[July 17, 2014] |
|
Baxter Exceeds Expectations in Second Quarter with Strong Growth across Global Franchises
DEERFIELD, Ill. --(Business Wire)--
Baxter International Inc. (NYSE:BAX) today reported strong growth across
its global franchises in the second quarter, generating sales and
earnings that exceeded the company's previously issued guidance. The
company also confirmed its financial outlook for 2014, narrowing the
guidance range for adjusted earnings per diluted share to $5.10 to $5.20.
Baxter posted net income of $520 million and earnings per diluted share
of $0.95 in the second quarter, compared to net income of $590 million
and earnings per diluted share of $1.07 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 healthcare companies. These charges were partially offset by
the reversal of certain business optimization and litigation reserves.
Second quarter 2013 results included after-tax special items totaling
$69 million (or $0.13 per diluted share).
On an adjusted basis, excluding special items in both periods, Baxter's
second quarter net income of $692 million increased 5 percent from $659
million reported in 2013. Adjusted earnings per diluted share of $1.26
also increased 5 percent from $1.20 per diluted share last year,
exceeding the company's previously issued earnings guidance of $1.18 to
$1.22 per diluted share.
Worldwide sales totaled $4.3 billion, which advanced 16 percent from
$3.7 billion reported in the same period last year. Sales within the
United States grew 12 percent to $1.7 billion, and international sales
of $2.5 billion increased 19 percent (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 percent.
BioScience revenues advanced 7 percent to $1.8 billion compared to the
prior-year period. Excluding the impact of foreign currency, BioScience
sales rose 6 percent, with solid growth reported across all the global
franchises. Performance was led by double-digit growth of ADVATE
[Antihemophilic Factor (Recombinant), Plasma/Albumin-Free Method] and
albumin, as well as increased global demand for GAMMAGARD LIQUID [Immune
Globulin Intravenous (Human)], biosurgery products and select vaccines.
Medical Products sales of $2.5 billion grew 24 percent from the
prior-year period, and excluding revenues associated with the Gambro
acquisition, Medical Products sales increased 4 percent (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 U.S. 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. ''This provides a strong global foundation as we
continue to improve our competitive position and performance, enhance
operational, commercial and scientific effectiveness, meet challenges
posed by the global marketplace, and create value for patients,
healthcare providers, and other key stakeholders.''
Six-Month Results
For the first six months of 2014, Baxter reported net income of $1.1
billion, or $1.96 per diluted share, compared to net income of $1.1
billion and earnings per diluted share of $2.07 reported in 2013.
Excluding special items, Baxter's adjusted net income for the six-month
period increased 7 percent to $1.3 billion, and earnings per diluted
share of $2.45 also increased 7 percent from $2.29 per diluted share
reported in the comparable prior-year period.
Baxter's worldwide sales for the six-month period totaled $8.2 billion
and increased 15 percent (or 16 percent excluding the impact of foreign
currency). Excluding the contribution of Gambro revenues of $808
million, Baxter's worldwide sales rose 4 percent (or 5 percent excluding
the impact of foreign currency).
BioScience sales of $3.4 billion increased 6 percent (foreign currency
had no impact on sales growth), while Medical Products sales of $4.9
billion advanced 23 percent (or 24 percent excluding the impact of
foreign currency) from the prior-year period. Excluding the contribution
of Gambro revenues, Medical Products sales grew 3 percent (or 4 percent
excluding the impact of foreign currency).
In the first half of 2014, Baxter generated cash flows from operations
of approximately $1.2 billion and returned approximately $1.0 billion to
shareholders through share repurchases of $450 million (or approximately
6 million shares) and dividends totaling $531 million (reflecting more
than a 8 percent increase in dividend payments versus the prior-year
period).
Recent Highlights
''During the quarter, Baxter announced a number of new product pipeline
achievements and approvals, advanced collaborations, and marked progress
towards our separation into two leading healthcare companies,''
continued Parkinson. ''We remain on track to complete the separation by
mid-year 2015.''
Recent highlights include:
-
Global expansion of ADVATE, including European approval of a new
production facility in Singapore, new multi-year tender awards in
Australia and the UK, and new regulatory approvals in Turkey and
Russia. ADVATE is now approved in 62 countries.
-
Approval from the U.S. Food and Drug Administration (FDA) of BAXJECT
III reconstitution system with ADVATE, reducing the number of steps in
the reconstitution process for patients and caregivers.
-
European CE marking of myPKFiT, a new web-based individualized dosing
device for prophylactic treatment of hemophilia A with ADVATE. The
device allows physicians to calculate personalized ADVATE treatment
regimens based on patient information and individual pharmacokinetic
(PK) profiles.
-
Completion of dosing in the Phase III clinical trial of BAX 855, an
investigational extended half-life, recombinant factor VIII treatment
for hemophilia A. The ongoing trial is aimed at assessing the efficacy
of BAX 855, and will also evaluate its safety and pharmacokinetic
profile. Top line data is expected to be announced in the third
quarter.
-
Presentation of a range of data on the company's bleeding disorder
pipeline during the World Federation of Hemophilia World Congress in
Australia, including studies on BAX 855, ADVATE, OBI-1, BAX 111 and
BAX 930.
-
510(k) clearance from the FDA for Baxter's next-generation SIGMA
Spectrum Infusion Pump with Master Drug Library.
-
Presentation of data supporting the safety and efficacy of the VIVIA
hemodialysis system at the European Renal Association and European
Dialysis and Transplant Association (ERA-EDTA). The VIVIA system,
which completed the CE marking in Europe late last year, is being
introduced on a limited basis in select European dialysis clinics in
2014.
-
Initiation of Phase 3 trials for CHS-0214, an investigational
etanercept biosimilar, in rheumatoid arthritis and chronic plaque
psoriasis, by Baxter's partner Coherus BioSciences.
-
Announcement by Baxter's partner, CTI BioPharma, of the completion of
enrollment in its PERSIST-1 pivotal trial of pacritinib for patients
with myelofibrosis.
