Abbott Reports Second-Quarter 2021 Results

 
 

Abbott (NYSE: ABT) today announced financial results for the second quarter ended June 30, 2021 .

 
  • Second-quarter sales of $10.2 billion increased 39.5 percent on a reported basis and 35.0 percent on an organic basis, which excludes the impact of foreign exchange.
  •  
  • Second-quarter GAAP diluted EPS was $0.66 and adjusted diluted EPS, which excludes specified items, was $1.17 , reflecting 105.3 percent growth versus the prior year. 1
  •  
  • Abbott continues to project full-year 2021 diluted EPS from continuing operations on a GAAP basis of $2.75 to $2.95 and full-year adjusted diluted EPS from continuing operations of $4.30 to $4.50 , reflecting strong, double-digit growth versus the prior year.
  •  
  • Diagnostics sales increased 62.8 percent on a reported basis and 57.2 percent on an organic basis in the second quarter. Global COVID-19 testing-related sales were $1.3 billion in the second quarter.
  •  
  • Nutrition sales increased 11.9 percent on a reported basis and 9.5 percent on an organic basis in the second quarter. Sales performance was led by double-digit growth in Adult Nutrition globally.
  •  
  • Established Pharmaceuticals sales increased 16.4 percent on a reported basis and 14.5 percent on an organic basis in the second quarter. Sales performance was led by double-digit growth in several countries, including India , China , Russia , and several countries across Latin America .
  •  
  • Medical Devices sales increased 51.3 percent on a reported basis and 45.1 percent on an organic basis in the second quarter. Compared to pre-pandemic sales in 2019, Medical Devices sales increased 19.2 percent on a reported basis and 15.6 percent on an organic basis in the second quarter, led by double-digit growth in Electrophysiology, Heart Failure, Structural Heart and Diabetes Care. 2
  •  

"We're achieving very strong growth across our portfolio," said Robert B. Ford , president and chief executive officer, Abbott. "Perhaps most impressively, excluding COVID testing-related sales, our sales grew more than 11 percent on an organic basis compared to pre-pandemic levels in the second quarter of 2019, which demonstrates the fundamental strength of our performance."

 

  SECOND-QUARTER BUSINESS OVERVIEW
  Note: Management believes that measuring sales growth rates on an organic basis is an appropriate way for investors to best understand the underlying performance of the business. Organic sales growth excludes the impact of foreign exchange.  

 

  Following are sales by business segment and commentary for the second quarter 2021:  

 

   Total Company
 
($ in millions)

 

 

 
 
                                                                                                                                                                                                                                                                                          
 
 
 
 
 
 
 
 
 
 

   % Change vs. 2Q20   

 
 
 
 
 

   Sales 2Q21   

 
 
 

   Reported   

 
 
 

   Organic   

 
 
 
 
 

   U.S.   

 
 
 

   Int'l   

 
 
 

   Total   

 
 
 

   U.S.   

 
 
 

   Int'l   

 
 
 

   Total   

 
 
 

   U.S.   

 
 
 

   Int'l   

 
 
 

   Total   

 
 

   Total *   

 
 
 
 

  3,581  

 
 
 

  6,642  

 
 
 

  10,223  

 
 
 

  35.8  

 
 
 

  41.6  

 
 
 

  39.5  

 
 
 

  35.8  

 
 
 

  34.6  

 
 
 

  35.0  

 
 

  Nutrition  

 
 
 
 

  873  

 
 
 

  1,235  

 
 
 

  2,108  

 
 
 

  8.0  

 
 
 

  14.9  

 
 
 

  11.9  

 
 
 

  8.0  

 
 
 

  10.6  

 
 
 

  9.5  

 
 

  Diagnostics  

 
 
 
 

  1,155  

 
 
 

  2,092  

 
 
 

  3,247  

 
 
 

  34.8  

 
 
 

  83.9  

 
 
 

  62.8  

 
 
 

  34.8  

 
 
 

  74.0  

 
 
 

  57.2  

 
 

  Established Pharmaceuticals  

 
 
 
 

  --  

 
 
 

  1,180  

 
 
 

  1,180  

 
 
 

  n/a  

 
 
 

  16.4  

 
 
 

  16.4  

 
 
 

  n/a  

 
 
 

  14.5  

 
 
 

  14.5  

 
 

  Medical Devices  

 
 
 
 

  1,538  

 
 
 

  2,128  

 
 
 

  3,666  

 
 
 

  59.3  

 
 
 

  46.0  

 
 
 

  51.3  

 
 
 

  59.3  

 
 
 

  35.6  

 
 
 

  45.1  

 
 
 
 

  * Total Q2 2021 Abbott sales from continuing operations include Other Sales of approximately $22 million.  

 
 
 
 
 
 
 
 
 
 
 
 
 
 

   % Change vs. 1H20   

 
 
 
 
 

   Sales 1H21   

 
 
 

   Reported   

 
 
 

   Organic   

 
 
 
 
 

   U.S.   

 
 
 

   Int'l   

 
 
 

   Total   

 
 
 

   U.S.   

 
 
 

   Int'l   

 
 
 

   Total   

 
 
 

   U.S.   

 
 
 

   Int'l   

 
 
 

   Total   

 
 

   Total *   

 
 
 
 

  7,419  

 
 
 

  13,260  

 
 
 

  20,679  

 
 
 

  35.0  

 
 
 

  38.7  

 
 
 

  37.4  

 
 
 

  35.0  

 
 
 

  33.3  

 
 
 

  33.9  

 
 

  Nutrition  

 
 
 
 

  1,709  

 
 
 

  2,435  

 
 
 

  4,144  

 
 
 

  5.5  

 
 
 

  12.3  

 
 
 

  9.4  

 
 
 

  5.5  

 
 
 

  9.8  

 
 
 

  8.0  

 
 

  Diagnostics  

 
 
 
 

  2,796  

 
 
 

  4,465  

 
 
 

  7,261  

 
 
 

  68.5  

 
 
 

  106.6  

 
 
 

  90.0  

 
 
 

  68.5  

 
 
 

  97.1  

 
 
 

  84.7  

 
 

  Established Pharmaceuticals  

 
 
 
 

  --  

 
 
 

  2,250  

 
 
 

  2,250  

 
 
 

  n/a  

 
 
 

  9.4  

 
 
 

  9.4  

 
 
 

  n/a  

 
 
 

  10.3  

 
 
 

  10.3  

 
 

  Medical Devices  

 
 
 
 

  2,889  

 
 
 

  4,097  

 
 
 

  6,986  

 
 
 

  31.4  

 
 
 

  29.6  

 
 
 

  30.3  

 
 
 

  31.4  

 
 
 

  20.8  

 
 
 

  25.2  

 
 
 
 
      
 
 

  * Total 1H 2021 Abbott sales from continuing operations include Other Sales of approximately $38 million.  

 
 
 

  n/a = Not Applicable.  

 
 
 

  Note: In order to compute results excluding the impact of exchange rates, current year U.S. dollar sales are multiplied or divided, as appropriate, by the current year average foreign exchange rates and then those amounts are multiplied or divided, as appropriate, by the prior year average foreign exchange rates.  

 
 
 

Second-quarter 2021 worldwide sales of $10.2 billion increased 39.5 percent on a reported basis and 35.0 percent on an organic basis.

 

Compared to pre-pandemic sales in 2019, worldwide sales increased 12.3 percent on a reported basis and 11.3 percent on an organic basis in the second quarter, excluding COVID-19 testing-related sales. 3

 

   Nutrition
 
($ in millions)

 
 
                                                                                                                                                                                                                                                                            
 
 
 
 
 
 
 
 
 
 
 
 
 
 

   % Change vs. 2Q20   

 
 
 
 
 
 
 
 
 

   Sales 2Q21   

 
 
 

   Reported   

 
 
 

   Organic   

 
 
 
 
 
 
 
 
 

   U.S.   

 
 
 

   Int'l   

 
 
 

   Total   

 
 
 

   U.S.   

 
 
 

   Int'l   

 
 
 

   Total   

 
 
 

   U.S.   

