Abbott Reports Fourth-Quarter and Full-Year 2012 Results

Wed Jan 23, 2013 7:56am EST

* Reuters is not responsible for the content in this press release.

- Fourth-Quarter Ongoing EPS of $1.51 (GAAP EPS of $0.66) -

- Full-Year Ongoing EPS of $5.07 (GAAP EPS of $3.72) -

- Completed Launch of AbbVie, a New Biopharmaceutical Company -

- Company Issues Strong Earnings Outlook for 2013 -

ABBOTT PARK, Illinois, Jan. 23, 2013 /PRNewswire/ -- Abbott today announced financial
results for the fourth quarter ended Dec. 31, 2012.


    --  Fourth-quarter diluted earnings per share, excluding specified items,
        were $1.51. Diluted earnings per share under Generally Accepted
        Accounting Principles (GAAP) were $0.66, including specified items.
    --  Full-year diluted earnings per share, excluding specified items, were
        $5.07, exceeding Abbott's initial guidance range. Diluted earnings per
        share under GAAP were $3.72, including specified items.
    --  Excluding foreign exchange, worldwide sales increased 5.6 percent.
        Reported sales increased 4.4 percent, including an unfavorable 1.2
        percent effect of foreign exchange.
    --  On Jan. 1, 2013, Abbott completed the launch of AbbVie, a new
        research-based biopharmaceutical company.
    --  Abbott launched numerous new products across its diversified businesses
        in 2012, positioning the company well for future growth. Key pipeline
        innovations include the launch of its Absorb(TM) bioresorbable vascular
        scaffold; the next-generation drug-eluting stent, XIENCE Xpedition(TM);
        80 launches across its Nutrition business; new tests in Diagnostics; as
        well as several new product and geographic expansion initiatives in
        Established Pharmaceuticals, Diabetes Care and Vision Care.
"In 2012, we achieved a significant milestone in Abbott's 125-year history with the
creation of AbbVie while delivering another year of strong results," said Miles D.
White, chairman and chief executive officer, Abbott. "Abbott's mix of diversified
healthcare businesses and pipeline is favorably aligned with key healthcare and emerging
market trends, and well positioned to deliver top-tier growth in 2013."

The following is a summary of Fourth-Quarter 2012 sales by major business category.



                           Sales ($ in millions)
                                    4Q12
                           ---------------------
                      U.S.       Int'l      Total
                      ----       -----      -----


    Total Sales       4,669      6,168      10,837
                      -----      -----      ------


    Proprietary
     Pharmaceuticals  3,020      2,122       5,142

    Nutritionals        743        972       1,715


    Established
     Pharmaceuticals     --      1,346       1,346

    Core Laboratory
     Diagnostics        174        734         908

    Molecular
     Diagnostics         59         72         131

    Point of Care
     Diagnostics         72         18          90

    Vascular(a)         282        478         760

    Diabetes Care       150        212         362

    Medical Optics      100        185         285

    Other Sales          69         29          98




                                     % Change vs. 4Q11
                                     -----------------
                                                    Int'l
                                                    -----
                              U.S.         Operational       Reported
                              ----         -----------       --------


    Total Sales                  4.4               6.6            4.4


    Proprietary
     Pharmaceuticals             7.6               9.6            7.0

    Nutritionals                 9.4              10.5           10.8


    Established
     Pharmaceuticals             n/a               0.6           (2.4)

    Core Laboratory
     Diagnostics                (0.3)              7.2            4.8

    Molecular
     Diagnostics                (3.3)             12.5           10.4

    Point of Care
     Diagnostics                19.5              (1.0)          (0.8)

    Vascular(a)            (24.6)(a)               8.1            5.7

    Diabetes Care                9.8               0.6           (1.2)

    Medical Optics               1.5               1.2           (1.3)

    Other Sales                (14.7)              4.4            2.3




                      % Change vs. 4Q11
                      -----------------
                                                   Total
                                                   -----
                                          Operational       Reported
                                          -----------       --------


    Total Sales                                   5.6            4.4


    Proprietary
     Pharmaceuticals                              8.5            7.4

    Nutritionals                                 10.0           10.2


    Established
     Pharmaceuticals                              0.6           (2.4)

    Core Laboratory
     Diagnostics                                  5.7            3.8

    Molecular
     Diagnostics                                  4.9            3.8

    Point of Care
     Diagnostics                                 14.7           14.7

    Vascular(a)                              (6.8)(a)       (8.1)(a)

    Diabetes Care                                 4.2            3.1

    Medical Optics                                1.4           (0.3)

    Other Sales                                  (9.9)         (10.4)


The following is a summary of Twelve-Month 2012 sales by major business category.



