0000001800FALSENew York Stock ExchangeChicago Stock Exchange, Inc.00000018002023-07-202023-07-200000001800exch:XCHI2023-07-202023-07-200000001800exch:XNYS2023-07-202023-07-20
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
July 20, 2023
Date of Report (Date of earliest event reported)
ABBOTT LABORATORIES
(Exact name of registrant as specified in charter)
_______________________________________________________
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Illinois | | 1-2189 | | 36-0698440 |
(State or other Jurisdiction of Incorporation) | | (Commission File Number) | | (IRS Employer 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)) |
Securities Registered Pursuant to Section 12(b) of the Act:
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Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered |
Common Shares, Without Par Value | ABT | New York Stock Exchange Chicago Stock Exchange, Inc. |
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 July 20, 2023, Abbott Laboratories announced its results of operations for the second quarter 2023.
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 excluding specified items. These non-GAAP financial measures adjust for factors that are unusual or unpredictable, such as expenses primarily associated with acquisitions, restructuring actions, cost reduction initiatives, a voluntary recall, charges for intangible asset impairments, fair value adjustments to the contingent consideration related to business acquisitions, certain regulatory costs, tax benefits associated with specified items, net tax expense as a result of the resolution of various tax positions related to prior years, and excess tax benefits associated with 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
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Exhibit No. | | Exhibit |
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104 | | Cover Page Interactive Data File (the cover page XBRL tags are embedded in the Inline XBRL document). |
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.
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| ABBOTT LABORATORIES |
| |
Date: July 20, 2023 | By: | /s/ Robert E. Funck, Jr. |
| | Robert E. Funck, Jr. |
| | Executive Vice President, Finance and Chief Financial Officer |
Exhibit 99.1 9.1
Abbott Reports Second-Quarter 2023 Results; Increases Outlook For Underlying Base Business
–Sales of $10.0 billion driven by strong underlying base business performance
–Reported sales decreased 11.4 percent due to anticipated decline in COVID-19 testing-related sales versus prior year
–Organic sales growth for underlying base business of 11.5 percent, led by Medical Devices, Established Pharmaceuticals and Nutrition
–Continues to strengthen portfolio with new product approvals and expanded reimbursement coverage
ABBOTT PARK, Ill., July 20, 2023 — Abbott today announced financial results for the second quarter ended June 30, 2023.
•Second-quarter GAAP diluted EPS of $0.78 and adjusted diluted EPS of $1.08, which excludes specified items.
•Projected full-year 2023 diluted EPS on a GAAP basis of $3.02 to $3.22.
•Projected full-year adjusted EPS of $4.30 to $4.50 remains unchanged but reflects an increased outlook for the underlying base business offset by a lower forecasted earnings contribution from COVID-19 testing-related sales.
•Abbott now projects full-year 2023 organic sales growth, excluding COVID-19 testing-related sales1, to be in the low double-digits2 and COVID-19 testing-related sales of approximately $1.3 billion.
•In May, Abbott received U.S. Food and Drug Administration (FDA) approval of its TactiFlex® Ablation Catheter, Sensor Enabled™, the world's first ablation catheter with a unique flexible electrode tip and contact force sensing technology to treat patients with atrial fibrillation (AFib).
•In June, Abbott announced its FreeStyle Libre® 2 system is the first and only continuous glucose monitoring (CGM) system to receive expanded national reimbursement in France to now include all people with diabetes who use insulin.
•In June, Abbott received U.S. FDA approval of its AVEIR™ dual chamber (DR) leadless pacemaker system, the world's first dual chamber leadless pacing system that treats people with abnormal heart rhythms.
"We're achieving strong growth in our underlying base business," said Robert B. Ford, chairman and chief executive officer, Abbott. "We expect our highly productive pipeline to sustain the momentum we're building this year and position us well for growth in the future."
SECOND-QUARTER BUSINESS OVERVIEW
Management believes that measuring sales growth rates on an organic basis, which excludes the impact of foreign exchange, the impact of exiting the pediatric nutrition business in China, and the impact of the acquisition of Cardiovascular Systems, Inc. (CSI) is an appropriate way for investors to best understand the core underlying performance of the business. Management further believes that measuring sales growth rates on an organic basis excluding COVID-19 tests is an appropriate way for investors to best understand underlying base business performance as the COVID-19 pandemic has shifted to an endemic state, resulting in significantly lower demand for COVID-19 tests.
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.
Second Quarter 2023 Results (2Q23)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Sales 2Q23 ($ in millions) | Total Company | | Nutrition | | Diagnostics | | Established Pharmaceuticals | | Medical Devices |
U.S. | 3,758 | | | 881 | | | 961 | | | — | | | 1,913 | |
International | 6,220 | | | 1,195 | | | 1,356 | | | 1,287 | | | 2,382 | |
Total reported | 9,978 | | | 2,076 | | | 2,317 | | | 1,287 | | | 4,295 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
% Change vs. 2Q22 | | | | | | | | | |
U.S. | (23.2) | | | 15.7 | | | (60.7) | | | n/a | | 13.3 | |
International | (2.3) | | | 0.3 | | | (26.8) | | | 5.2 | | | 13.6 | |
Total reported | (11.4) | | | 6.3 | | | (46.0) | | | 5.2 | | | 13.5 | |
Impact of foreign exchange | (2.5) | | | (3.0) | | | (1.3) | | | (7.4) | | | (1.9) | |
Impact of CSI acquisition | 0.4 | | | — | | | — | | | — | | | 1.2 | |
Impact of business exit | (0.1) | | | (0.6) | | | — | | | — | | | — | |
Organic | (9.2) | | | 9.9 | | | (44.7) | | | 12.6 | | | 14.2 | |
Impact of COVID-19 testing sales (3) | (20.7) | | | — | | | (51.8) | | | — | | | — | |
Organic (excluding COVID-19 tests) | 11.5 | | | 9.9 | | | 7.1 | | | 12.6 | | | 14.2 | |
| | | | | | | | | |
U.S. | 10.9 | | | 15.7 | | | 5.2 | | | n/a | | 11.0 | |
International | 11.9 | | | 6.1 | | | 8.2 | | | 12.6 | | | 16.8 | |
First Half 2023 Results (1H23)
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Sales 1H23 ($ in millions) | Total Company | | Nutrition | | Diagnostics | | Established Pharmaceuticals | | Medical Devices |
U.S. | 7,686 | | | 1,693 | | | 2,296 | | | — | | | 3,691 | |
International | 12,039 | | | 2,350 | | | 2,709 | | | 2,476 | | | 4,504 | |
Total reported | 19,725 | | | 4,043 | | | 5,005 | | | 2,476 | | | 8,195 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
% Change vs. 1H22 | | | | | | | | | |
U.S. | (21.8) | | | 17.7 | | | (55.4) | | | n/a | | 14.2 | |
International | (9.6) | | | (2.4) | | | (38.4) | | | 4.4 | | | 8.6 | |
Total reported | (14.8) | | | 5.1 | | | (47.6) | | | 4.4 | | | 11.0 | |
Impact of foreign exchange | (2.9) | | | (3.4) | | | (1.6) | | | (7.5) | | | (2.9) | |
Impact of CSI acquisition | 0.2 | | | — | | | — | | | — | | | 0.6 | |
Impact of business exit | (0.2) | | | (1.6) | | | — | | | — | | | — | |
Organic | (11.9) | | | 10.1 | | | (46.0) | | | 11.9 | | | 13.3 | |
Impact of COVID-19 testing sales (3) | (22.6) | | | — | | | (51.7) | | | — | | | — | |
Organic (excluding COVID-19 tests) | 10.7 | | | 10.1 | | | 5.7 | | | 11.9 | | | 13.3 | |
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U.S. | 11.7 | | | 17.7 | | | 2.7 | | | n/a | | 12.9 | |
International | 10.2 | | | 5.4 | | | 7.5 | | | 11.9 | | | 13.7 | |
Refer to page 16 for a reconciliation of adjusted historical revenue to reported revenue.
