DOW JONES NEWSWIRES

Abbott Laboratories (ABT) posted a 28% jump in fourth-quarter net income, helped by continuing strong sales of its new Xience stent and Humira arthritis drug, as well as a broad range of businesses that helped to shield the company from spending cutbacks by hospitals and patients amid the recession.

The maker of drugs and medical devices reported net income of $1.54 billion, or 98 cents a share, compared with $1.2 billion, or 77 cents, year earlier.

Earnings from continuing operations, excluding restructuring and charges related to a legal settlement, rose to $1.06 a share from 93 cents.

Net sales rose 10% to $7.95 billion, despite a negative impact of 2.5 percentage points from the stronger dollar.

On average, analysts were expecting Abbott to report earnings, excluding items, of $1.06 a share on revenue of $7.99 billion.

Gross margin rose to 60% from 56.2%.

Sales of Abbott's coronary stents - which are used to prop open damaged arteries - rose 36%. Abbott's Xience drug-coated stent, which hit the U.S. last summer, has quickly vaulted to a leading position in a rebounding market. Abbott said Xience captured the biggest share of the U.S. market for drug-eluting stents, contributing to a 16% increase in medical-products sales in the quarter.

Pharmaceutical sales - Abbott's biggest business - rose 10%. Sales of Humira, which treats various forms of arthritis, gastrointestinal disorder and other disorders, rose 41%.

Abbott is somewhat insulated from the generic-competition woes affecting the drug industry because of a range of products that includes HIV treatment Norvir, obesity drug Meridia and Ensure nutrition supplements, as well as laboratory diagnostic systems.

Looking ahead, Abbott confirmed its projection made two weeks ago for 2009 earnings, excluding items, of $3.65 to $3.70 a share.

A little over a week ago, Abbott agreed to acquire eye-care provider Advanced Medical Optics Inc. (EYE) for $1.36 billion, in a deal that positions it to benefit from the growing need for cataract treatment as baby-boomers age.

Shares closed at $49.20 on Tuesday and were inactive premarket.

-By Mike Barris, Dow Jones Newswires; 201-938-5658; mike.barris@dowjones.com

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