-
Acquisition of AesRx, including its sickle cell disease development
program, Aes-103. The investigational treatment, which is currently
being evaluated in a Phase 2 clinical trial, has the potential to
address an extremely high unmet clinical need in a community with
inadequate treatment options and no recent major clinical developments.
-
Naming of several key executives, including the chief financial
officers for both the new biopharmaceutical and medical products
companies and the new head of research and development for BioScience.
Outlook for Third Quarter and Full-Year 2014
Baxter also announced today its guidance for the third quarter and
confirmed its guidance for the full year.
For the third quarter of 2014, the company expects sales growth of
approximately 12 to 13 percent, excluding the impact of foreign
currency. Baxter expects earnings, before special items, of $1.28 to
$1.32 per diluted share in the third quarter.
Baxter now expects sales growth for full-year 2014 of 10 to 11 percent,
before the impact of foreign exchange. Also for the full year, Baxter
expects earnings, before special items, of $5.10 to $5.20 per diluted
share and cash flows from operations of approximately $3.5 billion,
excluding cash costs related to the spin-off of the biopharmaceutical
business.
The third quarter 2014 earnings guidance excludes approximately $0.07
per diluted share of projected intangible asset amortization expense.
The full-year 2014 earnings guidance excludes the $0.62 per diluted
share of special items comprising $0.49 per diluted share of items
recorded in the first half of the year, and projected intangible asset
amortization expense of $0.13 per diluted share for the remainder of the
year. Reconciling for the inclusion of these items results in GAAP
(Generally Accepted Accounting Principles) earnings of $4.48 to $4.58
per diluted share for the full-year 2014.
A webcast of Baxter's second 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 July 17, 2014. Please visit Baxter's
website for more information regarding this and future investor events
and webcasts.
Baxter International Inc., through its subsidiaries, develops,
manufactures and markets products that save and sustain the lives of
people with hemophilia, immune disorders, infectious diseases, kidney
disease, trauma, and other chronic and acute medical conditions. As a
global, diversified healthcare company, Baxter applies a unique
combination of expertise in medical devices, pharmaceuticals and
biotechnology to create products that advance patient care worldwide.
This release includes forward-looking statements concerning the
company's financial results, business development activities, capital
structure, R&D pipeline including results of clinical trials and planned
product launches, outlook for 2014 and the planned separation of
Baxter's biopharmaceutical and medical products businesses and the
expected leadership of the two resulting companies after the separation.
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 of risks for new and existing products; future actions
of regulatory bodies and other governmental authorities, including the
FDA and foreign counterparts; product quality or patient safety concerns
leading to product recalls, withdrawals, launch delays, litigation, or
declining sales; U.S. healthcare reform and other global austerity
measures; reimbursement and rebate policies of government agencies and
private payers; product development risks; the ability to successfully
separate the biopharmaceutical and medical products businesses on the
terms or timeline currently contemplated, if at all, and achieve the
intended results; accurate identification of business development and
R&D opportunities and realization of anticipated benefits, including the
ability to successfully integrate the Gambro business and achieve
anticipated efficiencies; timely submission and approval of regulatory
filings; inventory reductions or fluctuations in buying patterns; 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; the availability of
acceptable raw materials and component supply; fluctuations in supply
and demand and the pricing of plasma-based therapies; 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; the impact of global economic conditions on Baxter and
its customers, including foreign governments; foreign currency
fluctuations and other risks identified in Baxter's most recent filing
on Form 10-K and other Securities and Exchange Commission filings, all
of which are available on Baxter's website. Baxter does not
undertake to update its forward-looking statements.
|
BAXTER INTERNATIONAL INC.
|
Consolidated Statements of Income
|
Three Months Ended June 30, 2014 and 2013
|
(unaudited)
|
(in millions, except per share and percentage data)
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Three Months Ended
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June 30,
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|
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|
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2014
|
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2013
|
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Change
|
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NET SALES
|
|
|
$4,264
|
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|
$3,669
|
|
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16%
|
|
|
|
|
|
|
|
|
|
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COST OF SALES
|
|
|
2,223
|
|
|
1,730
|
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28%
|
|
|
|
|
|
|
|
|
|
|
GROSS MARGIN
|
|
|
2,041
|
|
|
1,939
|
|
|
5%
|
% of Net Sales
|
|
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47.9%
|
|
|
52.8%
|
|
|
(4.9 pts)
|
|
|
|
|
|
|
|
|
|
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MARKETING AND ADMINISTRATIVE EXPENSES
|
|
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998
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|
838
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19%
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% of Net Sales
|
|
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23.4%
|
|
|
22.8%
|
|
|
0.6 pts
|
|
|
|
|
|
|
|
|
|
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RESEARCH AND DEVELOPMENT EXPENSES
|
|
|
325
|
|
|
273
|
|
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19%
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% of Net Sales
|
|
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7.6%
|
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|
7.4%
|
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0.2 pts
|
|
|
|
|
|
|
|
|
|
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NET INTEREST EXPENSE
|
|
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42
|
|
|
17
|
|
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N/M
|
|
|
|
|
|
|
|
|
|
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OTHER EXPENSE, NET
|
|
|
15
|
|
|
68
|
|
|
N/M
|
|
|
|
|
|
|
|
|
|
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PRE-TAX INCOME
|
|
|
661
|
|
|
743
|
|
|
(11%)
|
|
|
|
|
|
|
|
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INCOME TAX EXPENSE
|
|
|
141
|
|
|
153
|
|
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(8%)
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% of Pre-Tax Income
|
|
|
21.3%
|
|
|
20.6%
|
|
|
0.7 pts
|
|
|
|
|
|
|
|
|
|
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NET INCOME
|
|
|
$520
|
|
|
$590
|
|
|
(12%)
|
|
|
|
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|
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|
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BASIC EPS
|
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$0.96
|
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$1.09
|
|
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(12%)
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DILUTED EPS
|
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$0.95
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$1.07
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(11%)
|
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WEIGHTED-AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
|
|
|
|
|
|
|
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Basic
|
|
|
542
|
|
|
543
|
|
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Diluted
|
|
|
548
|
|
|
549
|
|
|
|
|
|
|
|
|
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ADJUSTED PRE-TAX INCOME (excluding special items)
|
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$885
|
A
|
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$844
|
A
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5%
|
ADJUSTED NET INCOME (excluding special items)
|
|
|
$692
|
A
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|
$659
|
A
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5%
|
ADJUSTED DILUTED EPS (excluding special items)
|
|
|
$1.26
|
A
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$1.20
|
A
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5%
|
A
|
|
Refer to page 9 for a description of the adjustments and a
reconciliation to generally accepted accounting principles (GAAP)
measures.
