Baxter Posts Strong Sales and Earnings for Third Quarter 2008
DEERFIELD, Ill.--(BUSINESS WIRE)--Oct 16, 2008 - Baxter International Inc. (NYSE:BAX) posted strong financial results for the third quarter of 2008, which compared favorably to the guidance previously provided, and raised its full-year 2008 earnings outlook.
Baxter reported third quarter net income of $472 million, an increase of 19 percent compared to $395 million reported in the third quarter of 2007. Earnings per diluted share of $0.74 increased 21 percent from $0.61 per diluted share in the prior year period. The third quarter results include after-tax special charges totaling $91 million (or $0.14 per diluted share) for fixed asset write-offs associated with the discontinuation of the company's CLEARSHOT pre-filled syringe program, additional remediation costs associated with the company's COLLEAGUE infusion pump, and costs for in-process research and development (IPR&D) related to the company's recently announced collaboration with Innocoll Pharmaceuticals Ltd. The company recorded after-tax special charges in the third quarter of 2007 totaling $63 million (or $0.09 per diluted share).
On an adjusted basis, excluding special charges, Baxter reported third quarter net income of $563 million and net earnings per diluted share of $0.88, an increase of 23 percent and 26 percent respectively, which compared favorably to the earnings guidance previously provided of $0.81 to $0.83 per diluted share. Strong financial performance was the result of accelerating sales, continued margin improvement, and a lower tax rate.
Baxter's worldwide sales totaled $3.2 billion in the third quarter, an increase of 15 percent (or 9 percent excluding the impact of foreign exchange), driven by particularly strong performance from the company's international businesses. Renal sales increased 6 percent to approximately $600 million due to the expanded use of peritoneal dialysis in many developed and emerging markets around the world, while Medication Delivery sales of approximately $1.2 billion increased 11 percent as a result of strong international sales.
Sales in Baxter's BioScience business totaled approximately $1.4 billion, with record growth of 23 percent. Sales accelerated across the portfolio, resulting in double-digit sales increases for all major product categories. This performance can be attributed to robust growth from several products, including ADVATE (Antihemophilic Factor (Recombinant), Plasma/Albumin-Free Method (rAHF-PFM)) and GAMMAGARD LIQUID (Immune Globulin Intravenous (IGIV)), marketed as KIOVIG in the European Union, as well as accelerated growth from other plasma-based therapies and biosurgery products.
"In addition to delivering strong sales and earnings for the third quarter, we continue to leverage our diversified healthcare model and capitalize on our broad global presence, while remaining committed to our strategic objective of accelerating the pace of R&D spending," said Robert L. Parkinson, Jr., chairman and chief executive officer.
The company continues to increase investments in R&D, which totaled $230 million and increased 13 percent (or 30 percent excluding the impact of special charges taken for IPR&D in both the current and prior year periods). The company continues to make progress on a number of R&D and new product initiatives, including:
-- Agreement with Innocoll Pharmaceuticals Ltd., a division of Innocoll, Inc., granting Baxter exclusive rights to market and distribute in the United States the company's investigational gentamicin surgical implant. If approved by the U.S. Food and Drug Administration (FDA), the gentamicin surgical implant will be the first biodegradable, leave-behind antibiotic surgical sponge used as an adjunct (add-on) therapy for prevention and treatment of surgical site infections in the United States.
-- Submission of an Investigational New Drug (IND) Application to the FDA for the evaluation of GAMMAGARD LIQUID combined with ENHANZE, Halozyme's proprietary drug delivery technology that facilitates the absorption and dispersion of drugs subcutaneously.
-- Initiation of a Phase III clinical trial evaluating the use of GAMMAGARD LIQUID for the treatment of multifocal motor neuropathy (MMN). Multifocal motor neuropathy is a rare neurological disorder characterized by progressive limb weakness, primarily affecting the upper extremities.
-- Clearance by the FDA for expanded labeling of V-Link with VitalShield based on V-Link's ability to combat three additional pathogens: vancomycin-resistant Enterococcus faecalis (VRE), Escherichia coli (E. coli) and Staphylococcus epidermidis (coagulase negative). These three pathogens improve upon the previously cleared labeling, which included methicillin-resistant Staphylococcus aureus (MRSA), Pseudomonas aeruginosa and Enterobacter cloacae.
Nine-Month Results
For the first nine months of 2008, Baxter's net income totaled $1.4 billion and increased 18 percent, with earnings per diluted share increasing 21 percent to $2.26. On an adjusted basis, excluding special items for both 2007 and 2008, Baxter's net income of $1.6 billion increased 18 percent from $1.3 billion in the same period last year. Adjusted earnings per diluted share for the nine-month period increased 22 percent to $2.47 from $2.03 per diluted share in the prior year period.
