Abbott Reports First-Quarter 2013 Results

                  Abbott Reports First-Quarter 2013 Results

  PR Newswire

  ABBOTT PARK, Illinois, April 17, 2013

- First-Quarter Ongoing EPS of $0.42 (GAAP EPS of $0.34)-

- Company Confirms Full-Year 2013 EPS Guidance -

ABBOTT PARK, Illinois, April 17, 2013 /PRNewswire/ --Abbott today announced
financial results for the first quarter ended March 31, 2013.

  *First-quarter adjusted diluted EPS was $0.42, at the high end of previous
    guidance; reported diluted EPS from continuing operations under GAAP was
    $0.34.
  *Abbott is confirming its full-year 2013 EPS guidance.
  *Excluding foreign exchange, worldwide sales increased 3.5 percent,
    consistent with previous guidance. Reported sales increased 1.8 percent,
    including an unfavorable 1.7 percent effect of foreign exchange. Sales
    were driven by 9.0 percent operational sales growth in Nutrition,
    including 14.8 percent international growth, and 6.4 percent operational
    sales growth in Diagnostics.
  *Abbott continued to expand its presence in emerging markets across all
    business segments. Emerging market sales were $2.2 billion in the first
    quarter, an increase of 15.2 percent on an operational basis. Emerging
    market sales comprise more than 40 percent of Abbott's total sales.
  *Abbott launched several new products and initiated new clinical trials in
    the first quarter. Highlights include 19 new product launches in
    Nutrition, including the continued geographic roll-out of our infant
    formula tolerance line and a new line of Kidz ZonePerfect™ bars; the
    launch of the ACCELERATOR a3600™, a next-generation automation solution
    for the core laboratory; the launch of several new diagnostic tests on the
    ARCHITECT™ platform; the launch of the XIENCE Xpedition® drug-eluting
    stent in the U.S.; the initiation of the U.S. pivotal trial for Abbott's
    bioresorbable vascular scaffold, Absorb™; and the launch of the TECNIS®
    OptiBlue® cataract intraocular lens (IOL) in Japan.

"Strong performance in Nutrition and Diagnostics, as well as overall results
in emerging markets, led our sales growth this quarter," said Miles D. White,
chairman and chief executive officer, Abbott. "We had significant new product
and geographic expansion activity during the quarter that positions Abbott
well for continued growth."

First-Quarter Business Overview

Total Company

                                                      % Change vs. 1Q12
                    Sales ($ in
                  millions) 1Q13                     Int'l                  Total
                U.S.   Int'l  Total   U.S.   Operational  Reported  Operational  Reported
Total Sales *   1,534  3,844  5,378   (3.3)          6.3       3.9          3.5       1.8
Nutrition         718    981  1,699     2.1         14.8      14.2          9.0       8.7
Diagnostics       292    796  1,088     2.9          7.7       5.0          6.4       4.4
Established
Pharmaceuticals     -  1,233  1,233   n/a          1.3     (1.9)          1.3     (1.9)
Medical Devices   502    826  1,328  (12.7)          3.8       1.0        (3.0)     (4.6)
* Total Abbott Sales include Other sales of $30 million.
n/a = Not Applicable.

Worldwide sales of nearly $5.4 billion increased 3.5 percent on an operational
basis, consistent with previous guidance, driven by 9.0 percent operational
sales growth in Nutrition and 6.4 percent operational sales growth in
Diagnostics. On a reported basis, sales increased 1.8 percent, including an
unfavorable 1.7 percent effect of foreign exchange. Unfavorable exchange was
primarily driven by the weakening of the Japanese yen versus the U.S. dollar.


Sales in emerging markets were $2.2 billion, representing more than 40 percent
of Abbott's total sales, and increased 15.2 percent on an operational basis
and 13.6 percent on a reported basis. Emerging markets sales include revenues
from all countries and regions excluding the United States, Canada, Western
Europe, Japan and Australia.

Nutrition

                                               % Change vs. 1Q12
              Sales ($ in
             millions) 1Q13                  Int'l                  Total
           U.S.  Int'l  Total  U.S.  Operational  Reported  Operational  Reported
Total
Sales       718    981  1,699   2.1         14.8      14.2          9.0       8.7
Pediatric   379    608    987   2.5         20.9      21.1         13.1      13.2
Adult       339    373    712   1.6          6.3       4.5          4.0       3.1

Worldwide Nutrition sales increased 9.0 percent on an operational basis, led
by growth in emerging markets where Abbott has a broad presence focused on a
group of key markets. Reported sales increased 8.7 percent, including an
unfavorable 0.3 percent effect of foreign exchange. Total emerging market
sales represent approximately 45 percent of total Nutrition sales and
increased more than 20 percent on an operational basis in the quarter.
Nutrition operating margin significantly improved over the first quarter 2012,
as this segment continues to execute on its plan to expand its full-year
operating margin to 20 percent of sales by 2015.