 
 
 

   Int'l   

 
 
 

   Total   

 
 

   Total   

 
 
 
 
 
 
 
 

  873  

 
 
 

  1,235  

 
 
 

  2,108  

 
 
 

  8.0  

 
 
 

  14.9  

 
 
 

  11.9  

 
 
 

  8.0  

 
 
 

  10.6  

 
 
 

  9.5  

 
 

  Pediatric  

 
 
 
 
 
 
 
 

  528  

 
 
 

  565  

 
 
 

  1,093  

 
 
 

  8.9  

 
 
 

  4.7  

 
 
 

  6.7  

 
 
 

  8.9  

 
 
 

  0.3  

 
 
 

  4.4  

 
 

  Adult  

 
 
 
 
 
 
 
 

  345  

 
 
 

  670  

 
 
 

  1,015  

 
 
 

  6.6  

 
 
 

  25.2  

 
 
 

  18.2  

 
 
 

  6.6  

 
 
 

  21.1  

 
 
 

  15.6  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

   % Change vs. 1H20   

 
 
 
 
 
 
 
 
 

   Sales 1H21   

 
 
 

   Reported   

 
 
 

   Organic   

 
 
 
 
 
 
 
 
 

   U.S.   

 
 
 

   Int'l   

 
 
 

   Total   

 
 
 

   U.S.   

 
 
 

   Int'l   

 
 
 

   Total   

 
 
 

   U.S.   

 
 
 

   Int'l   

 
 
 

   Total   

 
 

   Total   

 
 
 
 
 
 
 
 

  1,709  

 
 
 

  2,435  

 
 
 

  4,144  

 
 
 

  5.5  

 
 
 

  12.3  

 
 
 

  9.4  

 
 
 

  5.5  

 
 
 

  9.8  

 
 
 

  8.0  

 
 

  Pediatric  

 
 
 
 
 
 
 
 

  1,036  

 
 
 

  1,123  

 
 
 

  2,159  

 
 
 

  3.4  

 
 
 

  1.1  

 
 
 

  2.2  

 
 
 

  3.4  

 
 
 

  (1.4)  

 
 
 

  0.8  

 
 

  Adult  

 
 
 
 
 
 
 
 

  673  

 
 
 

  1,312  

 
 
 

  1,985  

 
 
 

  8.9  

 
 
 

  24.2  

 
 
 

  18.5  

 
 
 

  8.9  

 
 
 

  21.6  

 
 
 

  16.9  

 
 
 

Worldwide Nutrition sales increased 11.9 percent on a reported basis and 9.5 percent on an organic basis in the second quarter. Strong performance of Ensure ® , Abbott's market-leading complete and balanced nutrition brand, and Glucerna ® , Abbott's market-leading diabetes nutrition brand, led to global Adult Nutrition sales growth of 18.2 percent on a reported basis and 15.6 percent on an organic basis.

 

Worldwide Pediatric Nutrition sales increased 6.7 percent on a reported basis and 4.4 percent on an organic basis. Strong performance of Abbott's market-leading toddler brands, Pedialyte ® and PediaSure ® , and continued share growth in infant nutrition led to U.S. Pediatric Nutrition growth of 8.9 percent.

 

   Diagnostics
 
($ in millions)

 

 

 
 
                                                                                                                                                                                                                                                                                       
 
 
 
 
 
 
 
 
 

   % Change vs. 2Q20   

 
 
 
 

   Sales 2Q21   

 
 
 

   Reported   

 
 
 

   Organic   

 
 
 
 

   U.S.   

 
 
 

   Int'l   

 
 
 

   Total   

 
 
 

   U.S.   

 
 
 

   Int'l   

 
 
 

   Total   

 
 
 

   U.S.   

 
 
 

   Int'l   

 
 
 

   Total   

 
 

   Total   

 
 
 

  1,155  

 
 
 

  2,092  

 
 
 

  3,247  

 
 
 

  34.8  

 
 
 

  83.9  

 
 
 

  62.8  

 
 
 

  34.8  

 
 
 

  74.0  

 
 
 

  57.2  

 
 

  Core Laboratory  

 
 
 

  283  

 
 
 

  1,023  

 
 
 

  1,306  

 
 
 

  (2.2)  

 
 
 

  46.6  

 
 
 

  32.3  

 
 
 

  (2.2)  

 
 
 

  38.7  

 
 
 

  26.7  

 
 

  Molecular  

 
 
 

  94  

 
 
 

  196  

 
 
 

  290  

 
 
 

  (34.8)  

 
 
 

  (8.7)  

 
 
 

  (19.1)  

 
 
 

  (34.8)  

 
 
 

  (15.2)  

 
 
 

  (23.1)  

 
 

  Point of Care  

 
 
 

  97  

 
 
 

  40  

 
 
 

  137  

 
 
 

  24.2  

 
 
 

  (1.2)  

 
 
 

  15.7  

 
 
 

  24.2  

 
 
 

  (5.9)  

 
 
 

  14.1  

 
 

  Rapid Diagnostics  

 
 
 

  681  

 
 
 

  833  

 
 
 

  1,514  

 
 
 

  97.2  

 
 
 

  349.4  

 
 
 

  185.4  

 
 
 

  97.2  

 
 
 

  327.1  

 
 
 

  177.6  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

   % Change vs. 1H20   

 
 
 
 

   Sales 1H21   

 
 
 

   Reported   

 
 
 

   Organic   

 
 
 
 

   U.S.   

 
 
 

   Int'l   

 
 
 

   Total   

 
 
 

   U.S.   

 
 
 

   Int'l   

 
 
 

   Total   

 
 
 

   U.S.   

 
 
 

   Int'l   

 
 
 

   Total   

 
 

   Total   

 
 
 

  2,796  

 
 
 

  4,465  

 
 
 

  7,261  

 
 
 

  68.5  

 
 
 

  106.6  

 
 
 

  90.0  

 
 
 

  68.5  

 
 
 

  97.1  

 
 
 

  84.7  

 
 

  Core Laboratory  

 
 
 

  554  

 
 
 

  1,934  

 
 
 

  2,488  

 
 
 

  (0.2)  

 
 
 

  36.2  

 
 
 

  25.9  

 
 
 

  (0.2)  

 
 
 

  29.8  

 
 
 

  21.4  

 
 

  Molecular  

 
 
 

  269  

 
 
 

  468  

 
 
 

  737  

 
 
 

  28.8  

 
 
 

  61.9  

 
 
 

  48.0  

 
 
 

  28.8  

 
 
 

  52.8  

 
 
 

  42.7  

 
 

  Point of Care  

 
 
 

  189  

 
 
 

  77  

 
 
 

  266  

 
 
 

  4.0  

 
 
 

  3.0  

 
 
 

  3.7  

 
 
 

  4.0  

 
 
 

  (1.4)  

 
 
 

  2.4  

 
 

  Rapid Diagnostics  

 
 
 

  1,784  

 
 
 

  1,986  

 
 
 

  3,770  

 
 
 

  150.1  

 
 
 

  426.3  

 
 
 

  245.7  

 
 
 

  150.1  

 
 
 

  403.7  

 
 
 

  237.9  

 
 
 

Worldwide Diagnostics sales increased 62.8 percent on a reported basis in the second quarter and increased 57.2 percent on an organic basis. Global COVID-19 testing-related sales were $1.3 billion in the second quarter, led by combined sales of $1.0 billion from Abbott's BinaxNOW ® , Panbio ® and ID NOW ® rapid testing platforms. Excluding COVID-19 testing-related sales, worldwide diagnostics sales increased 42.5 percent on a reported basis in the second quarter and 37.2 percent on an organic basis. 4 Compared to 2019, sales in Core Laboratory and Molecular Diagnostics, excluding COVID-19 testing-related sales, grew 6.8 percent and 8.3 percent, respectively, on a reported basis in the second quarter and grew 4.2 percent and 6.5 percent, respectively, on an organic basis. 5

 

   Established Pharmaceuticals
 
($ in millions)

 
 
                                                                                                                                                                                                                                                  
 
 
 
 
 
 
 
 
 
 
 
 

   % Change vs. 2Q20   

 
 
 
 
 
 
 

   Sales 2Q21   

 
 
 

   Reported   

 
 
 

   Organic   

 
 
 
 
 
 
 

   U.S.   

