Second-Quarter Ongoing EPS of $1.23, an Increase of Nearly 10 Percent and Exceeding the Company's Quarterly Guidance Range; GAAP EPS of $1.08 Confirms Full-year 2012 Ongoing EPS Guidance Range Significant Gross Margin Improvement On Track to Separate into Two Leading Health Care Companies at Year End
Date: July 18, 2012
Abbott Park, Illinois (NYSE: ABT) — Abbott today announced financial results for the second quarter ended June 30, 2012.
Diluted earnings per share, excluding specified items, were $1.23, reflecting 9.8 percent growth, exceeding Abbott's guidance range. Diluted earnings per share under Generally Accepted Accounting Principles (GAAP) were $1.08, including specified items. Excluding foreign exchange, worldwide sales increased 6.7 percent. Reported sales increased 2.0 percent, including an unfavorable 4.7 percent effect of foreign exchange. Second-quarter results included an adjusted gross margin ratio of 63.3 percent, an increase of 310 basis points over 2011, driven by improved efficiencies across a number of operating divisions, favorable product mix and the effect of foreign exchange. The gross margin ratio under GAAP was 62.9 percent. Abbott is confirming its ongoing earnings-per-share guidance for 2012 of $5.00 to $5.10, reflecting another year of expected strong performance.Including specified items, projected earnings per share under GAAP would be $4.29 to $4.39 for the full-year 2012. "Abbott continues to deliver strong results as we remain on track to separate into two leading health care companies," said Miles D. White, chairman and chief executive officer, Abbott. "During the second quarter, we launched and advanced numerous projects in our promising, broad-based pipeline and achieved key milestones in the separation process."