REG - Abbott Laboratories - 3rd Quarter Results <Origin Href="QuoteRef">ABT.N</Origin> - Part 2

Abbott LaboratoriesAnnouncement

19/10/2016 13:10

- Part 2: For the preceding part double click  ID:nRSS9658Ma 

             2,757         206               $2,963       57.5%   
 R&D                                                    378           (59)              319          6.2%    
 SG&A                                                   1,666         (46)              1,620        31.4%   
 Other (income) expense, net                            (3)           12                9                    
 Earnings from Continuing Operations before taxes       714           299               1,013                
 Taxes on Earnings from Continuing Operations           118           74                192                  
 Earnings from Continuing Operations                    596           225               821                  
 Diluted Earnings per Share from Continuing Operations  $0.39         $0.15             $0.54                
 
 
Specified items reflect intangible amortization expense of $151 million and
other expenses of $148 million, primarily associated with cost reduction
initiatives and acquisitions. 
 
 Abbott Laboratories and Subsidiaries                                         
 Non-GAAP Reconciliation of Financial Information From Continuing Operations  
 Nine Months Ended September 30, 2016 and 2015                                
 (in millions, except per share data)                                         
 (unaudited)                                                                  
                                                                                           
                                                                              9M16         
                                                                              As           SpecifiedItems    As           % to      
                                                                              Reported                       Adjusted     Sales     
                                                                              (GAAP)                                                
                                                                                                                                    
 Intangible Amortization                                                      $429         $(429)            --                     
 Gross Margin                                                                 8,379        500               $8,879       57.2%     
 R&D                                                                          1,079        (68)              1,011        6.5%      
 SG&A                                                                         5,063        (150)             4,913        31.7%     
 Interest expense, net                                                        203          (139)             64                     
 Net foreign exchange (gain) loss                                             497          (481)             16                     
 Other (income) expense, net                                                  999          (962)             37                     
 Earnings from Continuing Operations before taxes                             538          2,300             2,838                  
 Taxes on Earnings from Continuing Operations                                 240          288               528                    
 Earnings from Continuing Operations                                          298          2,012             2,310                  
 Diluted Earnings per Share from Continuing Operations                        $0.20        $1.35             $1.55                  
 
 
Specified items reflect intangible amortization expense of $429 million, an
adjustment to the equity investment in Mylan of $947 million, the impact of
the foreign exchange loss in Venezuela of $481 million, and other expenses of
$443 million, primarily associated with acquisitions, including bridge
facility fees, and charges related to cost reduction initiatives and other
expenses and the recognition of approximately $130 million of deferred taxes
associated with the pending sale of AMO, partially offset by a net tax benefit
of approximately $250 million as a result of the resolution of various tax
positions from prior years. 
 
                                                        9M15        
                                                        As            SpecifiedItems    As           % to    
                                                        Reported                        Adjusted     Sales   
                                                        (GAAP)                                               
                                                                                                             
 Intangible Amortization                                $458          $(458)            --                   
 Gross Margin                                           8,218         577               $8,795       57.8%   
 R&D                                                    1,036         (81)              955          6.3%    
 SG&A                                                   5,130         (155)             4,975        32.7%   
 Other (income) expense, net                            (287)         294               7                    
 Earnings from Continuing Operations before taxes       2,353         519               2,872                
 Taxes on Earnings from Continuing Operations           442           104               546                  
 Earnings from Continuing Operations                    1,911         415               2,326                
 Diluted Earnings per Share from Continuing Operations  $1.26         $0.27             $1.53                
 
 
Specified items reflect intangible amortization expense of $458 million and
other expenses of $348 million, primarily associated with cost reduction
initiatives and acquisitions, partially offset by a gain on the sale of a
portion of Abbott's position in Mylan stock of $207 million and a decrease in
the fair value of contingent consideration related to a business acquisition. 
 
RECONCILIATION OF TAX RATE FOR CONTINUING OPERATIONS
A reconciliation of the third-quarter tax rates for continuing operations for
2016 and 2015 is shown below: 
 
                              3Q16           
 ($ in millions)              Pre-TaxIncome    Taxes onEarnings    Tax      
                                                                   Rate     
 As reported (GAAP)           $(179)           $178                (99.5%)  
 Specified items              1,264            24                           
 Excluding specified items    $1,085           $202                18.6%    
                                                                            
                              3Q15           
 ($ in millions)              Pre-Tax          Taxes on            Tax      
                              Income           Earnings            Rate     
 As reported (GAAP)           $714             $118                16.6%    
 Specified items              299              74                           
 Excluding specified items    $1,013           $192                19.0%    
 
 
A reconciliation of the year-to-date tax rates for continuing operations for
2016 and 2015 is shown below: 
 
                              9M16           
 ($ in millions)              Pre-TaxIncome    Taxes onEarnings    Tax    
                                                                   Rate   
 As reported (GAAP)           $538             $240                44.5%  
 Specified items              2,300            288                        
 Excluding specified items    $2,838           $528                18.6%  
                                                                          
                              9M15           
 ($ in millions)              Pre-Tax          Taxes on            Tax    
                              Income           Earnings            Rate   
 As reported (GAAP)           $2,353           $442                18.8%  
 Specified items              519              104                        
 Excluding specified items    $2,872           $546                19.0%  
 
 
CONTACT:  Abbott Financial: Scott Leinenweber, (224) 668-0791, Michael
Comilla, (224) 668-1872, or Jeffrey Byrne, (224) 668-8808; Abbott Media: Darcy
Ross, (224) 667-3655 or Elissa Maurer, (224) 668-3309 
 
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