Abbott reports double-digit ongoing earnings-per-share growth in fourth quarter and full-year 2011

Wednesday, 25 January 2012

Abbott's worldwide sales increased 4.1 percent to $10.4 billion, including a favorable 0.2 percent effect of foreign exchange. Emerging markets sales were $2.5 billion, representing nearly 25 percent of total sales, with particularly strong growth in Nutritionals, Vascular and Diagnostics.

Diluted earnings per share, excluding specified items, were $1.45, at the high end of Abbott's previous guidance range, reflecting 11.5 percent growth. Diluted earnings per share under Generally Accepted Accounting Principles (GAAP) were $1.02, including specified items.

Fourth quarter results included an adjusted gross margin ratio of nearly 64 percent, driven by improved efficiencies across a number of operating divisions, product mix, and the effect of foreign exchange.

In 2011, Abbott continued to advance its broad-based pipeline, and launched several new products or indications across our Pharmaceuticals, Medical Products, Nutritionals and Diagnostics businesses.

Abbott generated record operating cash flow of more than $9 billion in 2011. The company will resume share repurchase activity in 2012.

"Despite another challenging year for the global economy, Abbott again delivered leading performance, including strong sales and ongoing earnings-per-share growth," said Miles D. White, chairman and chief executive officer, Abbott. "2011 was a significant year for Abbott, with the announced plan to separate into two leading health care companies in research-based pharmaceuticals and diversified medical products, each offering shareholders distinct identities with unique investment opportunities. We remain on track to complete the separation by the end of 2012."

About Abbott
Abbott is a global, broad-based health care company devoted to the discovery, development, manufacture and marketing of pharmaceuticals and medical products, including nutritionals, devices and diagnostics. The company employs approximately 91,000 people and markets its products in more than 130 countries.