Abbott has announced its financial results for the second quarter ended June 30, 2012. Reported sales increased 2.0 percent, including an unfavourable 4.7 percent effect of foreign exchange. The full release can be found here.
Total sales in US and International, including all business areas showed operational growth of 6.1 and 7% respectively. The company’s biggest revenue lines lie within its proprietary pharmaceuticals division, making up 44% of all sales. Operational growth exceeded 10% internationally although currency exchanges resulted in this being reported at only 1.2% growth compared with the equivalent period last year.
Abbott’s device sales fall largely within its vascular offering where international sales showed strong (11.1% operational) growth, US sales being significantly adversely affected by the decline in revenues from its stent supply relationship with Boston Scientific. Even taking into account the declining Promus business however the report says US vascular sales slumped year on year by 6%. However the outlook may be rosier due in part to recent good news for the company’s Xience family of drug eluting stents which gained a new approval in Japan and as reported on our pages had its indication modified to include the shortest period of anti-platelet therapy of any stent.
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.
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, favourable product mix and the effect of foreign exchange. The gross margin ratio under GAAP was 62.9 percent.
“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(into two companies, scheduled for year end) process.”