 
 
 

   Int'l   

 
 
 

   Total   

 
 
 

   U.S.   

 
 
 

   Int'l   

 
 
 

   Total   

 
 
 

   U.S.   

 
 
 

   Int'l   

 
 
 

   Total   

 
 

   Total   

 
 
 
 
 
 

  --  

 
 
 

  1,180  

 
 
 

  1,180  

 
 
 

  n/a  

 
 
 

  16.4  

 
 
 

  16.4  

 
 
 

  n/a  

 
 
 

  14.5  

 
 
 

  14.5  

 
 

  Key Emerging Markets  

 
 
 
 
 
 

  --  

 
 
 

  915  

 
 
 

  915  

 
 
 

  n/a  

 
 
 

  19.7  

 
 
 

  19.7  

 
 
 

  n/a  

 
 
 

  18.4  

 
 
 

  18.4  

 
 

  Other  

 
 
 
 
 
 

  --  

 
 
 

  265  

 
 
 

  265  

 
 
 

  n/a  

 
 
 

  6.5  

 
 
 

  6.5  

 
 
 

  n/a  

 
 
 

  2.6  

 
 
 

  2.6  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

   % Change vs. 1H20   

 
 
 
 
 
 
 

   Sales 1H21   

 
 
 

   Reported   

 
 
 

   Organic   

 
 
 
 
 
 
 

   U.S.   

 
 
 

   Int'l   

 
 
 

   Total   

 
 
 

   U.S.   

 
 
 

   Int'l   

 
 
 

   Total   

 
 
 

   U.S.   

 
 
 

   Int'l   

 
 
 

   Total   

 
 

   Total   

 
 
 
 
 
 

  --  

 
 
 

  2,250  

 
 
 

  2,250  

 
 
 

  n/a  

 
 
 

  9.4  

 
 
 

  9.4  

 
 
 

  n/a  

 
 
 

  10.3  

 
 
 

  10.3  

 
 

  Key Emerging Markets  

 
 
 
 
 
 

  --  

 
 
 

  1,736  

 
 
 

  1,736  

 
 
 

  n/a  

 
 
 

  10.1  

 
 
 

  10.1  

 
 
 

  n/a  

 
 
 

  12.4  

 
 
 

  12.4  

 
 

  Other  

 
 
 
 
 
 

  --  

 
 
 

  514  

 
 
 

  514  

 
 
 

  n/a  

 
 
 

  7.1  

 
 
 

  7.1  

 
 
 

  n/a  

 
 
 

  3.4  

 
 
 

  3.4  

 
 
 

Established Pharmaceuticals sales increased 16.4 percent on a reported basis in the second quarter and increased 14.5 percent on an organic basis.

 

Key Emerging Markets include India , Brazil , Russia and China along with several additional emerging countries that represent the most attractive long-term growth opportunities for Abbott's branded generics product portfolio. Sales in these geographies increased 19.7 percent on a reported basis in the quarter and increased 18.4 percent on an organic basis. Organic sales growth was led by strong growth across several geographies, including India , China , Russia , and several countries across Latin America .

 

Other sales increased 6.5 percent on a reported basis in the quarter and increased 2.6 percent on an organic basis.

 

   Medical Devices
 
($ in millions)

 
 
                                                                                                                                                                                                                                                                                                                                                                                                                                                       
 
 
 
 
 
 
 
 
 
 
 

   % Change vs. 2Q20   

 
 
 
 
 
 

   Sales 2Q21   

 
 
 

   Reported   

 
 
 

   Organic   

 
 
 
 
 
 

   U.S.   

 
 
 

   Int'l   

 
 
 

   Total   

 
 
 

   U.S.   

 
 
 

   Int'l   

 
 
 

   Total   

 
 
 

   U.S.   

 
 
 

   Int'l   

 
 
 

   Total   

 
 

   Total   

 
 
 
 
 

  1,538  

 
 
 

  2,128  

 
 
 

  3,666  

 
 
 

  59.3  

 
 
 

  46.0  

 
 
 

  51.3  

 
 
 

  59.3  

 
 
 

  35.6  

 
 
 

  45.1  

 
 

  Rhythm Management  

 
 
 
 
 

  269  

 
 
 

  298  

 
 
 

  567  

 
 
 

  46.0  

 
 
 

  37.2  

 
 
 

  41.2  

 
 
 

  46.0  

 
 
 

  27.7  

 
 
 

  36.1  

 
 

  Electrophysiology  

 
 
 
 
 

  209  

 
 
 

  278  

 
 
 

  487  

 
 
 

  74.6  

 
 
 

  55.6  

 
 
 

  63.2  

 
 
 

  74.6  

 
 
 

  47.2  

 
 
 

  58.2  

 
 

  Heart Failure  

 
 
 
 
 

  168  

 
 
 

  59  

 
 
 

  227  

 
 
 

  46.8  

 
 
 

  35.7  

 
 
 

  43.8  

 
 
 

  46.8  

 
 
 

  25.8  

 
 
 

  41.0  

 
 

  Vascular  

 
 
 
 
 

  246  

 
 
 

  451  

 
 
 

  697  

 
 
 

  45.4  

 
 
 

  44.2  

 
 
 

  44.6  

 
 
 

  45.4  

 
 
 

  35.1  

 
 
 

  38.7  

 
 

  Structural Heart  

 
 
 
 
 

  191  

 
 
 

  231  

 
 
 

  422  

 
 
 

  109.4  

 
 
 

  75.1  

 
 
 

  89.2  

 
 
 

  109.4  

 
 
 

  63.3  

 
 
 

  82.2  

 
 

  Neuromodulation  

 
 
 
 
 

  166  

 
 
 

  44  

 
 
 

  210  

 
 
 

  95.1  

 
 
 

  110.4  

 
 
 

  98.1  

 
 
 

  95.1  

 
 
 

  92.7  

 
 
 

  94.7  

 
 

  Diabetes Care  

 
 
 
 
 

  289  

 
 
 

  767  

 
 
 

  1,056  

 
 
 

  43.4  

 
 
 

  38.7  

 
 
 

  40.0  

 
 
 

  43.4  

 
 
 

  27.3  

 
 
 

  31.6  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

   % Change vs. 1H20   

 
 
 
 
 
 

   Sales 1H21   

 
 
 

   Reported   

 
 
 

   Organic   

 
 
 
 
 
 

   U.S.   

 
 
 

   Int'l   

 
 
 

   Total   

 
 
 

   U.S.   

 
 
 

   Int'l   

 
 
 

   Total   

 
 
 

   U.S.   

