Mixed Abbott Q3 report, ahead of 2013 spinoff
Abbott Laboratories has announced its third quarter financial results and is allegedly still on track to split into two companies in early 2013. However, the company has this week made approximately 550 staff redundant, with several hundred more layoffs planned throughout 2013.
Abbott’s third quarter results were mixed, with earnings topping forecasts and sales coming in below Wall Street estimates. It earned US $1.94 billion in the third quarter, compared with $303 million in the third quarter last year, when the company took a $1.4 billion litigation charge.
Worldwide sales increased 4.1%, excluding foreign exchange rates. In emerging markets, sales increased more than 10%, with strong double-digit growth in many of the key emerging markets across Abbott’s businesses. Increases in sales were contributed by rheumatoid arthritis drug humira (adalimumab), cardiovascular disease medication, tricor (fenofibrate) and testosterone gel, Androgel.
“Abbott delivered another quarter of strong results with ongoing earnings per share up more than 10 percent, despite a challenging global economy. There were several product launches across pharmaceuticals, vascular and diagnostics, which will contribute to future growth. In addition, we remain on track to separate into two leading health care companies on January 1, 2013.”
Miles D. White, chairman and chief executive officer, Abbott.
Abbott announced in October 2011 that it plans to separate into two publicly traded companies: one in diversified medicinal products, which will retain the Abbott name, and the other in research-based pharmaceuticals, which will be called AbbVie. Unless there are any regulatory surprises, this separation will be completed on January 1st 2013.
Abbott Labs cuts 550 jobs, more layoffs planned (Market Watch)
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