Baxter's worldwide sales grew 12 percent in the first three quarters of the year to $9.2 billion, an increase from $8.3 billion in the same period last year. Excluding the impact of foreign exchange, sales growth for the first nine months of the year was 5 percent.
Cash flows from operations totaled $1.9 billion for the nine-month period, an improvement of more than $300 million compared to $1.6 billion in the same period in 2007.
"The medically-necessary nature of our product offering, our diversified portfolio and global presence, and our financial strength and flexibility, provide us with a solid foundation in this uncertain global economy," continued Parkinson. "We remain committed to providing enhanced value to our shareholders through predictable and sustainable operational growth, commensurate with our competencies and long-range strategies."
Fourth Quarter and Full-Year 2008 Outlook
Baxter raised its full-year 2008 earnings outlook and for the first time provided fourth quarter guidance. For the full year, the company continues to expect sales growth, excluding the impact of foreign exchange, of 5 to 6 percent, and now expects earnings per diluted share of $3.35 to $3.37, before any special items. In addition, the company now expects cash flow from operations to exceed $2.6 billion.
For the fourth quarter of 2008, Baxter expects sales growth of approximately 7 percent, excluding the impact of foreign exchange, and earnings per diluted share, before any special items, of $0.88 to $0.90.
A webcast of Baxter's third 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 October 16, 2008. Please visit Baxter's website for more information regarding this and future investor events and webcasts, including investor presentations.
Baxter International Inc. develops, manufactures and markets products that save and sustain the lives of people with hemophilia, immune disorders, cancer, 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. 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 risks for new and existing products, such as ADVATE, and other technologies; future actions of regulatory bodies and other governmental authorities, including the FDA and foreign counterparts, that could delay, limit or suspend product development, manufacturing or sales or result in sanctions; product quality or patient safety concerns leading to product recalls, withdrawals, launch delays, litigation, or declining sales; product development risks; inventory reductions or fluctuations in buying patterns by wholesalers or distributors; 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; reimbursement policies of government agencies and private payers; the availability of acceptable raw materials and component supply; 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; any impact of the commercial and credit environment on Baxter and its customers; foreign currency fluctuations and other risks identified in the company's most recent filing on Form 10-K and other Securities and Exchange Commission filings, all of which are available on the company's website. The company does not undertake to update its forward-looking statements. Financial schedules are attached to this release and available on the company's website. -0-
BAXTER INTERNATIONAL INC.
Consolidated Statements of Income
Three Months Ended September 30, 2008 and 2007
(unaudited)
(in millions, except per share and percentage data)
Three Months
Ended
September 30,
---------------
2008 2007 Change
------ ------ ---------
NET SALES $3,151 $2,750 15%
COST OF GOODS SOLD 1,630(1) 1,374 19%
----------------------------------------------------------------------
GROSS PROFIT 1,521 1,376 11%
----------------------------------------------------------------------
% of Net Sales 48.3% 50.0% (1.7 pts)
MARKETING AND ADMINISTRATIVE EXPENSES 681 663(2) 3%
% of Net Sales 21.6% 24.1% (2.5 pts)
RESEARCH AND DEVELOPMENT EXPENSES 230(3) 203(3) 13%
% of Net Sales 7.3% 7.4% (0.1 pt)
NET INTEREST EXPENSE 20 6 N/M
OTHER EXPENSE, NET 32(4) 21 52%
----------------------------------------------------------------------
PRE-TAX INCOME 558 483 16%
----------------------------------------------------------------------
INCOME TAX EXPENSE 86(5) 88(5) (2%)
----------------------------------------------------------------------
% of Pre-Tax Income 15.4% 18.2% (2.8 pts)
NET INCOME $472 $395 19%
======================================================================
BASIC EPS $0.76 $0.62 23%
======================================================================
DILUTED EPS $0.74 $0.61 21%
======================================================================
WEIGHTED AVERAGE NUMBER OF COMMON SHARES
OUTSTANDING
Basic 625 641
Diluted 638 651
----------------------------------------------------------------------
ADJUSTED PRE-TAX INCOME (excluding
specified items) $673(6) $574(6) 17%
ADJUSTED NET INCOME (excluding specified
items) $563(6) $458(6) 23%
ADJUSTED DILUTED EPS (excluding
specified items) $0.88(6) $0.70(6) 26%
1 Cost of goods sold in 2008 included a charge of $72 million ($65
million on an after-tax basis, or $0.10 per diluted share) related to
COLLEAGUE infusion pumps.
2 Marketing and administrative expenses in 2007 included a charge of
$56 million ($34 million on an after-tax basis, or $0.05 per diluted
share) related to the company's Average Wholesale Pricing (AWP)
litigation.