Worldwide Pediatric Nutrition sales increased 13.1 percent on an operational
basis driven by 20.9 percent growth in International Pediatric Nutrition.
Reported sales increased 13.2 percent, including minimal impact of foreign
exchange. Sales growth in the quarter was led by above-market growth in
emerging markets as we continue our geographic expansion; uptake of
innovations in our Similac® formula, including our Similac Total Comfort™ and
specialty tolerance lines; and continued strong growth of our PediaSure®
toddler brand.

Worldwide Adult Nutrition sales increased 4.0 percent on an operational basis.
Reported sales increased 3.1 percent, including an unfavorable 0.9 percent
effect of foreign exchange. Sales growth in the quarter was led by continued
strong global growth of Ensure® and Glucerna®, including continued expansion
of the adult nutrition market where Abbott is the global leader. This growth
was partially offset by Abbott's exit from certain non-core business lines in
the U.S. as part of the division's margin improvement initiative.

Diagnostics

                                                 % Change vs. 1Q12
               Sales ($ in
              millions) 1Q13                   Int'l                  Total
            U.S.  Int'l  Total  U.S.   Operational  Reported  Operational  Reported
Total
Sales        292    796  1,088    2.9          7.7       5.0          6.4       4.4
Core
Laboratory   163    720    883  (5.6)          8.7       5.9          5.9       3.6
Molecular     48     58    106    1.9          1.8     (0.2)          1.8       0.7
Point of
Care          81     18     99   26.9       (11.9)    (12.1)         17.3      17.3

Worldwide Diagnostics sales increased 6.4 percent on an operational basis, led
by sales growth in Core Laboratory and Point of Care Diagnostics. Reported
sales increased 4.4 percent, including an unfavorable 2.0 percent effect of
foreign exchange. Diagnostics operating margin significantly improved over the
first-quarter 2012, on track to exceed its full-year target of 20 percent of
sales by 2015. Abbott is also developing six new platforms across Core
Laboratory, Molecular and Point of Care that are designed to improve service
to our customers, enhance laboratory productivity, improve efficiency and
reduce costs.

Core Laboratory Diagnostics sales increased 5.9 percent on an operational
basis. Reported sales in Core Laboratory Diagnostics increased 3.6 percent,
including an unfavorable 2.3 percent of foreign exchange. Operational sales
growth was driven by 8.7 percent growth in international sales, which comprise
more than 80 percent of total Core Laboratory sales. Continued strong
performance in key emerging markets, such as China, Russia and Brazil, led
international growth. U.S. sales were impacted by comparison to the first
quarter 2012 when sales increased 12.8 percent primarily due to a significant
blood bank order. In the first quarter, we broadened our ARCHITECT menu with
the launch of several new tests, as well as the launch of the ACCELERATOR
a3600, our next-generation automation solution, which improves efficiency and
workflow for our core laboratory customers.

Molecular Diagnostics sales increased 1.8 percent on an operational basis, in
line with Abbott's expectations. Reported worldwide Molecular sales increased
0.7 percent, including an unfavorable 1.1 percent effect of foreign exchange.
Sales were driven by strong growth in emerging markets, partially offset by
market conditions in Europe. We expect stronger performance beginning in the
second quarter driven by positive impact from new tenders, infectious disease
growth, and expansion in emerging markets.

Point of Care Diagnostics also contributed to strong sales growth, increasing
17.3 percent on an operational and reported basis. Abbott holds the leadership
position in the U.S., where sales increased 26.9 percent driven by continued
uptake of new assays and continued market penetration.

Established Pharmaceuticals

                                              % Change vs. 1Q12
             Sales ($ in
            millions) 1Q13                  Int'l                  Total
          U.S.  Int'l  Total  U.S.  Operational  Reported  Operational  Reported
Total
Sales        -  1,233  1,233   n/a          1.3     (1.9)          1.3     (1.9)
Key
Emerging
Markets      -    585    585   n/a          8.6       4.4          8.6       4.4
Other
Markets      -    648    648   n/a        (4.6)     (7.0)        (4.6)     (7.0)
n/a = Not Applicable.

Established Pharmaceuticals sales increased 1.3 percent on an operational
basis, in line with Abbott's expectations for low-single-digit operational
sales growth. Reported sales decreased 1.9 percent, including an unfavorable
3.2 percent effect of foreign exchange.