                            Sales ($ in millions)
                                    12M12
                            ---------------------
                       U.S.       Int'l       Total
                       ----       -----       -----


    Total Sales       16,784      23,090      39,874
                      ------      ------      ------


    Proprietary
     Pharmaceuticals  10,158       7,854      18,012

    Nutritionals       2,907       3,564       6,471


    Established
     Pharmaceuticals      --       5,121       5,121

    Core Laboratory
     Diagnostics         685       2,814       3,499

    Molecular
     Diagnostics         201         244         445

    Point of Care
     Diagnostics         274          74         348

    Vascular(b)        1,226       1,845       3,071

    Diabetes Care        568         759       1,327

    Medical Optics       399         698       1,097

    Other Sales          366         117         483




                                     % Change vs. 12M11
                                     ------------------
                                                    Int'l
                                                    -----
                              U.S.         Operational       Reported
                              ----         -----------       --------


    Total Sales                  4.8               6.1            1.1


    Proprietary
     Pharmaceuticals             7.4               8.9            3.0

    Nutritionals                 9.5               8.1            6.3


    Established
     Pharmaceuticals             n/a               2.1           (4.4)

    Core Laboratory
     Diagnostics                 7.3               6.9            2.5

    Molecular
     Diagnostics                (2.3)              8.3            3.0

    Point of Care
     Diagnostics                18.1               8.9            7.6

    Vascular(b)            (20.7)(b)               7.6            3.3

    Diabetes Care                4.4              (3.0)          (7.5)

    Medical Optics               0.7               0.8           (2.4)

    Other Sales                  6.7              (5.0)         (11.3)




                      % Change vs. 12M11
                      ------------------
                                                    Total
                                                    -----
                                           Operational       Reported
                                           -----------       --------


    Total Sales                                    5.5            2.6


    Proprietary
     Pharmaceuticals                               8.2            5.5

    Nutritionals                                   8.7            7.7


    Established
     Pharmaceuticals                               2.1           (4.4)

    Core Laboratory
     Diagnostics                                   7.0            3.4

    Molecular
     Diagnostics                                   3.3            0.5

    Point of Care
     Diagnostics                                  16.0           15.7

    Vascular(b)                               (5.6)(b)       (7.9)(b)

    Diabetes Care                                 (0.1)          (2.8)

    Medical Optics                                 0.8           (1.3)

    Other Sales                                    3.5            1.7



    Notes:                1)  See "Consolidated Statement of Earnings" for more
information.
                          2)  "Operational" growth reflects percentage change over the
prior year
                              excluding the impact of exchange rates.

                 (a)  In the fourth quarter, excluding the expected decline of certain
                      royalty and supply arrangement revenues (including Promus),
                      worldwide operational sales increased 0.7 percent, worldwide
                      reported sales decreased 0.9 percent, and U.S. sales decreased
11.7
                      percent. This decline in U.S. Vascular sales primarily relates to
a
                      decrease in XIENCE sales due to market dynamics and the comparison
                      to 4Q11 when XIENCE PRIME was launched.
                 (b)  For the full year 2012, excluding the expected decline of certain
                      royalty and supply arrangement revenues (including Promus),
                      worldwide operational sales increased 3.4 percent, worldwide
                      reported sales increased 0.7 percent, and U.S. Vascular sales
                      decreased 3.9 percent.

    n/a = Not applicable


The following is a summary of Fourth-Quarter 2012 sales for select products.



                          Sales ($ in millions)
                                  4Q12
                          ---------------------
                     U.S.       Int'l      Total
                     ----       -----      -----

    HUMIRA           1,413      1,268      2,681

    TRILIPIX/
     TriCor
     (fenofibrate)     202         67        269

    AndroGel           364          9        373

    Kaletra             83        167        250

    Lupron             155         56        211

    Niaspan            277         --        277

    Synthroid          168         26        194

    Creon              105         83        188

    Pediatric
     Nutritionals      366        581        947

    Adult
     Nutritionals      377        391        768

    Xience
     Drug-
     Eluting
     Stents(c)         128        272        400

    Other
     Coronary
     Products(d)        49        101        150

    Endovascular(e)     59         55        114




                              % Change vs. 4Q11
                              -----------------
                                            Int'l
                                            -----
                      U.S.         Operational       Reported
                      ----         -----------       --------

    HUMIRA              31.1              17.9           15.2

    TRILIPIX/
     TriCor
     (fenofibrate)     (50.7)             (3.7)          (5.2)

    AndroGel            40.5               7.5           10.1

    Kaletra            (17.0)             (9.4)         (11.4)

    Lupron              11.3             (17.4)         (18.1)

    Niaspan              7.4               n/a            n/a

    Synthroid           24.9               7.5            3.4

    Creon                3.9              13.8           11.8

    Pediatric
     Nutritionals        8.5              14.1           15.0

    Adult
     Nutritionals       11.5               5.6            5.2

    Xience
     Drug-
     Eluting
     Stents(c)         (15.3)             12.6           10.3

    Other
     Coronary
     Products(d)        (2.7)              3.0            0.1

    Endovascular(e)     (3.2)             11.6            9.6




                     % Change vs. 4Q11
                     -----------------
                                  Total
                                  -----
                         Operational         Reported
                         -----------         --------

    HUMIRA                        24.5           23.1

    TRILIPIX/
     TriCor
     (fenofibrate)               (43.7)         (43.9)

    AndroGel                      39.5           39.6

    Kaletra                      (12.1)         (13.4)

    Lupron                         1.8            1.6

    Niaspan                        7.4            7.4

    Synthroid                     22.2           21.5

    Creon                          8.0            7.2

    Pediatric
     Nutritionals                 11.9           12.4

    Adult
     Nutritionals                  8.4            8.2

    Xience
     Drug-
     Eluting
     Stents(c)                     2.0            0.5

    Other
     Coronary
     Products(d)                   1.0           (0.9)

    Endovascular(e)                3.5            2.6


The following is a summary of Twelve-Month 2012 sales for select products.



