Baxter International’s 2nd-quarter profit rises 8 percent as better margins offset sales drop

Baxter 2Q profit rises 8 percent on margins

DEERFIELD, Ill. — Specialty drug and medical device maker Baxter International Inc. said Thursday its profit rose 8 percent in the second quarter on better margins, more than offsetting a decline in sales.

The Deerfield, Ill.-based company earned $587 million, or 96 cents per share, up from profit of $544 million, or 85 cents per share, in the same period a year ago. Sales fell 2 percent to $3.12 billion from $3.19 billion.

Analysts polled by Thomson Reuters expected profit of 94 cents per share on revenue of $3.12 billion.

Worldwide sales fell mainly because of a lower benefit from foreign currency exchange rates. Excluding that, the company said sales would have grown 9 percent. U.S. sales grew 7 percent to $1.3 billion.

Baxter said revenue from its BioScience unit, which includes a hemophilia treatment and biosurgery products, grew 2 percent to $1.4 billion.

Revenue from Baxter’s medication delivery business fell 3 percent to $1.1 billion. That unit includes dialysis treatments, anesthesia products and injectable drugs.

Looking ahead, Baxter International Inc. expects third-quarter adjusted profit between 95 cents and 97 cents per share, while analysts expect profit of 96 cents per share.

Baxter also boosted its full-year earnings-per-share outlook to a range of $3.76 and $3.80, from a prior forecast of $3.72 and $3.78. Analysts expect profit of $3.77 per share.