Baxter International Inc., has posted lower net earnings of $326 million during the fourth quarter ended December 2013 as against $494 million in the corresponding period of last year, a fall of 34 per cent. The lower profit is mainly due to provision of after-tax special items totaling $366 million, primarily for costs associated with its acquisition of Gambro, business optimization programs and recent collaborations with Coherus Biosciences and Cell Therapeutics, Inc. Excluding special items, its net earnings worked out to $692 million.
However, its worldwide net sales increased by 16.4 per cent to $4,368 million from $3,753 million. Earning per share worked out to $0.60 as compared to $0.90 in the last period. Sales within the US totaled $1.8 billion and advanced by 13 per cent, and international sales of $2.6 billion increased by 19 per cent. BioScience revenues grew by 5 per cent to $1.8 billion, driven primarily by double-digit growth and solid demand for the company's hemophilia therapies, including ADVATE and FEIBA in the US and Europe, as well as for biosurgery products. Medical products sales moved up by 25 per cent to $2.6 billion
For the full year ended December 2013, Baxter's net sales increased by 7.5 per cent to $15,259 million from $14,190 million. Its net profit declined by 13.5 per cent to $2,012 million from $2,326 million and its EPS worked out $3.70 from $4.22 in the previous year. Its BioScience sales improved by 5 per cent, while medical products sales grew by 9 per cent. It R&D expenditure increased by 8 per cent to $1,246 million from $1,156 million. Its sales in US increased by 7 per cent to $6,451 million from $6,056 million and that in International market moved up by 8 per cent to $8,808 million from $8,134 million.
Robert L Parkinson, Jr., chairman and CEO, said, “We continue to meet our financial objectives while navigating a challenging and complex macro-environment. We remain focused on the company's strategic priorities of advancing the new product pipeline, investing in future growth opportunities, and strengthening our operational execution, which will result in enhanced value for patients, healthcare providers and shareholders.”
“We are building upon the proven expertise and leadership we have across a number of therapeutic areas by capitalizing on our significant global presence and differentiated brands, pursuing innovation and establishing a robust new product pipeline, and improving access and standards of care around the world while enhancing patient outcomes,” he added.
Baxter expects sales growth for full-year 2014 of 9 to 10 per cent before the impact of foreign exchange. It expects earnings before special items, of $5.05 to $5.25 per diluted share.