                          Sales ($ in millions)
                                  12M12
                          ---------------------
                     U.S.       Int'l      Total
                     ----       -----      -----

    HUMIRA           4,376      4,889      9,265

    TRILIPIX/
     TriCor
     (fenofibrate)   1,098        292      1,390

    AndroGel         1,152         33      1,185

    Kaletra            280        733      1,013

    Lupron             569        231        800

    Niaspan            911         --        911

    Synthroid          551        105        656

    Creon              353        306        659

    Pediatric
     Nutritionals    1,445      2,080      3,525

    Adult
     Nutritionals    1,452      1,484      2,936

    Xience
     Drug-
     Eluting
     Stents(c)         555      1,044      1,599

    Other
     Coronary
     Products(d)       196        402        598

    Endovascular(e)    241        211        452




                              % Change vs. 12M11
                              ------------------
                                            Int'l
                                            -----
                      U.S.         Operational       Reported
                      ----         -----------       --------

    HUMIRA              27.7              15.4            8.5

    TRILIPIX/
     TriCor
     (fenofibrate)     (19.9)              1.3           (5.2)

    AndroGel            31.7               6.7            4.9

    Kaletra            (14.1)             (7.6)         (13.2)

    Lupron               5.4             (10.5)         (14.4)

    Niaspan             (6.7)              n/a            n/a

    Synthroid            5.7              10.0            1.5

    Creon                6.5              10.6            3.5

    Pediatric
     Nutritionals       14.0               9.1            8.0

    Adult
     Nutritionals        6.1               6.6            4.0

    Xience
     Drug-
     Eluting
     Stents(c)          (1.1)              8.5            4.8

    Other
     Coronary
     Products(d)        (2.5)              4.1           (0.6)

    Endovascular(e)     (1.9)              9.0            3.4




                     % Change vs. 12M11
                     ------------------
                                   Total
                                   -----
                         Operational          Reported
                         -----------          --------

    HUMIRA                         20.7           16.8

    TRILIPIX/
     TriCor
     (fenofibrate)                (16.0)         (17.2)

    AndroGel                       30.9           30.8

    Kaletra                        (9.4)         (13.4)

    Lupron                          0.1           (1.2)

    Niaspan                        (6.7)          (6.7)

    Synthroid                       6.4            5.0

    Creon                           8.4            5.1

    Pediatric
     Nutritionals                  11.1           10.4

    Adult
     Nutritionals                   6.3            5.0

    Xience
     Drug-
     Eluting
     Stents(c)                      5.1            2.7

    Other
     Coronary
     Products(d)                    1.9           (1.2)

    Endovascular(e)                 3.0            0.5



    Notes:         1)  See "Consolidated Statement of Earnings" for more information.
                   2)  "Operational" growth reflects percentage change over the prior
year
                       excluding the impact of exchange rates.

            (c)  International sales include Abbott's Absorb bioresorbable vascular
                 scaffold (BVS).
            (d)  Includes guide wires, balloon catheters and other coronary products.
            (e)  Includes vessel closure, carotid stents and other peripheral products.

    n/a = Not applicable


Diversified Healthcare Products Business Highlights 

Initiated Clinical Trial of Absorb Bioresorbable Vascular Scaffold (BVS)in the United
States 

Announced the initiation of the ABSORB III clinical trial in patients in the U.S. The
trial is designed to enroll approximately 2,250 patients and will compare the
performance of Abbott's Absorb BVS, a first-of-its kind device for the treatment of
coronary artery disease, to the company's XIENCE(TM) family of drug eluting stents. Data
from the ABSORB III trial will support U.S. regulatory filings for Absorb.

Announced FDA Approval and U.S. Launch of XIENCE Xpedition 

Announced the U.S. launch of the XIENCE Xpedition Drug Eluting Stent System, providing
physicians a next-generation technology with the largest size matrix in the U.S. market.
XIENCE Xpedition features a new stent delivery system designed to optimize
deliverability, particularly in challenging coronary anatomies. XIENCE Xpedition is also
available in Europe and other international markets.

Received Approval for Two New Diagnostic Tests 

Announced clearance from the U.S. Food and Drug Administration for ARCHITECT 2nd
Generation Testosterone Assay, a more sensitive, accurate and precise test, that allows
physicians to obtain more reliable measurements of testosterone in both men and women.
In addition, received CE Marking for the ARCHITECT STAT High Sensitive Troponin-I Assay,
which may help clinicians reduce time in diagnosing heart attacks and assist in
determining risk for those who may have future heart attacks.

