Summary
Abbott Laboratories reported third-quarter 2014 results with net sales of $5.1 billion, an increase of 5.8% over the prior year, or 6.7% excluding the impact of foreign exchange. Net earnings for the quarter were $538 million, or $0.36 per diluted share, a decrease compared to the prior year primarily due to the classification of certain business results as discontinued operations. The company successfully completed the significant acquisition of CFR Pharmaceuticals for approximately $3.4 billion, which is expected to bolster its branded generics pharmaceutical presence in Latin America and emerging markets. Abbott also announced its plan to sell its developed markets branded generics pharmaceuticals business to Mylan Inc., with the transaction expected to close in early 2015.
Financial Highlights
53 data points| Revenue | $5.08B |
| Cost of Revenue | $2.32B |
| Gross Profit | $2.63B |
| SG&A Expenses | $1.59B |
| Operating Expenses | $4.35B |
| Operating Income | $728.00M |
| Interest Expense | $35.00M |
| Net Income | $538.00M |
| EPS (Basic) | $0.36 |
| EPS (Diluted) | $0.36 |
| Shares Outstanding (Basic) | 1.51B |
| Shares Outstanding (Diluted) | 1.52B |
Key Highlights
- 1Net sales increased by 5.8% year-over-year to $5.1 billion in Q3 2014, demonstrating continued top-line growth, especially in international markets.
- 2Acquisition of CFR Pharmaceuticals for $3.4 billion closed in late September 2014, significantly expanding Abbott's presence in Latin America and emerging markets.
- 3Abbott announced the planned sale of its developed markets branded generics pharmaceuticals business to Mylan Inc., a strategic move to focus on core areas.
- 4Earnings from discontinued operations, primarily related to the planned sale of the developed markets branded generics business, impacted overall net earnings.
- 5The company saw strong performance in its Nutritional Products and Diagnostic Products segments, with notable growth in international markets for Nutritional Products.
- 6Gross profit margin improved to 51.7% in Q3 2014 from 50.2% in Q3 2013, driven by efficiency initiatives and favorable cost resolutions.
- 7Abbott increased its quarterly common share dividend by 57% to $0.22 per share, reflecting confidence in its financial health and commitment to returning capital to shareholders.