Abbott Reaffirms Commitment To Emerging Markets
BMI View: Abbott Laboratories is a leading exponent of making fixed capital investments in high growth markets such as China. This provides a hedge against currency fluctuations. It demonstrates commitment to the country, which helps from a regulatory standpoint. It also reduces shipping and freight costs.
Abbott Laboratories has raised its earnings guidance following the release of financial results that exceeded expectations. Sales increased by 1.9% to USD5,551mn, while net income decreased by 2.2% to USD466mn. Of the company's four business units, Diagnostics (+4.8%) recorded the highest revenue growth, followed by Nutrition (+1.6%), Medical Devices (+1.2%) and Established Pharmaceuticals (-0.1%). Abbott now expects 2014 earnings per share (EPS) to be USD2.19-2.29, up from USD2.16-2.26.
Emerging Markets Performance
|Sales Up, Profit Down|
|Abbott Laboratories Financial Snapshot (USDmn)|