Abbott Reports Fourth-Quarter 2019 Results; Announces Strong Forecast for 2020
ABBOTT PARK, Ill., Jan. 22, 2020 /PRNewswire/ -- Abbott (NYSE: ABT) today announced financial results for the fourth quarter and full year ended Dec. 31, 2019.
- Fourth-quarter worldwide sales of $8.3 billion increased 7.1 percent on a reported basis and 8.5 percent on an organic* basis.
- Reported diluted EPS from continuing operations under GAAP was $0.59 in the fourth quarter. Adjusted diluted EPS from continuing operations, which excludes specified items, was $0.95, an increase of 17.3 percent versus prior year1.
- Abbott issues full-year 2020 guidance for organic sales growth of 7.0 to 8.0 percent2, which excludes the impact of foreign exchange, and diluted EPS from continuing operations on a GAAP basis of $2.35 to $2.45. Projected full-year adjusted diluted EPS from continuing operations is $3.55 to $3.65, reflecting double-digit growth at the mid-point.
- Medical Devices sales increased 9.7 percent on a reported basis and 11.3 percent on an organic basis in the fourth quarter. Sales performance was led by double-digit organic sales growth in Heart Failure, Electrophysiology, Structural Heart and Diabetes Care.
- Established Pharmaceuticals sales increased 7.8 percent on a reported basis and 10.0 percent on an organic basis in the fourth quarter. Sales performance was led by growth across several countries in Latin America and Asia.
- Core Laboratory Diagnostics sales increased 8.4 percent on a reported basis and 10.0 percent on an organic basis in the fourth quarter. Sales performance was led by above-market growth in the U.S. and internationally, where Abbott is achieving continued strong adoption of its Alinity® family of innovative and highly differentiated diagnostic instruments.
"Our focus on organic growth is driving top-tier performance," said Miles D. White, chairman and chief executive officer, Abbott. "We're entering 2020 with very good momentum and targeting continued strong growth."
* See note on organic growth below.
FOURTH-QUARTER BUSINESS OVERVIEW
Note: Management believes that measuring sales growth rates on an organic basis is an appropriate way for investors to best understand the underlying performance of the business.
Organic sales growth:
- Excludes the results for a non-core business within U.S. Adult Nutrition during the first nine months of 2018 as this business was discontinued during the third quarter 2018; and
- Excludes the impact of foreign exchange.
Following are sales by business segment and commentary for the fourth quarter and full year 2019:
Total Company ($ in millions) | ||||||||||||||||||
% Change vs. 4Q18 | ||||||||||||||||||
Sales 4Q19 | Reported | Organic | ||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||
Total * | 2,960 | 5,354 | 8,314 | 7.5 | 6.9 | 7.1 | 7.5 | 9.1 | 8.5 | |||||||||
Nutrition | 789 | 1,079 | 1,868 | 3.6 | 6.4 | 5.2 | 3.6 | 7.5 | 5.8 | |||||||||
Diagnostics | 766 | 1,292 | 2,058 | 9.6 | 2.4 | 5.0 | 9.6 | 4.6 | 6.4 | |||||||||
Established Pharmaceuticals | -- | 1,174 | 1,174 | n/a | 7.8 | 7.8 | n/a | 10.0 | 10.0 | |||||||||
Medical Devices | 1,404 | 1,800 | 3,204 | 9.2 | 10.1 | 9.7 | 9.2 | 12.9 | 11.3 | |||||||||
* Total Q4 2019 Abbott sales from continuing operations include Other Sales of $10 million. | ||||||||||||||||||
% Change vs. 12M18 | ||||||||||||||||||
Sales 12M19 | Reported | Organic | ||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||
Total * | 11,398 | 20,506 | 31,904 | 5.2 | 3.9 | 4.3 | 5.5 | 8.8 | 7.7 | |||||||||
Nutrition | 3,110 | 4,299 | 7,409 | 1.1 | 3.5 | 2.5 | 2.4 | 7.5 | 5.3 | |||||||||
Diagnostics | 2,887 | 4,826 | 7,713 | 6.3 | 1.0 | 2.9 | 6.3 | 5.7 | 5.9 | |||||||||
Established Pharmaceuticals | -- | 4,486 | 4,486 | n/a | 1.4 | 1.4 | n/a | 7.3 | 7.3 | |||||||||
Medical Devices | 5,374 | 6,865 | 12,239 | 7.2 | 8.0 | 7.6 | 7.2 | 13.0 | 10.5 |
* Total 12M 2019 Abbott sales from continuing operations include Other Sales of $57 million. |
n/a = Not Applicable. |
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. |
Fourth-quarter 2019 worldwide sales of $8.3 billion increased 7.1 percent on a reported basis. On an organic basis, worldwide sales increased 8.5 percent. Refer to table titled "Non-GAAP Reconciliation of Adjusted Historical Revenue" for a reconciliation of adjusted historical revenue.