Nutrition
Second Quarter 2023 Results (2Q23)
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Sales 2Q23 ($ in millions) | Total | | Pediatric | | Adult |
U.S. | 881 | | | 507 | | | 374 | |
International | 1,195 | | | 517 | | | 678 | |
Total reported | 2,076 | | | 1,024 | | | 1,052 | |
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% Change vs. 2Q22 | | | | | |
U.S. | 15.7 | | | 22.5 | | | 7.6 | |
International | 0.3 | | | 1.1 | | | (0.2) | |
Total reported | 6.3 | | | 10.6 | | | 2.5 | |
Impact of foreign exchange | (3.0) | | | (2.3) | | | (3.5) | |
Impact of business exit | (0.6) | | | (1.6) | | | — | |
Organic | 9.9 | | | 14.5 | | | 6.0 | |
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U.S. | 15.7 | | | 22.5 | | | 7.6 | |
International | 6.1 | | | 7.5 | | | 5.2 | |
Worldwide Nutrition sales increased 6.3 percent on a reported basis and 9.9 percent on an organic basis in the second quarter. Refer to page 16 for a reconciliation of adjusted historical revenue to reported revenue.
In Pediatric Nutrition, global sales increased 10.6 percent on a reported basis and 14.5 percent on an organic basis. In the U.S., sales growth of 22.5 percent was primarily driven by continued market share recovery in the infant formula business following a voluntary recall of certain products last year.
In Adult Nutrition, global sales increased 2.5 percent on a reported basis and 6.0 percent on an organic basis, which was led by strong global growth of Ensure®, Abbott's market-leading complete and balanced nutrition brand.
First Half 2023 Results (1H23)
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Sales 1H23 ($ in millions) | Total | | Pediatric | | Adult |
U.S. | 1,693 | | | 966 | | | 727 | |
International | 2,350 | | | 982 | | | 1,368 | |
Total reported | 4,043 | | | 1,948 | | | 2,095 | |
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% Change vs. 1H22 | | | | | |
U.S. | 17.7 | | | 28.6 | | | 5.8 | |
International | (2.4) | | | (3.8) | | | (1.4) | |
Total reported | 5.1 | | | 9.9 | | | 1.0 | |
Impact of foreign exchange | (3.4) | | | (2.6) | | | (4.1) | |
Impact of business exit | (1.6) | | | (3.8) | | | — | |
Organic | 10.1 | | | 16.3 | | | 5.1 | |
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U.S. | 17.7 | | | 28.6 | | | 5.8 | |
International | 5.4 | | | 6.4 | | | 4.8 | |
Diagnostics
Second Quarter 2023 Results (2Q23)
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Sales 2Q23 ($ in millions) | Total | | Core Laboratory | | Molecular | | Point of Care | | Rapid Diagnostics * |
U.S. | 961 | | | 311 | | | 43 | | | 99 | | | 508 | |
International | 1,356 | | | 982 | | | 98 | | | 43 | | | 233 | |
Total reported | 2,317 | | | 1,293 | | | 141 | | | 142 | | | 741 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
% Change vs. 2Q22 | | | | | | | | | |
U.S. | (60.7) | | | 8.6 | | | (40.1) | | | (2.3) | | | (74.4) | |
International | (26.8) | | | 5.1 | | | (29.9) | | | 13.1 | | | (68.5) | |
Total reported | (46.0) | | | 5.9 | | | (33.3) | | | 1.9 | | | (72.8) | |
Impact of foreign exchange | (1.3) | | | (3.6) | | | (1.2) | | | (0.5) | | | (0.5) | |
Organic | (44.7) | | | 9.5 | | | (32.1) | | | 2.4 | | | (72.3) | |
Impact of COVID-19 testing sales (3) | (51.8) | | | (0.6) | | | (30.8) | | | — | | | (75.6) | |
Organic (excluding COVID-19 tests) | 7.1 | | | 10.1 | | | (1.3) | | | 2.4 | | | 3.3 | |
| | | | | | | | | |
U.S. | 5.2 | | | 9.4 | | | 3.4 | | | (2.3) | | | 4.0 | |
International | 8.2 | | | 10.4 | | | (3.1) | | | 15.2 | | | 2.3 | |
As expected, Diagnostics sales growth in the second quarter was negatively impacted by year-over-year declines in COVID-19 testing-related sales3. Worldwide COVID-19 testing sales were $263 million in the second quarter of 2023 compared to $2.324 billion in the second quarter of the prior year.
Excluding COVID-19 testing-related sales, global Diagnostics sales increased 4.3 percent on a reported basis and 7.1 percent on an organic basis.