3 Research and development (R&D) expenses in 2008 included an in-
process R&D (IPR&D) charge of $12 million ($7 million on an after-tax
basis, or $0.01 per diluted share) related to the company's licensing
agreement with Innocoll Pharmaceuticals Ltd. (Innocoll) to market and
distribute Innocoll's gentamicin surgical implant in the United
States. R&D expenses in 2007 included IPR&D charges of $25 million
related to the company's collaboration with HHD, LLC and $10 million
related to the company's in-licensing arrangement with Halozyme
Therapeutics, Inc. The after-tax impact of these items was $29
million, or $0.04 per diluted share, in 2007.
4 Other expense, net in 2008 included an impairment charge of $31
million ($19 million on an after-tax basis, or $0.03 per diluted
share) associated with the discontinuation of the CLEARSHOT pre-
filled syringe program.
5 Income tax expense included a benefit of $15 million, or $0.02 per
diluted share, in 2008 and expense of $15 million, or $0.02 per
diluted share, in 2007, related primarily to the reversal of
valuation allowances and tax expense associated with foreign earnings
that the company planned to repatriate to the United States.
6 Refer to page 8 for a description of the adjustments and a
reconciliation to GAAP (generally accepted accounting principles)
measures.
Non-GAAP Financial Measures: The non-GAAP financial measures contained
in this press release (pre-tax income, income tax expense, net
income, and diluted EPS, excluding specified items) adjust for
factors that are unusual or nonrecurring. Unusual or nonrecurring
items can be highly variable, difficult to predict, and of a size
that may substantially impact the company's reported operations for a
period. Management believes that non-GAAP financial measures can
facilitate a fuller analysis of the company's results of operations,
particularly in evaluating performance period over period. Management
uses these non-GAAP financial measures internally in financial
planning, to monitor business unit performance, and in evaluating
management performance. Refer to the company's filing on Form 8-K of
today's date for additional information.
-0-
BAXTER INTERNATIONAL INC.
Notes to Consolidated Statements of Income
Three Months Ended September 30, 2008 and 2007
Description of Adjustments and Reconciliation of GAAP to Non-GAAP
Measures
(unaudited)
(in millions, except per share and percentage data)
2008 description of adjustments and reconciliation
of GAAP to Non-GAAP
---------------------------------------------------
The company's GAAP results for the three months ended September 30,
2008 included a charge related to COLLEAGUE infusion pumps, an
impairment charge associated with the discontinuation of the
CLEARSHOT pre-filled syringe program, and an IPR&D charge related to
the company's licensing agreement with Innocoll, which impacted the
GAAP results as follows:
Income
Pre-tax Tax Net
Income Expense Income Diluted EPS
----------------------------------
GAAP $558 $86 $472 $0.74
COLLEAGUE infusion pump charge
(A) 72 7 65 0.10
Impairment charge 31 12 19 0.03
IPR&D charge (B) 12 5 7 0.01
----------------------------------
Excluding specified items $673 $110 $563 $0.88
==================================
Effective tax rate 16.3%
(A) Included in the Cost of Goods Sold line within the accompanying
consolidated statement of income. Excluding this item, adjusted gross
profit was $1.59 billion and the adjusted gross profit percentage was
50.6%.
(B) Included in the R&D Expenses line within the accompanying
consolidated statement of income. Excluding this item, adjusted R&D
expenses were $218 million, or 6.9% of net sales, which represented a
29.8% increase over 2007 adjusted R&D expenses of $168 million.
2007 description of adjustments and reconciliation
of GAAP to Non-GAAP
---------------------------------------------------
The company's GAAP results for the three months ended September 30,
2007 included a charge related to the AWP litigation and IPR&D
charges related to the company's collaboration with HHD, LLC and the
company's in-licensing arrangement with Halozyme Therapeutics, Inc.
These charges impacted the GAAP results as follows:
Income
Pre-tax Tax Net
Income Expense Income Diluted EPS
----------------------------------
GAAP $483 $88 $395 $0.61
Litigation-related charge (A) 56 22 34 0.05
IPR&D charges (B) 35 6 29 0.04
----------------------------------
Excluding specified items $574 $116 $458 $0.70
==================================
Effective tax rate 20.2%
(A) Included in the Marketing and Administrative Expenses line within
the accompanying consolidated statement of income. Excluding this
item, adjusted marketing and administrative expenses were $607
million, or 22.1% of net sales.
(B) Included in the R&D Expenses line within the accompanying
consolidated statement of income. Excluding this item, adjusted R&D
expenses were $168 million, or 6.1% of net sales.
