Abbott Labs beats forecasts, despite China woes

US health care firm Abbott Laboratories (NYSEL ABT), which last year spun off its research-based prescription medicines into AbbVie, reported third-quarter 2013 earnings from continuing operations of $773 million, or $0.49 per share, compared with $339 million, or $0.21 per share in the like, year-earlier period. Excluding special items, Abbott earnings per share were $0.55, beating analysts’ average expectations of $0. 51.

Third-quarter 2013 worldwide sales of $5.4 billion increased 4.3% on an operational basis, with strong performance in Diagnostics and Medical Devices. The sales disruption in International Nutrition – notably its infant formula business in China - is estimated to have reduced Abbott's total worldwide sales growth by nearly 2 percentage points. On a reported basis, sales increased 2.0%, including an unfavorable 2.3% effect of foreign exchange.

Sales in developed markets in the third quarter were $3.2 billion, increasing 1.8% on an operational basis and relatively flat on a reported basis. This operational sales growth represents a sequential improvement versus second quarter, driven by low-single-digit growth in Medical Devices and Nutrition and mid-single-digit growth in Diagnostics. Leading market positions and new technologies are delivering profitable growth in developed markets. Sales in emerging markets in the third quarter were $2.2 billion, increasing 8.1% on an operational basis and 5.3% on a reported basis.