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BAXTER INTERNATIONAL INC.
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Note to Consolidated Statements of Income
|
Three Months Ended June 30, 2014 and 2013
|
Description of Adjustments and Reconciliation of GAAP to Non-GAAP
Measures
|
(unaudited)
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(in millions, except per share and percentage data)
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The company's GAAP results for the three months ended June 30, 2014
and 2013 included special items which impacted the GAAP measures as
follows:
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Three Months Ended
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June 30,
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2014
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2013
|
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Change
|
Gross Margin
|
|
|
$2,041
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$1,939
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5%
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Intangible asset amortization expense 1
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47
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25
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|
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Business optimization items 2
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(14)
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|
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(20)
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Product-related items 3
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89
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|
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-
|
|
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Adjusted Gross Margin
|
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$2,163
|
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$1,944
|
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11%
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% of Net Sales
|
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50.7%
|
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53.0%
|
|
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(2.3 pts)
|
|
|
|
|
|
|
|
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Marketing and Administrative Expenses
|
|
|
$998
|
|
|
$838
|
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19%
|
Gambro acquisition and integration items 4
|
|
|
(27)
|
|
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(23)
|
|
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Separation-related costs 6
|
|
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(22)
|
|
|
-
|
|
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Business optimization items 2
|
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16
|
|
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-
|
|
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Product-related items 3
|
|
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(4)
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-
|
|
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Adjusted Marketing and Administrative Expenses
|
|
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$961
|
|
|
$815
|
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18%
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% of Net Sales
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|
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22.5%
|
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22.2%
|
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0.3 pts
|
|
|
|
|
|
|
|
|
|
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Research and Development Expenses
|
|
|
$325
|
|
|
$273
|
|
|
19%
|
Business optimization items 2
|
|
|
2
|
|
|
(18)
|
|
|
|
Business development items 5
|
|
|
(35)
|
|
|
-
|
|
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|
Adjusted Research and Development Expenses
|
|
|
$292
|
|
|
$255
|
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15%
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% of Net Sales
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6.8%
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7.0%
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(0.2 pts)
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Other Expense, Net
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$15
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$68
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N/M
|
Reserve items and adjustments 7
|
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(30)
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|
|
-
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Gambro acquisition and integration items 4
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(2)
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(55)
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Adjusted Other (Income) Expense, Net
|
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$(17)
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$13
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N/M
|
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|
|
|
|
|
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Pre-Tax Income
|
|
|
$661
|
|
|
$743
|
|
|
(11%)
|
Impact of special items
|
|
|
224
|
|
|
101
|
|
|
|
Adjusted Pre-Tax Income
|
|
|
$885
|
|
|
$844
|
|
|
5%
|
|
|
|
|
|
|
|
|
|
|
Income Tax Expense
|
|
|
$141
|
|
|
$153
|
|
|
(8%)
|
Impact of special items
|
|
|
52
|
|
|
32
|
|
|
|
Adjusted Income Tax Expense
|
|
|
$193
|
|
|
$185
|
|
|
4%
|
% of Adjusted Pre-Tax Income
|
|
|
21.8%
|
|
|
21.9%
|
|
|
(0.1 pts)
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
|
$520
|
|
|
$590
|
|
|
(12%)
|
Impact of special items
|
|
|
172
|
|
|
69
|
|
|
|
Adjusted Net Income
|
|
|
$692
|
|
|
$659
|
|
|
5%
|
|
|
|
|
|
|
|
|
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|
Diluted EPS
|
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|
$0.95
|
|
|
$1.07
|
|
|
(11%)
|
Impact of special items
|
|
|
0.31
|
|
|
0.13
|
|
|
|
Adjusted Diluted EPS
|
|
|
$1.26
|
|
|
$1.20
|
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|
5%
|
|
|
|
|
|
|
|
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|
WEIGHTED-AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
548
|
|
|
549
|
|
|
|
|
|
|
|
|
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1
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Effective January 1, 2014, Baxter has updated its non-GAAP measures
above to exclude intangible asset amortization expense. Prior period
non-GAAP measures have been revised to reflect the updated measures.
Intangible asset amortization expense totaled $47 million ($36
million, or $0.07 per diluted share, on an after-tax basis) and $25
million ($20 million, or $0.04 per diluted share, on an after-tax
basis) in 2014 and 2013, respectively.
|
2
|
|
The company's results in 2014 included a net benefit of $32 million
($18 million, or $0.03 per diluted share, on an after-tax basis)
primarily related to an adjustment to a previous business
optimization reserve that is no longer probable of being utilized.
