09:08 Wed 19 Oct 2016
Abbott Laboratories - 3rd Quarter Results
Abbott Reports Third-Quarter 2016 Results
- THIRD-QUARTER REPORTED SALES GROWTH OF 2.9 PERCENT; OPERATIONAL SALES GROWTH OF 4.0 PERCENT
- NARROWS FULL-YEAR 2016 EPS GUIDANCE RANGE FOR CONTINUING OPERATIONS
- LAUNCHES MULTIPLE NEW PRODUCTS AND CONTINUES TO SHAPE BUSINESS FOR LONG-TERM GROWTH
ABBOTT PARK, Ill.,
· Third-quarter worldwide sales of
· Reported diluted EPS from continuing operations under GAAP was a
· Abbott adjusted its full-year 2016 EPS guidance for continuing operations under GAAP to
· In the third quarter, Abbott received
· On
"Strong performance in
THIRD-QUARTER BUSINESS OVERVIEW
Following are sales by business segment and commentary for the third quarter and the first nine months of the year:
($ in millions)
|
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% Change vs. 3Q15 |
|||||||||
|
Sales 3Q16 |
|
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|
Int'l |
|
Total |
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|
|
Int'l |
|
Total |
|
|
|
Reported |
|
Operational |
|
Reported |
|
Operational |
Total * |
1,645 |
|
3,657 |
|
5,302 |
|
4.5 |
|
2.2 |
|
3.7 |
|
2.9 |
|
4.0 |
Nutrition |
755 |
|
1,000 |
|
1,755 |
|
3.5 |
|
(5.7) |
|
(4.1) |
|
(2.0) |
|
(1.0) |
Diagnostics |
362 |
|
851 |
|
1,213 |
|
4.1 |
|
5.3 |
|
6.0 |
|
5.0 |
|
5.4 |
|
-- |
|
1,012 |
|
1,012 |
|
n/a |
|
5.3 |
|
9.0 |
|
5.3 |
|
9.0 |
Medical Devices |
519 |
|
791 |
|
1,310 |
|
6.0 |
|
6.7 |
|
6.1 |
|
6.4 |
|
6.0 |
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* Total |
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% Change vs. 9M15 |
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Sales 9M16 |
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|
Int'l |
|
Total |
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|
Int'l |
|
Total |
|
|
|
Reported |
|
Operational |
|
Reported |
|
Operational |
Total * |
4,831 |
|
10,689 |
|
15,520 |
|
3.5 |
|
1.3 |
|
5.9 |
|
2.0 |
|
5.2 |
Nutrition |
2,224 |
|
2,942 |
|
5,166 |
|
3.8 |
|
(3.0) |
|
1.6 |
|
(0.2) |
|
2.5 |
Diagnostics |
1,062 |
|
2,495 |
|
3,557 |
|
3.6 |
|
3.9 |
|
7.1 |
|
3.8 |
|
6.1 |
|
-- |
|
2,880 |
|
2,880 |
|
n/a |
|
1.6 |
|
9.8 |
|
1.6 |
|
9.8 |
Medical Devices |
1,520 |
|
2,359 |
|
3,879 |
|
2.8 |
|
4.1 |
|
5.6 |
|
3.6 |
|
4.5 |
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* Total |
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n/a = Not Applicable. |
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Note: Operational growth reflects percentage change over the prior year excluding the impact of exchange rates. In order to compute results excluding the impact of exchange rates, current year |
Third-quarter 2016 worldwide sales of
International sales increased 2.2 percent on a reported basis and 3.7 percent on an operational basis in the third quarter. International operational growth was led by strong performance across
Nutrition
($ in millions)
|
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% Change vs. 3Q15 |
||||||||
|
Sales 3Q16 |
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|
Int'l |
|
Total |
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|
|
Int'l |
|
Total |
|
|
|
Reported |
|
Operational |
|
Reported |
|
Operational |
Total |
755 |
|
1,000 |
|
1,755 |
|
3.5 |
|
(5.7) |
|
(4.1) |
|
(2.0) |
|
(1.0) |
Pediatric |
414 |
|