Introduced Ensure Complete Shakes for Adults 

Introduced in the U.S. Ensure Complete(TM), a nutritional shake that provides targeted
muscle, heart, immune system, and bone support to help meet adults' daily dietary needs.
Ensure Complete shakes are suitable for gluten-free and lactose intolerant diets. Ensure
Complete shakes feature Abbott's proprietary ingredient, Revigor®, and 13 grams of
protein to help protect, preserve and promote muscle health.

Received Approval for ALK Test as a Companion Diagnostic in Europe 

Announced expansion of the current CE-IVD product labeling for Abbott's Vysis® ALK Break
Apart FISH Probe Kit, allowing the test to be marketed in the European Union as a
companion diagnostic. The test is designed to detect rearrangements of the ALK gene in
advanced non-small cell lung cancer patients who may be eligible for treatment with
XALKORI® (crizotinib), Pfizer's ALK inhibitor.

Proprietary Pharmaceuticals Business Highlights 

Presented Data from the Phase 2b Aviator Study in Hepatitis C 

Presented the full results from the Phase 2b Aviator study of AbbVie's investigational
all-oral interferon-free regimen for the treatment of hepatitis C (HCV). Data showed
sustained virological response at 12 weeks post treatment (SVR12) in 98 percent of
treatment-naive and 93 percent of null responders (intent to treat) for genotype 1 (GT1)
patients taking a combination of ABT-450/r, ABT-267, ABT-333 and ribavirin.

Initiated Phase 3 Hepatitis C Registrational Program  

Announced details of the Phase 3 clinical trials designed to evaluate safety and
efficacy of a 12-week regimen of three direct-acting antivirals, with and without
ribavirin, for the treatment of HCV in GT1 patients. The Phase 3 program, which is
currently open for enrollment, will include more than 2,000 patients with HCV GT1, with
trial sites in 29 countries.

Received Approval for Ninth HUMIRA Indication in Europe  

Announced approval of HUMIRA® in Europe for the treatment of pediatric patients with
severe active Crohn's disease. With this approval, HUMIRA becomes the first biologic
treatment approved for these patients in more than five years.This marks the ninth
indication for HUMIRA in the European Union.

Abbott issues ongoing earnings-per-share outlook for 2013

Abbott is issuing 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, primarily associated with intangible amortization expense, separation costs and
cost-reduction initiatives. Including these net specified items, projected earnings per
share under Generally Accepted Accounting Principles (GAAP) would be $1.39 to $1.45 for
the full-year 2013.

Abbott declares 356th quarterly dividend

On Dec. 14, 2012, the board of directors of Abbott declared the company's quarterly
common dividend of $0.14 per share. Abbott's cash dividend is payable Feb. 15, 2013, to
shareholders of record at the close of business on Jan. 15, 2013. On Jan. 4, 2013, the
board of directors of AbbVie declared the company's quarterly cash dividend of $0.40 per
share. AbbVie's cash dividend is also payable on Feb. 15, 2013, to shareholders of
record at the close of business on Jan. 15, 2013.

Abbott's annualized cash dividend of $0.56 per share, combined with AbbVie's annualized
cash dividend of $1.60 per share, equals a total annualized cash dividend of $2.16 per
share, compared to the annualized cash dividend of Abbott, prior to separation, of $2.04
per share. Future quarterly dividends are subject to approval by each company's board of
directors.

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 [http://www.abbott.com/] and connect with us on Twitter
at @AbbottNews.

Abbott will webcast its live fourth-quarter earnings conference call through its
Investor Relations website at www.abbottinvestor.com [http://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, including Abbott's expected
financial results after the separation of its research-based pharmaceutical business.
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 for the
year ended Dec. 31, 2011, and in Item 1A, "Risk Factors," to our quarterly reports filed
on Securities and Exchange Commission Form 10-Q for the quarters ended September 30,
2012 and June 30, 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 Subsidiaries
                             Consolidated Statement of Earnings
                       Fourth Quarter Ended December 31, 2012 and 2011
                            (in millions, except per share data)
                                         (unaudited)

                                      2012                 2011            % Change
                                      ----                 ----            --------
    Net Sales                      $10,837              $10,377                    4.4
                                   -------              -------

    Cost of products sold            4,060                3,838                    5.8
    Research and
     development                     1,141                1,152                   (0.9)
    Acquired in-process
     and collaborations
     research and                       28                  400                    n/m
    development
    Selling, general and
     administrative                  3,193                2,905                    9.9
                                     -----                -----
    Total Operating Cost
     and Expenses                    8,422                8,295                    1.5
                                     -----                -----

    Operating earnings               2,415                2,082                   16.0

