(Reuters) -Abbott Laboratories maintained its annual profit forecast on Wednesday and announced $500 million in manufacturing and research investments in the U.S. in the face of tariff-induced uncertainty.
The company, which makes nutritional products and medical devices such as glucose monitors, has operations in several international markets including China. It has 89 manufacturing facilities around the world, of which 35 are in the U.S.
It is the second major medical device maker after Johnson & Johnson to report first-quarter earnings after U.S. President Donald Trump imposed duties on trade partners.
Trump has been particularly focused on China, ratcheting up tariffs to eye-watering levels on a country that is a key source of raw materials for the pharmaceutical and medical device sectors.
His administration has also started a probe into imports of pharmaceuticals and semiconductors as part of a bid to impose tariffs on both sectors.
The company said the projects in Illinois and Texas are expected to go live by the end of the year.
“We breathe a sigh of relief,” said BTIG analyst Marie Thibault, adding that Abbott’s forecast “matters most to investors”.
The company reaffirmed its 2025 profit forecast of $5.05 to $5.25 per share, even as its first-quarter adjusted earnings of $1.09 per share beat analysts’ estimates by 2 cents, according to data compiled by LSEG.
The profit beat was helped by strong demand for its glucose monitors and other devices, as well as a smaller-than-expected hit from currency fluctuations.
Abbott’s total quarterly revenue of $10.36 billion missed estimates of $10.40 billion, on weakness in its diagnostics segment.
(Reporting by Christy Santhosh and Puyaan Singh in Bengaluru; Editing by Leroy Leo)
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