First Half 2023 Results (1H23)
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Sales 1H23 ($ in millions) | Total | | Core Laboratory | | Molecular | | Point of Care | | Rapid Diagnostics * |
U.S. | 2,296 | | | 600 | | | 90 | | | 192 | | | 1,414 | |
International | 2,709 | | | 1,875 | | | 198 | | | 84 | | | 552 | |
Total reported | 5,005 | | | 2,475 | | | 288 | | | 276 | | | 1,966 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
% Change vs. 1H22 | | | | | | | | | |
U.S. | (55.4) | | | 8.2 | | | (63.2) | | | 0.1 | | | (66.0) | |
International | (38.4) | | | 1.3 | | | (48.9) | | | 11.2 | | | (73.5) | |
Total reported | (47.6) | | | 2.9 | | | (54.4) | | | 3.2 | | | (68.5) | |
Impact of foreign exchange | (1.6) | | | (4.4) | | | (1.1) | | | (0.8) | | | (0.6) | |
Organic | (46.0) | | | 7.3 | | | (53.3) | | | 4.0 | | | (67.9) | |
Impact of COVID-19 testing sales (3) | (51.7) | | | (1.3) | | | (38.8) | | | — | | | (73.6) | |
Organic (excluding COVID-19 tests) | 5.7 | | | 8.6 | | | (14.5) | | | 4.0 | | | 5.7 | |
| | | | | | | | | |
U.S. | 2.7 | | | 9.2 | | | (21.0) | | | 0.1 | | | 1.5 | |
International | 7.5 | | | 8.5 | | | (11.6) | | | 14.0 | | | 12.3 | |
*The Acelis Connected Health business was internally transferred from Rapid Diagnostics to Heart Failure on January 1, 2023. As a result, $28 million of sales in the second quarter of 2022 and $57 million in the first half 2022 were moved from Rapid Diagnostics to Heart Failure.
Established Pharmaceuticals
Second Quarter 2023 Results (2Q23)
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Sales 2Q23 ($ in millions) | Total | | Key Emerging Markets | | Other |
U.S. | — | | | — | | | — | |
International | 1,287 | | | 990 | | | 297 | |
Total reported | 1,287 | | | 990 | | | 297 | |
| | | | | | | | | | | | | | | | | |
% Change vs. 2Q22 | | | | | |
U.S. | n/a | | n/a | | n/a |
International | 5.2 | | | 4.6 | | | 7.1 | |
Total reported | 5.2 | | | 4.6 | | | 7.1 | |
Impact of foreign exchange | (7.4) | | | (8.4) | | | (4.4) | |
Organic | 12.6 | | | 13.0 | | | 11.5 | |
| | | | | |
U.S. | n/a | | n/a | | n/a |
International | 12.6 | | | 13.0 | | | 11.5 | |
Established Pharmaceuticals sales increased 5.2 percent on a reported basis and 12.6 percent on an organic basis in the second quarter.
Key Emerging Markets include several emerging countries that represent the most attractive long-term growth opportunities for Abbott's branded generics product portfolio. Sales in these geographies increased 4.6 percent on a reported basis and 13.0 percent on an organic basis, led by growth in several geographies and therapeutic areas, including gastroenterology, women's health, and central nervous system/pain management.
First Half 2023 Results (1H23)
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Sales 1H23 ($ in millions) | Total | | Key Emerging Markets | | Other |
U.S. | — | | | — | | | — | |
International | 2,476 | | | 1,902 | | | 574 | |
Total reported | 2,476 | | | 1,902 | | | 574 | |
| | | | | | | | | | | | | | | | | |
% Change vs. 1H22 | | | | | |
U.S. | n/a | | n/a | | n/a |
International | 4.4 | | | 2.7 | | | 10.8 | |
Total reported | 4.4 | | | 2.7 | | | 10.8 | |
Impact of foreign exchange | (7.5) | | | (8.0) | | | (5.5) | |
Organic | 11.9 | | | 10.7 | | | 16.3 | |
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U.S. | n/a | | n/a | | n/a |
International | 11.9 | | | 10.7 | | | 16.3 | |
Medical Devices
Second Quarter 2023 Results (2Q23)
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Sales 2Q23 ($ in millions) | Total | | Rhythm Management | | Electro- physiology | | Heart Failure * | | Vascular | | Structural Heart | | Neuro-modulation | | Diabetes Care |
U.S. | 1,913 | | | 269 | | | 245 | | | 226 | | | 264 | | | 219 | | | 185 | | | 505 | |
International | 2,382 | | | 314 | | | 308 | | | 69 | | | 451 | | | 279 | | | 42 | | | 919 | |
Total reported | 4,295 | | | 583 | | | 553 | | | 295 | | | 715 | | | 498 | | | 227 | | | 1,424 | |
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% Change vs. 2Q22 | | | | | | | | | | | | | | | |
U.S. | 13.3 | | | 2.0 | | | 8.8 | | | 8.9 | | | 15.4 | | | 5.9 | | | 17.6 | | | 26.6 | |
International | 13.6 | | | 10.3 | | | 18.7 | | | 11.9 | | | 6.1 | | | 19.8 | | | 5.1 | | | 15.8 | |
Total reported | 13.5 | | | 6.3 | | | 14.1 | | | 9.6 | | | 9.3 | | | 13.3 | | | 15.1 | | | 19.4 | |
Impact of foreign exchange | (1.9) | | | (1.9) | | | (2.8) | | | (0.3) | | | (2.3) | | | (1.5) | | | (1.1) | | | (2.0) | |
Impact of CSI acquisition | 1.2 | | | — | | | — | | | — | | | 6.6 | | | — | | | — | | | — | |
Organic | 14.2 | | | 8.2 | | | 16.9 | | | 9.9 | | | 5.0 | | | 14.8 | | | 16.2 | | | 21.4 | |
| | | | | | | | | | | | | | | |
U.S. | 11.0 | | | 2.0 | | | 8.8 | | | 8.9 | | | (1.9) | | | 5.9 | | | 17.6 | | | 26.6 | |
International | 16.8 | | | 14.0 | | | 23.9 | | | 13.2 | | | 8.7 | | | 22.6 | | | 10.5 | | | 18.8 | |
Worldwide Medical Devices sales increased 13.5 percent on a reported basis and 14.2 percent on an organic basis in the second quarter. Sales growth was led by double-digit organic growth in Diabetes Care, Electrophysiology, Structural Heart and Neuromodulation. Several recently launched products and new indications contributed to the strong performance, including Amplatzer® Amulet®, Navitor®, TriClip®, and Aveir™.
In Electrophysiology, internationally, sales grew high-teens on a reported basis and more than 20 percent on an organic basis, which includes high-teens growth in Europe.
In Diabetes Care, Freestyle Libre sales were $1.3 billion, which represents sales growth of 22.9 percent on a reported basis and 24.7 percent on an organic basis.