Nutrition ($ in millions) | ||||||||||||||||||
% Change vs. 4Q18 | ||||||||||||||||||
Sales 4Q19 | Reported | Organic | ||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||
Total | 789 | 1,079 | 1,868 | 3.6 | 6.4 | 5.2 | 3.6 | 7.5 | 5.8 | |||||||||
Pediatric | 473 | 564 | 1,037 | 1.2 | 3.4 | 2.4 | 1.2 | 4.1 | 2.8 | |||||||||
Adult | 316 | 515 | 831 | 7.3 | 9.9 | 8.9 | 7.3 | 11.5 | 9.9 | |||||||||
% Change vs. 12M18 | ||||||||||||||||||
Sales 12M19 | Reported | Organic | ||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||
Total | 3,110 | 4,299 | 7,409 | 1.1 | 3.5 | 2.5 | 2.4 | 7.5 | 5.3 | |||||||||
Pediatric | 1,879 | 2,282 | 4,161 | 1.9 | 1.3 | 1.6 | 1.9 | 4.6 | 3.4 | |||||||||
Adult | 1,231 | 2,017 | 3,248 | (0.1) | 6.2 | 3.7 | 3.2 | 10.9 | 7.9 |
Worldwide Nutrition sales increased 5.2 percent on a reported basis in the fourth quarter. On an organic basis, sales increased 5.8 percent. Refer to table titled "Non-GAAP Reconciliation of Adjusted Historical Revenue" for a reconciliation of adjusted historical revenue.
Worldwide Pediatric Nutrition sales increased 2.4 percent on a reported basis in the fourth quarter, including an unfavorable 0.4 percent effect of foreign exchange, and increased 2.8 percent on an organic basis. International sales increased 3.4 percent on a reported basis and 4.1 percent on an organic basis. Sales growth was led by Abbott's market-leading toddler brands, PediaSure® and Pedialyte®.
Worldwide Adult Nutrition sales increased 8.9 percent on a reported basis in the fourth quarter and increased 9.9 percent on an organic basis. International Adult Nutrition sales increased 9.9 percent on a reported basis and 11.5 percent on an organic basis in the fourth quarter. Sales performance in the quarter was led by strong growth of Ensure®, Abbott's market-leading complete and balanced nutrition brand, and Glucerna®, Abbott's market-leading diabetes-specific nutrition brand.
Diagnostics ($ in millions) | ||||||||||||||||||
% Change vs. 4Q18 | ||||||||||||||||||
Sales 4Q19 | Reported | Organic | ||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||
Total | 766 | 1,292 | 2,058 | 9.6 | 2.4 | 5.0 | 9.6 | 4.6 | 6.4 | |||||||||
Core Laboratory | 293 | 956 | 1,249 | 13.2 | 7.0 | 8.4 | 13.2 | 9.1 | 10.0 | |||||||||
Molecular | 36 | 80 | 116 | (4.1) | (6.5) | (5.7) | (4.1) | (4.5) | (4.4) | |||||||||
Point of Care | 104 | 33 | 137 | (4.9) | 16.0 | (0.5) | (4.9) | 17.4 | (0.2) | |||||||||
Rapid Diagnostics | 333 | 223 | 556 | 13.6 | (12.3) | 1.5 | 13.6 | (9.8) | 2.7 | |||||||||
% Change vs. 12M18 | ||||||||||||||||||
Sales 12M19 | Reported | Organic | ||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||
Total | 2,887 | 4,826 | 7,713 | 6.3 | 1.0 | 2.9 | 6.3 | 5.7 | 5.9 | |||||||||
Core Laboratory | 1,086 | 3,570 | 4,656 | 10.3 | 4.9 | 6.2 | 10.3 | 9.9 | 10.0 | |||||||||
Molecular | 149 | 293 | 442 | (1.8) | (11.7) | (8.6) | (1.8) | (8.4) | (6.3) | |||||||||
Point of Care | 438 | 123 | 561 | 1.4 | 1.7 | 1.5 | 1.4 | 3.9 | 1.9 | |||||||||
Rapid Diagnostics | 1,214 | 840 | 2,054 | 5.7 | (9.0) | (0.8) | 5.7 | (4.4) | 1.2 |
Worldwide Diagnostics sales increased 5.0 percent on a reported basis in the fourth quarter, including an unfavorable 1.4 percent effect of foreign exchange, and increased 6.4 percent on an organic basis.