    Net interest expense               163                  102                   59.6
    Loss on extinguishment
     of debt                         1,351                   --                    n/m  
1)
    Net foreign exchange
     (gain) loss                       (12)                  (2)                   n/m
    Other (income)
     expense, net                       39                   28                   38.7
                                       ---                  ---
    Earnings before taxes              874                1,954                  (55.3)
    Taxes on earnings                 (179)                 335                    n/m
                                      ----                  ---
    Net Earnings                    $1,053               $1,619                  (34.9)
                                    ======               ======

    Net Earnings Excluding
     Specified Items, as
     described below                $2,421               $2,295                    5.5  
2)
                                    ======               ======

    Diluted Earnings per
     Common Share                    $0.66                $1.02                  (35.3)
                                     =====                =====

    Diluted Earnings per
     Common                          $1.51                $1.45                    4.1  
2)
    Share, Excluding
     Specified Items,                =====                =====
    as described below

    Average Number of
     Common Shares
     Outstanding Plus
     Dilutive                        1,596                1,577
    Common Stock Options and
    Awards

                             Loss on extinguishment of debt are expenses associated
                             with the early payment of long-term debt as
    1)                       previously discussed.

                             2012 Net Earnings Excluding Specified Items excludes
                             after-tax charges of $858 million, or $0.54 per
                             share, for loss on extinguishment of debt, $265
                             million, or $0.16 per share, for separation costs,
                             $97 million, or $0.06 per share, for asset
                             impairments, $122 million, or $0.07 per share, for
                             restructuring, integration costs and other and $26
                             million, or $0.02 per share, for acquired in-process
    2)                       research and development.

                             2011 Net Earnings Excluding Specified Items excludes
                             after-tax charges of $400 million, or $0.25 per
                             share, relating to acquired in-process research and
                             development related to the Reata collaboration, $124
                             million, or $0.08 per share, associated with the
                             acquisition of Solvay Pharmaceuticals, and $152
                             million, or $0.10 per share, for other restructuring
                             and integration charges.




    NOTE: See attached questions and answers section for further
    explanation of Consolidated Statement of Earnings line items.

    n/m = Percent change is not meaningful.





                              Abbott Laboratories and Subsidiaries
                               Consolidated Statement of Earnings
                         Twelve Months Ended December 31, 2012 and 2011
                              (in millions, except per share data)
                                           (unaudited)

                                              2012                 2011  % Change
                                              ----                 ----  --------
    Net Sales                              $39,874              $38,851         2.6
                                           -------              -------

    Cost of products sold                   15,120               15,541        (2.7) 1)
    Research and development                 4,322                4,129         4.7
    Acquired in-process and
     collaborations research and
     development                               288                  673         n/m
    Selling, general and
     administrative                         12,059               12,756        (5.5) 2)
                                            ------               ------
    Total Operating Cost and
     Expenses                               31,789               33,099        (4.0)
                                            ------               ------

    Operating earnings                       8,085                5,752        40.6

    Net interest expense                       513                  445        15.3
    Loss on extinguishment of
     debt                                    1,351                   --         n/m  3)
    Net foreign exchange (gain)
     loss                                       (8)                 (50)        n/m
    Other (income) expense, net                (34)                 158         n/m  4)
                                               ---                  ---
    Earnings before taxes                    6,263                5,199        20.5
    Taxes on earnings                          300                  470       (36.3) 5)
                                               ---                  ---
    Net Earnings                            $5,963               $4,729        26.1
                                            ======               ======

    Net Earnings Excluding
     Specified Items, as
     described below                        $8,119               $7,331        10.7  6)
                                            ======               ======

    Diluted Earnings per Common
     Share                                   $3.72                $3.01        23.6
                                             =====                =====

    Diluted Earnings per Common
     Share, Excluding Specified
     Items,                                  $5.07                $4.66         8.8  6)
    as described below                       =====                =====

    Average Number of Common
     Shares Outstanding Plus
     Dilutive                                1,592                1,567
    Common Stock Options and Awards




                                    2012 Cost of products sold decline was due in part
    1)                              to foreign exchange rates.

                                    2011 Selling, general and administrative expense
                                    includes $1.5 billion of litigation reserves
    2)                              related to previously disclosed litigation.

                                    Loss on extinguishment of debt are expenses
                                    associated with the early payment of long-term
    3)                              debt.

                                    Other (income) expense, net for 2011 includes a
                                    charge of $137 million for the impact of Abbott's
                                    change to a calendar year end for the international
                                    operations that were previously reported on a
    4)                              November 30 year-end.

                                    2012 Taxes on earnings includes a favorable
                                    adjustment to tax expense of $408 million, or $0.26
                                    per share, as a result of the resolution of various
                                    tax positions from a previous year. 2011 Taxes on
                                    earnings includes a favorable adjustment to tax
                                    expense of $580 million, or $0.37 per share, as a
                                    result of the resolution of various international
                                    and U.S. tax positions from prior years. These
                                    favorable items are classified as specified items
                                    and excluded from ongoing results, as discussed
    5)                              below.

