Abbott Laboratories, which spun off its drug business into a new company known as AbbVie, has reported lower net profit of US$ 1,053 million during the fourth quarter ended December 2012 from $1,619 million in the corresponding period of last year, a fall of 34.9 per cent. The company provided $1,351 million for loss on extinguishment of debt during the quarter as against nil in the last period. Its net sales increased by 4.4 per cent to $10,837 million from $10,377 million. The diluted earnings per common share worked out to $0.66 as against $1.02 in the last period.
Miles D White, chairman and CEO, said, 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. Abbott's mix of diversified healthcare businesses and pipeline is favo0rably aligned with key healthcare and emerging market trends and well positioned to deliver top-tier growth in 2013.”
The company's sales in US improved by 4.4 per cent to $4,669 million and that in International market moved up by 4.4 per cent to $6,168 million. The company launched numerous new products across is diversified businesses in 2012, positioning the company well for future growth. Key pipeline innovations include the launch of its Absorb bioresorabable vascular scaffold; next-generation drug-eluting stent, Xience Xpedition, 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.
For the full year ended December 2012, Abbott's net sales increased marginally by 2.6 per cent to $39,874 million from $38,851 million in the previous year. The sales from proprietary pharmaceuticals improved to $18,012 million. The cost of products sold declined by 2.7 per cent to $15,120 million. Its R&D expenditure increased by 4.7 per cent to $4,322 million from $4,129 million. Its operating earnings went up sharply by 40.6 per cent to $8,085 million from $5,752 million. Its net earnings improved by 26.1 per cent to $5,963 million from $4,729 million.