-0-
BAXTER INTERNATIONAL INC.
Consolidated Statements of Income
Nine Months Ended September 30, 2008 and 2007
(unaudited)
(in millions, except per share and percentage data)
Nine Months
Ended
September 30,
---------------
2008 2007 Change
------ ------ ---------
NET SALES $9,217 $8,254 12%
COST OF GOODS SOLD 4,689(1) 4,220 11%
----------------------------------------------------------------------
GROSS PROFIT 4,528 4,034 12%
----------------------------------------------------------------------
% of Net Sales 49.1% 48.9% 0.2 pts
MARKETING AND ADMINISTRATIVE EXPENSES 2,024 1,867(2) 8%
% of Net Sales 22.0% 22.6% (0.6 pts)
RESEARCH AND DEVELOPMENT EXPENSES 642(3) 539(3) 19%
% of Net Sales 7.0% 6.5% 0.5 pts
RESTRUCTURING CHARGE - 70(4) (100%)
NET INTEREST EXPENSE 62 10 N/M
OTHER EXPENSE, NET 36(5) 28(5) 29%
----------------------------------------------------------------------
PRE-TAX INCOME 1,764 1,520 16%
----------------------------------------------------------------------
INCOME TAX EXPENSE 319(6) 291 10%
----------------------------------------------------------------------
% of Pre-Tax Income 18.1% 19.1% (1.0 pt)
NET INCOME $1,445 $1,229 18%
======================================================================
BASIC EPS $2.30 $1.90 21%
======================================================================
DILUTED EPS $2.26 $1.87 21%
======================================================================
WEIGHTED AVERAGE NUMBER OF COMMON SHARES
OUTSTANDING
Basic 628 647
Diluted 640 657
----------------------------------------------------------------------
ADJUSTED PRE-TAX INCOME (excluding
specified items) $1,932(7)$1,681(7) 15%
ADJUSTED NET INCOME (excluding specified
items) $1,581(7)$1,338(7) 18%
ADJUSTED DILUTED EPS (excluding specified
items) $2.47(7) $2.03(7) 22%
1 Cost of goods sold in 2008 included charges totaling $125 million
($110 million on an after-tax basis, or $0.17 per diluted share)
related to COLLEAGUE infusion pumps.
2 Marketing and administrative expenses in 2007 included a charge of
$56 million ($34 million on an after-tax basis, or $0.05 per diluted
share) related to the company's AWP litigation.
3 R&D expenses in 2008 included an IPR&D charge of $12 million ($7
million on an after-tax basis, or $0.01 per diluted share) related to
the company's licensing agreement with Innocoll to market and
distribute Innocoll's gentamicin surgical implant in the United
States. R&D expenses in 2007 included IPR&D charges of $25 million
related to the company's collaboration with HHD, LLC and $10 million
related to the company's in-licensing arrangement with Halozyme
Therapeutics, Inc. The after-tax impact of these items was $29
million, or $0.04 per diluted share, in 2007. Also included in R&D
expenses in 2007 was an IPR&D charge of $11 million ($7 million on an
after-tax basis, or $0.01 per diluted share) related to the
acquisition of MAAS Medical, LLC.
4 A restructuring charge in 2007 of $70 million ($46 million on an
after-tax basis, or $0.07 per diluted share) was primarily for costs
and asset impairments associated with the consolidation of certain
commercial and manufacturing operations outside of the United States.
5 Other expense, net in 2008 included an impairment charge of $31
million ($19 million on an after-tax basis, or $0.03 per diluted
share) associated with the discontinuation of the CLEARSHOT pre-
filled syringe program. Additionally, other expense, net in 2007
included income of $23 million, reflecting a gain on the sale of the
Transfusion Therapies business of $58 million less related charges of
$35 million. The after-tax impact of these items was $6 million of
income, or $0.01 per diluted share, in 2007.
6 Income tax expense in 2008 included a benefit of $15 million, or
$0.02 per diluted share, related primarily to the reversal of a
valuation allowance and tax expense associated with foreign earnings
that the company planned to repatriate to the United States.
7 Refer to page 10 for a description of the adjustments and a
reconciliation to GAAP measures.
Non-GAAP Financial Measures: The non-GAAP financial measures contained
in this press release (pre-tax income, income tax expense, net
income, and diluted EPS, excluding specified items) adjust for
factors that are unusual or nonrecurring. Unusual or nonrecurring
items can be highly variable, difficult to predict, and of a size
that may substantially impact the company's reported operations for a
period. Management believes that non-GAAP financial measures can
facilitate a fuller analysis of the company's results of operations,
particularly in evaluating performance period over period. Management
uses these non-GAAP financial measures internally in financial
planning, to monitor business unit performance, and in evaluating
management performance. Refer to the company's filing on Form 8-K of
today's date for additional information.
