Abbott Reports Strong Fourth-Quarter 2021 Results; Issues 2022 Forecast
Abbott reported Q4 2021 sales of $11.5 billion, marking a 7.2% increase, driven by COVID-19 testing sales of $2.3 billion. For the full year, GAAP diluted EPS rose to $3.94, with adjusted EPS at $5.21, a 42.7% growth year-over-year. Abbott projects 2022 diluted EPS guidance of at least $3.43, with adjusted EPS of at least $4.70. The company also declared a quarterly dividend of $0.47 per share, continuing its 50-year dividend growth streak.
- Q4 2021 sales increased 7.2% to $11.5 billion.
- Full-year GAAP diluted EPS grew 42.7% to $3.94.
- Adjusted diluted EPS for 2021 was $5.21.
- COVID-19 testing sales contributed $2.3 billion in Q4 and $7.7 billion for the year.
- Abbott's 2022 diluted EPS guidance of at least $3.43 and adjusted EPS of $4.70.
- Declared a quarterly dividend of $0.47, marking 50 consecutive years of increases.
- COVID-19 testing sales may face future declines affecting revenue.
- Operating results in Diagnostics reflected a decrease in organic growth due to lower testing demand.
ABBOTT PARK, Ill., Jan. 26, 2022 /PRNewswire/ -- Abbott (NYSE: ABT) today announced financial results for the fourth quarter and full year ended Dec. 31, 2021, and issued its financial outlook for 2022.
- Fourth-quarter sales of
$11.5 billion increased 7.2 percent on a reported basis and 7.7 percent on an organic basis, which excludes the impact of foreign exchange. - Fourth-quarter GAAP diluted EPS was
$1.11 and adjusted diluted EPS, which excludes specified items, was$1.32 . - Full-year 2021 GAAP diluted EPS from continuing operations was
$3.94 and adjusted diluted EPS from continuing operations was$5.21 , reflecting42.7% growth versus the prior year.1 - Global COVID-19 testing-related sales were
$2.3 billion in the fourth quarter and$7.7 billion for the full-year. Abbott has distributed more than 1.4 billion COVID-19 tests since the start of the pandemic. - Abbott issues full-year 2022 guidance for diluted EPS from continuing operations on a GAAP basis of at least
$3.43 and full-year adjusted diluted EPS from continuing operations of at least$4.70 . - Full-year 2022 guidance includes an initial COVID-19 testing-related sales forecast of
$2.5 billion , which Abbott expects to occur early in the year and will update on a quarterly basis. - Abbott's R&D pipeline continues to deliver a steady cadence of new products. Select 2021 highlights include U.S. Centers for Medicare & Medicaid Services expanded reimbursement for MitraClip®, U.S. launches of Amplatzer® Amulet®, NeuroSphere™ Virtual Clinic, and Portico® transcatheter aortic valve replacement (TAVR) system, along with the international launch of Navitor™ TAVR system.
"2021 was an outstanding year for Abbott," said Robert B. Ford, chairman and chief executive officer, Abbott. "We achieved more than 40 percent EPS growth, exceeding the baseline EPS guidance we set at the beginning of last year and, importantly, continued to advance our new product pipeline across the portfolio."
FOURTH-QUARTER BUSINESS OVERVIEW
Note: Management believes that measuring sales growth rates on an organic basis is an appropriate way for investors to best understand the underlying performance of the business. Organic sales growth excludes the impact of foreign exchange.