First Half 2023 Results (1H23)
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Sales 1H23 ($ in millions) | Total | | Rhythm Management | | Electro- physiology | | Heart Failure * | | Vascular | | Structural Heart | | Neuro-modulation | | Diabetes Care |
U.S. | 3,691 | | | 529 | | | 483 | | | 444 | | | 482 | | | 429 | | | 340 | | | 984 | |
International | 4,504 | | | 581 | | | 575 | | | 132 | | | 850 | | | 530 | | | 83 | | | 1,753 | |
Total reported | 8,195 | | | 1,110 | | | 1,058 | | | 576 | | | 1,332 | | | 959 | | | 423 | | | 2,737 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
% Change vs. 1H22 | | | | | | | | | | | | | | | |
U.S. | 14.2 | | | 3.2 | | | 9.4 | | | 10.0 | | | 10.3 | | | 8.1 | | | 13.2 | | | 32.7 | |
International | 8.6 | | | 3.6 | | | 8.7 | | | 14.1 | | | 1.8 | | | 16.8 | | | 9.1 | | | 11.2 | |
Total reported | 11.0 | | | 3.4 | | | 9.0 | | | 10.9 | | | 4.7 | | | 12.8 | | | 12.4 | | | 18.1 | |
Impact of foreign exchange | (2.9) | | | (2.8) | | | (3.8) | | | (0.8) | | | (3.1) | | | (2.7) | | | (1.4) | | | (3.1) | |
Impact of CSI acquisition | 0.6 | | | — | | | — | | | — | | | 3.4 | | | — | | | — | | | — | |
Organic | 13.3 | | | 6.2 | | | 12.8 | | | 11.7 | | | 4.4 | | | 15.5 | | | 13.8 | | | 21.2 | |
| | | | | | | | | | | | | | | |
U.S. | 12.9 | | | 3.2 | | | 9.4 | | | 10.0 | | | 1.3 | | | 8.1 | | | 13.2 | | | 32.7 | |
International | 13.7 | | | 8.9 | | | 15.7 | | | 17.4 | | | 6.1 | | | 22.0 | | | 16.1 | | | 15.8 | |
*The Acelis Connected Health business was internally transferred from Rapid Diagnostics to Heart Failure on January 1, 2023. As a result, $28 million of sales in the second quarter of 2022 and $57 million in the first half of 2022 were moved from Rapid Diagnostics to Heart Failure.
ABBOTT'S EARNINGS-PER-SHARE GUIDANCE
Abbott projects full-year 2023 diluted earnings per share under GAAP of $3.02 to $3.22. Abbott forecasts specified items for the full-year 2023 of $1.28 per share primarily related to intangible amortization, costs associated with acquisitions, restructuring and cost reduction initiatives and other net expenses. Excluding specified items, projected adjusted diluted earnings per share would be $4.30 to $4.50 for the full-year 2023.
ABBOTT DECLARES 398TH CONSECUTIVE QUARTERLY DIVIDEND
On June 9, 2023, the board of directors of Abbott declared the company's quarterly dividend of $0.51 per share. Abbott's cash dividend is payable August 15, 2023, to shareholders of record at the close of business on July 14, 2023.
Abbott has increased its dividend payout for 51 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.
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 115,000 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.
Abbott will live-webcast its second-quarter earnings conference call through its Investor Relations website at www.abbottinvestor.com at 8:30 a.m. Central time today. An archived edition of the webcast will be available later in the 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" in our Annual Report on Form 10-K for the year ended Dec. 31, 2022, and are incorporated herein 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.
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Abbott Financial: Michael Comilla, 224-668-1872 Ryan Aliff, 224-667-2299 | Abbott Media: Karen Twigg May, 224-668-2681 Kate Dyer, 224-668-9965 |
1For the full-year 2022, COVID-19 testing-related sales were $8.368 billion and total worldwide sales were $43.653 billion.
2Abbott has not provided the related GAAP financial measure for organic sales growth, excluding COVID-19 testing-related sales, on a forward-looking basis because the company is unable to predict the impact of foreign exchange due to the unpredictability of future changes in foreign exchange rates, which could significantly impact reported sales growth.
3Diagnostic sales and COVID-19 testing-related sales in 2023 and 2022 are summarized below:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Sales 2Q23 | | | | COVID Tests Sales 2Q23 |
($ in millions) | U.S. | | Int'l | | Total | | | | | | | | U.S. | | Int'l | | Total |
Total Diagnostics | 961 | | | 1,356 | | | 2,317 | | | | | | | | | 216 | | | 47 | | | 263 | |
Core Laboratory | 311 | | | 982 | | | 1,293 | | | | | | | | | 2 | | | 3 | | | 5 | |
Molecular | 43 | | | 98 | | | 141 | | | | | | | | | 4 | | | 4 | | | 8 | |
| | | | | | | | | | | | | | | | | |
Rapid Diagnostics | 508 | | | 233 | | | 741 | | | | | | | | | 210 | | | 40 | | | 250 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Sales 2Q22 | | | | COVID Tests Sales 2Q22 |
($ in millions) | U.S. | | Int'l | | Total | | | | | | | | U.S. | | Int'l | | Total |
Total Diagnostics | 2,441 | | | 1,853 | | | 4,294 | | | | | | | | | 1,732 | | | 592 | | | 2,324 | |
Core Laboratory | 287 | | | 934 | | | 1,221 | | | | | | | | | 3 | | | 9 | | | 12 | |
Molecular | 71 | | | 141 | | | 212 | | | | | | | | | 34 | | | 41 | | | 75 | |
| | | | | | | | | | | | | | | | | |
Rapid Diagnostics | 1,982 | | | 740 | | | 2,722 | | | | | | | | | 1,695 | | | 542 | | | 2,237 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Sales 1H23 | | | | COVID Tests Sales 1H23 |
($ in millions) | U.S. | | Int'l | | Total | | | | | | | | U.S. | | Int'l | | Total |
Total Diagnostics | 2,296 | | | 2,709 | | | 5,005 | | | | | | | | | 824 | | | 169 | | | 993 | |
Core Laboratory | 600 | | | 1,875 | | | 2,475 | | | | | | | | | 4 | | | 7 | | | 11 | |
Molecular | 90 | | | 198 | | | 288 | | | | | | | | | 14 | | | 14 | | | 28 | |
| | | | | | | | | | | | | | | | | |
Rapid Diagnostics | 1,414 | | | 552 | | | 1,966 | | | | | | | | | 806 | | | 148 | | | 954 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Sales 1H22 | | | | COVID Tests Sales 1H22 |
($ in millions) | U.S. | | Int'l | | Total | | | | | | | | U.S. | | Int'l | | Total |
Total Diagnostics | 5,153 | | | 4,398 | | | 9,551 | | | | | | | | | 3,720 | | | 1,908 | | | 5,628 | |
Core Laboratory | 555 | | | 1,850 | | | 2,405 | | | | | | | | | 8 | | | 32 | | | 40 | |
Molecular | 243 | | | 389 | | | 632 | | | | | | | | | 148 | | | 173 | | | 321 | |
| | | | | | | | | | | | | | | | | |
Rapid Diagnostics | 4,163 | | | 2,084 | | | 6,247 | | | | | | | | | 3,564 | | | 1,703 | | | 5,267 | |
Abbott Laboratories and Subsidiaries
Condensed Consolidated Statement of Earnings
Second Quarter Ended June 30, 2023 and 2022
(in millions, except per share data)
(unaudited)
| | | | | | | | | | | | | | | | | | | | |
| 2Q23 | | 2Q22 | | % Change | |
Net Sales | $9,978 | | $11,257 | | (11.4) | | |
| | | | | | |
Cost of products sold, excluding amortization expense | 4,483 | | | 4,933 | | | (9.1) | | |
Amortization of intangible assets | 498 | | | 507 | | | (1.7) | | |
Research and development | 715 | | | 684 | | | 4.5 | | |
Selling, general, and administrative | 2,740 | | | 2,757 | | | (0.6) | | |
Total Operating Cost and Expenses | 8,436 | | | 8,881 | | | (5.0) | | |
| | | | | | |
Operating Earnings | 1,542 | | | 2,376 | | | (35.1) | | |
| | | | | | |
Interest expense, net | 61 | | | 106 | | | (41.7) | | |
Net foreign exchange (gain) loss | 21 | | | — | | | n/m | |
Other (income) expense, net | (176) | | | (82) | | | 115.9 | | |
Earnings before taxes | 1,636 | | | 2,352 | | | (30.4) | | |
Taxes on earnings | 261 | | | 334 | | | (22.0) | | 1) |
| | | | | | |
Net Earnings | $1,375 | | $2,018 | | (31.8) | | |
| | | | | | |
Net Earnings excluding Specified Items, as described below | $1,893 | | $2,542 | | (25.5) | | 2) |
| | | | | | |
Diluted Earnings per Common Share | $0.78 | | $1.14 | | (31.6) | | |
| | | | | | |
Diluted Earnings per Common Share, excluding Specified Items, as described below | $1.08 | | $1.43 | | (24.5) | | 2) |
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Average Number of Common Shares Outstanding Plus Dilutive Common Stock Options | 1,750 | | | 1,765 | | | | |
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.