-0-
BAXTER INTERNATIONAL INC.
Notes to Consolidated Statements of Income
Nine Months Ended September 30, 2008 and 2007
Description of Adjustments and Reconciliation of GAAP to Non-GAAP
Measures
(unaudited)
(in millions, except per share and percentage data)
2008 description of adjustments and reconciliation
of GAAP to Non-GAAP
---------------------------------------------------
The company's GAAP results for the nine months ended September 30,
2008 included charges related to COLLEAGUE infusion pumps, an
impairment charge associated with the discontinuation of the
CLEARSHOT pre-filled syringe program, and an IPR&D charge related to
the company's licensing agreement with Innocoll, which impacted the
GAAP results as follows:
Income
Pre-tax Tax Net
Income Expense Income Diluted EPS
----------------------------------
GAAP $1,764 $319 $1,445 $2.26
COLLEAGUE infusion pump charges
(A) 125 15 110 0.17
Impairment charge 31 12 19 0.03
IPR&D charge (B) 12 5 7 0.01
----------------------------------
Excluding specified items $1,932 $351 $1,581 $2.47
==================================
Effective tax rate 18.2%
(A) Included in the Cost of Goods Sold line within the accompanying
consolidated statement of income. Excluding this item, adjusted gross
profit was $4.65 billion and the adjusted gross profit percentage was
50.5%.
(B) Included in the R&D Expenses line within the accompanying
consolidated statement of income. Excluding this item, adjusted R&D
expenses were $630 million, or 6.8% of net sales, which represented a
25.0% increase over 2007 adjusted R&D expenses of $504 million.
2007 description of adjustments and reconciliation
of GAAP to Non-GAAP
---------------------------------------------------
The company's GAAP results for the nine months ended September 30,
2007 included a restructuring charge, primarily for costs and asset
impairments associated with the consolidation of certain commercial
and manufacturing operations outside of the United States, a charge
related to the AWP litigation, and IPR&D charges related to the
company's collaboration with HHD, LLC and the company's in-licensing
arrangement with Halozyme Therapeutics, Inc. These charges impacted
the GAAP results as follows:
Income
Pre-tax Tax Net
Income Expense Income Diluted EPS
----------------------------------
GAAP $1,520 $291 $1,229 $1.87
Restructuring charge 70 24 46 0.07
Litigation-related charge (A) 56 22 34 0.05
IPR&D charges (B) 35 6 29 0.04
----------------------------------
Excluding specified items $1,681 $343 $1,338 $2.03
==================================
Effective tax rate 20.4%
(A) Included in the Marketing and Administrative Expenses line within
the accompanying consolidated statement of income. Excluding this
item, adjusted marketing and administrative expenses were $1.81
billion, or 21.9% of net sales.
(B) Included in the R&D Expenses line within the accompanying
consolidated statement of income. Excluding this item, adjusted R&D
expenses were $504 million, or 6.1% of net sales.
-0-
BAXTER INTERNATIONAL INC.
Condensed Consolidated Balance Sheets
(unaudited)
($ in millions)
September 30, December 31,
2008 2007
------------- ------------
Assets
--------------------------------------------
Cash and equivalents $2,191 $2,539
Receivables 2,101 2,026
Inventories 2,520 2,334
Other current assets 625 656
--------------------------
Total current assets 7,437 7,555
--------------------------
Property, plant and equipment, net 4,598 4,487
Other long-term assets 3,174 3,252
----------------------------------------------------------------------
Total assets $15,209 $15,294
======================================================================
Liabilities and Shareholders' Equity
--------------------------------------------
Short-term debt $235 $425
Other current liabilities 3,089 3,387
Long-term debt 3,185 2,664
Other long-term liabilities 1,641 1,902
Shareholders' equity 7,059 6,916
----------------------------------------------------------------------
Total liabilities and shareholders' equity $15,209 $15,294
======================================================================
-0-
BAXTER INTERNATIONAL INC.
