Abbott (NYSE: ABT) announced financial results for the first quarter ended March 31, 2013. Worldwide sales of nearly $5.4 billion increased 3.5 percent on an operational basis, consistent with previous guidance, driven by 9.0 percent operational sales growth in Nutrition and 6.4 percent operational sales growth in Diagnostics. On a reported basis, sales increased 1.8 percent, including an unfavorable 1.7 percent effect of foreign exchange. Unfavorable exchange was primarily driven by the weakening of the Japanese yen versus the U.S. dollar.
Sales in emerging markets were $2.2 billion, representing more than 40 percent of Abbott's total sales, and increased 15.2 percent on an operational basis and 13.6 percent on a reported basis. Emerging markets sales include revenues from all countries and regions excluding the United States, Canada, Western Europe, Japan and Australia.
Established Pharmaceuticals sales increased 1.3 percent on an operational basis, in line with Abbott's expectations for low-single-digit operational sales growth. Reported sales decreased 1.9 percent, including an unfavorable 3.2 percent effect of foreign exchange.
Established Pharmaceuticals is focused on 14 key emerging markets where the demand for healthcare is expanding. These markets include India, Russia, China, Brazil and 10 additional key markets and comprise nearly 50 percent of segment sales today, with expectations that they will comprise a larger portion of the total business over time. Sales in these Key Emerging Markets increased 8.6 percent on an operational basis led by strong growth in Russia, India, and China. We anticipate Key Emerging Markets to deliver double-digit growth for the full year, accelerating from the first quarter, as Abbott continues to expand its presence and build local product portfolios in these markets.
Other Markets include developed markets, such as Western Europe and Japan, and other emerging markets globally. Sales in this geographic segment decreased 4.6 percent on an operational basis. As expected, sales in developed markets were negatively impacted as a result of the carry-over effects of 2012 European austerity measures and Japan NHI pricing actions. Performance in these countries is expected to improve during the second half of 2013 as these pricing and austerity actions are expected to have a less significant impact on year-over-year comparisons.
"Strong performance in Nutrition and Diagnostics, as well as overall results in emerging markets, led our sales growth this quarter," said Miles D. White, chairman and chief executive officer, Abbott. "We had significant new product and geographic expansion activity during the quarter that positions Abbott well for continued growth."
About Abbott
Abbott (NYSE: ABT) is a global healthcare company devoted to improving life through the development of products and technologies that span the breadth of healthcare. With a portfolio of leading, science-based offerings in diagnostics, medical devices, nutritionals and branded generic pharmaceuticals, Abbott serves people in more than 150 countries and employs approximately 70,000 people.