1)2023 Taxes on Earnings includes the recognition of approximately $40 million of net tax expense as a result of the resolution of various tax positions related to prior years.
2)2023 Net Earnings and Diluted Earnings per Common Share, excluding Specified Items, excludes net after-tax charges of $518 million, or $0.30 per share, for intangible amortization, charges related to restructuring and cost reduction initiatives, expenses associated with acquisitions and other net expenses.
2022 Net Earnings and Diluted Earnings per Common Share, excluding Specified Items, excludes net after-tax charges of $524 million, or $0.29 per share, for intangible amortization, charges related to a voluntary recall and other net expenses primarily associated with acquisitions.
Abbott Laboratories and Subsidiaries
Condensed Consolidated Statement of Earnings
First Half Ended June 30, 2023 and 2022
(in millions, except per share data)
(unaudited)
| | | | | | | | | | | | | | | | | | | | |
| 1H23 | | 1H22 | | % Change | |
Net Sales | $19,725 | | $23,152 | | (14.8) | | |
| | | | | | |
Cost of products sold, excluding amortization expense | 8,814 | | | 9,920 | | | (11.2) | | |
Amortization of intangible assets | 989 | | | 1,019 | | | (2.9) | | |
Research and development | 1,369 | | | 1,381 | | | (0.9) | | |
Selling, general, and administrative | 5,502 | | | 5,544 | | | (0.8) | | |
Total Operating Cost and Expenses | 16,674 | | | 17,864 | | | (6.7) | | |
| | | | | | |
Operating Earnings | 3,051 | | | 5,288 | | | (42.3) | | |
| | | | | | |
Interest expense, net | 113 | | | 223 | | | (49.2) | | |
Net foreign exchange (gain) loss | 27 | | | (3) | | | n/m | |
Other (income) expense, net | (287) | | | (160) | | | 79.3 | | |
Earnings before taxes | 3,198 | | | 5,228 | | | (38.8) | | |
Taxes on earnings | 505 | | | 763 | | | (33.8) | | 1) |
| | | | | | |
Net Earnings | $2,693 | | $4,465 | | (39.7) | | |
| | | | | | |
Net Earnings excluding Specified Items, as described below | $3,708 | | $5,619 | | (34.0) | | 2) |
| | | | | | |
Diluted Earnings per Common Share | $1.53 | | $2.51 | | (39.0) | | |
| | | | | | |
Diluted Earnings per Common Share, excluding Specified Items, as described below | $2.11 | | $3.16 | | (33.2) | | 2) |
| | | | | | |
Average Number of Common Shares Outstanding Plus Dilutive Common Stock Options | 1,751 | | | 1,770 | | | | |
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.
1)2023 Taxes on Earnings includes the recognition of approximately $62 million of net tax expense as a result of the resolution of various tax positions related to prior years.
2022 Taxes on Earnings includes the recognition of approximately $27 million of net tax expense as a result of the resolution of various tax positions related to prior years and approximately $32 million in excess tax benefits associated with share-based compensation.
2)2023 Net Earnings and Diluted Earnings per Common Share, excluding Specified Items, excludes net after-tax charges of $1.015 billion, or $0.58 per share, for intangible amortization, charges related to restructuring and cost reduction initiatives, expenses associated with acquisitions and other net expenses.
2022 Net Earnings and Diluted Earnings per Common Share, excluding Specified Items, excludes net after-tax charges of $1.154 billion, or $0.65 per share, for intangible amortization, charges related to a voluntary recall and other net expenses primarily associated with acquisitions.
Abbott Laboratories and Subsidiaries
Non-GAAP Reconciliation of Financial Information
Second Quarter Ended June 30, 2023 and 2022
(in millions, except per share data)
(unaudited)
| | | | | | | | | | | | | | | | | | | |
| 2Q23 |
| As Reported (GAAP) | | Specified Items | | As Adjusted | | |
| | | | | | | |
Intangible Amortization | $ | 498 | | | $ | (498) | | | $ | — | | | |
Gross Margin | 4,997 | | | 529 | | | 5,526 | | | |
R&D | 715 | | | (72) | | | 643 | | | |
SG&A | 2,740 | | | (22) | | | 2,718 | | | |
Other (income) expense, net | (176) | | | 57 | | | (119) | | | |
Earnings before taxes | 1,636 | | | 566 | | | 2,202 | | | |
Taxes on Earnings | 261 | | | 48 | | | 309 | | | |
Net Earnings | 1,375 | | | 518 | | | 1,893 | | | |
Diluted Earnings per Share | $ | 0.78 | | | $ | 0.30 | | | $ | 1.08 | | | |
Specified items reflect intangible amortization expense of $498 million and other net expenses of $68 million associated with restructuring actions, costs associated with acquisitions and other net expenses. See page 17 for additional details regarding specified items.