Cash Flows from Operations and Changes in Net Debt
(unaudited)
($ in millions)
----------------------------------------------------------------------
Cash Flows from Operations
----------------------------------------------------------------------
(Brackets denote cash outflows) Three Months Nine Months
Ended Ended
September 30, September 30,
--------------- ---------------
2008 2007 2008 2007
------- ------- ------- -------
Net income $472 $395 $1,445 $1,229
Adjustments
Depreciation and amortization 165 141 481 428
Deferred income taxes 54 14 164 32
Stock compensation 38 36 111 99
Restructuring and infusion pump
charges 72 - 125 70
Impairment charge 31 - 31 -
Litigation-related charge - 56 - 56
IPR&D charges 12 35 12 46
Other 4 27 27 53
Changes in balance sheet items
Receivables 7 40 (86) (114)
Inventories (52) (91) (207) (261)
Accounts payable and accrued
liabilities 18 6 (236) (85)
Restructuring payments (9) (14) (35) (20)
Other 1 (37) 63 21
----------------------------------------------------------------------
Cash flows from operations $813 $608 $1,895 $1,554
======================================================================
----------------------------------------------------------------------
Changes in Net Debt
----------------------------------------------------------------------
Increase (decrease) Three Months Nine Months
Ended Ended
September 30, September 30,
--------------- ---------------
2008 2007 2008 2007
------- ------- ------- -------
Net debt, beginning of period $1,087 $231 $550 $316
Cash flows from operations (813) (608) (1,895) (1,554)
Capital expenditures 251 166 615 424
Dividends 136 109 411 598
Proceeds from sale of Transfusion
Therapies business - - - (421)
Proceeds and excess tax benefits from
stock issued under employee benefit
plans (302) (72) (547) (500)
Purchases of treasury stock 589 827 1,522 1,641
Acquisitions of and investments in
businesses and technologies 12 40 73 83
Payments relating to settlements of
cross-currency swaps 241 49 542 196
Other, including the effect of exchange
rate changes 28 10 (42) (31)
----------------------------------------------------------------------
Increase in net debt 142 521 679 436
----------------------------------------------------------------------
Net debt, September 30 $1,229 $752 $1,229 $752
======================================================================
----------------------------------------------------------------------
Key statistics, September 30:
Days sales outstanding 55.6 58.7 55.6 58.7
Inventory turns 2.4 2.3 2.4 2.3
----------------------------------------------------------------------
-0-
BAXTER INTERNATIONAL INC.
Net Sales
Periods Ending September 30, 2008 and 2007
(unaudited)
($ in millions)
----------------------------------------------------------------------
Q3 Q3 % Growth @ % Growth @
2008 2007 Actual Rates Constant Rates
----------------------------------------------------------------------
----------------------------------------------------------------------
BioScience(1)
United States $617 $556 11% 11%
International 737 543 36% 23%
Total $1,354 $1,099 23% 17%
----------------------------------------------------------------------
----------------------------------------------------------------------
Medication Delivery
United States $527 $528 0% 0%
International 630 519 21% 12%
Total $1,157 $1,047 11% 6%
----------------------------------------------------------------------
----------------------------------------------------------------------
Renal
United States $95 $96 (1%) (1%)
International 498 464 7% (1%)
Total $593 $560 6% (1%)
----------------------------------------------------------------------
----------------------------------------------------------------------
Baxter excluding
Transfusion Therapies
United States $1,239 $1,180 5% 5%
International 1,865 1,526 22% 12%
Total $3,104 $2,706 15% 9%
----------------------------------------------------------------------
----------------------------------------------------------------------
Transfusion
Therapies(1)
United States $33 $31 6% 6%
International 14 13 8% 8%
Total $47 $44 7% 7%
----------------------------------------------------------------------
----------------------------------------------------------------------
Baxter International
Inc.
United States $1,272 $1,211 5% 5%
International 1,879 1,539 22% 12%
Total $3,151 $2,750 15% 9%
======================================================================
----------------------------------------------------------------------
YTD YTD % Growth @ % Growth @
2008 2007 Actual Rates Constant Rates
----------------------------------------------------------------------
----------------------------------------------------------------------
BioScience(1)
United States $1,754 $1,572 12% 12%
International 2,195 1,789 23% 10%
Total $3,949 $3,361 17% 11%
----------------------------------------------------------------------
----------------------------------------------------------------------
Medication Delivery
United States $1,555 $1,578 (1%) (1%)
International 1,831 1,498 22% 11%
Total $3,386 $3,076 10% 5%
----------------------------------------------------------------------
----------------------------------------------------------------------
Renal
United States $290 $288 1% 1%
International 1,459 1,350 8% (2%)
Total $1,749 $1,638 7% (1%)
----------------------------------------------------------------------
----------------------------------------------------------------------
Baxter excluding
Transfusion Therapies
United States $3,599 $3,438 5% 5%
International 5,485 4,637 18% 7%
Total $9,084 $8,075 12% 6%
----------------------------------------------------------------------
----------------------------------------------------------------------
Transfusion
Therapies(1)
United States $93 $108 (14%) (14%)
International 40 71 (44%) (48%)
Total $133 $179 (26%) (27%)
----------------------------------------------------------------------
----------------------------------------------------------------------
Baxter International
Inc.
