Baxter International Reports Second-Quarter 2017 Results And Provides Updated Financial Outlook For 2017 And 2020
Published: Jul 26, 2017
- Second-Quarter Revenue of $2.6 Billion Increased 1 Percent on a Reported Basis and 3 Percent on an Operational Basis
- Second-Quarter GAAP Earnings Per Share (EPS) of $0.48; Adjusted EPS of $0.63 Increased 37 Percent
- Increases Full-Year 2017 Sales Growth to 3 Percent on a Reported Basis and 5 Percent on an Operational Basis
- Raises Full-Year 2017 GAAP EPS to $1.85 to $1.95; Adjusted EPS to $2.34 to $2.40
- Financial Outlook for 2020 Increased to Reflect Strong Operational Execution and Ongoing Business Transformation Initiatives
DEERFIELD, Ill.--(BUSINESS WIRE)--Baxter International Inc. (NYSE:BAX) today reported results for the second quarter of 2017 and increased its financial outlook for full-year 2017 and 2020.
“Our solid second quarter performance reflects continued execution of our strategic objectives,” said José (Joe) E. Almeida, chairman and chief executive officer. “Baxter’s focus on innovation and operational excellence is fueling our mission to save and sustain lives, and deliver improved performance for our patients, customers and shareholders. In light of this progress and potential, we are raising our financial outlook for both full-year 2017 and 2020.”
Second-Quarter Financial Results
In the second quarter, worldwide sales totaled $2.6 billion, an increase of 1 percent on a reported basis and 2 percent on a constant currency basis as compared to the prior-year period. Operationally, Baxter’s sales rose 3 percent, adjusting for the impact of foreign exchange, generic competition for U.S. cyclophosphamide and the previously communicated select strategic product exits the company is undertaking.
Sales within the U.S. were $1.1 billion, advancing 4 percent. International sales totaled approximately $1.5 billion, representing a 2 percent decrease on a reported basis and a 1 percent increase on a constant currency basis. Baxter’s operational sales increased 5 percent in the U.S. and 2 percent internationally.
Global sales for Hospital Products totaled $1.6 billion in the second quarter, increasing 1 percent on a reported basis, 2 percent on a constant currency basis and 4 percent operationally as compared to the prior-year period. Performance in the quarter benefited from continued strength in our U.S. fluid systems business, favorable demand for parenteral nutrition therapies and pre-mixed injectable pharmaceuticals, as well as for select anesthesia and critical care products.
Baxter’s Renal sales totaled $968 million, comparable to the prior year on a reported basis and up 3 percent on both a constant currency basis and operational basis. Growth in the quarter was driven by increased sales for in-center hemodialysis (HD) products in the U.S., international acute renal care sales and global sales of peritoneal dialysis (PD) therapies.
Baxter reported income from continuing operations of $264 million, or $0.48 per diluted share, on a GAAP (Generally Accepted Accounting Principles) basis for the second quarter. These results included special items totaling $113 million ($84 million net after-tax), primarily related to business optimization, intangible asset amortization and the deconsolidation of the company’s Venezuela business.
On an adjusted basis, excluding special items, Baxter’s second quarter income from continuing operations totaled $348 million, or $0.63 per diluted share, exceeding the company’s previously issued guidance of $0.55 to $0.57 per diluted share.