Baxter sees nearly 20% spike in net income

Twitter icon
Facebook icon
LinkedIn icon
e-mail icon
Google icon

Baxter International has posted strong financial results for the third quarter of this year, which has caused the company to raise its full-year 2008 earnings outlook.

The Deerfield, Ill.-based Baxter reported third quarter net income of $472 million, an increase of 19 percent, compared to $395 million reported in the third quarter of 2007.

The third quarter results include after-tax special charges totaling $91 million for fixed asset write-offs associated with the discontinuation of the company's Clearshot pre-filled syringe program, additional remediation costs associated with the company's Colleague infusion pump, and costs for in-process research and development, related to its recent collaboration with Innocoll Pharmaceuticals. The company recorded after-tax special charges in the third quarter of 2007 totaling $63 million.

The company said its worldwide sales totaled $3.2 billion in the third quarter, an increase of 15 percent (or 9 percent excluding the impact of foreign exchange), driven by a strong performance internationally. Overall, renal sales increased 6 percent to approximately $600 million due to the expanded use of peritoneal dialysis in many emerging markets around the world, while medication delivery sales of approximately $1.2 billion increased 11 percent as a result of strong international sales.

Based on these results, Baxter raised its full-year 2008 earnings outlook. For the full year, the company said it continues to expect sales growth, excluding the impact of foreign exchange, of 5 to 6 percent, before any special items. In addition, the company now expects cash flow from operations to exceed $2.6 billion.