| | | | | | | | | | | | | | | | | | | |
| 2Q22 |
| As Reported (GAAP) | | Specified Items | | As Adjusted | | |
| | | | | | | |
Intangible Amortization | $ | 507 | | | $ | (507) | | | $ | — | | | |
Gross Margin | 5,817 | | | 563 | | | 6,380 | | | |
R&D | 684 | | | (32) | | | 652 | | | |
SG&A | 2,757 | | | (14) | | | 2,743 | | | |
Other (income) expense, net | (82) | | | (12) | | | (94) | | | |
Earnings before taxes | 2,352 | | | 621 | | | 2,973 | | | |
Taxes on Earnings | 334 | | | 97 | | | 431 | | | |
Net Earnings | 2,018 | | | 524 | | | 2,542 | | | |
Diluted Earnings per Share | $ | 1.14 | | | $ | 0.29 | | | $ | 1.43 | | | |
Specified items reflect intangible amortization expense of $507 million and other net expenses of $114 million that includes costs associated with a product recall, acquisitions, and other net expenses. See page 18 for additional details regarding specified items.
Abbott Laboratories and Subsidiaries
Non-GAAP Reconciliation of Financial Information
First Half Ended June 30, 2023 and 2022
(in millions, except per share data)
(unaudited)
| | | | | | | | | | | | | | | | | | | |
| 1H23 |
| As Reported (GAAP) | | Specified Items | | As Adjusted | | |
| | | | | | | |
Intangible Amortization | $ | 989 | | | $ | (989) | | | $ | — | | | |
Gross Margin | 9,922 | | | 1,049 | | | 10,971 | | | |
R&D | 1,369 | | | (98) | | | 1,271 | | | |
SG&A | 5,502 | | | (24) | | | 5,478 | | | |
Other (income) expense, net | (287) | | | 57 | | | (230) | | | |
Earnings before taxes | 3,198 | | | 1,114 | | | 4,312 | | | |
Taxes on Earnings | 505 | | | 99 | | | 604 | | | |
Net Earnings | 2,693 | | | 1,015 | | | 3,708 | | | |
Diluted Earnings per Share | $ | 1.53 | | | $ | 0.58 | | | $ | 2.11 | | | |
Specified items reflect intangible amortization expense of $989 million and other net expenses of $125 million associated with restructuring actions, costs associated with acquisitions and other expenses. See page 19 for additional details regarding specified items.
| | | | | | | | | | | | | | | | | | | |
| 1H22 |
| As Reported (GAAP) | | Specified Items | | As Adjusted | | |
| | | | | | | |
Intangible Amortization | $ | 1,019 | | | $ | (1,019) | | | $ | — | | | |
Gross Margin | 12,213 | | | 1,199 | | | 13,412 | | | |
R&D | 1,381 | | | (65) | | | 1,316 | | | |
SG&A | 5,544 | | | (53) | | | 5,491 | | | |
Other (income) expense, net | (160) | | | (27) | | | (187) | | | |
Earnings before taxes | 5,228 | | | 1,344 | | | 6,572 | | | |
Taxes on Earnings | 763 | | | 190 | | | 953 | | | |
Net Earnings | 4,465 | | | 1,154 | | | 5,619 | | | |
Diluted Earnings per Share | $ | 2.51 | | | $ | 0.65 | | | $ | 3.16 | | | |
Specified items reflect intangible amortization expense of $1.019 billion and other net expenses of $325 million that includes costs associated with a product recall, acquisitions, and other net expenses. See page 20 for additional details regarding specified items.
A reconciliation of the second-quarter tax rates for 2023 and 2022 is shown below:
| | | | | | | | | | | | | | | | | | | | |
| 2Q23 | |
($ in millions) | Pre-Tax Income | | Taxes on Earnings | | Tax Rate | |
As reported (GAAP) | $ | 1,636 | | | $ | 261 | | | 15.9 | % | 1) |
Specified items | 566 | | | 48 | | | | |
Excluding specified items | $ | 2,202 | | | $ | 309 | | | 14.0 | % | |
| | | | | | | | | | | | | | | | | | | | |
| 2Q22 | |
($ in millions) | Pre-Tax Income | | Taxes on Earnings | | Tax Rate | |
As reported (GAAP) | $ | 2,352 | | | $ | 334 | | | 14.2 | % | |
Specified items | 621 | | | 97 | | | | |
Excluding specified items | $ | 2,973 | | | $ | 431 | | | 14.5 | % | |
1)2023 Taxes on Earnings includes the recognition of approximately $40 million of net tax expense as a result of the resolution of various tax positions related to prior years.
A reconciliation of the year-to-date tax rates for 2023 and 2022 is shown below:
| | | | | | | | | | | | | | | | | | | | |
| 1H23 | |
($ in millions) | Pre-Tax Income | | Taxes on Earnings | | Tax Rate | |
As reported (GAAP) | $ | 3,198 | | | $ | 505 | | | 15.8 | % | 2) |
Specified items | 1,114 | | | 99 | | | | |
Excluding specified items | $ | 4,312 | | | $ | 604 | | | 14.0 | % | |
| | | | | | | | | | | | | | | | | | | | |
| 1H22 | |
($ in millions) | Pre-Tax Income | | Taxes on Earnings | | Tax Rate | |
As reported (GAAP) | $ | 5,228 | | | $ | 763 | | | 14.6 | % | 3) |
Specified items | 1,344 | | | 190 | | | | |
Excluding specified items | $ | 6,572 | | | $ | 953 | | | 14.5 | % | |
2)2023 Taxes on Earnings includes the recognition of approximately $62 million of net tax expense as a result of the resolution of various tax positions related to prior years.
3)2022 Taxes on Earnings includes the recognition of approximately $27 million of net tax expense as a result of the resolution of various tax positions related to prior years and approximately $32 million in excess tax benefits associated with share-based compensation.
