

Abbott Laboratories and Subsidiaries

Non-GAAP Reconciliation of Financial Information From Continuing Operations

Year Ended December 31, 2018 and 2017

(in millions, except per share data)

(unaudited)

 

 

 

12M18

 

 

 

As
Reported
(GAAP)

 

Specified
Items

 

As
Adjusted

 

% to
Sales

 

 

 

 

 

 

 

 

 

 

 

Intangible Amortization

 

$

2,178

 

$

(2,178

)

 

 

 

Gross Margin

 

15,694

 

2,453

 

$

18,147

 

59.3

%

R&D

 

2,300

 

(87

)

2,213

 

7.2

%

SG&A

 

9,744

 

(365

)

9,379

 

30.7

%

Interest expense, net

 

721

 

(2

)

719

 

 

 

Net foreign exchange (gain) loss

 

28

 

(29

)

(1

)

 

 

Debt extinguishment costs

 

167

 

(167

)

 

 

 

Other (income) expense, net

 

(139

)

3

 

(136

)

 

 

Earnings from Continuing Operations before taxes

 

2,873

 

3,100

 

5,973

 

 

 

Tax expense on Earnings from Continuing Operations

 

539

 

303

 

842

 

 

 

Earnings from Continuing Operations

 

2,334

 

2,797

 

5,131

 

 

 

Diluted Earnings per Share from Continuing Operations

 

$

1.31

 

$

1.57

 

$

2.88

 

 

 

 

Specified items reflect intangible amortization expense of $2.178 billion and other expenses of $922 million, primarily associated with acquisitions, restructuring actions and other expenses. See page 20 for additional details regarding specified items.

 

 

 

12M17

 

 

 

As
Reported
(GAAP)

 

Specified
Items

 

As
Adjusted

 

% to
Sales

 

 

 

 

 

 

 

 

 

 

 

Intangible Amortization

 

$

1,975

 

$

(1,975

)

 

 

 

Gross Margin

 

13,006

 

3,153

 

$

16,159

 

59.0

%

R&D

 

2,260

 

(236

)

2,024

 

7.4

%

SG&A

 

9,182

 

(861

)

8,321

 

30.4

%

Interest expense, net

 

780

 

(24

)

756

 

 

 

Other (income) expense, net

 

(1,413

)

1,236

 

(177

)

 

 

Earnings from Continuing Operations before taxes

 

2,231

 

3,038

 

5,269

 

 

 

Tax expense on Earnings from Continuing Operations

 

1,878

 

(1,009

)

869

 

 

 

Earnings from Continuing Operations

 

353

 

4,047

 

4,400

 

 

 

Diluted Earnings per Share from Continuing Operations

 

$

0.20

 

$

2.30

 

$

2.50

 

 

 

 

Note: The As Reported and As Adjusted amounts reflect the impact of adopting the new accounting rules related to the recognition of retirement benefits — See Footnote 1 on page 12 for additional information.

 

Specified items reflect intangible amortization expense of $1.975 billion and other expenses of $2.226 billion, primarily associated with acquisitions, including approximately $907 million of inventory step-up amortization related to St. Jude Medical and Alere Inc., charges related to restructuring actions and other expenses, partially offset by a gain of $1.163 billion from the sale of the AMO business. Tax expense includes the estimated net impact of U.S. tax reform of $1.46 billion. See page 21 for additional details regarding specified items.

 

14


 

A reconciliation of the fourth-quarter tax rates for continuing operations for 2018 and 2017 is shown below:

 

 

 

4Q18

 

 

 

($ in millions)

 

Pre-Tax
Income

 

Taxes on
Earnings

 

Tax
Rate

 

 

 

As reported (GAAP)

 

$

947

 

$

292

 

30.8

%

1

)

Specified items

 

714

 

(75

)

 

 

 

 

Excluding specified items

 

$

1,661

 

$

217

 

13.1

%

 

 

 

 

 

4Q17

 

 

 

($ in millions)

 

Pre-Tax
Income

 

Taxes on
Earnings

 

Tax
Rate

 

 

 

As reported (GAAP)

 

$

574

 

$

1,438

 

250.7

%

2

)

Specified items

 

986

 

(1,181

)

 

 

 

 

Excluding specified items

 

$

1,560

 

$

257

 

16.5

%

 

 

 


1)             Reported tax rate on a GAAP basis for the fourth quarter of 2018 includes the impact of an additional $85 million of tax expense for the transition tax associated with the TCJA.

 

2)             Reported tax rate on a GAAP basis for the fourth quarter of 2017 includes the estimated net impact of U.S. tax reform of $1.46 billion and the impact of approximately $30 million in excess tax benefits associated with share-based compensation.

 

A reconciliation of the full-year tax rates for continuing operations for 2018 and 2017 is shown below:

 

 

 

12M18

 

 

 

($ in millions)

 

Pre-Tax
Income

 

Taxes on
Earnings

 

Tax
Rate

 

 

 

As reported (GAAP)

 

$

2,873

 

$

539

 

18.8

%

3

)

Specified items

 

3,100

 

303

 

 

 

 

 

Excluding specified items

 

$

5,973

 

$

842

 

14.1

%

 

 

 

 

 

12M17

 

 

 

($ in millions)

 

Pre-Tax
Income

 

Taxes on
Earnings

 

Tax
Rate

 

 

 

As reported (GAAP)

 

$

2,231

 

$

1,878

 

84.2

%

4

)

Specified items

 

3,038

 

(1,009

)

 

 

 

 

Excluding specified items

 

$

5,269

 

$

869

 

16.5

%

 

 

 


3)             Reported tax rate on a GAAP basis for 2018 includes the impact of an additional $120 million of tax expense for the transition tax associated with the TCJA, as well as the impact of approximately $90 million in excess tax benefits associated with share-based compensation.