553 |
|
967 |
|
4.3 |
|
(9.4) |
|
(7.5) |
|
(4.0) |
|
(2.8) |
Adult |
341 |
|
447 |
|
788 |
|
2.6 |
|
(0.8) |
|
0.6 |
|
0.6 |
|
1.4 |
|
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% Change vs. 9M15 |
||||||||
|
Sales 9M16 |
|
|
|
Int'l |
|
Total |
||||||||
|
|
|
Int'l |
|
Total |
|
|
|
Reported |
|
Operational |
|
Reported |
|
Operational |
Total |
2,224 |
|
2,942 |
|
5,166 |
|
3.8 |
|
(3.0) |
|
1.6 |
|
(0.2) |
|
2.5 |
Pediatric |
1,242 |
|
1,664 |
|
2,906 |
|
5.0 |
|
(5.1) |
|
(0.7) |
|
(1.0) |
|
1.6 |
Adult |
982 |
|
1,278 |
|
2,260 |
|
2.3 |
|
(0.1) |
|
4.7 |
|
0.9 |
|
3.7 |
Worldwide Nutrition sales decreased 2.0 percent on a reported basis in the third quarter, including an unfavorable 1.0 percent effect of foreign exchange, and decreased 1.0 percent on an operational basis.
Worldwide Pediatric Nutrition sales decreased 4.0 percent on a reported basis in the third quarter, including an unfavorable 1.2 percent effect of foreign exchange, and decreased 2.8 percent on an operational basis. During the quarter, Abbott introduced Similac® Pro-Advance™ and Similac Pro-Sensitive™, the first infant formulas in the
Worldwide Adult Nutrition sales increased 0.6 percent on a reported basis in the third quarter, including an unfavorable 0.8 percent effect of foreign exchange, and increased 1.4 percent on an operational basis. Operational sales growth in the quarter was led by growth of Ensure®, Abbott's complete and balanced nutrition brand.
Diagnostics
($ in millions)
|
|
|
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|
|
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% Change vs. 3Q15 |
||||||||
|
Sales 3Q16 |
|
|
|
Int'l |
|
Total |
||||||||
|
|
|
Int'l |
|
Total |
|
|
|
Reported |
|
Operational |
|
Reported |
|
Operational |
Total |
362 |
|
851 |
|
1,213 |
|
4.1 |
|
5.3 |
|
6.0 |
|
5.0 |
|
5.4 |
|
220 |
|
757 |
|
977 |
|
7.6 |
|
5.0 |
|
5.7 |
|
5.6 |
|
6.1 |
Molecular |
42 |
|
70 |
|
112 |
|
(9.6) |
|
5.4 |
|
6.3 |
|
(0.8) |
|
(0.3) |
Point of Care |
100 |
|
24 |
|
124 |
|
3.4 |
|
15.6 |
|
14.1 |
|
5.6 |
|
5.3 |
|
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|
% Change vs. 9M15 |
||||||||
|
Sales 9M16 |
|
|
|
Int'l |
|
Total |
||||||||
|
|
|
Int'l |
|
Total |
|
|
|
Reported |
|
Operational |
|
Reported |
|
Operational |
Total |
1,062 |
|
2,495 |
|
3,557 |
|
3.6 |
|
3.9 |
|
7.1 |
|
3.8 |
|
6.1 |
|
616 |
|
2,224 |
|
2,840 |
|
3.4 |
|
3.8 |
|
7.1 |
|
3.7 |
|
6.3 |
Molecular |
140 |
|
199 |
|
339 |
|
(3.4) |
|
1.9 |
|
5.2 |
|
(0.3) |
|
1.5 |
Point of Care |
306 |
|
72 |
|
378 |
|
7.6 |
|
13.3 |
|
13.6 |
|
8.6 |
|
8.7 |
Point of Care Diagnostics sales increased 5.6 percent on a reported basis in the third quarter, including a favorable 0.3 percent effect of foreign exchange, and increased 5.3 percent on an operational basis. Sales growth was led by continued adoption of Abbott's i-STAT®handheld system in the
($ in millions)
|
|
|
|
|
|
|
% Change vs. 3Q15 |
||||||||
|
Sales 3Q16 |
|
|
|
Int'l |
|
Total |
||||||||
|
|
|
Int'l |
|
Total |
|
|
|
Reported |
|
Operational |
|
Reported |
|
Operational |
Total |
-- |
|
1,012 |
|
1,012 |
|
n/a |
|
5.3 |
|
9.0 |
|
5.3 |
|
9.0 |
Key Emerging Markets |
-- |
|
747 |
|
747 |
|
n/a |
|
7.0 |
|
12.2 |
|
7.0 |
|
12.2 |
Other |
-- |
|
265 |
|
265 |
|
n/a |
|
0.7 |
|
0.6 |
|
0.7 |
|
0.6 |
|
|
|
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|
