This has nothing to do with Obama

Discussion in 'Abbott' started by Anonymous, Jan 27, 2011 at 12:46 PM.

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  1. Anonymous

    Anonymous Guest

    Read it and understand that Abbott is using Obama as an excuse. Adding insult to injury!
    Abbott Labs (ABT) CEO Miles White is wrong to blame his latest round of 1,900 layoffs — 2 percent of the workforce — on President Obama’s healthcare reform, judging by his own financial disclosures. Since Obamacare was enacted at the start of 2010, Abbott recorded $60 million in costs per quarter* directly attributed to reform, yet its sales nonetheless rose 13.4 percent to $10 billion in Q4 2010. On Abbott’s own numbers reform isn’t slowing the company’s business, which is robust and growing.

    Here’s how Abbott explained the layoffs today:

    In response to changes in the healthcare industry, including U.S. Health Care Reform and the challenging regulatory environment, today Abbott announced a restructuring in its U.S. pharmaceutical business to streamline commercial and manufacturing operations, improve efficiencies and reduce costs.

    In fact, the cost of making those 1,900 job cuts will be $295 million, Abbott said, more than the cost of reform. A spokesperson told BNET:

    In April 2010, we forecasted a negative impact to sales of “approximately $230 million or 11 cents per share” for the full-year as result of increased Medicaid rebates– $60 million ($0.03 per share) of which was recorded in 1Q10. This impact to sales was not excluded from ongoing results, because it is, in fact, recurring.

    In 2011, we will have an incremental $200 million impact from the pharma “industry fee” and Medicare-related rebates. All told, in 2011, Abbott will see more than $400 million in costs related to healthcare reform.

    Meanwhile, Abbott recorded a charge of $1 billion for the acquisitions of Solvay and Piramal, two smaller drug companies. Although Abbott called out reform specifically in its statement on the layoffs, the only specific dollar number the company has ever given in relation to reform was in its Q1 2010 guidance, where it wrote down $60 million to account for higher Medicaid rebates under the new law. The new Q4 statement included $60 million for “specific health care reform impact on deferred tax assets.” Neither the Q2 nor Q3 statements had anything specific to say about the cost of reform.

    Of course, the layoffs follow 3,000 job losses, or 3.2 percent of the force, in September — before Obamacare passed.

    Bonus points if you noticed that blaming Obamacare despite reform’s negligible effect on company finances is a trend. Roche (ROG.VX) and Eli Lilly (LLY) did the same thing.

    *Correction: This item originally said, incorrectly, that Abbott’s costs were only $60 million. That $60 million cost is recurring, not a one-off. Apologies for the error.
     

  2. Anonymous

    Anonymous Guest

    Yes it does you fing idiot.
     
  3. Anonymous

    Anonymous Guest

    Abbott is being proactive and preparing for the outcome of this mess we call health care reform.
     
  4. Anonymous

    Anonymous Guest

    Anytime you "redistribute wealth" you hurt capitalism. Take from rich, give to poor
     
  5. Anonymous

    Anonymous Guest

    yes it does, the witch hunt has been on since the election. If you voted for a percieved better change (Obama), you have been a target for dismissal for some time. Keep your vote to yourself.
     
  6. Anonymous

    Anonymous Guest

    Yes, Miles is just protecting the shareholder and wants his multimillion dollar bonus....so much for stewardship.....such greed is criminal......
     
  7. Anonymous

    Anonymous Guest

    Did you think this when you got your profit sharing check?
     
  8. Anonymous

    Anonymous Guest

    I would need more info before I conclude what has or has not affected Abbott. My understanding is that much of ABT's profitability has come from our presence overseas. I'd need to see how domestic business compares.
     
  9. Anonymous

    Anonymous Guest

    Did you even read the article before you responded with your political affiliation rather than your brain? The article stated, and I quote:
    "Abbott recorded $60 million in costs per quarter* directly attributed to reform, yet its sales nonetheless rose 13.4 percent to $10 billion in Q4 2010. On Abbott’s own numbers reform isn’t slowing the company’s business, which is robust and growing...

    In fact, the cost of making those 1,900 job cuts will be $295 million"

    So $1 billion is $1,000 million. If we had $10 billion in sales for Q4 of 2010 alone and $60 million in costs per quarter, that doesn't exactly sound to me like a company in dire financial straits. And, by cutting 1,900 jobs, you saved $295 million? That's not even $1billion!!! Doesn't add up to me. $295 million is a drop in the bucket to Abbott but for the rest of the 1,900 people and their families that they have to care for, it means a whole lot more.
     
  10. Mr. Pizza

    Mr. Pizza Guest

    I did last week.
     
  11. Anonymous

    Anonymous Guest

    Taco Bell has Profit sharing ?
     
  12. Yes we do. What a company!
     
  13. How about some man on man action...
    any takers ?????