Abbott reports earnings of $538 million, hit by tax charge
Abbott Laboratories has reported third quarter earnings of $538 million (36 cents per share).
Its third quarter earnings are down 44 percent compared to $966 million, or 61 cents per share, a year earlier. The company was hit by a significant tax charge, which offset an increase in sales – sales rose by 6 percent to $5.1 billion.
Abbott was subject to a $278 million tax charge on earnings, compared to a tax benefit the same quarter last year.
According to Thompson Reuters, if you exclude a few one-time costs, the company reported earnings per share of 62 cents for the quarter
Abbott Laboratories CEO Miles White said that he’s satisfied with the company’s growth in its diagnostic, nutrition, and pharmaceutical sectors. He did say that the company’s medical devices arm needs improvement – accounting for $1.3 billion in sales, down 1 percent from the previous year.
“We reported another quarter of sequential sales growth, including improved performance in our branded generics pharmaceuticals and nutrition businesses, and we are particularly pleased with the growth in our vision care business,” said Miles D. White, chairman and chief executive officer, Abbott.
According to the company’s third quarter report:
“Abbott is raising the mid-point of its full-year 2014 adjusted EPS guidance, including results from both continuing and discontinued operations, to $2.25 to $2.27 from $2.19 to $2.29, reflecting double-digit growth. Projected full-year 2014 EPS under GAAP is $1.22 to $1.24, including results from both continuing and discontinued operations.”
White has said that Abbott will be focusing on increasing its presence in emerging markets, which are promising growth areas. In the third quarter the company made a deal with Chile’s generic-drug company CFR Pharmaceuticals for $2.9 billion (and assumption of $430 million in debt). Abbott expects CFR to add roughly $200 million in sales in the fourth quarter.
The company also agreed to acquire the Russian pharmaceuticals manufacturer Veropharm by acquiring its holding company, Garden Hills, for $395 million to $495 million in cash. The deal is expected to go through by the end of the year and is expected to add about $150 million in sales next year.
A spokesman of the company also said that Abbott is currently in talks to sell off its multibillion-dollar portfolio of generic drugs to Mylan.