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|
% Change vs. 9M15 |
||||||||
|
Sales 9M16 |
|
|
|
Int'l |
|
Total |
||||||||
|
|
|
Int'l |
|
Total |
|
|
|
Reported |
|
Operational |
|
Reported |
|
Operational |
Total |
-- |
|
2,880 |
|
2,880 |
|
n/a |
|
1.6 |
|
9.8 |
|
1.6 |
|
9.8 |
Key Emerging Markets |
-- |
|
2,135 |
|
2,135 |
|
n/a |
|
2.7 |
|
13.4 |
|
2.7 |
|
13.4 |
Other |
-- |
|
745 |
|
745 |
|
n/a |
|
(1.5) |
|
-- |
|
(1.5) |
|
-- |
Key Emerging Markets include
Medical Devices
($ in millions)
|
|
|
|
|
|
|
% Change vs. 3Q15 |
|||||||||
|
Sales 3Q16 |
|
|
|
Int'l |
|
Total |
|||||||||
|
|
|
Int'l |
|
Total |
|
|
|
Reported |
|
Operational |
|
Reported |
|
Operational |
|
Total |
519 |
|
791 |
|
1,310 |
|
6.0 |
|
6.7 |
|
6.1 |
|
6.4 |
|
6.0 |
|
Vascular |
305 |
|
403 |
|
708 |
|
9.8 |
|
2.0 |
|
1.4 |
|
5.2 |
|
4.9 |
|
Diabetes Care |
96 |
|
210 |
|
306 |
|
(2.2) |
|
19.1 |
|
20.7 |
|
11.5 |
|
12.5 |
|
Medical Optics |
118 |
|
178 |
|
296 |
|
3.7 |
|
4.8 |
|
1.7 |
|
4.4 |
|
2.5 |
|
|
|
|
|
|
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Vascular Product Lines: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coronary Devicesa) |
201 |
|
336 |
|
537 |
|
4.8 |
|
-- |
|
(0.8) |
|
1.8 |
|
1.2 |
|
Endovascularb) |
76 |
|
66 |
|
142 |
|
4.6 |
|
13.7 |
|
14.3 |
|
8.6 |
|
8.9 |
|
|
|
|
|
|
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|
a) Includes DES / BVS product portfolio, structural heart, guidewires, balloon catheters and other coronary products. |
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b) Includes vessel closure, carotid stents and other peripheral products. |
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||||||||||
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||||||||||
|
% Change vs. 9M15 |
|
||||||||||||||
|
Sales 9M16 |
|
|
|
Int'l |
|
Total |
|
||||||||
|
|
|
Int'l |
|
Total |
|
|
|
Reported |
|
Operational |
|
Reported |
|
Operational |
|
Total |
1,520 |
|
2,359 |
|
3,879 |
|
2.8 |
|
4.1 |
|
5.6 |
|
3.6 |
|
4.5 |
|
Vascular |
940 |
|
1,235 |
|
2,175 |
|
9.5 |
|
0.1 |
|
1.8 |
|
3.9 |
|
4.9 |
|
Diabetes Care |
238 |
|
594 |
|
832 |
|
(18.6) |
|
12.6 |
|
15.7 |
|
1.5 |
|
3.5 |
|
Medical Optics |
342 |
|
530 |
|
872 |
|
4.2 |
|
4.9 |
|
4.6 |
|
4.6 |
|
4.4 |
|
|
|
|
|
|
|
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|
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|
|
|
|
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Vascular Product Lines: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coronary Devicesa) |
597 |
|
1,039 |
|
1,636 |
|
4.5 |
|
(1.5) |
|
-- |
|
0.6 |
|
1.6 |
|
Endovascularb) |
226 |
|
194 |
|
420 |
|
7.5 |
|
9.0 |
|
11.7 |
|
8.2 |
|
9.4 |
|
|
|
|
|
|
|
|
|
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|
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|
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|
|
a) Includes DES / BVS product portfolio, structural heart, guidewires, balloon catheters and other coronary products. |
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b) Includes vessel closure, carotid stents and other peripheral products. |
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Worldwide Medical Devices sales increased 6.4 percent on a reported basis in the third quarter, including a favorable 0.4 percent effect of foreign exchange, and increased 6.0 percent on an operational basis.