 
 
 

   Int'l   

 
 
 

   Total   

 
 

   Total   

 
 
 
 
 

  2,889  

 
 
 

  4,097  

 
 
 

  6,986  

 
 
 

  31.4  

 
 
 

  29.6  

 
 
 

  30.3  

 
 
 

  31.4  

 
 
 

  20.8  

 
 
 

  25.2  

 
 

  Rhythm Management  

 
 
 
 
 

  510  

 
 
 

  576  

 
 
 

  1,086  

 
 
 

  23.7  

 
 
 

  24.5  

 
 
 

  24.1  

 
 
 

  23.7  

 
 
 

  16.2  

 
 
 

  19.7  

 
 

  Electrophysiology  

 
 
 
 
 

  388  

 
 
 

  530  

 
 
 

  918  

 
 
 

  36.7  

 
 
 

  31.5  

 
 
 

  33.7  

 
 
 

  36.7  

 
 
 

  24.0  

 
 
 

  29.3  

 
 

  Heart Failure  

 
 
 
 
 

  313  

 
 
 

  108  

 
 
 

  421  

 
 
 

  17.5  

 
 
 

  14.2  

 
 
 

  16.6  

 
 
 

  17.5  

 
 
 

  6.2  

 
 
 

  14.5  

 
 

  Vascular  

 
 
 
 
 

  465  

 
 
 

  867  

 
 
 

  1,332  

 
 
 

  16.5  

 
 
 

  22.6  

 
 
 

  20.4  

 
 
 

  16.5  

 
 
 

  15.3  

 
 
 

  15.7  

 
 

  Structural Heart  

 
 
 
 
 

  360  

 
 
 

  439  

 
 
 

  799  

 
 
 

  58.6  

 
 
 

  39.8  

 
 
 

  47.7  

 
 
 

  58.6  

 
 
 

  30.4  

 
 
 

  42.2  

 
 

  Neuromodulation  

 
 
 
 
 

  311  

 
 
 

  83  

 
 
 

  394  

 
 
 

  40.3  

 
 
 

  36.9  

 
 
 

  39.5  

 
 
 

  40.3  

 
 
 

  26.3  

 
 
 

  37.3  

 
 

  Diabetes Care  

 
 
 
 
 

  542  

 
 
 

  1,494  

 
 
 

  2,036  

 
 
 

  39.7  

 
 
 

  33.5  

 
 
 

  35.1  

 
 
 

  39.7  

 
 
 

  23.4  

 
 
 

  27.6  

 
 
 

Worldwide Medical Devices sales increased 51.3 percent on a reported basis in the second quarter and increased 45.1 percent on an organic basis. Strong growth in the quarter was driven by continued strong recovery from the COVID-19 pandemic.

 

Compared to pre-pandemic sales in 2019, Medical Devices sales increased 19.2 percent on a reported basis and 15.6 percent on an organic basis in the second quarter, led by double-digit growth in Electrophysiology, Heart Failure, Structural Heart and Diabetes Care. 2

 

In Structural Heart, MitraClip ® sales increased 88.0 percent on a reported basis and 82.1 percent on an organic basis in the second quarter compared to the prior year, driven by the highest-ever number of MitraClip procedures in the second quarter.

 

In Diabetes Care, sales of FreeStyle Libre ® and Libre Sense ® were $904 million in the quarter, which represents 52.5 percent reported sales growth and 42.9 percent organic sales growth compared to the prior year.

 

  ABBOTT'S EARNINGS-PER-SHARE GUIDANCE  
Abbott projects 2021 diluted earnings per share from continuing operations under GAAP of $2.75 to $2.95 . Abbott forecasts specified items for the full-year 2021 of $1.55 per share primarily related to intangible amortization, restructuring and cost reduction initiatives, including expenses to align its COVID-19 testing-related business with current and projected demand, expenses associated with acquisitions and other net expenses. Excluding specified items, projected adjusted diluted earnings per share from continuing operations would be $4.30 to $4.50 for full-year 2021.

 

  ABBOTT DECLARES 390 TH CONSECUTIVE QUARTERLY DIVIDEND
On June 11, 2021 , the board of directors of Abbott declared the company's quarterly dividend of $0.45 per share. Abbott's cash dividend is payable Aug. 16, 2021 to shareholders of record at the close of business on July 15, 2021 .

 

Abbott has increased its dividend payout for 49 consecutive years and is a member of the S&P 500 Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years.

 

  About Abbott:  
Abbott is a global healthcare leader that helps people live more fully at all stages of life. Our portfolio of life-changing technologies spans the spectrum of healthcare, with leading businesses and products in diagnostics, medical devices, nutritionals and branded generic medicines. Our 109,000 colleagues serve people in more than 160 countries.

 

Connect with us at www.abbott.com , on LinkedIn at www.linkedin.com/company/abbott-/ , on Facebook at www.facebook.com/Abbott and on Twitter @AbbottNews .

 

Abbott will live-webcast its second-quarter earnings conference call through its Investor Relations website at www.abbottinvestor.com at 8 a.m. Central time today. An archived edition of the webcast will be available later that day.

 

   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" in our Annual Report on Form 10-K for the year ended Dec. 31, 2020 , and are incorporated herein 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.    

 
 
            
 
 
 

   1  

 
 

  Second-quarter 2021 diluted EPS from continuing operations on a GAAP basis reflects 120.0 percent growth.  

 
 

   2  

 
 

  In the second quarter of 2019, Medical Devices sales were $3.075 billion.  

 
 

   3  

 
 

  In the second quarter of 2019, worldwide sales were $7.979 billion. In the second quarter of 2021, COVID-19 testing-related sales were $1.267 billion.  

 
 

   4  

 
 

  In the second quarter of 2020, Diagnostics sales were $1.99 billion, which included COVID-19 testing-related sales of $0.6 billion.  

 
 

   5  

 
 

  In the second quarter of 2019, Core Laboratory and Molecular Diagnostics sales were $1.169 billion and $107 million, respectively. In the second quarter of 2021, COVID-19 testing-related sales for Core Laboratory and Molecular Diagnostics were $58 million and $173 million, respectively.  

 
 
 

 

 
 
                                                                                                                                                                                                                                                                                                      
 

  Abbott Laboratories and Subsidiaries  

 
 

  Condensed Consolidated Statement of Earnings  

 
 

  Second Quarter Ended June 30, 2021 and 2020  

 
 

  (in millions, except per share data)  

 
 

  (unaudited)  

 
 
 
 
 

   2Q21   

 
 
 

   2Q20   

 
 
 

   %
Change
 
 

 
 
 

  Net Sales  

 
 
 

  $10,223  

 
 
 

  $7,328  

 
 
 

  39.5  

 
 
 
 
 
 
 
 
 
 
 

  Cost of products sold, excluding amortization expense  

 
 
 

  4,947  

 
 
 

  3,263  

 
 
 

  51.7  

 
 

  1)  

 
 

  Amortization of intangible assets  

 
 
 

  504  

 
 
 

  553  

 
 
 

  (9.0)  

 
 
 

  Research and development  

 
 
 

  654  

 
 
 

  564  

 
 
 

  15.7  

 
 
 

  Selling, general, and administrative  

 
 
 

  2,726  

 
 
 

  2,276  

 
 
 

  19.8  

 
 
 

  Total Operating Cost and Expenses  

 
 
 

  8,831  

 
 
 

  6,656  

 
 
 

  32.7  

 
 
 
 
 
 
 
 
 
 
 

  Operating Earnings  

 
 
 

  1,392  

 
 
 

  672  

 
 
 

  107.4  

 
 
 
 
 
 
 
 
 
 
 

  Interest expense, net  

 
 
 

  123  

 
 
 

  125  

 
 
 

  (1.0)  

 
 
 

  Net foreign exchange (gain) loss  

 
 
 

  --  

 
 
 

  (1)  

 
 
 

  n/m  

 
 
 

  Other (income) expense, net  

 
 
 

  (79)  

 
 
 

  22  

 
 
 

  n/m  

 
 
 

  Earnings from Continuing Operations before taxes  

 
 
 

  1,348  

 
 
 

  526  

 
 
 

  156.5  

 
 
 
 
 
 
 
 
 
 
 

  Tax expense on Earnings from Continuing Operations  

 
 
 

  159  

 
 
 

  (11)  

 
 
 

  n/m  

 
 

  2)  

 
 

  Earnings from Continuing Operations  

 
 
 

  1,189  

 
 
 

  537  

 
 
 

  121.5  

 
 
 
 
 
 
 
 
 
 
 

  Earnings from Discontinued Operations, net of taxes  

 
 
 

  --  

 
 
 

  --  

 
 
 

  n/m  

 
 
 
 
 
 
 
 
 
 
 

  Net Earnings  

 
 
 

  $1,189  

 
 
 

  $537  

 
 
 

  121.5  

 
 
 
 
 
 
 
 
 
 
 

  Earnings from Continuing Operations, excluding  

 
 
 
 
 
 
 
 
 

  Specified Items, as described below  

 
 
 

  $2,115  

 
 
 

  $1,018  

 
 
 

  107.7  

 
 

  3)  

 
 
 
 
 
 
 
 
