July 22--Abbott Laboratories said Wednesday that results held up better than expected in the second quarter despite the impact of a strong dollar, as the health care company reported strong sales growth in its diagnostics and pharmaceuticals businesses.
A snapshot of the quarter:
By the numbers: Overall, for the period ended June, Abbott posted earnings of $784 million, or 52 cents a share, up from $466 million, or 30 cents a share, a year earlier.
The 2015 second quarter's bottom line was boosted by a $207 million gain from the sale of Mylan stock. Abbott sold its branded-generics pharmaceutical business in developed markets to Mylan in the first quarter and became its largest shareholder. The company also reported $121 million in one-time expenses associated with cost-cutting initiatives and acquisitions.
Adjusted earnings per share was also 52 cents, beating the analysts' consensus of 50 cents as reported by Factset.
In the year-ago quarter, earnings per share was 49 cents, excluding special items and discontinued operations.
Sales were $5.17 billion, up 2.2 percent. Operational revenue, which strips out foreign currency impacts, grew 10.8 percent.
The "why": Sales of diagnostic products, the company's largest business, grew 8.7 percent, excluding currency impacts. U.S. hospitals bought the company's recently approved hand-held device that can detect pregnancies for women in emergencies.
Pharmaceutical sales increased 46 percent, excluding current adjustments, driven by growth in emerging markets
Other highlights from the quarter: A new glucose monitoring system for diabetics sparked sales in Europe, but Abbott does not have manufacturing capacity to meet demand. The company received European approval for a fully dissolving stent with a next-generation catheter delivery system and has submitted the device for regulatory approval in the United States and Japan. Sales of infant formula in China remain strong, even as competitors report slower growth in market. China represents about 8 percent of Abbott's overall sales.
Quote you on that: "Halfway through the year, foreign exchange is impacting results for Abbott at a somewhat higher level than we projected in January," CEO Miles White told analysts in a conference call. "At the same time, the fundamentals of the end markets in which we compete remained strong, and we've remained disciplined in managing our business in this environment."
2015 outlook: Abbott's full-year adjusted earnings per share guidance remained $2.10 to $2.20. Not adjusted, the company expects $1.50 to $1.60.
Market reaction: Abbott shares closed at $50.98, up 2.4 percent.
asachdev@tribpub.com
