Abbott Laboratories has suffered heavy setback during the first quarter ended March 2016 due to foreign exchange loss and gain on sale of discontinued operations in the last period. Its net profit declined sharply by 86.2 per cent to US$ 316 million from $2,292 million in the similar period of last year. Operating earnings declined by 14.1 per cent to $524 million from $610 million. Its net sales also declined by 0.2 per cent to $4,885 million from $4,897 million. EPS worked out to $0.21 as against $1.51 in the last period.
Foreign exchange loss amounted to $478 million as compared to gain of $54 million. The company has shown a gain of $1,737 million in the first quarter of last year from discontinued operations as compared to $16 million in the current quarter. Its R&D expenditure increased by 21 per cent to $379 million from $313 million.
The Nutrition division sales improved by 0.1 per cent to $1,671 million and that of diagnostics moved up by 6.9 per cent to $1,118 million. Its sales of established pharmaceuticals declined by one per cent to $888 million. The sales of medical devices declined by 2.9 per cent to $1,197 million. Its US sales increased by 1.9 per cent to $1,531 million and International sales increased by 6.6 per cent to $3,354 million.
Key emerging markets including India, Russia, Brazil and China, along with several additional emerging markets that represent the most attractive long-term growth opportunities for Abbott's branded generics product portfolio. Sales in these key geographies declined on reported basis, including an unfavourable 15.1 per cent effect of foreign exchange.
Operational growth of 11 per cent for established pharmaceuticals was led by continued double-digit growth in India, which comprises more than 20 per cent of its established pharmaceuticals sales. Sales growth in India was led by double-digit growth across several core therapeutic areas, including women's health, gastroenterology, and cardio-metabolics. It also achieved above-market growth in China and several countries in Latin America as it continues to expand its presence and portfolio in these key geographies.
Miles D White, chairman and CEO, said, “We are off to a good start to the year and are raising our full-year adjusted EPS guidance range. All four of our businesses met or exceeded our growth expectations and underlying demand remains strong.” The company has projected higher EPS of $2.14 to $2.24 for full year as against $2.10 to $2.20.
The sales of Medical Devices division moved up by 2.4 per cent on reported basis to $1,197 million. Worldwide sales of vascular products declined by 1.9 per cent on reported basis. Sales of MitraClip, Aboott's device for the treatment of mitral regurgitation, increased double-digit globally. Its sales of worldwide diabetes care declined by 9.1 per cent to $243 million.