Abbott Laboratories reported flat second-quarter earnings thanks to charges related to research and legal expenses and costs of its flurry of acquisitions in the last year. The North Chicago-based medical product giant reported earnings of $1.29 billion, or 83 cents a share in the period ended June 30. That compares with $1.28 billion, or 83 cents in the second quarter of 2009.
Revenue jumped nearly 18 percent to $8.8 billion thanks to what company Chairman Miles White called its “diverse” portfoilio of products. Sales in the company’s drug, vascular devices and nutrition divisions were all grew in double digit percentages in the quarter led by worldwide pharmaceutical sales that were up 24.5 percent to $4.9 billion.
Excluding special items like an after-tax charge of $75 million for in-process research and development of an experimental endometriosis treatment, Abbott’s earnings jumped 13.6 percent and beat Wall Street’s estimates by a penny at $1.01 per share compared to 89 cents in the year-ago period.
Abbott also recorded a $106 million charge related to a litigation reserve for an upcoming and yet-to-be disclosed settlement and an $83 million charge for costs of integrating Solvay Pharmaceuticals, a company it purchased in the last year. A company spokesman would not comment on the reason for the “legal reserve” listed in the company earnings release.
“Abbott’s diverse sources of earnings growth led to strong financial results again this quarter, continuing Abbott’s steady, reliable performance,” White said in a statement issued this morning before the opening of trading on the New York Stock Exchange.
bjapsen@tribune.com
