REG - Abbott Laboratories - ABT 2Q16 Earnings Announcement <Origin Href="QuoteRef">ABT.N</Origin> - Part 2

Abbott LaboratoriesAnnouncement

20/07/2016 13:15

- Part 2: For the preceding part double click  ID:nRST7645Ea 

                         655          772          1,427                
 Diluted Earnings per Share from Continuing Operations                          $0.44        $0.52        $0.96                
 
 
Specified items reflect intangible amortization expense of $289 million, the
impact of the foreign exchange loss in Venezuela of $477 million, and other
expenses of $270 million, primarily associated with acquisitions, including
bridge facility fees, and charges related to cost reduction initiatives and
other expenses, partially offset by a net tax benefit of approximately $145
million as a result of the resolution of various tax positions from prior
years. 
 
                                                          1H15       
                                                          As           Specified    As           % to    
                                                          Reported     Items        Adjusted     Sales   
                                                          (GAAP)                                         
                                                                                                         
 Intangible Amortization                                  $307         ($307)       --                   
 Gross Margin                                             5,461        371          $5,832       57.9%   
 R&D                                                      658          (22)         636          6.3%    
 SG&A                                                     3,464        (109)        3,355        33.3%   
 Other (income) expense, net                              (284)        282          (2)                  
 Earnings from Continuing Operations before taxes         1,639        220          1,859                
 Taxes on Earnings from Continuing Operations             324          30           354                  
 Net Earnings from Continuing Operations                  1,315        190          1,505                
 Diluted Earnings per Share from Continuing Operations    $0.87        $0.12        $0.99                
 
 
Specified items reflect intangible amortization expense of $307 million and
other expenses of $200 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 second-quarter tax rates for continuing operations for
2016 and 2015 is shown below: 
 
                                       2Q16  
 ($ in millions)              Pre-Tax        Taxes on     Tax    
                              Income         Earnings     Rate   
 As reported (GAAP)           $715           $116         16.2%  
 Specified items              283            70                  
 Excluding specified items    $998           $186         18.6%  
                                                                   
                                       2Q15  
 ($ in millions)              Pre-Tax        Taxes on     Tax    
                              Income         Earnings     Rate   
 As reported (GAAP)           $986           $200         20.2%  
 Specified items              (15)           (15)                
 Excluding specified items    $971           $185         19.0%  
 
 
A reconciliation of the year-to-date tax rates for continuing operations for
2016 and 2015 is shown below: 
 
                                                                                                                                                                                                                                                                                                                                            1H16             
 ($ in millions)                                                                                                                                                                                                                                                                                                                   Pre-Tax        Taxes on     Tax        
                                                                                                                                                                                                                                                                                                                                   Income         Earnings     Rate       
 As reported (GAAP)                                                                                                                                                                                                                                                                                                                $717           $62          8.6%   1)  
 Specified items                                                                                                                                                                                                                                                                                                                   1,036          264                     
 Excluding specified items                                                                                                                                                                                                                                                                                                         $1,753         $326         18.6%      
                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                            1H15             
 ($ in millions)                                                                                                                                                                                                                                                                                                                   Pre-Tax        Taxes on     Tax        
                                                                                                                                                                                                                                                                                                                                   Income         Earnings     Rate       
 As reported (GAAP)                                                                                                                                                                                                                                                                                                                $1,639         $324         19.7%      
 Specified items                                                                                                                                                                                                                                                                                                                   220            30                      
 Excluding specified items                                                                                                                                                                                                                                                                                                         $1,859         $354         19.0%      
                                                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                                                                   
 1)                         Reported tax rate on a GAAP basis for 2016 includes the impact of a net tax benefit of approximately $145 million as a result of the resolution of various tax positions from prior years, partially offset by the unfavorable impact of non-deductible foreign exchange losses related to Venezuela.  
 
 
CONTACT: Abbott Financial: Scott Leinenweber, (224) 668-0791; Michael Comilla,
(224) 668-1872; Jeffrey Byrne, (224) 668-8808; Abbott Media: Darcy Ross, (224)
667-3655; Elissa Maurer, (224) 668-3309 
 
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