Abbott Laboratories and Subsidiaries
Non-GAAP Revenue Reconciliation
Second Quarter and First Half Ended June 30, 2023 and 2022
($ in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 2Q23 | | 2Q22 | | % Change vs. 2Q22 |
| | | | | | | | | | | | | Non-GAAP |
| | Abbott Reported | Impact of CSI acquisition (a) | Impact from business exit (b) | Adjusted Revenue | | Abbott Reported | Impact from business exit (b) | Adjusted Revenue | | Reported | | Adjusted | Organic |
Total Company | | 9,978 | | (43) | | (29) | | 9,906 | | | 11,257 | | (39) | | 11,218 | | | (11.4) | | | (11.7) | | (9.2) | |
U.S. | | 3,758 | | (39) | | — | | 3,719 | | | 4,892 | | — | | 4,892 | | | (23.2) | | | (24.0) | | (24.0) | |
Intl | | 6,220 | | (4) | | (29) | | 6,187 | | | 6,365 | | (39) | | 6,326 | | | (2.3) | | | (2.2) | | 2.2 | |
| | | | | | | | | | | | | | |
Total Nutrition | | 2,076 | | — | | (29) | | 2,047 | | | 1,953 | | (39) | | 1,914 | | | 6.3 | | | 6.9 | | 9.9 | |
U.S. | | 881 | | — | | — | | 881 | | | 761 | | — | | 761 | | | 15.7 | | | 15.7 | | 15.7 | |
Intl | | 1,195 | | — | | (29) | | 1,166 | | | 1,192 | | (39) | | 1,153 | | | 0.3 | | | 1.2 | | 6.1 | |
| | | | | | | | | | | | | | |
Pediatric Nutrition | | 1,024 | | — | | (29) | | 995 | | | 925 | | (39) | | 886 | | | 10.6 | | | 12.2 | | 14.5 | |
U.S. | | 507 | | — | | — | | 507 | | | 413 | | — | | 413 | | | 22.5 | | | 22.5 | | 22.5 | |
Intl | | 517 | | — | | (29) | | 488 | | | 512 | | (39) | | 473 | | | 1.1 | | | 3.3 | | 7.5 | |
| | | | | | | | | | | | | | |
Total Medical Devices | | 4,295 | | (43) | | — | | 4,252 | | | 3,785 | | — | | 3,785 | | | 13.5 | | | 12.3 | | 14.2 | |
U.S. | | 1,913 | | (39) | | — | | 1,874 | | | 1,688 | | — | | 1,688 | | | 13.3 | | | 11.0 | | 11.0 | |
Intl | | 2,382 | | (4) | | — | | 2,378 | | | 2,097 | | — | | 2,097 | | | 13.6 | | | 13.4 | | 16.8 | |
| | | | | | | | | | | | | | |
Vascular | | 715 | | (43) | | — | | 672 | | | 653 | | — | | 653 | | | 9.3 | | | 2.7 | | 5.0 | |
U.S. | | 264 | | (39) | | — | | 225 | | | 228 | | — | | 228 | | | 15.4 | | | (1.9) | | (1.9) | |
Intl | | 451 | | (4) | | — | | 447 | | | 425 | | — | | 425 | | | 6.1 | | | 5.2 | | 8.7 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 1H23 | | 1H22 | | % Change vs. 1H22 |
| | | | | | | | | | | Non-GAAP |
| Abbott Reported | Impact of CSI acquisition (a) | Impact from business exit (b) | Adjusted Revenue | | Abbott Reported | Impact from business exit (b) | Adjusted Revenue | | Reported | Adjusted | Organic |
Total Company | 19,725 | | (43) | | (37) | | 19,645 | | | 23,152 | | (91) | | 23,061 | | | (14.8) | | (14.8) | | (11.9) | |
U.S. | 7,686 | | (39) | | — | | 7,647 | | | 9,829 | | — | | 9,829 | | | (21.8) | | (22.2) | | (22.2) | |
Intl | 12,039 | | (4) | | (37) | | 11,998 | | | 13,323 | | (91) | | 13,232 | | | (9.6) | | (9.3) | | (4.3) | |
| | | | | | | | | | | | |
Total Nutrition | 4,043 | | — | | (37) | | 4,006 | | | 3,847 | | (91) | | 3,756 | | | 5.1 | | 6.7 | | 10.1 | |
U.S. | 1,693 | | — | | — | | 1,693 | | | 1,438 | | — | | 1,438 | | | 17.7 | | 17.7 | | 17.7 | |
Intl | 2,350 | | — | | (37) | | 2,313 | | | 2,409 | | (91) | | 2,318 | | | (2.4) | | (0.1) | | 5.4 | |
| | | | | | | | | | | | |
Pediatric Nutrition | 1,948 | | — | | (37) | | 1,911 | | | 1,772 | | (91) | | 1,681 | | | 9.9 | | 13.7 | | 16.3 | |
U.S. | 966 | | — | | — | | 966 | | | 751 | | — | | 751 | | | 28.6 | | 28.6 | | 28.6 | |
Intl | 982 | | — | | (37) | | 945 | | | 1,021 | | (91) | | 930 | | | (3.8) | | 1.8 | | 6.4 | |
| | | | | | | | | | | | |
Total Medical Devices | 8,195 | | (43) | | — | | 8,152 | | | 7,379 | | — | | 7,379 | | | 11.0 | | 10.4 | | 13.3 | |
U.S. | 3,691 | | (39) | | — | | 3,652 | | | 3,233 | | — | | 3,233 | | | 14.2 | | 12.9 | | 12.9 | |
Intl | 4,504 | | (4) | | — | | 4,500 | | | 4,146 | | — | | 4,146 | | | 8.6 | | 8.5 | | 13.7 | |
| | | | | | | | | | | | |
Vascular | 1,332 | | (43) | | — | | 1,289 | | | 1,272 | | — | | 1,272 | | | 4.7 | | 1.3 | | 4.4 | |
U.S. | 482 | | (39) | | — | | 443 | | | 437 | | — | | 437 | | | 10.3 | | 1.3 | | 1.3 | |
Intl | 850 | | (4) | | — | | 846 | | | 835 | | — | | 835 | | | 1.8 | | 1.3 | | 6.1 | |
(a) Reflects the impact of the acquisition of Cardiovascular Systems, Inc. (CSI) on April 27, 2023.
(b) Reflects the impact of exiting the pediatric nutrition business in China. This action was initiated in December 2022.
Abbott Laboratories and Subsidiaries
Details of Specified Items
Second Quarter Ended June 30, 2023
(in millions, except per share data)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Acquisition or Divestiture- related (a) | | Restructuring and Cost Reduction Initiatives (b) | | Intangible Amortization | | Other (c) | | Total Specifieds |
Gross Margin | $ | 7 | | | $ | 11 | | | $ | 498 | | | $ | 13 | | | $ | 529 | |
R&D | (8) | | | 7 | | | — | | | (71) | | | (72) | |
SG&A | (17) | | | (2) | | | — | | | (3) | | | (22) | |
Other (income) expense, net | 47 | | | — | | | — | | | 10 | | | 57 | |
Earnings before taxes | $ | (15) | | | $ | 6 | | | $ | 498 | | | $ | 77 | | | 566 | |
Taxes on Earnings (d) | | | | | | | | | 48 | |
Net Earnings | | | | | | | | | $ | 518 | |
Diluted Earnings per Share | | | | | | | | | $ | 0.30 | |
The table above provides additional details regarding the specified items described on page 13.
a)Acquisition-related expenses include legal and other costs related to business acquisitions as well as integration costs, which represent incremental costs directly related to integrating acquired businesses. These costs were more than offset by fair value adjustments to contingent consideration related to business acquisitions.
b)Restructuring and cost reduction initiative expenses include severance, outplacement and other direct costs associated with specific restructuring plans and cost reduction initiatives.
c)Other includes incremental costs to comply with the European Union's Medical Device Regulations (MDR) and In Vitro Diagnostics Medical Device Regulations (IVDR) requirements for previously approved products and charges for intangible asset impairments.
d)Reflects the net tax benefit associated with the specified items and tax expense as a result of the resolution of various tax positions related to prior years.