The company's results in 2013 included a benefit of $20 million ($14
million, or $0.03 per diluted share, on an after-tax basis) related
to an adjustment to a previous business optimization reserve that is
no longer probable of being utilized, which was partially offset by
additional business optimization charges of $18 million ($14
million, or $0.03 per diluted share, on an after-tax basis).
|
3
|
|
The company's results in 2014 included total charges of $93 million
($58 million, or $0.10 per diluted share, on an after-tax basis)
principally related to product remediation efforts for the SIGMA
Spectrum Infusion Pump.
|
4
|
|
The company's results in 2014 included total charges of $29 million
($21 million, or $0.04 per diluted share, on an after-tax basis)
principally related to the acquisition and integration of Gambro AB
(Gambro). The company's results in 2013 included total charges of
$78 million ($49 million, or $0.09 per diluted share, on an
after-tax basis) primarily related to pre-acquisition costs for the
planned acquisition of Gambro and losses on derivative instruments
entered into during December 2012 and the first six months of 2013
to hedge the anticipated foreign currency cash outflows for the
planned acquisition of Gambro.
|
5
|
|
The company's results in 2014 included a charge of $35 million ($30
million, or $0.05 per diluted share, on an after-tax basis)
primarily related to certain milestone payments associated with the
company's collaboration arrangements.
|
6
|
|
The company's results in 2014 included separation-related costs of
$22 million ($21 million, or $0.04 per diluted share, on an
after-tax basis) for the planned separation of Baxter's
biopharmaceutical and medical products businesses.
|
7
|
|
The company's results in 2014 included a net expense of $30 million
($24 million, or $0.04 per diluted share, on an after-tax basis)
primarily due to an increase in the estimated fair value of
acquisition-related contingent payment liabilities, partially offset
by a third-party recovery on previous litigation reserves.
|
For more information on the company's use of non-GAAP financial
measures in this press release, please see the company's Current
Report on Form 8-K filed with the Securities and Exchange Commission
on the date of this press release.
|
|
BAXTER INTERNATIONAL INC.
|
Consolidated Statements of Income
|
Six Months Ended June 30, 2014 and 2013
|
(unaudited)
|
(in millions, except per share and percentage data)
|
|
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Six Months Ended
|
|
|
|
|
|
|
June 30,
|
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
NET SALES
|
|
|
$8,215
|
|
|
$7,117
|
|
|
15%
|
|
|
|
|
|
|
|
|
|
|
COST OF SALES
|
|
|
4,213
|
|
|
3,422
|
|
|
23%
|
|
|
|
|
|
|
|
|
|
|
GROSS MARGIN
|
|
|
4,002
|
|
|
3,695
|
|
|
8%
|
% of Net Sales
|
|
|
48.7%
|
|
|
51.9%
|
|
|
(3.2 pts)
|
|
|
|
|
|
|
|
|
|
|
MARKETING AND ADMINISTRATIVE EXPENSES
|
|
|
1,918
|
|
|
1,633
|
|
|
17%
|
% of Net Sales
|
|
|
23.3%
|
|
|
22.9%
|
|
|
0.4 pts
|
|
|
|
|
|
|
|
|
|
|
RESEARCH AND DEVELOPMENT EXPENSES
|
|
|
638
|
|
|
519
|
|
|
23%
|
% of Net Sales
|
|
|
7.8%
|
|
|
7.3%
|
|
|
0.5 pts
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST EXPENSE
|
|
|
85
|
|
|
42
|
|
|
N/M
|
|
|
|
|
|
|
|
|
|
|
OTHER (INCOME) EXPENSE, NET
|
|
|
(9)
|
|
|
65
|
|
|
N/M
|
|
|
|
|
|
|
|
|
|
|
PRE-TAX INCOME
|
|
|
1,370
|
|
|
1,436
|
|
|
(5%)
|
|
|
|
|
|
|
|
|
|
|
INCOME TAX EXPENSE
|
|
|
294
|
|
|
294
|
|
|
0%
|
% of Pre-Tax Income
|
|
|
21.5%
|
|
|
20.5%
|
|
|
1 pts
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
|
$1,076
|
|
|
$1,142
|
|
|
(6%)
|
|
|
|
|
|
|
|
|
|
|
BASIC EPS
|
|
|
$1.98
|
|
|
$2.10
|
|
|
(6%)
|
DILUTED EPS
|
|
|
$1.96
|
|
|
$2.07
|
|
|
(5%)
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED-AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
542
|
|
|
543
|
|
|
|
Diluted
|
|
|
548
|
|
|
550
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED PRE-TAX INCOME (excluding special items)
|
|
|
$1,714
|
A
|
|
$1,607
|
A
|
|
7%
|
ADJUSTED NET INCOME (excluding special items)
|
|
|
$1,344
|
A
|
|
$1,260
|
A
|
|
7%
|
ADJUSTED DILUTED EPS (excluding special items)
|
|
|
$2.45
|
A
|
|
$2.29
|
A
|
|
7%
|
A
|
|
Refer to page 11 for a description of the adjustments and a
reconciliation to GAAP measures.
|
|
|
|
BAXTER INTERNATIONAL INC.