                                    2012 Net Earnings Excluding Specified Items excludes
                                    after-tax charges of $858 million, or $0.54 per
                                    share, for loss on extinguishment of debt, $573
                                    million, or $0.36 per share, for restructuring,
                                    $485 million, or $0.30 per share, for separation
                                    costs, $325 million, or $0.21 per share, for
                                    acquired in-process R&D and R&D milestone
                                    payments, $115 million, or $0.07 per share, related
                                    to litigation reserves, $112 million, or $0.07 per
                                    share, for integration-related expenses and $96
                                    million, or $0.06 per share, for asset impairments.
                                    These items were partially offset by a favorable
                                    adjustment from the resolution of a prior year's
    6)                              tax positions for $408 million, or $0.26 per share.

                                    2011 Net Earnings Excluding Specified Items excludes
                                    after-tax charges of $1.454 billion, or $0.92 per
                                    share, related to litigation reserves, $673
                                    million, or $0.43 per share, relating to acquired
                                    in-process research and development related to the
                                    Reata and Biotest collaborations, $341 million, or
                                    $0.22 per share, associated with the acquisition of
                                    Solvay Pharmaceuticals, $76 million, or $0.05 per
                                    share, for the impairment of an R&D intangible
                                    asset, $137 million, or $0.09 per share, for the
                                    2009 and 2010 impact of the change to a calendar
                                    year end for international operations, $110
                                    million, or $0.07 per share, for restructuring in
                                    the pharmaceutical business, $311 million, or $0.19
                                    per share, for cost reduction initiatives and
                                    other, and $80 million, or $0.05 per share, for
                                    other litigation reserves. These items were
                                    partially offset by a favorable adjustment from the
                                    resolution of prior years' international and U.S.
                                    tax positions for $580 million, or $0.37 per share.

    n/m = Percent change is not meaningful.


Questions & Answers

Q1) What were sources of sales growth in the quarter?

A1) Excluding foreign exchange, worldwide sales increased 5.6 percent. Reported sales
increased 4.4 percent, including an unfavorable 1.2 percent effect of foreign exchange.
In emerging markets, sales increased more than 10 percent, excluding foreign exchange,
with strong double-digit growth in many of the key emerging markets across Abbott's
businesses.

Worldwide Nutrition sales increased 10.0 percent in the quarter, excluding a favorable
0.2 percent effect of foreign exchange. This was driven by strong growth across the U.S.
and International Nutrition businesses, increasing 9.4 percent and 10.5 percent
(excluding foreign exchange), respectively, driven by growth of key products, including
Similac®, PediaSure®, Ensure® and Glucerna®, as well as emerging market growth. Sales in
emerging markets represent more than 40 percent of total Nutrition sales and increased
double digits. Global sales of Core Laboratory Diagnostics increased 5.7 percent,
excluding an unfavorable 1.9 percent effect of foreign exchange, driven by 7.2 percent
international growth, excluding an unfavorable 2.4 percent effect of foreign exchange,
with strong growth in key emerging markets, such as China, Russia and Brazil. Point of
Care Diagnostics also contributed to strong sales growth, increasing double digits in
the quarter.

Worldwide Proprietary Pharmaceuticals sales increased 8.5 percent, excluding an
unfavorable 1.1 percent effect of foreign exchange, driven by strong growth in key
franchises including HUMIRA worldwide and AndroGel® in the U.S., partially offset by the
impact of Tricor® generic competition in the U.S.

Q2) How did specified items affect reported results?

A2) Specified items impacted fourth-quarter results as follows:




                                                       4Q12
                                                       ----
    (dollars in millions, except
     earnings-per-share)                             Earnings
                                                     --------
                                        Pre-tax    After-tax       EPS
                                        -------    ---------       ---
    As reported (GAAP)                      $874       $1,053       $0.66
    Adjusted for specified items:
    Loss on extinguishment of debt        $1,351         $858       $0.54
    Separation costs                        $282         $265       $0.16
    Asset impairments                       $119          $97       $0.06
    Acquired IPR&D                           $28          $26       $0.02
    Restructuring/Integration/
     Other                                  $171         $122       $0.07
    As adjusted                           $2,825       $2,421       $1.51


Loss on extinguishment of debt relates to the payment of long-term debt as discussed
previously. Separation costs are expenses related to the separation of AbbVie. Asset
impairments relate to the write down of certain acquired research and development assets
and equity investments. Acquired IPR&D relates to a previously announced Proprietary
Pharmaceuticals collaboration. Restructuring/Integration/Other is associated primarily
with previously announced restructuring actions across the businesses. The impact of the
specified items by line item is as follows (dollars in millions):


                                             4Q12
                                  Cost of
                                  Products           Acquired
                                    Sold      R&D      IPR&D    SG&A
                                 --------     ---    --------   ----
    As reported (GAAP)              $4,060  $1,141        $28  $3,193
    Adjusted for specified
     items:
    Loss on extinguishment of
     debt                               --      --         --      --
    Separation costs                   ($6)    ($8)        --  ($212)
    Asset impairments                   --    ($58)        --      --
    Acquired IPR&D                      --      --       ($28)     --
    Restructuring/Integration/
     Other                            ($75)   ($45)        --    ($47)
    As adjusted                     $3,979  $1,030         --  $2,934




                                                 4Q12
                                    Net         Loss on         Other
                                  Interest   extinguishment   (Income)/
                                  Expense       of Debt        Expense
                                  --------   --------------   ---------
    As reported (GAAP)                $163           $1,351         $39
    Adjusted for specified
     items:
    Loss on extinguishment of
     debt                               --          ($1,351)         --
    Separation costs                  ($56)              --          --
    Asset impairments                   --               --        ($61)
    Acquired IPR&D                      --               --          --
    Restructuring/Integration/
     Other                              --               --         ($4)
    As adjusted                       $107               --        ($26)


Q3) What was the gross margin ratio in the quarter? 