United States $3,692 $3,546 4% 4%
International 5,525 4,708 17% 6%
Total $9,217 $8,254 12% 5%
======================================================================
(1) The results of operations of the Transfusion Therapies (TT)
business were previously reported in the BioScience business. The TT
business was sold on February 28, 2007. The TT totals above include
sales of TT products through the date of divestiture, as well as
revenues associated with manufacturing, distribution and other
services provided by the company to the buyer of the TT business
post-divestiture.
-0-
BAXTER INTERNATIONAL INC.
Key Product Line Sales
Periods Ending September 30, 2008 and 2007
(unaudited)
($ in millions)
----------------------------------------------------------------------
Q3 Q3 % Growth @ % Growth @
2008 2007 Actual Rates Constant Rates
----------------------------------------------------------------------
----------------------------------------------------------------------
BioScience
Recombinants $516 $432 19% 14%
Plasma Proteins 338 246 37% 26%
Antibody Therapy 307 245 25% 22%
Regenerative
Medicine(1) 104 82 27% 21%
Other(2) 89 94 (5%) (13%)
----------------------------------------------------------------------
Total BioScience(3) $1,354 $1,099 23% 17%
----------------------------------------------------------------------
----------------------------------------------------------------------
Medication Delivery
IV Therapies $403 $346 16% 10%
Global Injectables 403 372 8% 5%
Infusion Systems 235 207 14% 11%
Anesthesia 112 111 1% (1%)
Other 4 11 (64%) (82%)
----------------------------------------------------------------------
Total Medication
Delivery $1,157 $1,047 11% 6%
----------------------------------------------------------------------
----------------------------------------------------------------------
Renal
PD Therapy $480 $448 7% 0%
HD Therapy 113 112 1% (5%)
----------------------------------------------------------------------
Total Renal $593 $560 6% (1%)
----------------------------------------------------------------------
----------------------------------------------------------------------
Baxter excluding
Transfusion Therapies $3,104 $2,706 15% 9%
----------------------------------------------------------------------
----------------------------------------------------------------------
Transfusion
Therapies(3) $47 $44 7% 7%
----------------------------------------------------------------------
----------------------------------------------------------------------
TOTAL BAXTER $3,151 $2,750 15% 9%
======================================================================
----------------------------------------------------------------------
YTD YTD % Growth @ % Growth @
2008 2007 Actual Rates Constant Rates
----------------------------------------------------------------------
----------------------------------------------------------------------
BioScience
Recombinants $1,460 $1,251 17% 11%
Plasma Proteins 889 714 25% 16%
Antibody Therapy 908 705 29% 25%
Regenerative
Medicine(1) 307 251 22% 16%
Other(2) 385 440 (13%) (22%)
----------------------------------------------------------------------
Total BioScience(3) $3,949 $3,361 17% 11%
----------------------------------------------------------------------
----------------------------------------------------------------------
Medication Delivery
IV Therapies $1,182 $1,012 17% 9%
Global Injectables 1,164 1,114 4% 0%
Infusion Systems 684 624 10% 6%
Anesthesia 333 296 13% 9%
Other 23 30 (23%) (33%)
----------------------------------------------------------------------
Total Medication
Delivery $3,386 $3,076 10% 5%
----------------------------------------------------------------------
----------------------------------------------------------------------
Renal
PD Therapy $1,404 $1,310 7% (1%)
HD Therapy 345 328 5% (3%)
----------------------------------------------------------------------
Total Renal $1,749 $1,638 7% (1%)
----------------------------------------------------------------------
----------------------------------------------------------------------
Baxter excluding
Transfusion Therapies $9,084 $8,075 12% 6%
----------------------------------------------------------------------
----------------------------------------------------------------------
Transfusion
Therapies(3) $133 $179 (26%) (27%)
----------------------------------------------------------------------
----------------------------------------------------------------------
TOTAL BAXTER $9,217 $8,254 12% 5%
======================================================================
(1) Previously referred to as BioSurgery.
(2) Principally includes vaccines, sales of plasma to third parties,
and recombinant FIX (BeneFIX). Sales of BeneFIX ceased as of June 30,
2007.
(3) The results of operations of the TT business were previously
reported in the BioScience business. The TT business was sold on
February 28, 2007. The TT totals above include sales of TT products
through the date of divestiture, as well as revenues associated with
manufacturing, distribution and other services provided by the
company to the buyer of the TT business post-divestiture.
-0-
BAXTER INTERNATIONAL INC.
