Replies to post #9612 on The Rising Influence of Rising Affluence

[DewDiligence]

Good news for infant-formula companies such as ABT:

http://www.wsj.com/articles/chinese-dump-milk-as-prices-fall-1424385450

The price of milk powder on the trading platform GlobalDairyTrade, a benchmark for the global market, hit a six-year low at US$2,229 a metric ton on Dec. 2, down 55% from a year earlier. Prices have picked up by a little since then, but analysts foresee further declines.

[DewDiligence]

ABT’s new revenue breakdown among its four business segments:

Nutrition products (adult & pediatric): 34%
Medical devices: 27%
Diagnostics: 23%
Branded-generic drugs: 16%

ABT’s branded-generics segment used to be the largest of the four, but a portion of this business was recently sold to MYL in return for a 22% equity stake (#msg-110385639). During the next few years, new acquisitions in emerging markets will likely increase ABT’s branded-generics segment back to 20-25% of total corporate sales.

All told, ABT derives ~70% of sales from outside the US, one of the highest proportions of any S&P 500 company.

Source: today’s Cowen webcast.

[DewDiligence]

ABT +2% to post-ABBV-spinoff all-time high on 1Q15 results:

http://finance.yahoo.com/news/abbott-reports-first-quarter-2015-114500767.html

ABT has received a windfall from its large ownership stake in MYL. Moreover, ABT has not been hurt by the strong US Dollar as much as most US-based multinationals because it manufactures locally in many emerging markets.

2015 non-GAAP EPS guidance remains $2.10-2.20.