|
Note to Consolidated Statements of Income
|
Six Months Ended June 30, 2014 and 2013
|
Description of Adjustments and Reconciliation of GAAP to Non-GAAP
Measures
|
(unaudited)
|
(in millions, except per share and percentage data)
|
|
|
|
|
|
|
|
|
|
|
The company's GAAP results for the six months ended June 30, 2014
and 2013 included special items which impacted the GAAP measures as
follows:
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
|
June 30,
|
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
Change
|
Gross Margin
|
|
|
$4,002
|
|
|
$3,695
|
|
|
8%
|
Intangible asset amortization expense 1
|
|
|
90
|
|
|
50
|
|
|
|
Business optimization items 2
|
|
|
(2)
|
|
|
(20)
|
|
|
|
Product-related items 3
|
|
|
89
|
|
|
-
|
|
|
|
Gambro acquisition and integration items 4
|
|
|
-
|
|
|
1
|
|
|
|
Adjusted Gross Margin
|
|
|
$4,179
|
|
|
$3,726
|
|
|
12%
|
% of Net Sales
|
|
|
50.9%
|
|
|
52.4%
|
|
|
(1.5 pts)
|
|
|
|
|
|
|
|
|
|
|
Marketing and Administrative Expenses
|
|
|
$1,918
|
|
|
$1,633
|
|
|
17%
|
Gambro acquisition and integration items 4
|
|
|
(44)
|
|
|
(40)
|
|
|
|
Reserve items and adjustments 6
|
|
|
10
|
|
|
-
|
|
|
|
Separation-related costs 7
|
|
|
(22)
|
|
|
-
|
|
|
|
Business optimization items 2
|
|
|
6
|
|
|
-
|
|
|
|
Product-related items 3
|
|
|
(4)
|
|
|
-
|
|
|
|
Adjusted Marketing and Administrative Expenses
|
|
|
$1,864
|
|
|
$1,593
|
|
|
17%
|
% of Net Sales
|
|
|
22.7%
|
|
|
22.4%
|
|
|
0.3 pts
|
|
|
|
|
|
|
|
|
|
|
Research and Development Expenses
|
|
|
$638
|
|
|
$519
|
|
|
23%
|
Business optimization items 2
|
|
|
(4)
|
|
|
(18)
|
|
|
|
Business development items 5
|
|
|
(60)
|
|
|
-
|
|
|
|
Adjusted Research and Development Expenses
|
|
|
$574
|
|
|
$501
|
|
|
15%
|
% of Net Sales
|
|
|
7.0%
|
|
|
7.0%
|
|
|
0 pts
|
|
|
|
|
|
|
|
|
|
|
Other (Income) Expense, Net
|
|
|
$(9)
|
|
|
$65
|
|
|
N/M
|
Reserve items and adjustments 6
|
|
|
(30)
|
|
|
-
|
|
|
|
Gambro acquisition and integration items 4
|
|
|
(19)
|
|
|
(82)
|
|
|
|
Adjusted Other Income, Net
|
|
|
$(58)
|
|
|
$(17)
|
|
|
N/M
|
|
|
|
|
|
|
|
|
|
|
Pre-Tax Income
|
|
|
$1,370
|
|
|
$1,436
|
|
|
(5%)
|
Impact of special items
|
|
|
344
|
|
|
171
|
|
|
|
Adjusted Pre-Tax Income
|
|
|
$1,714
|
|
|
$1,607
|
|
|
7%
|
|
|
|
|
|
|
|
|
|
|
Income Tax Expense
|
|
|
$294
|
|
|
$294
|
|
|
0%
|
Impact of special items
|
|
|
76
|
|
|
53
|
|
|
|
Adjusted Income Tax Expense
|
|
|
$370
|
|
|
$347
|
|
|
7%
|
% of Adjusted Pre-Tax Income
|
|
|
21.6%
|
|
|
21.6%
|
|
|
0 pts
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
|
$1,076
|
|
|
$1,142
|
|
|
(6%)
|
Impact of special items
|
|
|
268
|
|
|
118
|
|
|
|
Adjusted Net Income
|
|
|
$1,344
|
|
|
$1,260
|
|
|
7%
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS
|
|
|
$1.96
|
|
|
$2.07
|
|
|
(5%)
|
Impact of special items
|
|
|
0.49
|
|
|
0.22
|
|
|
|
Adjusted Diluted EPS
|
|
|
$2.45
|
|
|
$2.29
|
|
|
7%
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED-AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
548
|
|
|
550
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
Effective January 1, 2014, Baxter has updated its non-GAAP measures
above to exclude intangible asset amortization expense. Prior period
non-GAAP measures have been revised to reflect the updated measures.
Intangible asset amortization expense totaled $90 million ($70
million, or $0.13 per diluted share, on an after-tax basis) and $50
million ($40 million, or $0.07 per diluted share, on an after-tax
basis) in 2014 and 2013, respectively.
|
2
|
|
The company's results in 2014 included a net benefit of $4 million
(net charge of $3 million, or $0.01 per diluted share, on an
after-tax basis) primarily related to an adjustment of $37 million
to a previous business optimization reserve that is no longer
probable of being utilized, partially offset by additional business
optimization charges of $33 million. The company's results in 2013
included a benefit of $20 million ($14 million, or $0.03 per diluted
share, on an after-tax basis) related to an adjustment to a previous
business optimization reserve that is no longer probable of being
utilized, which was partially offset by additional business
optimization charges of $18 million ($14 million, or $0.03 per
diluted share, on an after-tax basis).
|
3
|
|
The company's results in 2014 included total charges of $93 million
($58 million, or $0.10 per diluted share, on an after-tax basis)
principally related to product remediation efforts for the SIGMA
Spectrum Infusion Pump.
|
4
|
|
The company's results in 2014 included total charges of $63 million
($47 million, or $0.09 per diluted share, on an after-tax basis)
principally related to the acquisition and integration of Gambro,
including a loss on the divestiture of Baxter's legacy Continuous
Renal Replacement Therapy business. The company's results in 2013
included total charges of $123 million ($78 million, or $0.15 per
diluted share, on an after-tax basis) primarily related to
pre-acquisition costs for the planned acquisition of Gambro and
losses on derivative instruments entered into in December 2012 and
the first six months of 2013 to hedge the anticipated foreign
currency cash outflows associated with the planned acquisition of
Gambro.
|
5
|
|
The company's results in 2014 included charges of $60 million ($52
million, or $0.09 per diluted share, on an after-tax basis) related
to certain milestone payments associated with the company's
collaboration arrangements.
|
6
|
|
The company's results in 2014 included a net expense of $20 million
($17 million, or $0.03 per diluted share, on an after-tax basis)
primarily related to an increase in the estimated fair value of
acquisition-related contingent payment liabilities, partially offset
by third-party recoveries and reversals of prior litigation reserves.
|
7
|
|
The company's results in 2014 included separation-related costs of
$22 million ($21 million, or $0.04 per diluted share, on an
after-tax basis) for the planned separation of Baxter's
biopharmaceutical and medical products businesses.
|
For more information on the company's use of non-GAAP financial
measures in this press release, please see the company's Current
Report on Form 8-K filed with the Securities and Exchange Commission
on the date of this press release.
|
|
BAXTER INTERNATIONAL INC.
