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updated: 4/16/2014 9:39 AM

Recall hurts Abbott, but still tops expectations

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  • 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.

      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.
    Daily Herald File photo

 
Associated Press

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.

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.

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