NORTH CHICAGO, Ill. (AP) – Drug and medical device maker Abbott Laboratories said its first-quarter net income fell 14 percent on restructuring and acquisition costs and other expenses.
For the period ended March 31, the company earned $864 million, or 55 cents per share. Excluding one-time items it earned 91 cents per share. A year ago Abbott reported a profit of $1.27 billion, or 64 cents per share – or 81 cents per share excluding one-time costs. Revenue grew 17 percent to $9.04 billion
Analysts polled by FactSet expect earnings per share of 90 cents on revenue of $8.82 billion.
Revenue was led by higher sales of the company’s best-selling product Humira, which increased 18 percent to $1.65 billion. Humira is used to treat inflammatory diseases like rheumatoid arthritis and has historically accounted for nearly one-fifth of the company’s sales.
Charges included the expense of integrating Solvay Pharmaceuticals and restructuring the business, changes to Abbott’s fiscal calendar, other cost-cutting reduction plans, and acquired research and development costs. Abbott acquired Solvay Pharmaceuticals in February 2010 for $6.2 billion.
In January, Abbott said it would eliminate 1,900 employees from its pharmaceutical business as it struggles to maintain double-digit profit growth amid cost pressures.
The company said sales of its cholesterol drugs Trilipix and TriCor grew 28 percent from last year, to $372 million in total. Sales of pediatric nutritionals rose 8 percent to $755 million and adult nutritional product revenue increased 10 percent to $664 million. Revenue from heart stents rose 15 percent to $524 million.
Abbott backed its 2011 profit outlook. Excluding 84 cents per share in one-time costs, the company expects to earn between $4.54 and $4.64 per share. Analysts are forecasting $4.60 per share, on average.
Date: April 19, 2011
Source: Associated Press