Abbott Laboratories and Subsidiaries
Details of Specified Items
Second Quarter Ended June 30, 2022
(in millions, except per share data)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Acquisition or Divestiture- related (a) | | Restructuring and Cost Reduction Initiatives (b) | | Intangible Amortization | | Other (c) | | Total Specifieds |
Gross Margin | $ | 20 | | | $ | (6) | | | $ | 507 | | | $ | 42 | | | $ | 563 | |
R&D | (5) | | | — | | | — | | | (27) | | | (32) | |
SG&A | (7) | | | — | | | — | | | (7) | | | (14) | |
Other (income) expense, net | (4) | | | — | | | — | | | (8) | | | (12) | |
Earnings before taxes | $ | 36 | | | $ | (6) | | | $ | 507 | | | $ | 84 | | | 621 | |
Taxes on Earnings (d) | | | | | | | | | 97 | |
Net Earnings | | | | | | | | | $ | 524 | |
Diluted Earnings per Share | | | | | | | | | $ | 0.29 | |
The table above provides additional details regarding the specified items described on page 13.
a)Acquisition-related expenses include integration costs, which represent incremental costs directly related to integrating the acquired businesses and include expenditures for the integration of systems, processes and business activities.
b)Restructuring and cost reduction initiative expenses include severance, outplacement, and other direct costs associated with specific restructuring plans and cost reduction initiatives. The Gross Margin amount includes a credit associated with the charges taken in the second quarter of 2021 for a restructuring plan related to Abbott's manufacturing network for COVID-19 diagnostic tests.
c)Other includes costs related to a voluntary recall within the Nutrition segment and incremental costs to comply with the MDR and IVDR regulations for previously approved products.
d)Reflects the net tax benefit associated with the specified items and excess tax benefits associated with share-based compensation.
Abbott Laboratories and Subsidiaries
Details of Specified Items
First Half Ended June 30, 2023
(in millions, except per share data)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Acquisition or Divestiture- related (a) | | Restructuring and Cost Reduction Initiatives (b) | | Intangible Amortization | | Other (c) | | Total Specifieds |
Gross Margin | $ | 12 | | | $ | 32 | | | $ | 989 | | | $ | 16 | | | $ | 1,049 | |
R&D | (12) | | | 8 | | | — | | | (94) | | | (98) | |
SG&A | (21) | | | (6) | | | — | | | 3 | | | (24) | |
Other (income) expense, net | 41 | | | — | | | — | | | 16 | | | 57 | |
Earnings before taxes | $ | 4 | | | $ | 30 | | | $ | 989 | | | $ | 91 | | | 1,114 | |
Taxes on Earnings (d) | | | | | | | | | 99 | |
Net Earnings | | | | | | | | | $ | 1,015 | |
Diluted Earnings per Share | | | | | | | | | $ | 0.58 | |
The table above provides additional details regarding the specified items described on page 14.
a)Acquisition-related expenses include legal and other costs related to business acquisitions as well as integration costs, which represent incremental costs directly related to integrating acquired businesses. These costs were partially offset by fair value adjustments to contingent consideration related to business acquisitions.
b)Restructuring and cost reduction initiative expenses include severance, outplacement and other direct costs associated with specific restructuring plans and cost reduction initiatives.
c)Other includes incremental costs to comply with the MDR and IVDR regulations for previously approved products and charges for intangible asset impairments.
d)Reflects the net tax benefit associated with the specified items and tax expense as a result of the resolution of various tax positions related to prior years.
Abbott Laboratories and Subsidiaries
Details of Specified Items
First Half Ended June 30, 2022
(in millions, except per share data)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Acquisition or Divestiture- related (a) | | Restructuring and Cost Reduction Initiatives (b) | | Intangible Amortization | | Other (c) | | Total Specifieds |
Gross Margin | $ | 41 | | | $ | (12) | | | $ | 1,019 | | | $ | 151 | | | $ | 1,199 | |
R&D | (7) | | | (1) | | | — | | | (57) | | | (65) | |
SG&A | (18) | | | — | | | — | | | (35) | | | (53) | |
Other (income) expense, net | (11) | | | — | | | — | | | (16) | | | (27) | |
Earnings before taxes | $ | 77 | | | $ | (11) | | | $ | 1,019 | | | $ | 259 | | | 1,344 | |
Taxes on Earnings (d) | | | | | | | | | 190 | |
Net Earnings | | | | | | | | | $ | 1,154 | |
Diluted Earnings per Share | | | | | | | | | $ | 0.65 | |
The table above provides additional details regarding the specified items described on page 14.
a)Acquisition-related expenses include integration costs, which represent incremental costs directly related to integrating the acquired businesses and include expenditures for the integration of systems, processes and business activities.
b)Restructuring and cost reduction initiative expenses include severance, outplacement, and other direct costs associated with specific restructuring plans and cost reduction initiatives. The Gross Margin amount includes a credit associated with the charges taken in the second quarter of 2021 for a restructuring plan related to Abbott's manufacturing network for COVID-19 diagnostic tests.
c)Other includes charges related to a voluntary recall within the Nutrition segment and incremental costs to comply with the MDR and IVDR regulations for previously approved products.
d)Reflects the net tax benefit associated with the specified items, excess tax benefits associated with share-based compensation and net tax expense as a result of the resolution of various tax positions related to prior years.
v3.23.2
Cover
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Jul. 20, 2023 |
Document Information [Line Items] |
|
Document Type |
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|
Document Period End Date |
Jul. 20, 2023
|
Entity Registrant Name |
ABBOTT LABORATORIES
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Entity Incorporation, State or Country Code |
IL
|
Entity File Number |
1-2189
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Entity Tax Identification Number |
36-0698440
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Entity Address, Address Line One |
100 Abbott Park Road
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Abbott Park
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IL
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224
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Common Shares, Without Par Value
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Trading Symbol |
ABT
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Security Exchange Name |
CHX
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NEW YORK STOCK EXCHANGE, INC. |
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