Established Pharmaceuticals is focused on 14 key emerging markets where the
demand for healthcare is expanding. These markets include India, Russia,
China, Brazil and 10 additional key markets and comprise nearly 50 percent of
segment sales today, with expectations that they will comprise a larger
portion of the total business over time. Sales in these Key Emerging Markets
increased 8.6 percent on an operational basis led by strong growth in Russia,
India, and China. We anticipate Key Emerging Markets to deliver double-digit
growth for the full year, accelerating from the first quarter, as Abbott
continues to expand its presence and build local product portfolios in these
markets.

Other Markets include developed markets, such as Western Europe and Japan, and
other emerging markets globally. Sales in this geographic segment decreased
4.6 percent on an operational basis. As expected, sales in developed markets
were negatively impacted as a result of the carry-over effects of 2012
European austerity measures and Japan NHI pricing actions. Performance in
these countries is expected to improve during the second half of 2013 as these
pricing and austerity actions are expected to have a less significant impact
on year-over-year comparisons.

Medical Devices
                                                     % Change vs. 1Q12
                   Sales ($ in
                  millions) 1Q13                    Int'l                  Total
                U.S.  Int'l  Total   U.S.   Operational  Reported  Operational  Reported
Total Sales      502    826  1,328  (12.7)          3.8       1.0        (3.0)     (4.6)
Vascular         276    466    742  (19.3)          4.0       1.0        (6.0)     (7.7)
Diabetes Care    133    183    316   (3.7)          3.2       1.9          0.2     (0.5)
Medical Optics    93    177    270   (2.0)          3.9       0.2          1.8     (0.6)
Vascular
Product Lines:
DES/BVSa)        126    261    387  (15.4)          6.7       2.6        (1.5)     (4.0)
Other Coronary
Productsb)        47     99    146   (8.4)        (2.3)     (4.0)        (4.4)     (5.5)
Endovascularc)    60     55    115   (4.0)          7.2       6.5          1.1       0.8
a)Includes Abbott's drug-eluting stents and bioresorbable vascular scaffold (BVS)
product portfolio.
b)Includes guide wires, balloon catheters and other coronary products.
c)Includes vessel closure, carotid stents and other peripheral products.

Worldwide Medical Devices sales decreased 3.0 percent on an operational basis.
Reported sales decreased 4.6 percent, including an unfavorable 1.6 percent
effect of foreign exchange.

Worldwide Vascular sales decreased 6.0 percent on an operational basis,
including the expected decline of certain royalty and supply arrangement
revenues (including Promus), as well as the negative impact of price. Reported
sales decreased 7.7 percent, including an unfavorable 1.7 percent effect of
foreign exchange. International Vascular sales growth was driven by strong
growth in emerging markets and new product introductions, including recent
international launches of XIENCE Xpedition, Abbott's new drug-eluting stent,
and Absorb, the world's first and only coronary bioresorbable vascular
scaffold (BVS). Sales increases in Endovascular and MitraClip®, Abbott's
device for the treatment of mitral regurgitation, also contributed to
international sales growth in the quarter. U.S. Vascular sales were impacted
by pricing pressure and a decline in procedures due to market conditions, as
well as the expected decline of certain royalty revenues. Abbott expects
worldwide sales growth to improve over the course of the year, with the
continued uptake of XIENCE Xpedition in the U.S., the expected launch of
XIENCE Xpedition in Japan, and continued international growth of new products,
MitraClip and Absorb. 

Worldwide Diabetes Care sales were relatively flat on an operational and
reported basis, in line with Abbott's expectations. Outside of the U.S., sales
growth was driven by share gains in key emerging markets and continued uptake
of our FreeStyle InsuLinx® meter. U.S. sales were impacted by market pricing
pressures as well as lower Medicare mail order purchases. This was partially
offset by continued share gains in the U.S. hospital and retail segments. 

Worldwide Medical Optics sales increased 1.8 percent on an operational basis,
in line with Abbott's expectations. Reported sales declined 0.6 percent,
including an unfavorable 2.4 percent effect of foreign exchange. Growth of
Abbott's cataract sales, which represent 60 percent of total Medical Optics
sales, continued to outpace the market growth, including more than 30 percent
growth in emerging markets. This growth was partially offset by a modest
decline in refractive sales driven by continued soft market conditions.
Several new product launches in the cataract segment will continue to drive
growth over 2013, including the recent launch of Tecnis OptiBlue IOL in Japan
and the expected launches of TECNIS Toric and TECNIS Preloaded IOLs.

