Abbott 1Q profit down, but adjusted results grow

NORTH CHICAGO, Ill. (AP) -- Abbott Laboratories said Wednesday its first-quarter net income slid as the year-earlier period got a boost from discontinued operations. However, earnings from continuing operations climbed more than 4 percent on sales of the company's nutritionals and diagnostic tests.

Sales of those products helped offset declines in medical devices, which fell more than 4 percent.

At the beginning of this year Abbott completed the spin-off of its drug business into a separate company, AbbVie, leaving it with a business model built around generic drugs, medical implants and nutritional formula. AbbVie markets the company's branded prescription drugs, including the blockbuster anti-inflammatory drug Humira.

In the company's first quarter since the split, Abbott reported net income of $544 million, or 34 cents per share, down from $1.24 billion, or 78 cents per share. The $1.24 billion figure from last year includes earnings from AbbVie.

Adjusted income from continuing operations totaled $674 million, or 42 cents per share, up from $645 million, or 40 cents per share, in the first quarter of 2012. The latest results exclude various charges associated with the company's split and reorganization.

Sales increased 1.8 percent to $5.38 billion; excluding the impact of foreign exchange rates, they grew 3.5 percent. Sales in emerging markets comprise more than 40 percent of Abbott's total sales.

Analysts polled by FactSet expected earnings per share of 41 cents on revenue of $5.41 billion, on average.

Looking ahead, the North Chicago, Ill.-based company backed its full-year guidance calling for adjusted earnings per share between $1.98 and $2.04. Analysts expect earnings per share of $2.01.

For the second quarter, the company expects to earn 43 cents to 45 cents per share on an adjusted basis; analysts expect 43 cents per share.

Shares of Abbott Laboratories increased 62 cents to $37.02 in midday trading.