Abbott Laboratories (NYSE:ABT) Q1 2015 Earnings Conference Call - Final Transcript

Apr 22, 2016 • 09:00 am ET


Abbott Laboratories (NYSE:ABT) Q1 2015 Earnings Conference Call - Final Transcript


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Good morning, and thank you for standing by. Welcome to Abbott's First Quarter 2015 Earnings Conference Call. [Operator Instructions]

With the exception of any participant's questions asked during the question-and-answer session, the entire call, including the question-and-answer session, is material copyrighted by Abbott. It cannot be recorded or rebroadcast without Abbott's expressed written permission.

I would now like to introduce Mr. Brian Yoor, Vice President, Investor Relations.

Brian Yoor

Okay, good morning, and thank you for joining us.

With me today are Miles White, Chairman of the Board and Chief Executive Officer; and Tom Freyman, Executive Vice President, Finance and Chief Financial Officer. Miles will provide opening remarks and Tom and I will discuss our performance in more detail. Following our comments, Miles, Tom and I will take your questions.

Before we get started, some statements made today maybe forward-looking for purposes of the Private Securities Litigation Reform Act of 1995, including the expected financial results for 2015. Abbott cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements.

Economic, competitive, governmental, technological and other factors that may affect Abbott's operations are discussed in Item 1(a), Risk Factors to our annual report on Securities and Exchange Commission Form 10-K for the year ended December 31, 2014. Abbott undertakes no obligation to release publicly any revisions to forward-looking statements as a result of subsequent events or developments except as required by law. Please note that first quarter and guidance provided today on the call for sales, earnings per share and line items of the P&L will be for continuing operations only.

In today's conference call as in the past, non-GAAP financial measures will be used to help investors understand Abbott's ongoing business performance. These non-GAAP financial measures are reconciled with the comparable GAAP financial measures in our earnings news release and regulatory filings from today, which will be available on our website at Our commentary on sales growth refers to operational sales growth, which excludes the impact of foreign exchange unless otherwise noted.

With that, I will now turn the call over to Miles.

Miles White

Okay, thanks Brian. Good morning, everybody. I will be brief this morning and leave some time for questions.

Our first quarter performance exceeded expectations on both the top and bottom lines and we reported double-digit operational sales growth, exceeded both our gross and operating margin targets in the quarter, closed on the sale of our EPD developed markets business to Mylan and launched a number of new products across our portfolio.

I will summarize our first quarter results before turning the call over to Tom and Brian for some further detail. Operational sales increased 10% in the quarter with particularly strong performance in our branded generics, international, nutrition and global diagnostics businesses as well as double-digit growth in emerging markets and that did include the additions of CFR and Veropharm. While currency was a factor, including a 7% negative impact on the top