 
 

  Diluted Earnings per Common Share from:  

 
 
 
 
 
 
 
 
 

  Continuing Operations  

 
 
 

  $0.66  

 
 
 

  $0.30  

 
 
 

  120.0  

 
 
 

  Discontinued Operations  

 
 
 

  --  

 
 
 

  --  

 
 
 

  n/m  

 
 
 

  Total  

 
 
 

  $0.66  

 
 
 

  $0.30  

 
 
 

  120.0  

 
 
 
 
 
 
 
 
 
 
 

  Diluted Earnings per Common Share from Continuing  

 
 
 
 
 
 
 
 
 

  Operations, excluding Specified Items, as described below  

 
 
 

  $1.17  

 
 
 

  $0.57  

 
 
 

  105.3  

 
 

  3)  

 
 
 
 
 
 
 
 
 
 

  Average Number of Common Shares Outstanding  

 
 
 
 
 
 
 
 
 

  Plus Dilutive Common Stock Options  

 
 
 

  1,793  

 
 
 

  1,785  

 
 
 
 
 
 
 
     
 
 

  NOTES:  

 
 

  See tables titled "Non-GAAP Reconciliation of Financial Information From Continuing Operations" for an explanation of certain non-GAAP financial information.  

 
 

  n/m = Percent change is not meaningful.  

 
 

  See footnotes below.  

 
 
 
 
                
 
 
 

  1)  

 
 

  2021 Cost of products sold, excluding amortization expense includes approximately $500 million of charges associated with a restructuring plan to align Abbott's manufacturing network for COVID-19 diagnostic tests with changes during the second quarter in projected testing demand.  

 
 
 
 

  2)  

 
 

  2020 Tax expense on Earnings from Continuing Operations includes the recognition of approximately $80 million of net tax benefits as a result of the resolution of various tax positions related to prior years and approximately $20 million in excess tax benefits associated with share-based compensation.  

 
 
 
 

  3)  

 
 

  2021 Net Earnings and Diluted Earnings per Common Share from Continuing Operations, excluding Specified Items, excludes net after-tax charges of $926 million, or $0.51 per share, for intangible amortization and other net expenses primarily associated with restructuring actions, certain litigation and acquisitions.  

 
 
 
 
 

  2020 Net Earnings and Diluted Earnings per Common Share from Continuing Operations, excluding Specified Items, excludes net after-tax charges of $481 million, or $0.27 per share, for intangible amortization expense, other expenses primarily associated with acquisitions and restructuring actions and charges for equity investment impairments.  

 
 
 

 

 
 
                                                                                                                                                                                                                                                                                                      
 

  Abbott Laboratories and Subsidiaries  

 
 

  Condensed Consolidated Statement of Earnings  

 
 

  First Half Ended June 30, 2021 and 2020  

 
 

  (in millions, except per share data)  

 
 

  (unaudited)  

 
 
 
 
 

   1H21   

 
 
 

   1H20   

 
 
 

   %
Change
 
 

 
 
 

  Net Sales  

 
 
 

  $20,679  

 
 
 

  $15,054  

 
 
 

  37.4  

 
 
 
 
 
 
 
 
 
 
 

  Cost of products sold, excluding amortization expense  

 
 
 

  9,348  

 
 
 

  6,544  

 
 
 

  42.9  

 
 

  1)  

 
 

  Amortization of intangible assets  

 
 
 

  1,013  

 
 
 

  1,114  

 
 
 

  (9.1)  

 
 
 

  Research and development  

 
 
 

  1,308  

 
 
 

  1,142  

 
 
 

  14.5  

 
 
 

  Selling, general, and administrative  

 
 
 

  5,509  

 
 
 

  4,824  

 
 
 

  14.2  

 
 
 

  Total Operating Cost and Expenses  

 
 
 

  17,178  

 
 
 

  13,624  

 
 
 

  26.1  

 
 
 
 
 
 
 
 
 
 
 

  Operating Earnings  

 
 
 

  3,501  

 
 
 

  1,430  

 
 
 

  144.9  

 
 
 
 
 
 
 
 
 
 
 

  Interest expense, net  

 
 
 

  247  

 
 
 

  246  

 
 
 

  0.6  

 
 
 

  Net foreign exchange (gain) loss  

 
 
 

  3  

 
 
 

  4  

 
 
 

  (46.1)  

 
 
 

  Other (income) expense, net  

 
 
 

  (140)  

 
 
 

  21  

 
 
 

  n/m  

 
 
 

  Earnings from Continuing Operations before taxes  

 
 
 

  3,391  

 
 
 

  1,159  

 
 
 

  192.6  

 
 
 
 
 
 
 
 
 
 
 

  Tax expense on Earnings from Continuing Operations  

 
 
 

  409  

 
 
 

  78  

 
 
 

  n/m  

 
 

  2)  

 
 

  Earnings from Continuing Operations  

 
 
 

  2,982  

 
 
 

  1,081  

 
 
 

  175.9  

 
 
 
 
 
 
 
 
 
 
 

  Earnings from Discontinued Operations, net of taxes  

 
 
 

  --  

 
 
 

  20  

 
 
 

  n/m  

 
 
 
 
 
 
 
 
 
 
 

  Net Earnings  

 
 
 

  $2,982  

 
 
 

  $1,101  

 
 
 

  170.9  

 
 
 
 
 
 
 
 
 
 
 

  Earnings from Continuing Operations, excluding  

 
 
 
 
 
 
 
 
 

  Specified Items, as described below  

 
 
 

  $4,483  

 
 
 

  $2,180  

 
 
 

  105.6  

 
 

  3)  

 
 
 
 
 
 
 
 
 
 

  Diluted Earnings per Common Share from:  

 
 
 
 
 
 
 
 
 

  Continuing Operations  

 
 
 

  $1.66  

 
 
 

  $0.60  

 
 
 

  176.7  

 
 
 

  Discontinued Operations  

 
 
 

  --  

 
 
 

  0.01  

 
 
 

  n/m  

 
 
 

  Total  

 
 
 

  $1.66  

 
 
 

  $0.61  

 
 
 

  172.1  

 
 
 
 
 
 
 
 
 
 
 

  Diluted Earnings per Common Share from Continuing  

 
 
 
 
 
 
 
 
 

  Operations, excluding Specified Items, as described below  

 
 
 

  $2.49  

 
 
 

  $1.22  

 
 
 

  104.1  

 
 

  3)  

 
 
 
 
 
 
 
 
 
 

  Average Number of Common Shares Outstanding  

 
 
 
 
 
 
 
 
 

  Plus Dilutive Common Stock Options  

 
 
 

  1,792  

 
 
 

  1,783  

 
 
 
 
 
 
 
     
 
 

  NOTES:  

 
 

  See tables titled "Non-GAAP Reconciliation of Financial Information From Continuing Operations" for an explanation of certain non-GAAP financial information.  

 
 

  n/m = Percent change is not meaningful.  

 
 

  See footnotes below.  

 
 
 
 
                    
 
 
 

  1)  

 
 

  2021 Cost of products sold, excluding amortization expense includes approximately $500 million of charges associated with a restructuring plan to align Abbott's manufacturing network for COVID-19 diagnostic tests with changes during the second quarter in projected testing demand.  

 
 
 
 

  2)  

 
 

  2021 Tax expense on Earnings from Continuing Operations includes the recognition of approximately $90 million in excess tax benefits associated with share-based compensation.  

 
 
 
 
 

  2020 Tax expense on Earnings from Continuing Operations includes the recognition of approximately $80 million of net tax benefits as a result of the resolution of various tax positions related to prior years and approximately $70 million in excess tax benefits associated with share-based compensation.  

 
 
 
 

  3)  

 
 

  2021 Net Earnings and Diluted Earnings per Common Share from Continuing Operations, excluding Specified Items, excludes net after-tax charges of $1.501 billion, or $0.83 per share, for intangible amortization and other net expenses primarily associated with restructuring actions, certain litigation and acquisitions.  