Following are sales by business segment and commentary for the fourth quarter 2021:
Total Company ($ in millions) | ||||||||||||||||||
% Change vs. 4Q20 | ||||||||||||||||||
Sales 4Q21 | Reported | Organic | ||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||
Total * | 4,855 | 6,613 | 11,468 | 15.6 | 1.7 | 7.2 | 15.6 | 2.7 | 7.7 | |||||||||
Nutrition | 928 | 1,114 | 2,042 | 10.4 | 1.7 | 5.5 | 10.4 | 2.4 | 5.9 | |||||||||
Diagnostics | 2,386 | 2,085 | 4,471 | 20.5 | (11.8) | 2.9 | 20.5 | (11.1) | 3.3 | |||||||||
Established Pharmaceuticals | -- | 1,203 | 1,203 | n/a | 4.9 | 4.9 | n/a | 5.8 | 5.8 | |||||||||
Medical Devices | 1,538 | 2,211 | 3,749 | 12.3 | 17.1 | 15.1 | 12.3 | 18.6 | 15.9 | |||||||||
* Total Q4 2021 Abbott sales from continuing operations include Other Sales of approximately | ||||||||||||||||||
% Change vs. 12M20 | ||||||||||||||||||
Sales 12M21 | Reported | Organic | ||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||
Total * | 16,642 | 26,433 | 43,075 | 27.8 | 22.5 | 24.5 | 27.8 | 19.9 | 22.9 | |||||||||
Nutrition | 3,556 | 4,738 | 8,294 | 8.4 | 8.5 | 8.5 | 8.4 | 7.1 | 7.7 | |||||||||
Diagnostics | 7,129 | 8,515 | 15,644 | 49.3 | 41.2 | 44.8 | 49.3 | 37.4 | 42.7 | |||||||||
Established Pharmaceuticals | -- | 4,718 | 4,718 | n/a | 9.6 | 9.6 | n/a | 10.4 | 10.4 | |||||||||
Medical Devices | 5,923 | 8,444 | 14,367 | 20.1 | 23.2 | 21.9 | 20.1 | 18.8 | 19.4 | |||||||||
* Total 12M 2021 Abbott sales from continuing operations include Other Sales of approximately |
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. |
Fourth-quarter 2021 worldwide sales of
Worldwide sales, excluding COVID-19 testing-related sales,2 increased 9.6 percent on a reported basis and 10.3 percent on an organic basis in the fourth quarter, and 15.2 percent on a reported basis and 13.7 percent on an organic basis in the full year 2021.
Compared to pre-pandemic sales in 2019, worldwide sales, excluding COVID-19 testing-related sales,3 increased 10.0 percent on a reported basis and 10.8 percent on an organic basis in the fourth quarter.
Nutrition | |||||||||||||||||||
% Change vs. 4Q20 | |||||||||||||||||||
Sales 4Q21 | Reported | Organic | |||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | |||||||||||
Total | 928 | 1,114 | 2,042 | 10.4 | 1.7 | 5.5 | 10.4 | 2.4 | 5.9 | ||||||||||
Pediatric | 570 | 469 | 1,039 | 14.5 | (8.0) | 3.1 | 14.5 | (8.1) | 3.1 | ||||||||||
Adult | 358 | 645 | 1,003 | 4.5 | 10.3 | 8.1 | 4.5 | 11.6 | 9.0 | ||||||||||
% Change vs. 12M20 | |||||||||||||||||||
Sales 12M21 | Reported | Organic | |||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | |||||||||||
Total | 3,556 | 4,738 | 8,294 | 8.4 | 8.5 | 8.5 | 8.4 | 7.1 | 7.7 | ||||||||||
Pediatric | 2,192 | 2,106 | 4,298 | 10.3 | (1.5) | 4.2 | 10.3 | (3.2) | 3.3 | ||||||||||
Adult | 1,364 | 2,632 | 3,996 | 5.6 | 18.1 | 13.5 | 5.6 | 17.0 | 12.8 | ||||||||||
Worldwide Nutrition sales increased 5.5 percent on a reported basis and 5.9 percent on an organic basis in the fourth quarter.
In Adult Nutrition, 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 sales growth of 8.1 percent on a reported basis and 9.0 percent on an organic basis.
Worldwide Pediatric Nutrition sales increased 3.1 percent on both a reported basis and organic basis. Strong performance of Abbott's market-leading oral hydration brand, Pedialyte®, and continued share growth in infant nutrition led to U.S. Pediatric Nutrition growth of 14.5 percent. In International Pediatric Nutrition, sales were unfavorably impacted primarily by challenging market conditions in China.
