Abbott Labs Reports Better-Than-Expected Profit

By Lisa Beilfuss 

Abbott Laboratories on Wednesday said its first-quarter earnings rose, thanks largely to a gain stemming from recent divestitures, although currency fluctuations weighed on sales growth.

The company said the stronger dollar shaved 7% from its top line.

The Illinois-based health-care company has been realigning its business in a series of deals. Most recently, Abbott filed to sell about a third of its stake in Mylan NV, a position it had acquired through a partial sale of its generic-drugs business to the Netherlands-based drug maker.

Overall, Abbott reported a profit of $2.3 billion, or $1.51 a share, up from $237 million, or 15 cents a share, a year earlier. The results included a $1.7 billion gain on the sales of its generic-pharmaceuticals business to Mylan and its animal-health business to Zoetis Inc.

Excluding items such as the gains and foreign-exchange impacts, earnings rose to 47 cents from 41 cents.

Revenue increased 3% to $4.9 billion, but excluding currency fluctuations and including the impact of acquisitions, sales grew by 10%.

Analysts polled by Thomson Reuters expected a per-share profit of 42 cents and revenue of $4.85 billion.

Abbott shares, up 4.5% this year through Tuesday's close, are inactive in premarket trading.

Write to Lisa Beilfuss at [e-mail]

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