Worldwide sales of Vascular products increased 5.2 percent on a reported basis in the third quarter, including a favorable 0.3 percent effect of foreign exchange, and increased 4.9 percent on an operational basis. Sales growth in Vascular products was led by double-digit growth of MitraClip®, Abbott's device for the treatment of mitral regurgitation, as Abbott continues to build the market for this first-in-class device. Strong sales growth in Abbott's Endovascular business was driven by vessel closure products and Supera®, Abbott's unique stent for the treatment of blockages in the leg. In the quarter, Abbott received
Worldwide Diabetes Care sales increased 11.5 percent on a reported basis in the third quarter, including an unfavorable 1.0 percent effect of foreign exchange, and increased 12.5 percent on an operational basis. International sales growth was driven by continued consumer uptake of FreeStyle Libre, Abbott's revolutionary continuous glucose monitoring system that eliminates the need for finger-sticks. In September, Abbott received
Worldwide Medical Optics sales increased 4.4 percent on a reported basis in the third quarter, including a favorable 1.9 percent effect of foreign exchange, and increased 2.5 percent on an operational basis. Operational sales growth was driven by continued market uptake of cataract products in the premium intraocular lens segment. In the quarter, Abbott received
ABBOTT NARROWS ITS FULL-YEAR EARNINGS-PER-SHARE GUIDANCE
Abbott is adjusting its projected earnings per share from continuing operations under Generally Accepted Accounting Principles (GAAP) to
Abbott forecasts net specified items for the full year 2016 of approximately
Excluding specified items, Abbott is raising the mid-point and narrowing its full-year 2016 guidance range for earnings per share from continuing operations to
ABBOTT DECLARES 371ST QUARTERLY DIVIDEND
On
Abbott is a member of the S&P 500 Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for 25 consecutive years.
About Abbott:
Abbott 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 74,000 people.
Visit Abbott at www.abbott.com and connect with us on Twitter at @AbbottNews.