 
 
 
 
 

  2020 Net Earnings and Diluted Earnings per Common Share from Continuing Operations, excluding Specified Items, excludes net after-tax charges of $1.099 billion, or $0.62 per share, for intangible amortization expense and other expenses primarily associated with acquisitions and restructuring actions.  

 
 
 

 

 
 
                                                                                                                                                                                                                                                                                                                                                                                                                                               
 

  Abbott Laboratories and Subsidiaries  

 
 

  Non-GAAP Reconciliation of Financial Information From Continuing Operations  

 
 

  Second Quarter Ended June 30, 2021 and 2020  

 
 

  (in millions, except per share data)  

 
 

  (unaudited)  

 
 
 
 
 

   2Q21   

 
 
 
 

   As
Reported
(GAAP)
 
 

 
 
 

   Specified
Items
 
 

 
 
 

   As
Adjusted
 
 

 
 
 

   % to
Sales
 
 

 
 
 
 
 
 
 
 
 
 
 

  Intangible Amortization  

 
 
 

   $           504   

 
 
 

  $     (504)  

 
 
 

   $         --   

 
 
 
 

  Gross Margin  

 
 
 

   4,772   

 
 
 

  1,048  

 
 
 

   5,820   

 
 
 

  56.9%  

 
 

  R&D  

 
 
 

   654   

 
 
 

  (18)  

 
 
 

   636   

 
 
 

  6.2%  

 
 

  SG&A  

 
 
 

   2,726   

 
 
 

  (90)  

 
 
 

   2,636   

 
 
 

  25.8%  

 
 

  Other (income) expense, net  

 
 
 

   (79)   

 
 
 

  35  

 
 
 

   (44)   

 
 
 
 

  Earnings from Continuing Operations before taxes  

 
 
 

   1,348   

 
 
 

  1,121  

 
 
 

   2,469   

 
 
 
 

  Tax expense on Earnings from Continuing Operations  

 
 
 

   159   

 
 
 

  195  

 
 
 

   354   

 
 
 
 

  Earnings from Continuing Operations  

 
 
 

   1,189   

 
 
 

  926  

 
 
 

   2,115   

 
 
 
 

  Diluted Earnings per Share from Continuing Operations  

 
 
 

   $0.66   

 
 
 

  $0.51  

 
 
 

   $1.17   

 
 
 
 
 

  Specified items reflect intangible amortization expense of $504 million and other net expenses of $617 million, primarily associated with restructuring actions, certain litigation, acquisitions and other expenses. See tables titled "Details of Specified Items" for additional details regarding specified items.  

 
 
 
 
 

   2Q20   

 
 
 
 

   As
Reported
(GAAP)
 
 

 
 
 

   Specified
Items
 
 

 
 
 

   As
Adjusted
 
 

 
 
 

   % to
Sales
 
 

 
 
 
 
 
 
 
 
 
 
 

  Intangible Amortization  

 
 
 

   $            553   

 
 
 

  $     (553)  

 
 
 

   $          --   

 
 
 
 

  Gross Margin  

 
 
 

   3,512   

 
 
 

  591  

 
 
 

   4,103   

 
 
 

  56.0%  

 
 

  R&D  

 
 
 

   564   

 
 
 

  (28)  

 
 
 

   536   

 
 
 

  7.3%  

 
 

  SG&A  

 
 
 

   2,276   

 
 
 

  (24)  

 
 
 

   2,252   

 
 
 

  30.7%  

 
 

  Other (income) expense, net  

 
 
 

   22   

 
 
 

  (68)  

 
 
 

   (46)   

 
 
 
 

  Earnings from Continuing Operations before taxes  

 
 
 

   526   

 
 
 

  711  

 
 
 

   1,237   

 
 
 
 

  Tax expense on Earnings from Continuing Operations  

 
 
 

   (11)   

 
 
 

  230  

 
 
 

   219   

 
 
 
 

  Earnings from Continuing Operations  

 
 
 

   537   

 
 
 

  481  

 
 
 

   1,018   

 
 
 
 

  Diluted Earnings per Share from Continuing Operations  

 
 
 

   $0.30   

 
 
 

  $0.27  

 
 
 

   $0.57   

 
 
 
 
 

  Specified items reflect intangible amortization expense of $553 million and other expenses of $158 million, primarily associated with acquisitions, restructuring actions and other expenses. See tables titled "Details of Specified Items" for additional details regarding specified items.  

 
 
 

  Abbott Laboratories and Subsidiaries  

 
 

  Non-GAAP Reconciliation of Financial Information From Continuing Operations  

 
 

  First Half Ended June 30, 2021 and 2020  

 
 

  (in millions, except per share data)  

 
 

  (unaudited)  

 
 
 
 
 

   1H21   

 
 
 
 

   As
Reported
(GAAP)
 
 

 
 
 

   Specified
Items
 
 

 
 
 

   As
Adjusted
 
 

 
 
 

   % to
Sales
 
 

 
 
 
 
 
 
 
 
 
 
 

  Intangible Amortization  

 
 
 

   $         1,013   

 
 
 

  $  (1,013)  

 
 
 

   $         --   

 
 
 
 

  Gross Margin  

 
 
 

   10,318   

 
 
 

  1,597  

 
 
 

   11,915   

 
 
 

  57.6%  

 
 

  R&D  

 
 
 

   1,308   

 
 
 

  (46)  

 
 
 

   1,262   

 
 
 

  6.1%  

 
 

  SG&A  

 
 
 

   5,509   

 
 
 

  (244)  

 
 
 

   5,265   

 
 
 

  25.5%  

 
 

  Other (income) expense, net  

 
 
 

   (140)   

 
 
 

  23  

 
 
 

   (117)   

 
 
 
 

  Earnings from Continuing Operations before taxes  

 
 
 

   3,391   

 
 
 

  1,864  

 
 
 

   5,255   

 
 
 
 

  Tax expense on Earnings from Continuing Operations  

 
 
 

   409   

 
 
 

  363  

 
 
 

   772   

 
 
 
 

  Earnings from Continuing Operations  

 
 
 

   2,982   

 
 
 

  1,501  

 
 
 

   4,483   

 
 
 
 

  Diluted Earnings per Share from Continuing Operations  

 
 
 

   $1.66   

 
 
 

  $0.83  

 
 
 

   $2.49   

 
 
 
 
 

  Specified items reflect intangible amortization expense of $1.013 billion and other net expenses of $851 million, primarily associated with restructuring actions, certain litigation, acquisitions and other expenses. See tables titled "Details of Specified Items" for additional details regarding specified items.  

 
 
 
 
 

   1H20   

 
 
 
 

   As
Reported
(GAAP)
 
 

 
 
 

   Specified
Items
 
 

 
 
 

   As
Adjusted
 
 

 
 
 

   % to
Sales
 
 

 
 
 
 
 
 
 
 
 
 
 

  Intangible Amortization  

 
 
 

   $         1,114   

 
 
 

  $   (1,114)  

 
 
 

   $          --   

 
 
 
 

  Gross Margin  

 
 
 

   7,396   

 
 
 

  1,190  

 
 
 

   8,586   

 
 
 

  57.0%  

 
 

  R&D  

 
 
 

   1,142   

 
 
 

  (43)  

 
 
 

   1,099   

 
 
 

  7.3%  

 
 

  SG&A  

 
 
 

   4,824   

 
 
 

  (82)  

 
 
 

   4,742   

 
 
 

  31.5%  

 
 

  Other (income) expense, net  

 
 
 

   21   

 
 
 

  (110)  

 
 
 

   (89)   

 
 
 
 

  Earnings from Continuing Operations before taxes  

 
 
 

   1,159   

 
 
 

  1,425  

 
 
 

   2,584   

 
 
 
 

  Tax expense on Earnings from Continuing Operations  

 
 
 

   78   

 
 
 

  326  

 
 
 

   404   

 
 
 
 

  Earnings from Continuing Operations  

 
 
 

   1,081   

 
 
 

  1,099  

 
 
 

   2,180   

 
 
 
 

  Diluted Earnings per Share from Continuing Operations  

 
 
 

   $0.60   

 
 
 

  $0.62  

 
 
 

   $1.22   

 
 
 
 
 

  Specified items reflect intangible amortization expense of $1.114 billion and other expenses of $311 million, primarily associated with acquisitions, restructuring actions and other expenses. See tables titled "Details of Specified Items" for additional details regarding specified items.  