Diagnostics ($ in millions) | |||||||||||||||||||
% Change vs. 4Q20 | |||||||||||||||||||
Sales 4Q21 | Reported | Organic | |||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | |||||||||||
Total | 2,386 | 2,085 | 4,471 | 20.5 | (11.8) | 2.9 | 20.5 | (11.1) | 3.3 | ||||||||||
Core Laboratory | 300 | 1,048 | 1,348 | (8.0) | 5.2 | 1.9 | (8.0) | 6.2 | 2.7 | ||||||||||
Molecular | 135 | 210 | 345 | (30.0) | (27.5) | (28.5) | (30.0) | (27.3) | (28.4) | ||||||||||
Point of Care | 95 | 40 | 135 | 5.3 | 3.7 | 4.8 | 5.3 | 3.9 | 4.9 | ||||||||||
Rapid Diagnostics | 1,856 | 787 | 2,643 | 35.3 | (24.2) | 9.6 | 35.3 | (23.8) | 9.8 | ||||||||||
% Change vs. 12M20 | |||||||||||||||||||
Sales 12M21 | Reported | Organic | |||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | |||||||||||
Total | 7,129 | 8,515 | 15,644 | 49.3 | 41.2 | 44.8 | 49.3 | 37.4 | 42.7 | ||||||||||
Core Laboratory | 1,145 | 3,983 | 5,128 | (1.8) | 20.4 | 14.6 | (1.8) | 17.4 | 12.4 | ||||||||||
Molecular | 566 | 861 | 1,427 | (8.9) | 5.4 | (0.8) | (8.9) | 1.7 | (2.9) | ||||||||||
Point of Care | 384 | 152 | 536 | 4.3 | 2.8 | 3.9 | 4.3 | 0.3 | 3.2 | ||||||||||
Rapid Diagnostics | 5,034 | 3,519 | 8,553 | 92.2 | 100.2 | 95.4 | 92.2 | 95.0 | 93.3 | ||||||||||
Worldwide Diagnostics sales increased 2.9 percent on a reported basis in the fourth quarter and increased 3.3 percent on an organic basis. Global COVID-19 testing-related sales were
Excluding COVID-19 testing-related sales, worldwide Diagnostics sales increased 8.2 percent on a reported basis in the fourth quarter and 8.7 percent on an organic basis.4
In Molecular Diagnostics, fourth-quarter sales growth was negatively impacted by lower COVID-19 testing-related sales compared to the prior year. Excluding COVID-19 testing-related sales, worldwide Molecular Diagnostics sales increased 24.1 percent on a reported basis and 24.5 percent on an organic basis, including 34.6 percent in the U.S. and 20.7 percent internationally.5
In Rapid Diagnostics, fourth-quarter international sales growth was negatively impacted by lower COVID-19 testing-related sales compared to the prior year. Excluding COVID-19 testing-related sales, international Rapid Diagnostics sales increased 9.7 percent on a reported basis and 10.3 percent on an organic basis.6
Established Pharmaceuticals ($ in millions) | |||||||||||||||||||
% Change vs. 4Q20 | |||||||||||||||||||
Sales 4Q21 | Reported | Organic | |||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | |||||||||||
Total | -- | 1,203 | 1,203 | n/a | 4.9 | 4.9 | n/a | 5.8 | 5.8 | ||||||||||
Key Emerging Markets | -- | 868 | 868 | n/a | 4.1 | 4.1 | n/a | 5.2 | 5.2 | ||||||||||
Other | -- | 335 | 335 | n/a | 6.8 | 6.8 | n/a | 7.5 | 7.5 | ||||||||||
% Change vs. 12M20 | |||||||||||||||||||
Sales 12M21 | Reported | Organic | |||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | |||||||||||
Total | -- | 4,718 | 4,718 | n/a | 9.6 | 9.6 | n/a | 10.4 | 10.4 | ||||||||||
Key Emerging Markets | -- | 3,539 | 3,539 | n/a | 10.3 | 10.3 | n/a | 11.9 | 11.9 | ||||||||||
Other | -- | 1,179 | 1,179 | n/a | 7.8 | 7.8 | n/a | 6.0 | 6.0 | ||||||||||
Established Pharmaceuticals sales increased 4.9 percent on a reported basis in the fourth quarter and increased 5.8 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 4.1 percent on a reported basis in the quarter and increased 5.2 percent on an organic basis. Organic sales growth was led by strong growth across several geographies, including India, Russia and China.
