Baxter income drops 12% due to one-time charges
Baxter International Inc. reported that net income for the second quarter of 2014 dropped almost 12% to $520 million, and $0.95 per diluted share, compared to net income of $590 million, and $1.07 per diluted share, in the same period last year.
Second quarter 2014 results include net after-tax special items totaling $172 million (or $0.31 per diluted share) primarily for intangible amortization and costs associated with contingent revenue and product development milestone payments, remediation efforts related to the in-progress SPECTRUM Infusion Pump recall, integration of the company's acquisition of Gambro AB, and Baxter's planned separation into two independent health care companies, the company said in a news release.
Revenue in the quarter grew 16% to $4.3 billion, compared to $3.7 billion reported in the same period last year.Sales within the United States grew 12% to $1.7 billion, and international sales of $2.5 billion increased 19% (foreign currency had no impact on sales growth). Excluding the contribution of Gambro revenues in the quarter totaling $408 million, Baxter's worldwide sales rose 5%.
BioScience revenues grew 7% to $1.8 billion compared to the prior-year period. Excluding the impact of foreign currency, BioScience sales rose 6%.
Medical products sales of $2.5 billion grew 24% from last year, and excluding revenues associated with the Gambro acquisition, medical products sales increased 4%(foreign currency had no impact on sales growth). This performance was driven primarily by strong sales of injectable drugs, anesthetics and nutritional therapies, as well as gains in peritoneal dialysis patients, particularly in the United States and emerging markets.
"We are driving solid performance across our entire business portfolio, and advancing care across our key franchises in both developed and emerging markets" said Robert L. Parkinson, Jr., chairman and chief executive officer.