Oct. 21--Abbott Laboratories, maker of heart stents and diagnostic equipment, said Wednesday that strong sales of generic drugs in emerging markets overseas led the way to a robust third-quarter performance, and it was on track to achieve its full-year earnings projections.
By the numbers: The North Chicago-based health care giant posted earnings of $580 million, or 38 cents a share, up from $538 million, or 36 cents a share, a year ago.
The company rang up worldwide sales of $5.15 billion, up 1.4 percent from a year ago. By division, the strongest sales growth was in generic drugs, up 24.6 percent, and the weakest was medical devices, down 7.4 percent.
The "why": Strong sales in China, India, Brazil and Russia helped Abbott reach its goals. Despite a slowing consumer economy in some emerging markets, spending on health care remains strong, Abbott said.
Other highlights from the quarter: Pediatric nutrition was another decent performer, with sales up 4.1 percent. During the quarter, Abbott launched Similac Sensitive Non-GMO and Go Grow by Similac Non-GMO in the U.S. Adult nutrition sales fell 4.5 percent. Sales of core laboratory diagnostics increased 8.1 percent.
The company said prior-year financial results were adjusted to exclude the sales from its developed markets branded generic pharmaceuticals and animal health division, which were sold to Mylan and Zoetis, respectively, in the first quarter of 2015.
Quote you on that: "We have not backed off one iota," CEO Miles White told analysts during a conference call, responding to a question about future mergers and acquisitions. Some analysts said they had expected Abbott to announce more deals, based on the company's extensive comments on the subject earlier this year. But Abbott's only significant acquisition during the quarter was Tendyne Holdings Inc., a private medical device company that develops mitral valve replacements for hearts. White said Abbott is "still every bit as active and interested" in buying companies.
2015 outlook: The company narrowed its full-year earnings-per-share guidance range from continuing operations, excluding specific items, to $2.14 to $2.16.
Market reaction: Abbott shares edged up 1.1 percent Wednesday, closing at $42.20.
jrussell@tribpub.com
