ABBOTT Laboratories reported quarterly sales well below forecasts, hurt by declining revenue from a heart stent and the negative impact of the stronger dollar on overseas business.
The diversified healthcare company, which aims to spin off its branded prescription drug business later this year, said it earned $1.62 billion, or $1.02 per share, in the fourth quarter, up from $1.44 billion, or 92 US cents per share, a year earlier.
Excluding special items, the Chicago company earned $1.45 per share. Global revenue of $10.38 billion fell short of Wall Street expectations of $10.63 billion.
Abbott spokesman Scott Stoffel said much of the revenue shortfall was because sales got only a 0.2 per cent lift from foreign exchange factors, instead of the 1 per cent boost the company had expected.
The strengthening dollar also hurt quarterly earnings at Johnson & Johnson, which like Abbott generates much of its sales in overseas markets from a diversified product line.
Abbott shares were slightly lower in afternoon trade. The company also said it would resume a share repurchase programme this year.
Abbott employs more than 1,000 people at a series of plants across Ireland.
The company forecast 2012 earnings of $4.95 to $5.05 per share. Wall Street’s average forecast is $5.02.
Global sales of its branded prescription drugs rose 6.7 per cent in the fourth quarter to $4.78 billion, while sales of nutritional products jumped almost 9 per cent to $1.56 billion.
Sales of vascular products, including heart stents, rose only 0.6 per cent to $826 million.
Mr Stoffel said revenue from Boston Scientific’s Promus stent declined sharply as the rival devicemaker won approval for a newer stent and moved away from selling Promus.
Promus is a private-label version of Abbott’s widely used Xience stent, and Abbott has shared in profits from Promus under a long-standing agreement with Boston Scientific. – (Reuters)