|
Cash Flows from Operations and Changes in Net Debt
|
(unaudited)
|
($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from Operations
|
(Brackets denote cash outflows)
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2014
|
|
|
2013
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$520
|
|
|
$590
|
|
|
|
$1,076
|
|
|
$1,142
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
253
|
|
|
183
|
|
|
|
489
|
|
|
366
|
Deferred income taxes
|
|
|
(14)
|
|
|
(101)
|
|
|
|
(31)
|
|
|
(63)
|
Stock compensation
|
|
|
41
|
|
|
40
|
|
|
|
72
|
|
|
72
|
Realized excess tax benefits from stock issued under employee
benefit plans
|
|
|
(5)
|
|
|
(7)
|
|
|
|
(17)
|
|
|
(19)
|
Business optimization charges
|
|
|
(32)
|
|
|
(2)
|
|
|
|
(4)
|
|
|
(2)
|
Net periodic pension benefit and OPEB costs
|
|
|
70
|
|
|
93
|
|
|
|
141
|
|
|
187
|
Infusion pump and other product-related charges
|
|
|
93
|
|
|
-
|
|
|
|
93
|
|
|
-
|
Other
|
|
|
93
|
|
|
44
|
|
|
|
78
|
|
|
54
|
Changes in balance sheet items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts and other current receivables, net
|
|
|
(230)
|
|
|
(73)
|
|
|
|
3
|
|
|
12
|
Inventories
|
|
|
(127)
|
|
|
(125)
|
|
|
|
(360)
|
|
|
(306)
|
Accounts payable and accrued liabilities
|
|
|
14
|
|
|
128
|
|
|
|
(222)
|
|
|
(171)
|
Business optimization and infusion pump payments
|
|
|
(38)
|
|
|
(26)
|
|
|
|
(83)
|
|
|
(52)
|
Other
|
|
|
(39)
|
|
|
19
|
|
|
|
(77)
|
|
|
(71)
|
Cash flows from operations
|
|
|
$599
|
|
|
$763
|
|
|
|
$1,158
|
|
|
$1,149
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in Net Debt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease)
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2014
|
|
|
2013
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net debt, beginning of period A
|
|
|
$6,645
|
|
|
$3,178
|
|
|
|
$6,433
|
|
|
$2,660
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operations
|
|
|
(599)
|
|
|
(763)
|
|
|
|
(1,158)
|
|
|
(1,149)
|
Capital expenditures
|
|
|
423
|
|
|
347
|
|
|
|
844
|
|
|
639
|
Dividends
|
|
|
265
|
|
|
244
|
|
|
|
531
|
|
|
490
|
Proceeds from stock issued under employee benefit plans
|
|
|
(106)
|
|
|
(138)
|
|
|
|
(232)
|
|
|
(322)
|
Purchases of treasury stock
|
|
|
200
|
|
|
183
|
|
|
|
450
|
|
|
717
|
Acquisitions and investments
|
|
|
117
|
|
|
20
|
|
|
|
176
|
|
|
87
|
Sales of investments and other investing activities
|
|
|
2
|
|
|
-
|
|
|
|
(94)
|
|
|
(10)
|
Other, including the effect of exchange rate changes
|
|
|
26
|
|
|
(25)
|
|
|
|
23
|
|
|
(66)
|
Increase (decrease) in net debt
|
|
|
328
|
|
|
(132)
|
|
|
|
540
|
|
|
386
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net debt, June 30 A
|
|
|
$6,973
|
|
|
$3,046
|
|
|
|
$6,973
|
|
|
$3,046
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key statistics, June 30:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Days sales outstanding
|
|
|
56.7
|
B
|
|
53.5
|
|
|
|
56.7
|
B
|
|
53.5
|
Inventory turns
|
|
|
2.2
|
|
|
2.2
|
|
|
|
2.2
|
|
|
2.2
|
A
|
|
Net debt is a non-GAAP measure, refer to page 13 for a description
of net debt and a reconciliation to GAAP measures.
|
B
|
|
Includes the impact from the acquisition of Gambro. Excluding
Gambro, the company's days sales outstanding was 53.1 days as of
June 30, 2014.
|
|
|
|
BAXTER INTERNATIONAL INC.
|
Total Debt to Net Debt Reconciliation
|
(unaudited)
|
($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Debt to Net Debt Reconciliation A
|
|
|
|
June 30,
|
|
|
March 31,
|
|
|
December 31,
|
|
|
June 30,
|
|
|
March 31,
|
|
|
December 31,
|
|
|
|
2014
|
|
|
2014
|
|
|
2013
|
|
|
2013
|
|
|
2013
|
|
|
2012
|
Short-term debt
|
|
|
$186
|
|
|
$49
|
|
|
$181
|
|
|
$33
|
|
|
$333
|
|
|
$27
|
Current maturities of long-term debt and lease obligations
|
|
|
1,125
|
|
|
1,128
|
|
|
859
|
|
|
378
|
|
|
377
|
|
|
323
|
Long-term debt and lease obligations
|
|
|
7,528
|
|
|
7,517
|
|
|
8,126
|
|
|
8,624
|
|
|
5,157
|
|
|
5,580
|
Total debt
|
|
|
8,839
|
|
|
8,694
|
|
|
9,166
|
|
|
9,035
|
|
|
5,867
|
|
|
5,930
|
Less: Cash and equivalents
|
|
|
(1,866)
|
|
|
(2,049)
|
|
|
(2,733)
|
|
|
(5,989)
|
|
|
(2,689)
|
|
|
(3,270)
|
Total net debt
|
|
|
$6,973
|
|
|
$6,645
|
|
|
$6,433
|
|
|
$3,046
|
|
|
$3,178
|
|
|
$2,660
|
A
|
|
Net debt represents the difference between total debt (defined as
short-term debt, current maturities of long-term debt and lease
obligations, and long-term debt and lease obligations as presented
on the company's consolidated balance sheets) and cash and
equivalents.