Abbott will webcast its live third-quarter earnings conference call through its Investor Relations website at www.abbottinvestor.com at
- 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 for the year ended
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Condensed Consolidated Statement of Earnings |
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Third Quarter Ended |
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(in millions, except per share data) |
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(unaudited) |
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|
|
|
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|
3Q16 |
|
3Q15 |
|
% Change |
|
|
|
|
|
|
2.9 |
|
|
|
|
|
|
|
|
Cost of products sold, excluding amortization expense |
2,285 |
|
2,242 |
|
1.9 |
|
Amortization of intangible assets |
140 |
|
151 |
|
(7.6) |
|
Research and development |
352 |
|
378 |
|
(6.7) |
|
Selling, general, and administrative |
1,628 |
|
1,666 |
|
(2.3) |
|
Total Operating Cost and Expenses |
4,405 |
|
4,437 |
|
(0.7) |
|
|
|
|
|
|
|
|
Operating earnings |
897 |
|
713 |
|
25.8 |
|
|
|
|
|
|
|
|
Interest expense, net |
95 |
|
16 |
|
n/m |
1) |
Net foreign exchange (gain) loss |
9 |
|
(14) |
|
n/m |
|
Other (income) expense, net |
972 |
|
(3) |
|
n/m |
2) |
Earnings (Loss) from Continuing Operations before taxes |
(179) |
|
714 |
|
n/m |
|
|
|
|
|
|
|
|
Taxes on Earnings (Loss) from Continuing Operations |
178 |
|
118 |
|
50.4 |
3) |
Earnings (Loss) from Continuing Operations |
(357) |
|
596 |
|
n/m |
|
|
|
|
|
|
|
|
Earnings (Loss) from Discontinued Operations, net of taxes |
28 |
|
(32) |
|
n/m |
|
Gain on Sale of Discontinued Operations, net of taxes |
-- |
|
16 |
|
n/m |
|
Net Earnings (Loss) from Discontinued Operations, net of taxes |
28 |
|
(16) |
|
n/m |
|
|
|
|
|
|
|
|
Net Earnings (Loss) |
|
|
|
|
n/m |
|
|
|
|
|
|
|
|
Net Earnings from Continuing Operations, excluding |
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|
|
|
|
|
Specified Items, as described below |
|
|
|
|
7.6 |
4) |
|
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|
|
|
Diluted Earnings (Loss) per Common Share from: |
|
|
|
|
|
|
Continuing Operations |
|
|
|
|
n/m |
|
Discontinued Operations |
0.02 |
|
(0.01) |
|
n/m |
|
Total |
|
|
|
|
n/m |
|
|
|
|
|
|
|
|
Diluted Earnings per Common Share from Continuing |
|
|
|
|
|
|
Operations, excluding Specified Items, as described below |
|
|
|
|
9.3 |
4) |
|
|
|
|
|
|
|
Average Number of Common Shares Outstanding |
|
|
|
|
|
|
Plus Dilutive Common Stock Options |
1,476 |
|
1,505 |
|
|
5) |
NOTES: |
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See tables on page 14 for an explanation of certain non-GAAP financial information. |
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n/m = Percent change is not meaningful. |
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See footnotes on the following page.
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|
|
|||||||||||||||||||||||
|
||||||
Condensed Consolidated Statement of Earnings |
||||||
Nine Months Ended |
||||||
(in millions, except per share data) |
||||||
(unaudited) |
||||||
|
|
|
|
|
|
|
|
9M16 |
|
9M15 |
|
% Change |
|
|
|
|
|
|
2.0 |
|
|
|
|
|
|
|
|
Cost of products sold, excluding amortization expense |
6,712 |
|
6,541 |
|
2.6 |
|
Amortization of intangible assets |