Other sales increased 6.8 percent on a reported basis in the quarter and increased 7.5 percent on an organic basis.
Medical Devices ($ in millions) | ||||||||||||||||||
% Change vs. 4Q20 | ||||||||||||||||||
Sales 4Q21 | Reported | Organic | ||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||
Total | 1,538 | 2,211 | 3,749 | 12.3 | 17.1 | 15.1 | 12.3 | 18.6 | 15.9 | |||||||||
Rhythm Management | 242 | 299 | 541 | (2.7) | 5.5 | 1.7 | (2.7) | 7.0 | 2.5 | |||||||||
Electrophysiology | 198 | 306 | 504 | 7.2 | 15.4 | 12.0 | 7.2 | 17.8 | 13.5 | |||||||||
Heart Failure | 171 | 68 | 239 | 25.4 | 30.8 | 26.9 | 25.4 | 33.2 | 27.6 | |||||||||
Vascular | 231 | 447 | 678 | 3.0 | 18.0 | 12.4 | 3.0 | 19.2 | 13.2 | |||||||||
Structural Heart | 193 | 226 | 419 | 25.4 | 13.6 | 18.7 | 25.4 | 15.7 | 19.9 | |||||||||
Neuromodulation | 156 | 41 | 197 | (9.0) | (2.2) | (7.7) | (9.0) | (1.1) | (7.5) | |||||||||
Diabetes Care | 347 | 824 | 1,171 | 38.8 | 23.5 | 27.6 | 38.8 | 24.3 | 28.3 | |||||||||
% Change vs. 12M20 | ||||||||||||||||||
Sales 12M21 | Reported | Organic | ||||||||||||||||
U.S. | Int'l | Total | U.S. | Int'l | Total | U.S. | Int'l | Total | ||||||||||
Total | 5,923 | 8,444 | 14,367 | 20.1 | 23.2 | 21.9 | 20.1 | 18.8 | 19.4 | |||||||||
Rhythm Management | 1,018 | 1,180 | 2,198 | 12.7 | 16.8 | 14.8 | 12.7 | 12.7 | 12.7 | |||||||||
Electrophysiology | 778 | 1,129 | 1,907 | 17.7 | 23.1 | 20.8 | 17.7 | 20.0 | 19.1 | |||||||||
Heart Failure | 654 | 235 | 889 | 19.5 | 22.0 | 20.1 | 19.5 | 18.1 | 19.1 | |||||||||
Vascular | 915 | 1,739 | 2,654 | 7.4 | 17.0 | 13.5 | 7.4 | 13.2 | 11.1 | |||||||||
Structural Heart | 730 | 880 | 1,610 | 35.1 | 24.5 | 29.1 | 35.1 | 20.4 | 26.8 | |||||||||
Neuromodulation | 616 | 165 | 781 | 9.3 | 19.2 | 11.3 | 9.3 | 14.3 | 10.3 | |||||||||
Diabetes Care | 1,212 | 3,116 | 4,328 | 40.3 | 29.6 | 32.5 | 40.3 | 24.3 | 28.5 | |||||||||
Worldwide Medical Devices sales increased 15.1 percent on a reported basis in the fourth quarter and increased 15.9 percent on an organic basis. Strong growth in the quarter was driven by continued recovery from the COVID-19 pandemic and strong growth in Diabetes Care.
Compared to pre-pandemic sales in 2019, Medical Devices sales increased 17.0 percent on a reported basis and 15.8 percent on an organic basis in the fourth quarter, led by double-digit growth in Heart Failure, Structural Heart and Diabetes Care.7
In Diabetes Care, FreeStyle Libre® sales were
Abbott continued to strengthen its Medical Devices portfolio with several pipeline advancements in 2021, including:
- U.S. Centers for Medicare & Medicaid Services expanded reimbursement coverage for Abbott's revolutionary MitraClip device.
