Abbott Reports Strong Second Quarter Results and Confirms Double-Digit Ongoing Earnings Growth Outlook for 2010
Worldwide sales increased 17.8 percent with strong performance across diverse businesses. Worldwide nutritional sales increased 10.1 percent, driven by strong double-digit growth in international nutritionals.
Jul 22 2010 --- Abbott announced financial results for the second quarter ended June 30, 2010. A short overview:
- Second Quarter Ongoing EPS Growth of 13.5 Percent
- Worldwide Sales Increased 17.8 Percent
- Strong Performance Across Diverse Businesses
- Accelerated Emerging Markets Leadership
- Enhanced Broad-Based Pipeline
"Abbott's diverse sources of earnings growth led to strong financial results again this quarter, continuing Abbott's record of steady, reliable performance," said Miles D. White, chairman and chief executive officer, Abbott. "We also strengthened our emerging markets presence with the announced acquisition of Piramal Healthcare Solutions, giving Abbott the number-one position in the fast-growing Indian pharmaceutical market. This follows several other strategic actions that provide Abbott critical mass to capture the significant growth expected in emerging markets."
Abbott is confirming previously issued earnings-per-share guidance for the full-year 2010 of $4.13 to $4.18, excluding specified items. The midpoint of this guidance range reflects growth of approximately 12 percent over 2009.
Abbott forecasts specified items for the full-year 2010 of approximately $0.55 per share, primarily associated with the impact of health care reform on deferred tax assets, acquisition integration, previously announced cost reduction initiatives, a litigation reserve, in-process research and development related to the Neurocrine collaboration, and the one-time impact of the devaluation of the Venezuelan bolivar on balance sheet translation. Including these specified items, projected earnings per share under Generally Accepted Accounting Principles (GAAP) would be $3.58 to $3.63 for the full-year 2010. As previously indicated, this forecast excludes additional integration costs associated with the Solvay Pharmaceuticals acquisition that are expected to be quantified in the third quarter.
On June 11, 2010, the board of directors of Abbott declared the company's quarterly common dividend of 44 cents per share, an increase of 10 percent over the prior period. The cash dividend is payable Aug. 15, 2010, to shareholders of record at the close of business on July 15, 2010. This marks the 346th consecutive dividend paid by Abbott since 1924.
