Abbott Labs 2nd Qtr 2008 Earnings Beats The Street

Abbott Reports Stronger-than-Expected Sales and Earnings Growth in Second Quarter and Raises Full-Year Outlook

Worldwide Sales Increased 14.8 Percent
Adjusted EPS Growth of 21.7 Percent (GAAP up 34.9 Percent)
Worldwide Pharmaceutical Sales Increased 16.7 Percent
Worldwide Medical Products Sales Increased 14.7 Percent
Eight New Regulatory Approvals Received Year-to-Date
Company Raises Full-Year Sales and EPS Forecast

Abbott Park, Illinois (NYSE: ABT) — Abbott today announced financial results for the second quarter ended June 30, 2008.

Diluted earnings per share, excluding specified items, were $0.84, above Abbott's previously announced guidance range of $0.78 to $0.80, reflecting 21.7 percent growth. Diluted earnings per share under Generally Accepted Accounting Principles (GAAP) were $0.85, up 34.9 percent. This outperformance was driven by higher sales performance across the company, an improved gross margin, and higher ongoing income related to the recently concluded TAP joint venture.
Worldwide sales increased 14.8 percent to $7.3 billion, including a favorable 5.9 percent effect of exchange rates.
Worldwide pharmaceutical sales increased 16.7 percent driven by double-digit growth in HUMIRA®, Niaspan®, and Kaletra®. Today, Abbott is raising its forecast for global HUMIRA sales to more than $4.3 billion in 2008.
Worldwide medical products sales increased 14.7 percent, driven by 17.2 percent growth in global diagnostics sales, and 15.7 percent growth in global vascular sales.
Worldwide nutritional products sales growth was led by 21.3 percent growth in international nutritionals, with continued strong performance in emerging markets.
Year-to-date, Abbott has received eight major regulatory approvals, including the XIENCE V™ drug-eluting stent.

"Abbott achieved another quarter of strong performance across our diverse mix of global businesses, with particularly strong results internationally," said Miles D. White, chairman and chief executive officer, Abbott. "Based on our first-half results, as well as our outlook for the remainder of the year, we're raising our 2008 forecast for both sales growth and earnings-per-share. We're also confirming our expectation for continued double-digit earnings-per-share growth in 2009."