- U.S. launch of NeuroSphere Virtual Clinic, a first-of-its-kind technology that allows patients to communicate with physicians and receive new treatment settings remotely as needed.
- U.S. FDA approval of Amplatzer Amulet Left Atrial Appendage Occluder to treat people with atrial fibrillation who are at risk of ischemic stroke.
- U.S. FDA approval of Portico with FlexNav® transcatheter aortic valve replacement (TAVR) system to treat people with symptomatic, severe aortic stenosis who are at high risk for open-heart surgery.
- CE Mark for Navitor, Abbott's latest-generation TAVR system.
ABBOTT'S EARNINGS-PER-SHARE GUIDANCE
Abbott projects full-year 2022 diluted earnings per share from continuing operations under GAAP of at least
Abbott projects first-quarter 2022 diluted earnings per share from continuing operations under GAAP of at least
ABBOTT DECLARES 392ND CONSECUTIVE QUARTERLY DIVIDEND
On Dec. 10, 2021, the board of directors of Abbott declared the company's quarterly dividend of
Abbott has increased its dividend payout for 50 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 113,000 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 fourth-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 | Full-year 2021 diluted EPS from continuing operations on a GAAP basis reflects 58.2 percent growth. |
2 | In the fourth quarter of 2020, total worldwide sales were |
3 | In the fourth quarter of 2019, total worldwide sales were |
4 | In the fourth quarter of 2020, worldwide Diagnostic sales were |
5 | In the fourth quarter of 2020, worldwide Molecular sales were |
6 | In the fourth quarter of 2020, international Rapid Diagnostics sales were |
7 | In the fourth quarter of 2019, Medical Devices sales were |
Abbott Laboratories and Subsidiaries Condensed Consolidated Statement of Earnings Fourth Quarter Ended December 31, 2021 and 2020 (in millions, except per share data) (unaudited) | |||||||
4Q21 | 4Q20 | % Change | |||||
Net Sales | 7.2 | ||||||
Cost of products sold, excluding amortization expense | 4,766 | 4,493 | 6.1 | ||||
Amortization of intangible assets | 514 | 508 | 1.3 | ||||
Research and development | 762 | 698 | 9.1 | ||||
Selling, general, and administrative | 3,048 | 2,570 | 18.6 | ||||
Total Operating Cost and Expenses | 9,090 | 8,269 | 9.9 | ||||
Operating Earnings | 2,378 | 2,432 | (2.2) | ||||
Interest expense, net | 120 | 127 | (5.7) | ||||
Net foreign exchange (gain) loss | (6) | (5) | 22.8 | ||||
Other (income) expense, net | (63) | (78) | (19.3) | ||||
Earnings from Continuing Operations before taxes | 2,327 | 2,388 | (2.5) | ||||
Tax expense on Earnings from Continuing Operations | 338 | 230 | 47.2 | 1) | |||
Earnings from Continuing Operations | 1,989 | 2,158 | (7.8) | ||||
Earnings from Discontinued Operations, net of taxes | -- | 4 | n/m | ||||
Net Earnings | (8.0) | ||||||
Earnings from Continuing Operations, excluding | |||||||
Specified Items, as described below | (9.4) | 2) | |||||
Diluted Earnings per Common Share from: | |||||||
Continuing Operations | (7.5) | ||||||
Discontinued Operations | -- | -- | n/m | ||||
Total | (7.5) | ||||||
Diluted Earnings per Common Share from Continuing | |||||||
Operations, excluding Specified Items, as described below | (9.0) | 2) | |||||
Average Number of Common Shares Outstanding | |||||||
Plus Dilutive Common Stock Options | 1,782 | 1,789 | |||||
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 on the following table. |
1) | 2021 Tax expense on Earnings from Continuing Operations includes the recognition of approximately |
2020 Tax expense on Earnings from Continuing Operations includes the recognition of approximately | |
2) | 2021 Net Earnings and Diluted Earnings per Common Share from Continuing Operations, excluding Specified Items, excludes net after-tax charges of |
