By Micah Maidenberg

Abbott lowered its profit forecast for the year in part because demand for Covid-19 tests has declined and is expected to continue to weaken as vaccines protecting against the virus are distributed.

The medical device and technology company on Monday said it now expects to report earnings from continuing operations in the range of $2.75 to $2.95 a share for 2021, down from an April forecast that forecast at least $3.74 a share for that profit metric.

The company said it believes it will record $1.55 a share during the year in certain costs, including expenses to align its Covid-19 testing-related business with current and projected demand. That cost outlook is up from the earlier guidance.

Excluding one-time times, the company said it now believes it will report $4.30 to $4.50 a share in profit from continuing operations, compared with a previous forecast of $5 a share.

In addition to the distribution of vaccines, guidance from health authorities about how fully vaccinated people should conduct themselves has hampered interest in Covid-19 tests, Abbott said.

The company said it had developed 12 tests for Covid-19 globally.

"While it's positive that these external events and trends signal an accelerated return to normalcy for many countries, they have suddenly and fundamentally impacted market demand for Covid-19 testing, particularly for surveillance and screening with rapid testing," Abbott said.

Write to Micah Maidenberg at micah.maidenberg@wsj.com

(END) Dow Jones Newswires

06-01-21 0835ET