UPDATE 3-Abbott profit up 34 pct on sales of drugs, devices

(Adds analyst comments, updates shares)

By Ransdell Pierson

NEW YORK, April 16 (Reuters) - Abbott Laboratories Inc (ABT.N: Quote, Profile, Research) said on Wednesday first-quarter earnings increased 34 percent on higher sales of its prescription drugs and medical devices and favorable foreign exchange factors.

The company reported strong sales gains for its top medicines, diagnostics and other products, even excluding the benefits of the weak dollar, and projected earnings growth in the top tier of the industry.

Net profit rose to $938 million, or 60 cents per share, from $698 million, or 45 cents per share, a year earlier.

Excluding special items, it earned 63 cents per share. On that basis, analysts' average forecast was 62 cents, according to Reuters Estimates.

"The quarter went very well and exceeded my expectations in many respects," said Tim Nelson, an analyst for FAF Advisors in Minneapolis.

"Abbott has a lot of positive catalysts going," Nelson said. "It doesn't have the generic risks a lot of other drugmakers have and has medical devices that give it a great balance and will help deliver sturdier long-term growth."

Shares of Abbott, which had risen 1 percent in premarket trading, were down 1 percent in early afternoon activity.