2020 Net Earnings and Diluted Earnings per Common Share from Continuing Operations, excluding Specified Items, excludes net after-tax charges of |
Abbott Laboratories and Subsidiaries Condensed Consolidated Statement of Earnings Year Ended December 31, 2021 and 2020 (in millions, except per share data) (unaudited) | |||||||
12M21 | 12M20 | % Change | |||||
Net Sales | 24.5 | ||||||
Cost of products sold, excluding amortization expense | 18,537 | 15,003 | 23.6 | ||||
Amortization of intangible assets | 2,047 | 2,132 | (4.0) | ||||
Research and development | 2,742 | 2,420 | 13.3 | ||||
Selling, general, and administrative | 11,324 | 9,696 | 16.8 | ||||
Total Operating Cost and Expenses | 34,650 | 29,251 | 18.5 | ||||
Operating Earnings | 8,425 | 5,357 | 57.3 | ||||
Interest expense, net | 490 | 500 | (2.0) | ||||
Net foreign exchange (gain) loss | 1 | (8) | n/m | ||||
Other (income) expense, net | (277) | (103) | 169.7 | ||||
Earnings from Continuing Operations before taxes | 8,211 | 4,968 | 65.3 | ||||
Tax expense on Earnings from Continuing Operations | 1,140 | 497 | 129.4 | 1) | |||
Earnings from Continuing Operations | 7,071 | 4,471 | 58.2 | ||||
Earnings from Discontinued Operations, net of taxes | -- | 24 | n/m | ||||
Net Earnings | 57.3 | ||||||
Earnings from Continuing Operations, excluding | |||||||
Specified Items, as described below | 43.0 | 2) | |||||
Diluted Earnings per Common Share from: | |||||||
Continuing Operations | 58.2 | ||||||
Discontinued Operations | -- | 0.01 | n/m | ||||
Total | 57.6 | ||||||
Diluted Earnings per Common Share from Continuing | |||||||
Operations, excluding Specified Items, as described below | 42.7 | 2) | |||||
Average Number of Common Shares Outstanding | |||||||
Plus Dilutive Common Stock Options | 1,789 | 1,786 | |||||
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 on the following table. |
1) | 2021 Tax expense on Earnings from Continuing Operations includes the recognition of approximately |
2020 Tax expense on Earnings from Continuing Operations includes the recognition of approximately | |
2) | 2021 Net Earnings and Diluted Earnings per Common Share from Continuing Operations, excluding Specified Items, excludes net after-tax charges of |
2020 Net Earnings and Diluted Earnings per Common Share from Continuing Operations, excluding Specified Items, excludes net after-tax charges of |
Abbott Laboratories and Subsidiaries Non-GAAP Reconciliation of Financial Information From Continuing Operations Fourth Quarter Ended December 31, 2021 and 2020 (in millions, except per share data) (unaudited) | ||||||||||
4Q21 | ||||||||||
As | Specified Items | As | % to Sales | |||||||
Intangible Amortization | $ 514 | $ (514) | $ -- | |||||||
Gross Margin | 6,188 | 434 | 6,622 | |||||||
R&D | 762 | (39) | 723 | |||||||
SG&A | 3,048 | (43) | 3,005 | |||||||
Other (income) expense, net | (63) | (5) | (68) | |||||||
Earnings from Continuing Operations before taxes | 2,327 | 521 | 2,848 | |||||||
Tax expense on Earnings from Continuing Operations | 338 | 144 | 482 | |||||||
Earnings from Continuing Operations | 1,989 | 377 | 2,366 | |||||||
Diluted Earnings per Share from Continuing Operations | ||||||||||
Specified items reflect intangible amortization expense of | ||||||||||
4Q20 | ||||||||||
As | Specified Items | As | % to Sales | |||||||
Intangible Amortization | $ 508 | $ (508) | $ -- | |||||||
Gross Margin | 5,700 | 557 | 6,257 | |||||||
R&D | 698 | (61) | 637 | |||||||
SG&A | 2,570 | (56) | 2,514 | |||||||
Other (income) expense, net | (78) | 23 | (55) | |||||||
Earnings from Continuing Operations before taxes | 2,388 | 651 | 3,039 | |||||||
Tax expense on Earnings from Continuing Operations | 230 | 197 | 427 | |||||||
Earnings from Continuing Operations | 2,158 | 454 | 2,612 | |||||||
