Abbott Laboratories announced unaudited consolidated financial results for the fourth quarter and year ended December 31, 2016. For the quarter, the company reported net sales of $5,333 million against $5,188 million a year ago. Operating earnings was $948 million against $815 million a year ago. Earnings from continuing operations before taxes were $875 million against $830 million a year ago. Earnings from continuing operations were $765 million or $0.51 per diluted share against $695 million or $0.46 per diluted share a year ago. Net earnings were $798 million or $0.53 per diluted share against $767 million or $0.51 per diluted share a year ago. Adjusted earnings from continuing operations before taxes were $1,192 million against $1,135 million a year ago. Adjusted earnings from continuing operations were $971 million or $0.65 per diluted share against $932 million or $0.62 per diluted share a year ago.

For the year, the company reported net sales of $20,853 million against $20,405 million a year ago. Operating earnings was $3,185 million against $2,867 million a year ago. Earnings from continuing operations before taxes were $1,413 million against $3,183 million a year ago. Earnings from continuing operations were $1,063 million or $0.71 per diluted share against $2,606 million or $1.72 per diluted share a year ago. Net earnings were $1,400 million or $0.94 per diluted share against $4,423 million or $2.92 per diluted share a year ago. Adjusted earnings from continuing operations before taxes were $4,030 million against $4,007 million a year ago. Adjusted earnings from continuing operations were $3,281 million or $2.20 per diluted share against $3,258 million or $2.15 per diluted share a year ago.

The company issued first-quarter 2017 guidance for diluted earnings per share from continuing operations under GAAP of $0.19 to $0.21. The company forecasts specified items for the first quarter 2017 of $0.23. Excluding specified items, projected adjusted diluted earnings per share from continuing operations would be $0.42 to $0.44 for the first quarter. The company expects an adjusted earnings per share of $0.42 to $0.44. The company expects comparable operational sales growth in the low single digits and at current exchange rates would expect a negative impact from exchange of around 1.5%, resulting in low single-digit comparable reported sales growth for the first quarter 2017. The company expects an adjusted gross margin ratio of approximately 59.5% of sales, adjusted R&D investment of somewhat above 8% of sales and adjusted SG&A expense of around 33% of sales. Lastly, the company expects net interest expense of around $210 million in the first quarter.

The company issued full-year 2017 guidance for diluted earnings per share from continuing operations under Generally Accepted Accounting Principles (GAAP) of $0.92 to $1.02, including amortization and integration expenses related to the acquisition of St. Jude Medical. Excluding specified items, projected adjusted diluted earnings per share from continuing operations would be $2.40 to $2.50 for the full year 2017. In terms of 2017 sales forecast, comparable operational sales growth in the mid-single digit for the full year 2017. Based on current exchange rates, the company expects exchange to have a negative impact of around 2.5% on full year comparable reported sales. The company expects an adjusted gross margin ratio of around 60% of sales for the full year, which reflects the profitability mix of Abbott and St. Jude as well as underlying gross margin improvement across integrated business. The company expects adjusted R&D investment for the combined businesses of somewhat above 7.5% of sales and adjusted SG&A expense of approximately 30% of sales, which excludes expense synergies associated with the addition of St. Jude. The company expects  net interest expense of around $700 million. The company expects a loss of approximately $15 million on the exchange gain loss line of the P&L for the full year 2017. And The company expects around $45 million of nonoperating expense. Lastly, the company expects an adjusted tax rate of around 16.5% for the full year 2017. The 2017 adjusted tax rate is lower than historical adjusted tax rate of somewhat above 18.5%.