DEERFIELD, Ill., April 17 /PRNewswire-FirstCall/ -- Baxter International Inc. today reported solid financial results for the first quarter of 2008, and raised its financial outlook for the full year.
For the first quarter, Baxter reported net income of $429 million, a 6 percent increase compared to $403 million in the first quarter of 2007. Earnings per diluted share of $0.67 increased 10 percent from $0.61 per diluted share reported last year. These results include an after-tax charge of $45 million, or $0.07 per diluted share, for additional costs associated with the company’s COLLEAGUE infusion pump remediation program due to an expected delay in recommercialization in the United States.
On an adjusted basis, Baxter’s net income of $474 million increased 18 percent. Adjusted earnings per diluted share of $0.74 increased 21 percent versus the prior year period and compares favorably to the guidance previously provided of $0.71 to $0.73 per diluted share. This performance was the result of improved margins due to enhanced business and product mix, improved pricing, continued manufacturing cost improvements and favorable foreign exchange.
Baxter’s worldwide sales totaled $2.9 billion in the first quarter, an increase of 8 percent (or 2 percent excluding the impact of foreign exchange). Excluding revenues from Transfusion Therapies, a business the company divested in the first quarter of 2007, Baxter’s global sales increased 10 percent (or 4 percent excluding foreign exchange) versus the prior year.
In Baxter’s BioScience business, positive momentum continued in the first quarter with revenues totaling $1.2 billion, an increase of 13 percent, reflecting strong double-digit sales growth across all product categories. Driving this performance was robust growth from several products used for the treatment of hemophilia and immune disorders, including ADVATE [Antihemophilic Factor (Recombinant), Plasma/Albumin-Free Method (rAHF-PFM)] and immune globulin intravenous (IGIV), as well as solid growth from other plasma-based therapies, biosurgery products and vaccines.
Medication Delivery sales grew 8 percent in the quarter to $1.1 billion, with strong global sales of intravenous and nutritional therapies, and significant growth in international sales of anesthesia products and injectable drugs. Renal sales increased 6 percent to $558 million.
Baxter’s investment in research and development of $190 million increased 19 percent in the first quarter as the company continues to advance its product pipeline across its business portfolio.
“Our strong and improving financial position reflects the continuing momentum in our business,” said Robert L. Parkinson, Jr., chairman and chief executive officer. “Our favorable outlook for the full year allows us to continue to accelerate our investments in research and development programs that will improve treatment for patients, expand access to care and enhance the quality of life for people around the world.”
Since the beginning of the year, Baxter has achieved a number of commercial, clinical and regulatory milestones, including:
Second Quarter and Full-Year 2008 Outlook
Baxter also announced today that it is raising its earnings outlook for full-year 2008. The company continues to expect sales growth, excluding the impact of foreign exchange, of 5 to 6 percent. Excluding Transfusion Therapies from both 2007 and 2008 and excluding foreign exchange, the company expects sales growth of approximately 6 to 7 percent. Baxter now expects to achieve earnings per diluted share of $3.18 to $3.24, before any special items, and cash flow from operations of approximately $2.6 billion. Previously, the company had provided earnings guidance of $3.10 to $3.18 per diluted share, excluding special items, and expected to generate cash flow from operations of more than $2.5 billion.
For the second quarter of 2008, Baxter expects sales growth of 4 to 5 percent, excluding the impact of foreign exchange, and earnings per diluted share, before any special items, of $0.81 to $0.83.
A webcast of Baxter’s first quarter conference call for investors can be accessed live from a link on the company’s website at www.baxter.com beginning at 7:30 a.m. CDT on April 17, 2008. Please visit Baxter’s website for more information regarding this and future investor events and webcasts, including investor presentations, and the company’s Annual Meeting of Shareholders to be held in Chicago on May 6, 2008.
Baxter International Inc., through its subsidiaries, assists healthcare professionals and their patients with the treatment of complex medical conditions, including hemophilia, immune disorders, cancer, infectious diseases, kidney disease, trauma and other conditions. The company applies its expertise in medical devices, pharmaceuticals and biotechnology to make a meaningful difference in patients’ lives.
This release includes forward-looking statements concerning the company’s financial results. The statements are based on assumptions about many important factors, including the following, which could cause actual results to differ materially from those in the forward-looking statements: demand for and market acceptance risks for new and existing products, such as ADVATE, and other technologies; future actions of regulatory bodies and other governmental authorities, including the FDA and foreign counterparts, that could delay, limit or suspend product development, manufacturing or sales or result in sanctions; product quality or patient safety concerns leading to product recalls, withdrawals, launch delays, litigation, or declining sales; product development risks; inventory reductions or fluctuations in buying patterns by wholesalers or distributors; the impact of geographic and product mix on the company’s sales; the impact of competitive products and pricing, including generic competition, drug reimportation and disruptive technologies; reimbursement policies of government agencies and private payers; the availability of acceptable raw materials and component supply; the ability to enforce company patents; patents of third parties preventing or restricting the company’s manufacture, sale or use of affected products or technology; foreign currency fluctuations and other risks identified in the company’s most recent filing on Form 10-K and other Securities and Exchange Commission filings, all of which are available on the company’s website. The company does not undertake to update its forward-looking statements. Financial schedules are attached to this release and available on the company’s website.
CONTACT: Media, Deborah Spak, +1-847-948-2349, or Investors, Mary Kay
Ladone, +1-847-948-3371, or Clare Trachtman, +1-847-948-3085, all of Baxter
International Inc.
Web site: http://www.baxter.com//
