Abbott recalls beetle-tainted Similac baby formula

NEW YORK (Reuters) - Abbott Laboratories said it is recalling millions of containers of its No. 1 Similac powdered infant formulas after beetles were found in the products and in a Michigan plant where they are made.

Abbott said on Wednesday the voluntary recall follows reports by two consumers of contamination and its inspection of an area of the plant in Sturgis, Michigan -- where beetles or their larvae were found. Abbott said "less than 5 million units" of Similac are being recalled in the United States, Guam, Puerto Rico and other Caribbean markets.

"When we identified this, we did extensive testing of every product on the (factory) line, and more than 99.8 percent of the product was negative" for beetle contamination, said company spokeswoman Melissa Brotz. She noted that liquid forms of Similac have not been affected or recalled.

But all powdered product made on the Michigan factory line is being recalled due to the remote possibility of contamination, Brotz said. She said other Abbott factories will step up production of powdered Similac to help meet demand until the Michigan plant soon resumes production.

The suburban Chicago company, which also makes an array of prescription medicines and medical devices and diagnostics, estimated third-quarter company revenue will be reduced by about $100 million due to sales returns. Even so, Abbott reaffirmed its quarterly and full-year profit forecasts.

(Reporting by Ransdell Pierson; Editing by Richard Chang)