Baxter Profit Jumps 8%

Though sales slipped for Baxter(BAX Quote), the drug and medical-device maker, its profit nevertheless received a bump in the second quarter.

Widening profit margins helped Baxter posted $587 million in earnings, the company said, an 8% jump from the year-earlier period's $544 million. Earnings per share came to 96 cents, compared with 85 cents a year ago.

Though worldwide sales fell 2% to $3.1 billion, Baxter said currency exchanges weighed down revenue. Without that, the company said sales actually grew by 8% worldwide. U.S. sales increased 7% to $1.3 billion.

Analysts surveyed by Thomson Reuters anticipated the company to announce EPS at 94 cents on $3.12 billion in revenue.

The Deerfield, Ill.-based operation, which manufactures drugs and medical devices for patients with hemophilia and kidney disease, among other ailments, said antibody therapies, recombinant therapies and bio-surgery product sales helped power revenues during the quarter. The company's BioScience unit increased sales by 2% from the year-ago period to come to $1.4 billion.

Sales for the company's medication delivery unit, however, dropped by 3% to come to $1.1 billion. Still, Baxter said the unit's revenues increased by 8% if excluding the foreign currency impact.

Baxter also offered guidance for the third quarter, saying sales should grow by 7% to 8% in the third quarter after excluding forex impact, with earnings per share to land between 95 cents and 97 cents.

The company also raised full-year EPS guidance between $3.76 and $3.80. Previously, the company said that it expected EPS to land between $3.72 and $3.78.