Diluted Earnings per Share from Continuing Operations | ||||||||||
Specified items reflect intangible amortization expense of | ||||||||||
Abbott Laboratories and Subsidiaries Non-GAAP Reconciliation of Financial Information From Continuing Operations Year Ended December 31, 2021 and 2020 (in millions, except per share data) (unaudited) | ||||||||||
12M21 | ||||||||||
As | Specified Items | As | % to Sales | |||||||
Intangible Amortization | $ 2,047 | $ (2,047) | $ -- | |||||||
Gross Margin | 22,491 | 2,476 | 24,967 | |||||||
R&D | 2,742 | (106) | 2,636 | |||||||
SG&A | 11,324 | (317) | 11,007 | |||||||
Other (income) expense, net | (277) | 25 | (252) | |||||||
Earnings from Continuing Operations before taxes | 8,211 | 2,874 | 11,085 | |||||||
Tax expense on Earnings from Continuing Operations | 1,140 | 578 | 1,718 | |||||||
Earnings from Continuing Operations | 7,071 | 2,296 | 9,367 | |||||||
Diluted Earnings per Share from Continuing Operations | ||||||||||
Specified items reflect intangible amortization expense of | ||||||||||
12M20 | ||||||||||
As | Specified Items | As | % to Sales | |||||||
Intangible Amortization | $ 2,132 | $ (2,132) | $ -- | |||||||
Gross Margin | 17,473 | 2,452 | 19,925 | |||||||
R&D | 2,420 | (125) | 2,295 | |||||||
SG&A | 9,696 | (75) | 9,621 | |||||||
Other (income) expense, net | (103) | (88) | (191) | |||||||
Earnings from Continuing Operations before taxes | 4,968 | 2,740 | 7,708 | |||||||
Tax expense on Earnings from Continuing Operations | 497 | 659 | 1,156 | |||||||
Earnings from Continuing Operations | 4,471 | 2,081 | 6,552 | |||||||
Diluted Earnings per Share from Continuing Operations | ||||||||||
Specified items reflect intangible amortization expense of | ||||||||||
A reconciliation of the fourth-quarter tax rates for continuing operations for 2021 and 2020 is shown below: | |||||||||
4Q21 | |||||||||
($ in millions) | Pre-Tax Income | Taxes on Earnings | Tax | ||||||
As reported (GAAP) | $ 338 | 1) | |||||||
Specified items | 521 | 144 | |||||||
Excluding specified items | |||||||||
4Q20 | |||||||||
($ in millions) | Pre-Tax Income | Taxes on Earnings | Tax | ||||||
As reported (GAAP) | 2) | ||||||||
Specified items | 651 | 197 | |||||||
Excluding specified items | |||||||||
1) | 2021 Tax expense on Earnings from Continuing Operations includes the recognition of approximately |
2) | 2020 Tax expense on Earnings from Continuing Operations includes the recognition of approximately |
A reconciliation of the year-to-date tax rates for continuing operations for 2021 and 2020 is shown below: | |||||||||
12M21 | |||||||||
($ in millions) | Pre-Tax Income | Taxes on Earnings | Tax | ||||||
As reported (GAAP) | $ 1,140 | 3) | |||||||
Specified items | 2,874 | 578 | |||||||
Excluding specified items | |||||||||
12M20 | |||||||||
($ in millions) | Pre-Tax Income | Taxes on Earnings | Tax | ||||||
As reported (GAAP) | 4) | ||||||||
Specified items | 2,740 | 659 | |||||||
Excluding specified items | |||||||||
3) | 2021 Tax expense on Earnings from Continuing Operations includes the recognition of approximately |
4) | 2020 Tax expense on Earnings from Continuing Operations includes the recognition of approximately |
Abbott Laboratories and Subsidiaries Details of Specified Items Fourth Quarter Ended December 31, 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 | $ 26 | $ (110) | $ 514 | $ 4 | $ 434 | ||||||||
R&D | (6) | (8) | -- | (25) | (39) | ||||||||
SG&A | (12) | (23) | -- | (8) | (43) | ||||||||
Other (income) expense, net | (2) | -- | -- | (3) | (5) | ||||||||
Earnings from Continuing Operations before taxes | $ 46 | $ (79) | $ 514 | $ 40 | 521 | ||||||||
Tax expense on Earnings from Continuing Operations (d) | 144 | ||||||||||||
Earnings from Continuing Operations | $ 377 | ||||||||||||