 

4)             Reported tax rate on a GAAP basis for 2017 includes the estimated net impact of U.S. tax reform of $1.46 billion, the impact of taxes associated with a $1.163 billion pretax gain on the sale of the AMO business and the impact of approximately $120 million in excess tax benefits associated with share-based compensation.

 

15


 

Abbott Laboratories and Subsidiaries

Non-GAAP Reconciliation of Adjusted Historical Revenue

Fourth Quarter Ended December 31, 2018 and 2017

($ in millions) (unaudited)

 

 

 

4Q18

 

4Q17

 

% Change vs. 4Q17

 

 

 

Abbott 

 

Rapid 

 

Adjusted 

 

Abbott 

 

Discontinued

 

Rapid

 

Adjusted 

 

 

 

Non-GAAP

 

 

 

Reported

 

Diagnostics

 

Revenue

 

Reported

 

Business a)

 

Diagnostics

 

Revenue

 

Reported

 

Reported

 

Organic b)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Company

 

7,765

 

(548

)

7,217

 

7,589

 

(18

)

(540

)

7,031

 

2.3

 

2.7

 

6.4

 

U.S.

 

2,755

 

(293

)

2,462

 

2,676

 

(18

)

(296

)

2,362

 

3.0

 

4.3

 

4.3

 

Int’l

 

5,010

 

(255

)

4,755

 

4,913

 

 

(244

)

4,669

 

2.0

 

1.9

 

7.6

 

Total Nutrition

 

1,777

 

 

1,777

 

1,784

 

(18

)

 

1,766

 

(0.4

)

0.6

 

3.6

 

U.S.

 

762

 

 

762

 

769

 

(18

)

 

751

 

(0.9

)

1.5

 

1.5

 

Int’l

 

1,015

 

 

1,015

 

1,015

 

 

 

1,015

 

(0.1

)

(0.1

)

5.1

 

Adult

 

764

 

 

764

 

784

 

(18

)

 

766

 

(2.5

)

(0.2

)

3.5

 

U.S.

 

295

 

 

295

 

319

 

(18

)

 

301

 

(7.5

)

(1.8

)

(1.8

)

Int’l

 

469

 

 

469

 

465

 

 

 

465

 

0.9

 

0.9

 

6.6

 

Total Diagnostics

 

1,961

 

(548

)

1,413

 

1,906

 

 

(540

)

1,366

 

2.9

 

3.5

 

7.4

 

U.S.

 

699

 

(293

)

406

 

692

 

 

(296

)

396

 

1.1

 

2.5

 

2.5

 

Int’l

 

1,262

 

(255

)

1,007

 

1,214

 

 

(244

)

970

 

3.9

 

3.9

 

9.4

 

Rapid Diagnostics

 

548

 

(548

)

 

540

 

 

(540

)

 

1.3

 

n/a

 

n/a

 

U.S.

 

293

 

(293

)

 

296

 

 

(296

)

 

(0.9

)

n/a

 

n/a

 

Int’l

 

255

 

(255

)

 

244

 

 

(244

)

 

3.9

 

n/a

 

n/a

 

 


a) Reflects sales related to a non-core product line within the U.S. Adult Nutrition business, which was discontinued during the third quarter 2018.

b) In order to compute results excluding the impact of exchange rates, current year U.S. dollar sales are multiplied or divided, as appropriate, by the current year average foreign exchange rates and then those amounts are multiplied or divided, as appropriate, by the prior year average foreign exchange rates.

 

16


 

Abbott Laboratories and Subsidiaries

Non-GAAP Reconciliation of Adjusted Historical Revenue

Year Ended December 31, 2018 and 2017

($ in millions) (unaudited)

 

 

 

12M18

 

12M17

 

% Change vs. 12M17

 

 

 

 

 

 

 

 

 

 

 

Divested or

 

 

 

 

 

 

 

 

 

 

 

 

 

Abbott 

 

Rapid 

 

Adjusted 

 

Abbott 

 

Discontinued

 

Rapid

 

Adjusted 

 

 

 

Non-GAAP

 

 

 

Reported

 

Diagnostics

 

Revenue

 

Reported

 

Businesses a)

 

Diagnostics

 

Revenue

 

Reported

 

Reported

 

Organic b)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Company

 

30,578

 

(2,072

)

28,506

 

27,390

 

(205

)

(540

)

26,645

 

11.6

 

7.0

 

7.3

 

U.S.

 

10,839

 

(1,148

)

9,691

 

9,673

 

(102

)

(296

)

9,275

 

12.1

 

4.5

 

4.5

 

Int’l

 

19,739

 

(924

)

18,815

 

17,717

 

(103

)

(244

)

17,370

 

11.4

 

8.3

 

8.8

 

Total Nutrition

 

7,229

 

 

7,229

 

6,925

 

(18

)

 

6,907

 

4.4

 

4.7

 

5.2

 

U.S.

 

3,075

 

 

3,075

 

3,031

 

(18

)

 

3,013

 

1.5

 

2.1

 

2.1

 

Int’l

 

4,154

 

 

4,154

 

3,894

 

 

 

3,894

 

6.7

 

6.7

 

7.6

 

Adult

 

3,132

 

 

3,132

 

3,036

 

(18

)

 

3,018

 

3.2

 

3.8

 

4.6

 

U.S.

 

1,232

 

 

1,232

 

1,254

 

(18

)

 

1,236

 

(1.7

)

(0.3

)

(0.3

)

Int’l

 

1,900

 

 

1,900

 

1,782