Key Product Line Sales by US and International
Three-Month Periods Ending September 30, 2008 and 2007
(unaudited)
($ in millions)
----------------------------------------------------------------------
Q3 2008
----------------------------
US International Total
----------------------------------------------------------------------
BioScience
Recombinants $220 $296 $516
Plasma Proteins 108 230 338
Antibody Therapy 217 90 307
Regenerative Medicine(1) 55 49 104
Other(2) 17 72 89
----------------------------------------------------------------------
Total BioScience(3) $617 $737 $1,354
----------------------------------------------------------------------
----------------------------------------------------------------------
Medication Delivery
IV Therapies $115 $288 $403
Global Injectables 209 194 403
Infusion Systems 133 102 235
Anesthesia 70 42 112
Other 0 4 4
----------------------------------------------------------------------
Total Medication Delivery $527 $630 $1,157
----------------------------------------------------------------------
----------------------------------------------------------------------
Renal
PD Therapy $73 $407 $480
HD Therapy 22 91 113
----------------------------------------------------------------------
Total Renal $95 $498 $593
----------------------------------------------------------------------
----------------------------------------------------------------------
Baxter excluding Transfusion Therapies $1,239 $1,865 $3,104
----------------------------------------------------------------------
----------------------------------------------------------------------
Transfusion Therapies(3) $33 $14 $47
----------------------------------------------------------------------
----------------------------------------------------------------------
TOTAL BAXTER $1,272 $1,879 $3,151
======================================================================
----------------------------------------------------------------------
Q3 2007
-----------------------------
US International Total
----------------------------------------------------------------------
BioScience
Recombinants $205 $227 $432
Plasma Proteins 101 145 246
Antibody Therapy 178 67 245
Regenerative Medicine(1) 44 38 82
Other(2) 28 66 94
----------------------------------------------------------------------
Total BioScience(3) $556 $543 $1,099
----------------------------------------------------------------------
----------------------------------------------------------------------
Medication Delivery
IV Therapies $109 $237 $346
Global Injectables 217 155 372
Infusion Systems 123 84 207
Anesthesia 75 36 111
Other 4 7 11
----------------------------------------------------------------------
Total Medication Delivery $528 $519 $1,047
----------------------------------------------------------------------
----------------------------------------------------------------------
Renal
PD Therapy $69 $379 $448
HD Therapy 27 85 112
----------------------------------------------------------------------
Total Renal $96 $464 $560
----------------------------------------------------------------------
----------------------------------------------------------------------
Baxter excluding Transfusion Therapies $1,180 $1,526 $2,706
----------------------------------------------------------------------
----------------------------------------------------------------------
Transfusion Therapies(3) $31 $13 $44
----------------------------------------------------------------------
----------------------------------------------------------------------
TOTAL BAXTER $1,211 $1,539 $2,750
======================================================================
----------------------------------------------------------------------
% Growth @ Actual Rates
-----------------------------
US International Total
----------------------------------------------------------------------
BioScience
Recombinants 7% 30% 19%
Plasma Proteins 7% 59% 37%
Antibody Therapy 22% 34% 25%
Regenerative Medicine(1) 25% 29% 27%
Other(2) (39%) 9% (5%)
----------------------------------------------------------------------
Total BioScience(3) 11% 36% 23%
----------------------------------------------------------------------
----------------------------------------------------------------------
Medication Delivery
IV Therapies 6% 22% 16%
Global Injectables (4%) 25% 8%
Infusion Systems 8% 21% 14%
Anesthesia (7%) 17% 1%
Other (100%) (43%) (64%)
----------------------------------------------------------------------
Total Medication Delivery 0% 21% 11%
----------------------------------------------------------------------
----------------------------------------------------------------------
Renal
PD Therapy 6% 7% 7%
HD Therapy (19%) 7% 1%
----------------------------------------------------------------------
Total Renal (1%) 7% 6%
----------------------------------------------------------------------
----------------------------------------------------------------------
Baxter excluding Transfusion Therapies 5% 22% 15%
----------------------------------------------------------------------
----------------------------------------------------------------------
Transfusion Therapies(3) 6% 8% 7%
----------------------------------------------------------------------
----------------------------------------------------------------------
TOTAL BAXTER 5% 22% 15%
======================================================================
(1) Previously referred to as BioSurgery.
(2) Principally includes vaccines and sales of plasma to third
parties.
(3) The results of operations of the TT business were previously
reported in the BioScience business. The TT business was sold on
February 28, 2007. The TT totals above include sales of TT products
through the date of divestiture, as well as revenues associated with
manufacturing, distribution and other services provided by the
company to the buyer of the TT business post-divestiture.
Contact
Baxter International Inc.
Media Contact:
Deborah Spak, (847) 948-2349
Investor Contacts:
Mary Kay Ladone, (847) 948-3371
Clare Trachtman, (847) 948-3085
Posted: October 2008