Diluted Earnings per Share from Continuing Operations | $ 0.21 | ||||||||||||
The table above provides additional details regarding the specified items described on tables 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 a credit associated with a change in estimate to the charges taken in the second quarter for a restructuring plan related to Abbott's manufacturing network for COVID-19 diagnostic tests to reflect current and projected demand. |
c) | Other includes incremental costs to comply with the European Union's Medical Device (MDR) and In Vitro Diagnostics Medical Device (IVDR) Regulations for previously approved products. |
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 Fourth Quarter Ended December 31, 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 | $ 23 | $ 23 | $ 508 | $ 3 | $ 557 | ||||||||
R&D | (2) | 6 | -- | (65) | (61) | ||||||||
SG&A | (25) | (4) | -- | (27) | (56) | ||||||||
Other (income) expense, net | 24 | -- | -- | (1) | 23 | ||||||||
Earnings from Continuing Operations before taxes | $ 26 | $ 21 | $ 508 | $ 96 | 651 | ||||||||
Tax expense on Earnings from Continuing Operations (d) | 197 | ||||||||||||
Earnings from Continuing Operations | $ 454 | ||||||||||||
Diluted Earnings per Share from Continuing Operations | $ 0.25 | ||||||||||||
The table above provides additional details regarding the specified items described on tables 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 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 an intangible asset and the net costs related to certain litigation. |
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 Year Ended December 31, 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 | $ 82 | $ 323 | $ 2,047 | $ 24 | $ 2,476 | |||||
R&D | (15) | (7) | -- | (84) | (106) | |||||
SG&A | (55) | (45) | -- | (217) | (317) | |||||
Other (income) expense, net | 1 | 1 | -- | 23 | 25 | |||||
Earnings from Continuing Operations before taxes | $ 151 | $ 374 | $ 2,047 | $ 302 | 2,874 | |||||
Tax expense on Earnings from Continuing Operations (d) | 578 | |||||||||
Earnings from Continuing Operations | $ 2,296 | |||||||||
Diluted Earnings per Share from Continuing Operations | $ 1.27 | |||||||||
The table above provides additional details regarding the specified items described on tables 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 year in current and projected testing demand. |
c) | Other primarily relates to the costs related to certain litigation, incremental costs to comply with MDR and IVDR Regulations for previously approved products, 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 Year Ended December 31, 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 | $ 84 | $ 80 | $ 2,132 | $ 156 | $ 2,452 | |||||
R&D | (10) | (3) | -- | (112) | (125) | |||||
SG&A | (108) | (40) | -- | 73 | (75) | |||||
Other (income) expense, net | 21 | -- | -- | (109) | (88) | |||||
Earnings from Continuing Operations before taxes | $ 181 | $ 123 | $ 2,132 | $ 304 | 2,740 | |||||
Tax expense on Earnings from Continuing Operations (d) | 659 | |||||||||
Earnings from Continuing Operations | $ 2,081 | |||||||||
Diluted Earnings per Share from Continuing Operations | $ 1.16 | |||||||||
The table above provides additional details regarding the specified items described on tables 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 impairment charges related to certain assets and the costs to acquire R&D assets, partially offset by income from the settlement of litigation. |
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. |
View original content:https://www.prnewswire.com/news-releases/abbott-reports-strong-fourth-quarter-2021-results-issues-2022-forecast-301468554.html
SOURCE Abbott
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