Abbott confirms full-year 2013 guidance and issues outlook for second quarter
2013

Abbott is confirming ongoing earnings-per-share guidance for the full-year
2013 of $1.98 to $2.04. Abbott forecasts net specified items for the
full-year 2013 of approximately $0.59 per share. Including these net specified
items, projected earnings per share from continuing operations under Generally
Accepted Accounting Principles (GAAP) would be $1.39 to $1.45 for the
full-year 2013. Specified items are primarily associated with intangible
amortization expense, previously announced cost reduction initiatives, and the
favorable effect of U.S. tax law changes enacted in 2013 related to 2012
results.

Abbott is issuing ongoing earnings-per-share guidance for the second-quarter
2013 of $0.43 to $0.45. Abbott forecasts net specified items for the
second-quarter 2013 of approximately $0.16 per share. Including these net
specified items, projected earnings per share from continuing operations under
Generally Accepted Accounting Principles (GAAP) would be $0.27 to $0.29.
Specified items are primarily associated with intangible amortization expense
and previously announced cost reduction initiatives.

Abbott declares 357th quarterly dividend

On Feb. 15, 2013, the board of directors of Abbott declared the company's
quarterly common dividend of $0.14 per share. Abbott's cash dividend is
payable May 15, 2013, to shareholders of record at the close of business on
April 15, 2013.

About Abbott

Abbott (NYSE: ABT) is a global healthcare company devoted to improving life
through the development of products and technologies that span the breadth of
healthcare. With a portfolio of leading, science-based offerings in
diagnostics, medical devices, nutritionals and branded generic
pharmaceuticals, Abbott serves people in more than 150 countries and employs
approximately 70,000 people.

Visit Abbott at www.abbott.com and connect with us on Twitter at @AbbottNews.

Abbott will webcast its live first-quarter earnings conference call through
its Investor Relations website at www.abbottinvestor.com at 8 a.m. Central
time today. An archived edition of the call will be available after 11 a.m.
Central time.

— Private Securities Litigation Reform Act of 1995 — A Caution Concerning
Forward-Looking Statements

Some statements in this news release may be forward-looking statements for
purposes of the Private Securities Litigation Reform Act of 1995. Abbott
cautions that these forward-looking statements are subject to risks and
uncertainties that may cause actual results to differ materially from those
indicated in the forward-looking statements. Economic, competitive,
governmental, technological and other factors that may affect Abbott's
operations are discussed in Item 1A, "Risk Factors,'' to our Annual Report on
Securities and Exchange Commission Form 10-K/A for the year ended Dec. 31,
2012, and are incorporated by reference. Abbott undertakes no obligation to
release publicly any revisions to forward-looking statements as a result of
subsequent events or developments, except as required by law.

Abbott Laboratories and SubsidiariesConsolidated Statement of Earnings First
     Quarter Ended March 31, 2013 and 2012(in millions, except per share
                              data)(unaudited)
                                 1Q13           1Q12         % Change
Net Sales                         $5,378         $5,284             1.8
Cost of products sold,
excluding amortization
expense                            2,432          2,359             3.1
Amortization of intangible
assets                               199            209           (4.8)
Research and development             346            363           (4.8)
Selling, general, and
administrative                     1,786          1,843           (3.1)
Total Operating Cost and
Expenses                           4,763          4,774           (0.3)
Operating earnings                   615            510            20.9
Net interest expense                  26             65             n/m
Net foreign exchange (gain)
loss                                  29             15             n/m
Other (income) expense, net            6           (33)             n/m
Earnings from Continuing
Operations before taxes              554            463            19.9
Taxes on Earnings from
Continuing Operations                 10            112             n/m    1)
Net Earnings from Continuing
Operations                           544            351            55.4
Earnings from Discontinued
Operations, net of taxes              --            891             n/m
Net Earnings                        $544         $1,242          (56.2)
Net Earnings from Continuing
Operations Excluding               $674           $645             4.6    2)
Specified Items, as described
below
Diluted Earnings per Common
Share from Continuing
Operations                         $0.34          $0.22            54.5
Diluted Earnings per Common
Share from Discontinued
Operations                            --          $0.56             n/m
Diluted Earnings per Common
Share                             $0.34          $0.78          (56.4)
Diluted Earnings per Common
Share from Continuing             $0.42          $0.40             5.0    2)
Operations, Excluding
Specified Items, as described
below
Average Number of Common
Shares Outstanding                 1,586          1,590
Plus Dilutive Common Stock
Options and Awards