Core Laboratory Diagnostics sales increased 8.4 percent on a reported basis and 10.0 percent on an organic basis in the fourth quarter. Sales performance was led by above-market growth in the U.S. and internationally, where Abbott is achieving continued strong adoption of its Alinity family of innovative and highly differentiated diagnostic instruments. During the quarter, Abbott announced the Australian Red Cross Blood Services selected its Alinity-S system for the country's blood and plasma screening.
Molecular Diagnostics sales decreased 5.7 percent on a reported basis in the fourth quarter, including an unfavorable 1.3 percent effect of foreign exchange, and decreased 4.4 percent on an organic basis.
Point of Care Diagnostics sales decreased 0.5 percent on a reported basis in the fourth quarter, including an unfavorable 0.3 percent effect of foreign exchange, and decreased 0.2 percent on an organic basis.
Rapid Diagnostics sales increased 1.5 percent on a reported basis in the fourth quarter, including an unfavorable 1.2 percent effect of foreign exchange, and increased 2.7 percent on an organic basis. Organic sales growth was led by infectious disease testing in developed markets and cardio-metabolic testing globally, partially offset by lower infectious disease testing sales in Africa.
Established Pharmaceuticals ($ in millions) | ||||||||||||||||||
% Change vs. 4Q18 | ||||||||||||||||||
Sales 4Q19 | Reported | Organic | ||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||
Total | -- | 1,174 | 1,174 | n/a | 7.8 | 7.8 | n/a | 10.0 | 10.0 | |||||||||
Key Emerging Markets | -- | 896 | 896 | n/a | 7.0 | 7.0 | n/a | 9.5 | 9.5 | |||||||||
Other | -- | 278 | 278 | n/a | 10.4 | 10.4 | n/a | 11.6 | 11.6 | |||||||||
% Change vs. 12M18 | ||||||||||||||||||
Sales 12M19 | Reported | Organic | ||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||
Total | -- | 4,486 | 4,486 | n/a | 1.4 | 1.4 | n/a | 7.3 | 7.3 | |||||||||
Key Emerging Markets | -- | 3,392 | 3,392 | n/a | 0.9 | 0.9 | n/a | 7.9 | 7.9 | |||||||||
Other | -- | 1,094 | 1,094 | n/a | 3.3 | 3.3 | n/a | 5.6 | 5.6 |
Established Pharmaceuticals sales increased 7.8 percent on a reported basis in the fourth quarter, including an unfavorable 2.2 percent effect of foreign exchange, and increased 10.0 percent on an organic basis.
Key Emerging Markets include India, Brazil, Russia and China along with several additional emerging countries that represent the most attractive long-term growth opportunities for Abbott's branded generics product portfolio. Sales in these geographies increased 7.0 percent on a reported basis in the fourth quarter and increased 9.5 percent on an organic basis, which excludes an unfavorable 2.5 percent effect of foreign exchange. Organic sales growth was led by performance across several geographies in Latin America and Asia.
Other sales increased 10.4 percent on a reported basis in the fourth quarter, including an unfavorable 1.2 percent effect of foreign exchange, and increased 11.6 percent on an organic basis.
Medical Devices ($ in millions) | ||||||||||||||||||
% Change vs. 4Q18 | ||||||||||||||||||
Sales 4Q19 | Reported | Organic | ||||||||||||||||
- 22 Jan 2020
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