429 |
|
458 |
|
(6.4) |
|
Research and development |
1,079 |
|
1,036 |
|
4.2 |
|
Selling, general, and administrative |
5,063 |
|
5,130 |
|
(1.3) |
|
Total Operating Cost and Expenses |
13,283 |
|
13,165 |
|
0.9 |
|
|
|
|
|
|
|
|
Operating earnings |
2,237 |
|
2,052 |
|
9.0 |
|
|
|
|
|
|
|
|
Interest expense, net |
203 |
|
49 |
|
n/m |
1) |
Net foreign exchange (gain) loss |
497 |
|
(63) |
|
n/m |
2) |
Other (income) expense, net |
999 |
|
(287) |
|
n/m |
3) |
Earnings from Continuing Operations before taxes |
538 |
|
2,353 |
|
(77.1) |
|
|
|
|
|
|
|
|
Taxes on Earnings from Continuing Operations |
240 |
|
442 |
|
(45.7) |
4) |
Earnings from Continuing Operations |
298 |
|
1,911 |
|
(84.4) |
|
|
|
|
|
|
|
|
Earnings (Loss) from Discontinued Operations, net of taxes |
288 |
|
(7) |
|
n/m |
|
Gain on Sale of Discontinued Operations, net of taxes |
16 |
|
1,752 |
|
(99.1) |
|
Net Earnings from Discontinued Operations, net of taxes |
304 |
|
1,745 |
|
(82.6) |
5) |
|
|
|
|
|
|
|
Net Earnings |
|
|
|
|
(83.5) |
|
|
|
|
|
|
|
|
Net Earnings from Continuing Operations, excluding |
|
|
|
|
|
|
Specified Items, as described below |
|
|
|
|
(0.7) |
6) |
|
|
|
|
|
|
|
Diluted Earnings per Common Share from: |
|
|
|
|
|
|
Continuing Operations |
|
|
|
|
(84.1) |
|
Discontinued Operations |
0.20 |
|
1.15 |
|
(82.6) |
5) |
Total |
|
|
|
|
(83.4) |
|
|
|
|
|
|
|
|
Diluted Earnings per Common Share from Continuing |
|
|
|
|
|
|
Operations, excluding Specified Items, as described below |
|
|
|
|
1.3 |
6) |
|
|
|
|
|
|
|
Average Number of Common Shares Outstanding |
|
|
|
|
|
|
Plus Dilutive Common Stock Options |
1,483 |
|
1,509 |
|
|
|
NOTES: |
||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||
See tables on page 15 for an explanation of certain non-GAAP financial information. |
||||||||||||||||||||||||||||||||||
n/m = Percent change is not meaningful. |
||||||||||||||||||||||||||||||||||
See footnotes on the following page.
|
||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||
|
NON-GAAP RECONCILIATION OF FINANCIAL INFORMATION FROM CONTINUING OPERATIONS
|
||||||||
Non-GAAP Reconciliation of Financial Information From Continuing Operations |
||||||||
Third Quarter Ended |
||||||||
(in millions, except per share data) |
||||||||
(unaudited) |
||||||||
|
|
|
||||||
|
|
3Q16 |
||||||
|
|
As |
|
Specified Items |
|
As |
|
% to |
|
|
|
|
|
|
|
|
|
Intangible Amortization |
|
|
|
|
|
-- |
|
|
Gross Margin |
|
2,877 |
|
158 |
|
|
|
57.3% |
R&D |
|
352 |
|
(22) |
|
330 |
|
6.2% |
SG&A |
|
1,628 |
|
(53) |
|
1,575 |
|
29.7% |
Interest expense, net |
|
95 |
|
(70) |
|
25 |
|
|
Net foreign exchange (gain) loss |
|
9 |
|
(4) |
|
5 |
|
|
Other (income) expense, net |
|
972 |
|
(957) |
|
15 |
|
|
Earnings (Loss) from Continuing Operations before taxes |
|
(179) |
|
1,264 |
|
1,085 |
|
|
Taxes on Earnings (Loss) from Continuing Operations |
|
178 |
|
24 |
|
202 |
|
|
Earnings (Loss) from Continuing Operations |
|
(357) |
|
1,240 |
|
883 |
|
|
Diluted Earnings (Loss) per Share from Continuing Operations |
|
|
|
|
|
|
|
|
Specified items reflect intangible amortization expense of
|
3Q15 |
||||||
|
As |
|
Specified Items |
|
As |
|
% to |
|
|
|
|
|
|
|
|
Intangible Amortization |
|
|
|
|
-- |
|
|
Gross Margin |
2,757 |
|
206 |
|
|
|
57.5% |
R&D |
378 |
|
(59) |
|
319 |
|
6.2% |
SG&A |