 
 
 

A reconciliation of the second-quarter tax rates for continuing operations for 2021 and 2020 is shown below:

 
 
                                                                                   
 
 
 
 

   2Q21   

 
 
 

  ($ in millions)  

 
 
 

   Pre-Tax
Income
 
 

 
 
 

   Taxes on
Earnings
 
 

 
 
 

   Tax
Rate
 
 

 
 
 

   As reported (GAAP)   

 
 
 

   $1,348   

 
 
 

   $        159   

 
 
 

   11.9%   

 
 
 

  Specified items  

 
 
 

  1,121  

 
 
 

  195  

 
 
 
 
 

   Excluding specified items   

 
 
 

   $2,469   

 
 
 

   $354   

 
 
 

   14.4%   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

   2Q20   

 
 
 

  ($ in millions)  

 
 
 

   Pre-Tax
Income
 
 

 
 
 

   Taxes on
Earnings
 
 

 
 
 

   Tax
Rate
 
 

 
 
 

   As reported (GAAP)   

 
 
 

   $526   

 
 
 

   (11)   

 
 
 

   (2.1%)   

 
 

  1)  

 
 

  Specified items  

 
 
 

  711  

 
 
 

  230  

 
 
 
 
 

   Excluding specified items   

 
 
 

   $1,237   

 
 
 

   $219   

 
 
 

   17.7%   

 
 
 
 
 
    
 
 
 

  1)  

 
 

  2020 Tax expense on Earnings from Continuing Operations includes the recognition of approximately $80 million of net tax benefits as a result of the resolution of various tax positions related to prior years and approximately $20 million in excess tax benefits associated with share-based compensation.  

 
 
 

A reconciliation of the year-to-date tax rates for continuing operations for 2021 and 2020 is shown below:

 
 
                                                                                   
 
 
 
 

   1H21   

 
 
 

  ($ in millions)  

 
 
 

   Pre-Tax
Income
 
 

 
 
 

   Taxes on
Earnings
 
 

 
 
 

   Tax
Rate
 
 

 
 
 

   As reported (GAAP)   

 
 
 

   $3,391   

 
 
 

   $        409   

 
 
 

   12.1%   

 
 

  2)  

 
 

  Specified items  

 
 
 

  1,864  

 
 
 

  363  

 
 
 
 
 

   Excluding specified items   

 
 
 

   $5,255   

 
 
 

   $772   

 
 
 

   14.7%   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

   1H20   

 
 
 

  ($ in millions)  

 
 
 

   Pre-Tax
Income
 
 

 
 
 

   Taxes on
Earnings
 
 

 
 
 

   Tax
Rate
 
 

 
 
 

   As reported (GAAP)   

 
 
 

   $1,159   

 
 
 

   $78   

 
 
 

   6.7%   

 
 

  3)  

 
 

  Specified items  

 
 
 

  1,425  

 
 
 

  326  

 
 
 
 
 

   Excluding specified items   

 
 
 

   $2,584   

 
 
 

   $404   

 
 
 

   15.6%   

 
 
 
 
 
        
 
 
 

  2)  

 
 

  2021 Tax expense on Earnings from Continuing Operations includes the recognition of approximately $90 million in excess tax benefits associated with share-based compensation.  

 
 
 
 

  3)  

 
 

  2020 Tax expense on Earnings from Continuing Operations includes the recognition of approximately $80 million of net tax benefits as a result of the resolution of various tax positions related to prior years and approximately $70 million in excess tax benefits associated with share-based compensation.  

 
 
 

 

 
 
                                                                                                       
 

  Abbott Laboratories and Subsidiaries  

 
 

  Details of Specified Items  

 
 

  Second Quarter Ended June 30, 2021  

 
 

  (in millions, except per share data)  

 
 

  (unaudited)  

 
 
 
 
 

  Acquisition or
Divestiture-
related (a)
 

 
 
 

  Restructuring
and Cost
Reduction
Initiatives (b)
 

 
 
 

  Intangible
Amortization
 

 
 
 

  Other (c)  

 
 
 

  Total
Specifieds
 

 
 

  Gross Margin  

 
 
 

  $              21  

 
 
 

  $            510  

 
 
 

  $          504  

 
 
 

  13  

 
 
 

  $    1,048  

 
 

  R&D  

 
 
 

  (3)  

 
 
 

  1  

 
 
 

  --  

 
 
 

  (16)  

 
 
 

  (18)  

 
 

  SG&A  

 
 
 

  (18)  

 
 
 

  2  

 
 
 

  --  

 
 
 

  (74)  

 
 
 

  (90)  

 
 

  Other (income) expense, net  

 
 
 

  (3)  

 
 
 

  --  

 
 
 

  --  

 
 
 

  38  

 
 
 

  35  

 
 

  Earnings from Continuing Operations before taxes  

 
 
 

  $              45  

 
 
 

  $            507  

 
 
 

  $          504  

 
 
 

  $       65  

 
 
 

  1,121  

 
 

  Tax expense on Earnings from Continuing Operations (d)  

 
 
 
 
 
 
 
 
 
 

  195  

 
 

  Earnings from Continuing Operations  

 
 
 
 
 
 
 
 
 
 
 

  $       926  

 
 

  Diluted Earnings per Share from Continuing Operations  

 
 
 
 
 
 
 
 
 
 

  $      0.51  

 
 
 
 
  
 
 

  The table above provides additional details regarding the specified items described on table titled "Non-GAAP Reconciliation of Financial Information From Continuing Operations."  

 
 
 
 
          
 
 
 

  a)  

 
 

  Acquisition-related expenses include integration costs, which represent incremental costs directly related to integrating the acquired businesses and include expenditures for the integration of systems, processes and business activities.  

 
 

  b)  

 
 

  Restructuring and cost reduction initiative expenses include severance, outplacement, and other direct costs associated with specific restructuring plans and cost reduction initiatives. Restructuring and cost reduction plans consist of distinct initiatives to streamline operations including the consolidation and rationalization of business activities and facilities, workforce reductions, the transfer of product lines between manufacturing facilities, and the transfer of other business activities between sites. The Gross Margin amount includes charges associated with a restructuring plan to align Abbott's manufacturing network for COVID-19 diagnostic tests with changes during the second quarter in projected testing demand.  

 
 

  c)  

 
 

  Other includes costs related to certain litigation and the impairment of an intangible asset, as well as a gain on the disposition of an equity method investment.  

 
 

  d)  

 
 

  Reflects the net tax benefit associated with the specified items and excess tax benefits associated with share-based compensation.  

 
 
 

 

 
 
                                                                                                       
 

  Abbott Laboratories and Subsidiaries  

 
 

  Details of Specified Items  

 
 

  Second Quarter Ended June 30, 2020  

 
 

  (in millions, except per share data)  

 
 

  (unaudited)  

 
 
 
 
 

  Acquisition or
Divestiture-
related (a)
 

 
 
 

  Restructuring
and Cost
Reduction
Initiatives (b)
 

 
 
 

  Intangible
Amortization
 

 
 
 

  Other (c)  

 
 
 

  Total
Specifieds
 

 
 

  Gross Margin  

 
 
 

  $              22  

 
 
 

  $              15  

 
 
 

  $          553  

 
 
 

  $         1  

 
 
 

  $       591  

 
 

  R&D  

 
 
 

  (3)  

 
 
 

  (2)  

 
 
 

  --  

 
 
 

  (23)  

 
 
 

  (28)  

 
 

  SG&A  

 
 
 

  (27)  

 
 
 

  3  

 
 
 

  --  

 
 
 

  --  

 
 
 

  (24)  

 
 

  Other (income) expense, net  

 
 
 

  (3)  

 
 
 

  --  

 
 
 

  --  

 
 
 

  (65)  

 
 
 

  (68)  

 
 

  Earnings from Continuing Operations before taxes  

 
 
 

  $              55  

 
 
 

  $              14  

 
 
 

  $          553  

 
 
 

  $       89  

 
 
 

  711  

 
 

  Tax expense on Earnings from Continuing Operations (d)  

 
 
 
 
 
 
 
 
 
 

  230  

 
 

  Earnings from Continuing Operations  

 
 
 
 
 
 
 
 
 
 
 

  $       481  

 
 

  Diluted Earnings per Share from Continuing Operations  

 
 
 
 
 
 
 
 
 
 

  $      0.27  

 
 
 
 
  
 
 

  The table above provides additional details regarding the specified items described on table titled "Non-GAAP Reconciliation of Financial Information From Continuing Operations."  