|
For more information on the company's use of non-GAAP financial
measures in this press release, please see the company's Current
Report on Form 8-K filed with the Securities and Exchange Commission
on the date of this press release.
|
|
BAXTER INTERNATIONAL INC.
|
Net Sales
|
Periods Ending June 30, 2014 and 2013
|
(unaudited)
|
($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2
|
|
|
Q2
|
|
|
% Growth @
|
|
|
% Growth @
|
|
|
|
|
|
|
|
YTD
|
|
|
YTD
|
|
|
% Growth @
|
|
|
% Growth @
|
|
|
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
Actual Rates
|
|
|
Constant Rates
|
|
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
Actual Rates
|
|
|
Constant Rates
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BioScience
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
|
|
|
|
|
$835
|
|
|
$782
|
|
|
7%
|
|
|
7%
|
|
|
|
|
|
|
|
$1,659
|
|
|
$1,555
|
|
|
7%
|
|
|
7%
|
International
|
|
|
|
|
|
|
|
916
|
|
|
856
|
|
|
7%
|
|
|
5%
|
|
|
|
|
|
|
|
1,700
|
|
|
1,613
|
|
|
5%
|
|
|
5%
|
Total BioScience
|
|
|
|
|
|
|
|
$1,751
|
|
|
$1,638
|
|
|
7%
|
|
|
6%
|
|
|
|
|
|
|
|
$3,359
|
|
|
$3,168
|
|
|
6%
|
|
|
6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Medical Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
|
|
|
|
|
$897
|
|
|
$764
|
|
|
17%
|
|
|
17%
|
|
|
|
|
|
|
|
$1,733
|
|
|
$1,473
|
|
|
18%
|
|
|
18%
|
International
|
|
|
|
|
|
|
|
1,616
|
|
|
1,267
|
|
|
28%
|
|
|
28%
|
|
|
|
|
|
|
|
3,123
|
|
|
2,476
|
|
|
26%
|
|
|
28%
|
Total Medical Products 1
|
|
|
|
|
|
|
|
$2,513
|
|
|
$2,031
|
|
|
24%
|
|
|
24%
|
|
|
|
|
|
|
|
$4,856
|
|
|
$3,949
|
|
|
23%
|
|
|
24%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Baxter International Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
|
|
|
|
|
$1,732
|
|
|
$1,546
|
|
|
12%
|
|
|
12%
|
|
|
|
|
|
|
|
$3,392
|
|
|
$3,028
|
|
|
12%
|
|
|
12%
|
International
|
|
|
|
|
|
|
|
2,532
|
|
|
2,123
|
|
|
19%
|
|
|
19%
|
|
|
|
|
|
|
|
4,823
|
|
|
4,089
|
|
|
18%
|
|
|
19%
|
Total Baxter 1
|
|
|
|
|
|
|
|
$4,264
|
|
|
$3,669
|
|
|
16%
|
|
|
16%
|
|
|
|
|
|
|
|
$8,215
|
|
|
$7,117
|
|
|
15%
|
|
|
16%
|
1
|
|
Includes Gambro net sales of $408 million in the second quarter of
2014 and $808 million for the six months ended June 30, 2014.
Medical Products net sales excluding Gambro grew 4% at both actual
rates and constant rates during the second quarter of 2014. Total
Baxter net sales excluding Gambro grew 5% at both actual rates and
constant rates during the second quarter of 2014. Medical Products
net sales excluding Gambro grew 3% at actual rates and 4% at
constant rates for the six months ended June 30, 2014. Total
Baxter net sales excluding Gambro grew 4% at actual rates and 5%
at constant rates for the six months ended June 30, 2014.
|
|
|
|
BAXTER INTERNATIONAL INC.
|
Sales by Franchise
|
Periods Ending June 30, 2014 and 2013
|
(unaudited)
|
($ in millions)
|
|
|
|
|
|
|
|
|
|
Q2
|
|
|
Q2
|
|
|
% Growth @
|
|
|
% Growth @
|
|
|
|
|
|
|
|
YTD
|
|
|
YTD
|
|
|
% Growth @
|
|
|
% Growth @
|
|
|
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
Actual Rates
|
|
|
Constant Rates
|
|
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
Actual Rates
|
|
|
Constant Rates
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BioScience
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hemophilia
|
|
|
|
|
|
|
|
$904
|
|
|
$849
|
|
|
6%
|
|
|
6%
|
|
|
|
|
|
|
|
$1,731
|
|
|
$1,614
|
|
|
7%
|
|
|
7%
|
BioTherapeutics
|
|
|
|
|
|
|
|
548
|
|
|
513
|
|
|
7%
|
|
|
6%
|
|
|
|
|
|
|
|
1,050
|
|
|
1,022
|
|
|
3%
|
|
|
2%
|
BioSurgery
|
|
|
|
|
|
|
|
189
|
|
|
178
|
|
|
6%
|
|
|
5%
|
|
|
|
|
|
|
|
365
|
|
|
350
|
|
|
4%
|
|
|
4%
|
Vaccines
|
|
|
|
|
|
|
|
110
|
|
|
98
|
|
|
12%
|
|
|
6%
|
|
|
|
|
|
|
|
213
|
|
|
182
|
|
|
17%
|
|
|
15%
|
Total BioScience
|
|
|
|
|
|
|
|
$1,751
|
|
|
$1,638
|
|
|
7%
|
|
|
6%
|
|
|
|
|
|
|
|
$3,359
|
|
|
$3,168
|
|
|
6%
|
|
|
6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Medical Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fluid Systems
|
|
|
|
|
|
|
|
$816
|
|
|
$755
|
|
|
8%
|
|
|
8%
|
|
|
|
|
|
|
|
$1,573
|
|
|
$1,495
|
|
|
5%
|
|
|
6%
|
Renal 1
|
|
|
|
|
|
|
|
1,044
|
|
|
654
|
|
|
60%
|
|
|
61%
|
|
|
|
|
|
|
|
2,035
|
|
|
1,244
|
|
|
64%
|
|
|
66%
|
Specialty Pharmaceuticals
|
|
|
|
|
|
|
|
404
|
|
|
366
|
|
|
10%
|
|
|
9%
|
|
|
|
|
|
|
|
771
|
|
|
729
|
|
|
6%
|
|
|
6%
|
BioPharma Solutions
|
|
|
|
|
|
|
|
249
|
|
|
256
|
|
|
(3%)
|
|
|
(4%)
|
|
|
|
|
|
|
|
477
|
|
|
481
|
|
|
(1%)
|
|
|
0%
|
Total Medical Products
|
|
|
|
|
|
|
|
$2,513
|
|
|
$2,031
|
|
|
24%
|
|
|
24%
|
|
|
|
|
|
|
|
$4,856
|
|
|
$3,949
|
|
|
23%
|
|
|
24%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Baxter
|
|
|
|
|
|
|
|
$4,264
|
|
|
$3,669
|
|
|
16%
|
|
|
16%
|
|
|
|
|
|
|
|
$8,215
|
|
|
$7,117
|
|
|
15%
|
|
|
16%
|
1
|
|
Consists of PD and HD therapies, and includes Gambro net sales of
$408 million in the second quarter of 2014 and $808 million for the
six months ended June 30, 2014. Renal sales excluding Gambro
decreased by 3% at actual rates and 1% at constant rates during the
second quarter of 2014. Renal sales excluding Gambro decreased by 1%
at actual rates and grew by 1% at constant rates for the six months
ended June 30, 2014.