1,666 |
|
(46) |
|
1,620 |
|
31.4% |
Other (income) expense, net |
(3) |
|
12 |
|
9 |
|
|
Earnings from Continuing Operations before taxes |
714 |
|
299 |
|
1,013 |
|
|
Taxes on Earnings from Continuing Operations |
118 |
|
74 |
|
192 |
|
|
Earnings from Continuing Operations |
596 |
|
225 |
|
821 |
|
|
Diluted Earnings per Share from Continuing Operations |
|
|
|
|
|
|
|
Specified items reflect intangible amortization expense of
|
||||||||
Non-GAAP Reconciliation of Financial Information From Continuing Operations |
||||||||
Nine Months Ended |
||||||||
(in millions, except per share data) |
||||||||
(unaudited) |
||||||||
|
|
|
||||||
|
9M16 |
|
||||||
|
As |
|
Specified Items |
|
As |
|
% to |
|
|
|
|
|
|
|
|
|
|
Intangible Amortization |
|
|
|
|
-- |
|
|
|
Gross Margin |
8,379 |
|
500 |
|
|
|
57.2% |
|
R&D |
1,079 |
|
(68) |
|
1,011 |
|
6.5% |
|
SG&A |
5,063 |
|
(150) |
|
4,913 |
|
31.7% |
|
Interest expense, net |
203 |
|
(139) |
|
64 |
|
|
|
Net foreign exchange (gain) loss |
497 |
|
(481) |
|
16 |
|
|
|
Other (income) expense, net |
999 |
|
(962) |
|
37 |
|
|
|
Earnings from Continuing Operations before taxes |
538 |
|
2,300 |
|
2,838 |
|
|
|
Taxes on Earnings from Continuing Operations |
240 |
|
288 |
|
528 |
|
|
|
Earnings from Continuing Operations |
298 |
|
2,012 |
|
2,310 |
|
|
|
Diluted Earnings per Share from Continuing Operations |
|
|
|
|
|
|
|
|
Specified items reflect intangible amortization expense of
|
9M15 |
||||||
|
As |
|
Specified Items |
|
As |
|
% to |
|
|
|
|
|
|
|
|
Intangible Amortization |
|
|
|
|
-- |
|
|
Gross Margin |
8,218 |
|
577 |
|
|
|
57.8% |
R&D |
1,036 |
|
(81) |
|
955 |
|
6.3% |
SG&A |
5,130 |
|
(155) |
|
4,975 |
|
32.7% |
Other (income) expense, net |
(287) |
|
294 |
|
7 |
|
|
Earnings from Continuing Operations before taxes |
2,353 |
|
519 |
|
2,872 |
|
|
Taxes on Earnings from Continuing Operations |
442 |
|
104 |
|
546 |
|
|
Earnings from Continuing Operations |
1,911 |
|
415 |
|
2,326 |
|
|
Diluted Earnings per Share from Continuing Operations |
|
|
|
|
|
|
|
Specified items reflect intangible amortization expense of
RECONCILIATION OF TAX RATE FOR CONTINUING OPERATIONS
A reconciliation of the third-quarter tax rates for continuing operations for 2016 and 2015 is shown below:
|
|
3Q16 |
||||
($ in millions) |
|
Pre-Tax Income |
|
Taxes on Earnings |
|
Tax |
As reported (GAAP) |
|
$(179) |
|
$178 |
|
(99.5%) |
Specified items |
|
1,264 |
|
24 |
|
|
Excluding specified items |
|
$1,085 |
|
$202 |
|
18.6% |
|
|
|
|
|
|
|
|
|
3Q15 |
||||
($ in millions) |
|
Pre-Tax |
|
Taxes on |
|
Tax |
As reported (GAAP) |
|
$714 |
|
$118 |
|
16.6% |
Specified items |
|
299 |
|
74 |
|
|
Excluding specified items |
|
$1,013 |
|
$192 |
|
19.0% |
A reconciliation of the year-to-date tax rates for continuing operations for 2016 and 2015 is shown below:
|
|
9M16 |
||||
($ in millions) |
|
Pre-Tax Income |
|
Taxes on Earnings |
|
Tax |
As reported (GAAP) |
|
$538 |
|
$240 |
|
44.5% |
Specified items |
|
2,300 |
|
288 |
|
|
Excluding specified items |
|
$2,838 |
|
$528 |
|
18.6% |
|
|
|
|
|
|
|
|
|
9M15 |
||||
($ in millions) |
|
Pre-Tax |
|
Taxes on |
|
Tax |
As reported (GAAP) |
|
$2,353 |
|
$442 |
|
18.8% |
Specified items |
|
519 |
|
104 |
|
|
Excluding specified items |
|
$2,872 |
|
$546 |
|
19.0% |
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