1)  2013 Taxes on Earnings from Continuing Operations include a favorable
    adjustment to tax expense of $103 million, or $0.07 per share, for the
    impact of U.S. tax law changes enacted in 2013 related to 2012 results.
    This favorable item has been classified as a specified item and excluded
    from ongoing results, as discussed below.
2)  2013 Net Earnings from Continuing Operations Excluding Specified Items
    excludes after-tax charges of $233 million, or $0.15 per share, for
    intangible amortization expense, cost reduction initiatives and other
    costs. These items were partially offset by a favorable adjustment to tax
    expense of $103 million, or $0.07 per share, for the impact of U.S. tax
    law changes enacted in 2013 related to 2012 results.
    2012 Net Earnings from Continuing Operations Excluding Specified Items
    excludes after-tax charges of $294 million, or $0.18 per share, for
    intangible amortization expense, specified items previously identified in
    Abbott's earnings release dated April 18, 2012, related to Abbott's
    continuing operations, certain costs that transferred or will be charged
    to AbbVie, and an interest expense adjustment to reflect Abbott's capital
    structure after the separation of AbbVie, as detailed in the 8-K dated
    April 16, 2013.
NOTES:
a) See following tables for an explanation of certain non-GAAP financial
    information.
b) "Discontinued Operations" reflect the operations of the AbbVie business,
    which became an independent company onJan.1, 2013.
n/m = Percent change is not meaningful.

Non-GAAP Reconciliation of Financial Information
  Abbott Laboratories and SubsidiariesNon-GAAP Reconciliation of Financial
 InformationFirst Quarter Ended March 31, 2013 and 2012(in millions, except
                         per share data)(unaudited)
                                                1Q13
                                       Specified Items
                           As
                        reported    Tax Expense                 As      % to
                         (GAAP)      Adjustment     Other    Adjusted   Sales
Intangible
Amortization Expense         $199             --    ($199)          --
Gross Margin               $2,747             --      $253      $3,000  55.8%
R&D                          $346             --        $3        $349   6.5%
SG&A                       $1,786             --     ($31)      $1,755  32.6%
Net Foreign Exchange
(Gain)/Loss                   $29             --     ($15)         $14
Other
(Income)/Expense               $6             --      ($9)        ($3)
Earnings from
Continuing Operations
before taxes                $554             --      $299        $853
Net Earnings from
Continuing Operations        $544         ($103)      $233        $674
Diluted Earnings per
Share from Continuing
Operations                  $0.34        ($0.07)     $0.15       $0.42

Tax Expense Adjustment is the tax benefit recorded in the first quarter for
the impact of U.S. tax law changes enacted in 2013 related to 2012 results.
Other specified items primarily reflect intangible amortization expense and
cost reduction initiatives.

                                                      1Q12
                                   As reported  Specified               % to
                                     (GAAP)       Items    As Adjusted  Sales
Intangible Amortization Expense           $209     ($209)           --
Gross Margin                            $2,716       $236       $2,952  55.9%
SG&A                                    $1,843     ($125)       $1,718  32.5%
Net Interest Expense                       $65      ($39)          $26
Earnings from Continuing
Operations before taxes                   $463       $400         $863
Net Earnings from Continuing
Operations                                $351       $294         $645
Diluted Earnings per Share from
Continuing Operations                    $0.22      $0.18        $0.40

Specified items include intangible amortization expense and specified items
previously identified in Abbott's earnings release dated April 18, 2012, and
related to Abbott's continuing operations, the removal of certain corporate
costs that transferred to AbbVie in the separation as well as certain costs
that will be charged to AbbVie under transition service agreements, and an
adjustment to interest expense to reflect Abbott's capital structure after the
separation of AbbVie, as detailed in the 8-K dated April 16, 2013.

Tax Rate Reconciliation
                                                1Q13
(dollars in millions)     Pre-Tax Income 1)   Taxes on Earnings   Tax Rate
As reported (GAAP)                       554                  10      1.8%
Specified Items                          299                 169     56.6% 2)
Excluding specified
items                                    853                 179     21.0%
                                                1Q12
(dollars in millions)     Pre-Tax Income 1)  Taxes on Earnings  Tax Rate
As reported (GAAP)                       463                 112     24.2%
Specified Items                          400                 106     26.5%
Excluding specified
items                                    863                 218     25.3%

1) Pre-Tax Income from Continuing Operations.
2) Specified Items include a favorable adjustment to tax expense of $103
million for the impact of U.S. tax law changes enacted in 2013 related to
2012 results.

Website: http://www.abbott.com
Contact: Financial, Brian Yoor, +1-847-937-6343, or Tina Ventura,
+1-847-935-9390, or Scott Leinenweber, +1-847-935-1898, or Media, Scott
Stoffel, +1-847-936-9502, or Angela Duff, +1-847-938-6894
 
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