|
|
|
|
BAXTER INTERNATIONAL INC.
|
Franchise Sales by U.S. and International
|
Three-Month Periods Ending June 30, 2014 and 2013
|
(unaudited)
|
($ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2 2014
|
|
|
|
|
|
|
|
Q2 2013
|
|
|
|
|
|
|
|
% Growth
|
|
|
|
|
|
|
|
|
U.S.
|
|
|
International
|
|
|
Total
|
|
|
|
|
|
|
|
U.S.
|
|
|
International
|
|
|
Total
|
|
|
|
|
|
|
|
U.S.
|
|
|
International
|
|
|
Total
|
BioScience
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hemophilia
|
|
|
|
|
|
|
|
$375
|
|
|
$529
|
|
|
$904
|
|
|
|
|
|
|
|
$346
|
|
|
$503
|
|
|
$849
|
|
|
|
|
|
|
|
8%
|
|
|
5%
|
|
|
6%
|
BioTherapeutics
|
|
|
|
|
|
|
|
358
|
|
|
190
|
|
|
548
|
|
|
|
|
|
|
|
335
|
|
|
178
|
|
|
513
|
|
|
|
|
|
|
|
7%
|
|
|
7%
|
|
|
7%
|
BioSurgery
|
|
|
|
|
|
|
|
102
|
|
|
87
|
|
|
189
|
|
|
|
|
|
|
|
101
|
|
|
77
|
|
|
178
|
|
|
|
|
|
|
|
1%
|
|
|
13%
|
|
|
6%
|
Vaccines
|
|
|
|
|
|
|
|
-
|
|
|
110
|
|
|
110
|
|
|
|
|
|
|
|
-
|
|
|
98
|
|
|
98
|
|
|
|
|
|
|
|
-
|
|
|
12%
|
|
|
12%
|
Total BioScience
|
|
|
|
|
|
|
|
$835
|
|
|
$916
|
|
|
$1,751
|
|
|
|
|
|
|
|
$782
|
|
|
$856
|
|
|
$1,638
|
|
|
|
|
|
|
|
7%
|
|
|
7%
|
|
|
7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Medical Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fluid Systems
|
|
|
|
|
|
|
|
$443
|
|
|
$373
|
|
|
$816
|
|
|
|
|
|
|
|
$390
|
|
|
$365
|
|
|
$755
|
|
|
|
|
|
|
|
14%
|
|
|
2%
|
|
|
8%
|
Renal 1
|
|
|
|
|
|
|
|
186
|
|
|
858
|
|
|
1,044
|
|
|
|
|
|
|
|
101
|
|
|
553
|
|
|
654
|
|
|
|
|
|
|
|
84%
|
|
|
55%
|
|
|
60%
|
Specialty Pharmaceuticals
|
|
|
|
|
|
|
|
174
|
|
|
230
|
|
|
404
|
|
|
|
|
|
|
|
163
|
|
|
203
|
|
|
366
|
|
|
|
|
|
|
|
7%
|
|
|
13%
|
|
|
10%
|
BioPharma Solutions
|
|
|
|
|
|
|
|
94
|
|
|
155
|
|
|
249
|
|
|
|
|
|
|
|
110
|
|
|
146
|
|
|
256
|
|
|
|
|
|
|
|
(15%)
|
|
|
6%
|
|
|
(3%)
|
Total Medical Products 1
|
|
|
|
|
|
|
|
$897
|
|
|
$1,616
|
|
|
$2,513
|
|
|
|
|
|
|
|
$764
|
|
|
$1,267
|
|
|
$2,031
|
|
|
|
|
|
|
|
17%
|
|
|
28%
|
|
|
24%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Baxter 1
|
|
|
|
|
|
|
|
$1,732
|
|
|
$2,532
|
|
|
$4,264
|
|
|
|
|
|
|
|
$1,546
|
|
|
$2,123
|
|
|
$3,669
|
|
|
|
|
|
|
|
12%
|
|
|
19%
|
|
|
16%
|
1
|
|
Includes Gambro net sales of $408 million in the second quarter of
2014. Renal sales excluding Gambro decreased by 3% at actual rates
and 1% at constant rates during the second quarter of 2014. Medical
Products net sales excluding Gambro grew 4% at both actual rates and
constant rates during the second quarter of 2014. Total Baxter net
sales excluding Gambro grew 5% at both actual rates and constant
rates during the second quarter of 2014.
|
|
|
|
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