A3) The gross margin ratio before and after specified items is shown below (dollars in
millions):




                                       4Q12
                                       ----
                          Cost of    Gross     Gross
                          Products  Margin     Margin
                            Sold    ------       %
                            ----                ---
    As reported (GAAP)      $4,060   $6,777       62.5%
    Adjusted for
     specified items:
    Restructuring/
     Integration/Other        ($81)     $81        0.8%
                              ----      ---        ---
    As adjusted             $3,979   $6,858       63.3%


The adjusted gross margin ratio was 63.3 percent in the fourth quarter, a decrease of 50
basis points from the prior year quarter due to the negative impact of foreign exchange
of 130 basis points.

Q4) What was the tax rate? 

A4) The ongoing tax rate for the full year was 14.8 percent, in line with previous
guidance, as detailed below (dollars in millions):




                                           12M12
                                           -----
                            Pre-Tax     Taxes on        Tax
                            Income      Earnings        Rate
    As reported (GAAP)        $6,263          $300          4.8%
    Specified items           $3,266        $1,110         34.0%
                              ------        ------         ----
    Excluding specified
     items                    $9,529        $1,410         14.8%


The ongoing tax rate for the fourth quarter was 14.3 percent, as detailed below.




                                          4Q12
                                          ----
                           Pre-Tax       Taxes on        Tax
                           Income        Earnings       Rate
    As reported (GAAP)          $874           ($179)   (20.5%)
    Specified items           $1,951            $583      29.9%
                              ------            ----      ----
    Excluding
     specified items          $2,825            $404      14.3%


Q5) What are the key areas of focus in Abbott's diversified medical products pipeline?  

A5) Abbott's diversified medical products pipeline includes revolutionary medical
technologies, next-generation diagnostic systems, new formulations, new packaging, new
flavors and other brand enhancements. Following are highlights:


    --  Vascular Devices

        --  Abbott has one of the industry's most robust vascular pipelines and
            is working on well-staged incremental advances and transformational
            technologies that have the potential to restate the market.
        --  Drug Eluting Stents (DES) - Abbott is the global leader in drug
            eluting stents with several leading products on the market and
            next-generation platforms in development. XIENCE Xpedition, our
            next-generation DES technology, features a new stent delivery system
            for enhanced deliverability as well as a broader size matrix. XIENCE
            Xpedition was launched in the U.S. earlier this month and also is
            available in Europe and parts of Asia and Latin America. We expect
            to launch XIENCE Xpedition in additional markets this year.
        --  Bioresorbable Vascular Scaffold (BVS) - Absorb is the world's first
            drug eluting BVS for the treatment of coronary artery disease. It
            restores blood flow to the heart by opening a clogged vessel and
            providing support to the vessel until the device dissolves, leaving
            patients with a treated vessel that may resume more natural function
            and movement because it is free of a permanent metallic stent.
            Absorb is now launched in more than 30 countries across Europe and
            parts of Latin America and Asia, including India. In January, Abbott
            announced the initiation of its U.S. clinical trial, ABSORB III,
            which will be used to support the U.S. regulatory filing of Absorb.
        --  Endovascular products - Abbott's endovascular business key product
            launches in 2012 included the Absolute Pro® Vascular Self-Expanding
            Stent System and the Omnilink Elite® Vascular Balloon-Expandable
            Stent System, both for the treatment of iliac artery disease, a form
            of peripheral artery disease (PAD) that affects the lower
            extremities. We continue to develop innovative products to treat PAD
            and expand indications for stents and vessel closure systems.
        --  MitraClip - MitraClip® is a less invasive device for the treatment
            of select patients with mitral regurgitation (MR), the most common
            valve disease in the world. MR affects more than 8 million people in
            the United States and Europe, and is four times more prevalent than
            aortic stenosis. Abbott's MitraClip system is available in Europe
            and parts of Asia and is currently under U.S. FDA review.
    --  Nutrition

        --  Abbott is focused on six key areas through nutrition: immunity,
            cognition, lean body mass, inflammation, metabolism and tolerance.
            Through these platforms, we are helping to solve global health needs
            with nutrition science that matters to our customers. Demographic
            shifts also shape our innovation pipeline, as we focus on new and
            existing technologies to support the challenges of an aging
            population, including malnutrition, increase in chronic disease and
            the targeted needs of critical care. We have initiated more than 100
            clinical trials over the last three years.
        --  We have expanded our R&D capabilities, reduced innovation cycle
            times and accelerated product introductions. In 2012 we launched 80
            products in key markets around the world. We're also expanding R&D
            infrastructure closer to our customers to deliver relevant regional
            innovation, and building external partnerships to expand on our core
            capabilities and identify emerging technologies.
        --  Key highlights from the second half of 2012 include:

