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Hamsa Ramesha/MEDILL
Baxter International Inc. raises company outlook as profits rise in third quarter
by Hamsa Ramesha
Oct 16, 2008
Health care company Baxter International Inc. saw profits jump 19.5 percent for the third quarter driven largely by strong sales of therapeutic products in its Bioscience unit.
For the three months ended Sept. 30, the Deerfield-based company reported a net income of $472 million, or 74 cents per diluted share, compared with $395 million or 61 cents per diluted share in the year-earlier period. For fiscal year 2008, Baxter is raising its earnings per share outlook to $3.35-$3.37, from $3.28-$3.32.
Earnings excluding specified items such as impairment and other charges were 88 cents per diluted share, beating the analysts estimate by 6 cents, compared with year-earlier period 70 cents per diluted share, according to Bloomberg.
Baxter’s third quarter net sales rose 14.5 percent to $3.15 billion, compared with $2.75 billion for the third quarter of 2007.
During Baxter's earnings teleconference Thursday, Chairman and CEO Robert L. Parkinson said, "Given the medically necessary nature of our products, our strong market positions, further supported by our global brand and presence, we’re confident in our ability to drive solid operational performance and grow despite the uncertain economic times,”
According to a research note released Thursday by analyst Michael N.Weinstein of New York-based investment banking and brokerage firm J.P. Morgan Securities Inc., “Baxter posted strong 3Q results … allowing 3Q upside to flow through despite a more difficult 4Q currency environment.
Fourth quarter forecasts sales growth of 7 percent, excluding the impact of foreign exchange, with earnings of 88 cents to 90 cents per diluted share. The company expects 2008 full-year sales growth of approximately 5 percent to 6 percent.
Net income for the nine months ended Sept. 30 rose 18 percent to $1.45 billion, or $2.47 earnings per diluted share. Earnings for nine months ended Sept. 30, 2007 were $1.23 billion, or $2.03 per diluted share. Baxter saw sales rise 12 percent to $9.22 billion during the nine months, compared with $8.25 billion year-earlier.
The company's stock closed Thursday at $59.07, up 49 cents or 0.84 percent compared with the previous day's closing price of $58.58.
