Abbott Laboratories’ (ABT) Management Presents at Wells Fargo Securities Healthcare Broker Conference Notes

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China is attractive in the long-term, currently it is difficult to penetrate and adapt to

“What I would classify China, it’s a market in transition, still very attractive long term but there is a lot of also channel dynamics that happen very fast and consumer trends and behaviors that change really fast and that’s what companies right now including ourselves are adapting to making the adjustments around.” Brian Yoor – Senior Vice President and Chief Financial Officer

 

Debt ratios have increased considerably as a result of acquisitions, and ABT will not have any more significant M&A activity until de-leveraging goals are met

“we publicly stated that out of the gates we would be at a 4.5 times ratio of debt to EBITDA that we would implement a de-leveraging plan to bring that down to at least 3.5 by 2018… I think, I could set the expectation, we can set the expectation that there won’t be any significant M&A until we get down to a level that we are comfortable with over the longer term” Brian Yoor – Senior Vice President and Chief Financial Officer

 

In current economic environment, ABT believes its 6% growth is very respectable

When you look at 6% growth to your point of where we have been growing, we are very pleased with that type of growth especially when you look across the world and think about where GDP is at, we are in a low growth environment globally speaking, kind of a low inflationary environment, so I think 6% type of growth is very respectable. We have been in that range, so as a starting point we are very positive without that. Brian Yoor – Senior Vice President and Chief Financial Officer

 

Emerging markets are tailwinds for ABT and will continue to be so

“So we are optimistic that on a tailwind perspective that trend of healthcare and healthcare penetration that is still very below the developed markets is going to continue…  So the emerging markets will continue to be a nice tailwind for us given our presence and scale that we have across all of our businesses in emerging markets.” Brian Yoor – Senior Vice President and Chief Financial Officer

 

ABT’s diverse portfolio has allowed it to navigate international turmoil

“the point is there is always going to be some ebbs and flows in Abbott’s portfolio the way we constructed but that’s constructed with intent because I think what’s good about… there is always an incident but the incidence we have been able to navigate because of our diversity and shots on goal that we have in these growth markets but our portfolio has been pretty resilient when you think about the situations that have been going on in the world whether it’s political turmoil, or unrest in some counties, impeachments or Brexits” Brian Yoor – Senior Vice President and Chief Financial Officer