 
 
 
 
          
 
 
 

  a)  

 
 

  Acquisition-related expenses include integration costs, which represent incremental costs directly related to integrating the acquired businesses and include expenditures for retention, severance, and the integration of systems, processes and business activities.  

 
 

  b)  

 
 

  Restructuring and cost reduction initiative expenses include severance, outplacement, and other direct costs associated with specific restructuring plans and cost reduction initiatives. Restructuring and cost reduction plans consist of distinct initiatives to streamline operations including the consolidation and rationalization of business activities and facilities, workforce reductions, the transfer of product lines between manufacturing facilities, and the transfer of other business activities between sites.  

 
 

  c)  

 
 

  Other primarily relates to the impairment of equity investments and the costs to acquire research and development assets.  

 
 

  d)  

 
 

  Reflects the net tax benefit associated with the specified items, the resolution of prior years' tax positions and excess tax benefits associated with share-based compensation.  

 
 
 

 

 
 
                                                                                                       
 

  Abbott Laboratories and Subsidiaries  

 
 

  Details of Specified Items  

 
 

  First Half Ended June 30, 2021  

 
 

  (in millions, except per share data)  

 
 

  (unaudited)  

 
 
 
 
 

  Acquisition or
Divestiture-
related (a)
 

 
 
 

  Restructuring
and Cost
Reduction
Initiatives (b)
 

 
 
 

  Intangible
Amortization
 

 
 
 

  Other (c)  

 
 
 

  Total
Specifieds
 

 
 

  Gross Margin  

 
 
 

  $              40  

 
 
 

  $            529  

 
 
 

  $        1,013  

 
 
 

  15  

 
 
 

  $    1,597  

 
 

  R&D  

 
 
 

  (5)  

 
 
 

  1  

 
 
 

  --  

 
 
 

  (42)  

 
 
 

  (46)  

 
 

  SG&A  

 
 
 

  (31)  

 
 
 

  1  

 
 
 

  --  

 
 
 

  (214)  

 
 
 

  (244)  

 
 

  Other (income) expense, net  

 
 
 

  (3)  

 
 
 

  1  

 
 
 

  --  

 
 
 

  25  

 
 
 

  23  

 
 

  Earnings from Continuing Operations before taxes  

 
 
 

  $              79  

 
 
 

  $            526  

 
 
 

  $        1,013  

 
 
 

  $      246  

 
 
 

  1,864  

 
 

  Tax expense on Earnings from Continuing Operations (d)  

 
 
 
 
 
 
 
 
 
 

  363  

 
 

  Earnings from Continuing Operations  

 
 
 
 
 
 
 
 
 
 
 

  $    1,501  

 
 

  Diluted Earnings per Share from Continuing Operations  

 
 
 
 
 
 
 
 
 
 

  $      0.83  

 
 
 
 
  
 
 

  The table above provides additional details regarding the specified items described on table titled "Non-GAAP Reconciliation of Financial Information From Continuing Operations."  

 
 
 
 
          
 
 
 

  a)  

 
 

  Acquisition-related expenses include integration costs, which represent incremental costs directly related to integrating the acquired businesses and include expenditures for the integration of systems, processes and business activities.  

 
 

  b)  

 
 

  Restructuring and cost reduction initiative expenses include severance, outplacement, and other direct costs associated with specific restructuring plans and cost reduction initiatives. Restructuring and cost reduction plans consist of distinct initiatives to streamline operations including the consolidation and rationalization of business activities and facilities, workforce reductions, the transfer of product lines between manufacturing facilities, and the transfer of other business activities between sites. The Gross Margin amount includes charges associated with a restructuring plan to align Abbott's manufacturing network for COVID-19 diagnostic tests with changes during the second quarter in projected testing demand.  

 
 

  c)  

 
 

  Other primarily relates to the costs related to certain litigation, the acquisition of a research and development asset, the impairments of an equity investment and an intangible asset, and the gain on the disposition of an equity method investment.  

 
 

  d)  

 
 

  Reflects the net tax benefit associated with the specified items and excess tax benefits associated with share-based compensation.  

 
 
 

 

 
 
                                                                                                       
 

  Abbott Laboratories and Subsidiaries  

 
 

  Details of Specified Items  

 
 

  First Half Ended June 30, 2020  

 
 

  (in millions, except per share data)  

 
 

  (unaudited)  

 
 
 
 
 

  Acquisition or
Divestiture-
related (a)
 

 
 
 

  Restructuring
and Cost Reduction
Initiatives (b)
 

 
 
 

  Intangible
Amortization
 

 
 
 

  Other (c)  

 
 
 

  Total
Specifieds
 

 
 

  Gross Margin  

 
 
 

  $              45  

 
 
 

  $             30  

 
 
 

  $        1,114  

 
 
 

  $         1  

 
 
 

  $    1,190  

 
 

  R&D  

 
 
 

  (7)  

 
 
 

  (8)  

 
 
 

  --  

 
 
 

  (28)  

 
 
 

  (43)  

 
 

  SG&A  

 
 
 

  (55)  

 
 
 

  (27)  

 
 
 

  --  

 
 
 

  --  

 
 
 

  (82)  

 
 

  Other (income) expense, net  

 
 
 

  (1)  

 
 
 

  --  

 
 
 

  --  

 
 
 

  (109)  

 
 
 

  (110)  

 
 

  Earnings from Continuing Operations before taxes  

 
 
 

  $            108  

 
 
 

  $             65  

 
 
 

  $        1,114  

 
 
 

  $      138  

 
 
 

  1,425  

 
 

  Tax expense on Earnings from Continuing Operations (d)  

 
 
 
 
 
 
 
 
 
 

  326  

 
 

  Earnings from Continuing Operations  

 
 
 
 
 
 
 
 
 
 
 

  $    1,099  

 
 

  Diluted Earnings per Share from Continuing Operations  

 
 
 
 
 
 
 
 
 
 

  $      0.62  

 
 
 
 
  
 
 

  The table above provides additional details regarding the specified items described on table titled "Non-GAAP Reconciliation of Financial Information From Continuing Operations."  

 
 
 
 
          
 
 
 

  a)  

 
 

  Acquisition-related expenses include integration costs, which represent incremental costs directly related to integrating the acquired businesses and include expenditures for retention, severance, and the integration of systems, processes and business activities.  

 
 

  b)  

 
 

  Restructuring and cost reduction initiative expenses include severance, outplacement, and other direct costs associated with specific restructuring plans and cost reduction initiatives. Restructuring and cost reduction plans consist of distinct initiatives to streamline operations including the consolidation and rationalization of business activities and facilities, workforce reductions, the transfer of product lines between manufacturing facilities, and the transfer of other business activities between sites.  

 
 

  c)  

 
 

  Other primarily relates to the impairment of equity investments and the costs to acquire research and development assets.  

 
 

  d)  

 
 

  Reflects the net tax benefit associated with the specified items, the resolution of prior years' tax positions and excess tax benefits associated with share-based compensation.  

 
 
 

 

 

 Cision View original content: https://www.prnewswire.com/news-releases/abbott-reports-second-quarter-2021-results-301339347.html  

 

SOURCE Abbott

 
 

News Provided by PR Newswire via QuoteMedia

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