North Chicago-based Abbott Laboratories' first-quarter net income tumbled 31 percent on unfavorable currency exchanges and a supplier recall that lowered sales of its baby formula.
Still, the company beat most expectations and shares edged higher in early trading Wednesday.
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Baby formula sales fell 7 percent to $909 million after a recall in August that the company said cut its revenue by $75 million. It is hoped that sales this year will pick up after the launch of new products, including a new infant formula it selling in China called Eleva.
Other businesses run by the health conglomerate fared comparatively better. Sales of adult formulas rose 5.2 percent to $722 million. Sales of diagnostics rose 5 percent to $1.1 billion and medical device sales rose 0.3 percent to $1.3 billion. Sales of pharmaceuticals slipped 0.7 percent to $1.2 billion.
Total net income fell to $375 million, or 24 cents per share, in the quarter ending March 31. That compares with $544 million, or 34 cents per share, in the same quarter a year ago.
Adjusted to remove tax expenses and other one-time charges, the company earned 41 cents per share. Analysts expected earnings of 36 cents per share, according to FactSet.
Revenue fell 2.5 percent to $5.24 billion from $5.38 billion during the same periods. Analysts expected revenue of $5.28 billion.
Abbott, based in Abbott Park, Ill., makes infant formula, such as Similac, PediaSure and Isomil, medical devices and pharmaceutical drugs.
Its shares rose 20 cents to $38.17.