Abbott Laboratories has posted slightly lower net profit during the second quarter ended June 2014 on account of stagnant sales and unfavorable effect of foreign exchange.  Its net profit declined by 2.1 per cent to $466 million from $476 million in the corresponding period of last year. Its net sales improved only by 1.9 per cent to $ 5,551 million from $5,446 million. EPS, excluding specified items, worked out to $0.54 as against $0.46.

Miles D White, chairman and chief executive officer, said, “We are ahead of our expectations through the first half of the year and are raising our EPS guidance range as we continue to shape the company for long-term growth,”

Its international sales, which comprise more than 70 per cent of total Abbott sales, increased by 2.7 per cent. Its sales in emerging market increased by 4.1 per cent. It launched new products like Tecnis Symfony extended range of vision intraocular lens (IOL) in Europe and new diabetes test on the Architect platform in the US. In addition, in its Nutrition business, Abbott opened two new manufacturing facilities and launched several new product to meet increasing global demand for pediatric and adult nutrition. The sales of nutrition moved up by 1.6 per cent to $1,731 million and that of diagnostics segment improved by 4.8 per cent to $1,189 million during the quarter under review.

Its sales of established pharmaceuticals segment in international market declined marginally by 0.1 per cent to $1,216 million. The sales in developed and other markets, including Western Europe, Japan and other emerging markets, declined by 4.4 per cent. Key emerging markets represent the most attractive long-term growth opportunities for its branded generics product portfolio. Its sales in emerging markets like India, Brazil, China, Russia and others improved by 4.4 per cent $616 million.

Recently the company divested its developed markets branded generic pharmaceuticals business to Mylan. For long-term growth, the company set to acquire CFR Pharmaceuticals in Latin America. Further, its also set to acquire Veropharm, a leading Russian pharmaceutical company, which would allow Abbott to immediately establish a larger footprint and manufacturing presence in Russia.

The company's net sales for the first half ended June 2014 declined by marginally by 0.3 per cent to $10,795 million and its net earning went down sharply by 16.6 per cent to $841 million from $1,021 million in the corresponding period of last year.

Abbott has raised its full-year 2014 guidance to $2.19 to $2.29 from $2.16 to $2.26, reflecting double-digit growth at the mid-point of the range. Guidance includes the developed markets branded generics pharmaceuticals business, which is expected to be reported as discontinued operations starting in the third quarter of 2014.