Baxter International Inc. (NYSE:BAX) today reported first quarter financial results that exceeded the company’s previously issued guidance and confirmed its full-year 2014 financial outlook.
For the first quarter, Baxter reported net income of $556 million and earnings per diluted share of $1.01, compared to net income of $552 million and earnings per diluted share of $1.00 in the same period last year. First quarter 2014 results include after-tax special items totaling $96 million (or $0.18 per diluted share), for intangible asset amortization and costs associated with the integration of its Gambro AB acquisition, business development and business optimization initiatives. First quarter 2013 results included net after-tax charges totaling $49 million (or $0.09 per diluted share).
On an adjusted basis, excluding special items in both periods, Baxter’s first quarter net income of $652 million increased 8 percent from $601 million reported in 2013. Adjusted earnings per diluted share of $1.19 advanced 9 percent from $1.09 per diluted share last year, exceeding the company’s previously issued earnings guidance of $1.06 to $1.09 per diluted share. Financial results include an after-tax gain of $35 million (or $0.06 per diluted share) associated with the sale of certain equity investments, which will largely be reinvested in the business over the balance of the year.
Worldwide sales of $3.95 billion increased 15 percent (or 16 percent excluding foreign exchange), compared to $3.45 billion reported in the first quarter of 2013. Excluding the contribution of Gambro revenues, which totaled $400 million, Baxter’s worldwide sales increased 3 percent to $3.55 billion (or 5 percent excluding the impact of foreign currency).
By business, BioScience revenues of $1.61 billion rose 5 percent (or 6 percent excluding the impact of foreign currency). This performance was driven primarily by double-digit growth of ADVATE [Antihemophilic Factor (Recombinant), Plasma/Albumin-Free Method] and FEIBA (an inhibitor therapy), improved U.S. sales of plasma-based therapeutics including GAMMAGARD LIQUID [Immune Globulin Intravenous (Human)] used primarily in treating immune deficiencies, and a benefit from accelerated timing of milestone payments related to the company’s ongoing collaborations with governments on the development of influenza vaccines.