            --  Continued the global roll-out of Similac Total Comfort with four
                additional launches in key markets: Hong Kong, Taiwan, Malaysia
                and Russia. With these launches, Similac Total Comfort is now
                available in 19 key international markets.
            --  Initiated the global introduction of specialty tolerance
                products with first market launches of Similac Alimentum® in
                Singapore and Similac Spit-UpRelief(TM) in Saudi Arabia.
            --  Continued to build our portfolio in India with the launch of
                Similac Stage 2 and HQPro, a protein powder product.
            --  Completed the U.S. launch of Myoplex® Original and Lite
                Ready-To-Drink with Revigor®, Similac Liquid Protein Fortifier,
                as well as a ZonePerfect® brand redesign.
    --  Established Pharmaceuticals

        --  Abbott's large and growing portfolio of hundreds of established
            pharmaceuticals consists of trusted, well-known brands that have
            broad use throughout the world. Our strategy is focused on
            increasing access and being closer to patients and other customers
            by operating locally in each market and building country-specific
            portfolios made up of global and local pharmaceutical brands that
            best meet each local market's needs.
        --  We continue to strengthen the depth and breadth of our established
            pharmaceuticals portfolio across several therapeutic areas including
            gastroenterology, women's health, cardiology, metabolic disorders
            and primary care. This includes launching new and improved
            formulations of our current trusted brands, such as Creon and
            Brufen, as well as launching new products, such as Amitiza®, a
            prescription medicine for the treatment of chronic constipation,
            which recently launched in Japan.
        --  Over the next several years, we expect to bring these medicines to
            broader patient populations through registrations across multiple
            geographies, including key emerging markets.
    --  Diagnostics

        --  Abbott is focusing on near-term launches of important automation
            solutions, such as its next-generation track system called
            ACCELERATOR a3600, to help improve efficiencies in the laboratory.
            These important innovations will play a critical role in reducing
            the time it takes for a test result to be delivered to the physician
            to aid in patient diagnosis. Recent launches include two new tests
            for the ARCHITECT platform: an innovative, highly sensitive troponin
            assay available outside the U.S. and a second-generation
            testosterone assay now available worldwide. Additionally, Abbott
            expects to launch assays in the areas of cardiac care, fertility,
            metabolics and infectious disease later this year, which will
            further broaden and differentiate its industry-leading menu.
        --  Future growth for the Core Laboratory Diagnostics business will be
            driven by its next-generation blood screening, hematology and
            immunochemistry analyzers, as well as advanced automation and
            informatics solutions to provide high-quality results and
            information, while enhancing laboratory productivity and reducing
            costs.
        --  Abbott expects to launch more than 15 new molecular diagnostic
            products over the next few years, including several novel oncology,
            infectious disease and companion diagnostic assays.
    --  Vision Care

        --  Abbott expects numerous new products and technology advancements
            over the next five years from its cataract, refractive and corneal
            business units. In its market-leading LASIK business, Abbott is
            expanding its proprietary laser platform into new vision correction
            applications, including cataract surgery. Abbott also continues to
            expand its portfolio of cataract technologies which includes
            intraocular lenses (IOLs), phacoemulsification systems and
            viscoelastics.
        --  Key highlights of 2012 include:

            --  Completed the European launch of the TECNIS® Multifocal Toric
                1-Piece IOL, which is the latest advancement in the TECNIS
                portfolio of high-quality IOLs. The TECNIS iTec Preloaded
                Delivery System, also launched in Europe, allows a cataract
                surgeon to implant the TECNIS 1-Piece IOL safely into the eye
                through a smaller incision.
            --  Received U.S. FDA clearance to use Abbott's iFS Advanced
                Femtosecond Laser in cataract surgery, giving surgeons the
                ability to make precise, bladeless bow-shaper or curved arcuate
                incisions during surgery and customize for each individual
                patient.
            --  Received FDA approval of Healon® EndoCoat OVD, a device
                intended for use as a surgical aid in cataract extraction and
                IOL implantation.
            --  Launched in Europe and Japan the iDesign Advanced WaveScan
                Studio aberrometer, a next-generation diagnostic tool for
                mapping and analyzing corneal aberrations in the eye.
Abbott

CONTACT:  Abbott,  Financial, Brian Yoor, +1-847-937-6343, or Tina Ventura,
+1-847-935-9390, or Media, Melissa Brotz, +1-847-935-3456, or Scott
Stoffel, +1-847-936-9502, or AbbVie, Financial, Larry Peepo,
+1-847-935-6722, or Media, Adelle Infante, +1-847-938-8745 

Web site:  http://www.abbott.com/
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