Maybe Abbott Laboratories (NYSE:ABT) should stick to medical devices.
The Abbott Park, Ill.-based healthcare products conglomerate took a 40-percent to its bottom line due to an acquisition and a recall by its pharmaceutical operation during the third quarter.
Abbott reported net earnings of $891 million, or 57 cents per diluted share, on sales of $8.68 billion during the quarter. That compares with profits of $1.48 billion, or 95 cents per diluted share, on sales of $7.76 billion during the same period last year.
Absent $741 million in charges related to the integration of Solvay Pharmaceuticals, which Abbott bought in February, and the recalls of a nutritional product and the weight-loss drug Meridia, Abbott posted profits of $1.63 billion, or $1.05 per share.
Its vascular segment posted an 18.6 percent sales increase during the three months ended Sept. 30, to $790 million. Sales of coronary stents, like Abbott’s Xience V drug-eluting device, rose 29.9 percent to $505 million during the quarter.
"Abbott delivered strong performance in the quarter as we confirmed our double-digit growth outlook for the full year," chairman and CEO Miles White said in prepared remarks.
The company upped the lower end of its adjusted earnings guidance to $4.16 per share for the full year (up from $4.13). But including the adjustments, earnings would be $2.92 to $2.94 for the year, down from Abbott’s previous forecast of $3.58 to $3.36 per share.
ABT shares were trading at $52.09 in mid-morning activity, down 1.5 percent.