Baxter Raises Full-Year 2008 Outlook Following Strong Second-Quarter Financial
Results
Company Posts Second Quarter EPS of $0.85 Per Diluted Share, An Increase of 31
Percent
DEERFIELD, Ill., July 17 /PRNewswire-FirstCall/ -- Baxter International
Inc. (NYSE: BAX) today posted strong financial results for the second quarter
of 2008 and raised its full-year financial outlook.
For the second quarter, Baxter reported net income of $544 million and
earnings per diluted share of $0.85, which compared favorably to the company's
earnings guidance of $0.81 to $0.83 per diluted share. Net income increased
26 percent compared to $431 million reported in the second quarter of 2007,
and earnings per diluted share increased 31 percent from $0.65 per diluted
share reported last year. 2007 results include an after-tax restructuring
charge of $46 million or $0.07 per diluted share. On an adjusted basis, net
income and earnings per diluted share increased 14 percent and 18 percent,
respectively, compared to the prior year period.
The company's strong financial performance can be attributed to continued
gross margin expansion as a result of enhanced business, product and
geographic mix, favorable pricing across multiple businesses and manufacturing
efficiencies.
"Our positive financial performance in the first half of 2008 continues to
reflect the strength of our diversified business model, and positions us well
in this uncertain global economy," said Robert L. Parkinson, Jr., chairman and
chief executive officer.
Baxter's worldwide sales totaled $3.2 billion in the second quarter, an
increase of 13 percent (or 5 percent excluding the impact of foreign
exchange). Positive momentum continued in Baxter's BioScience business in the
second quarter, with revenues totaling approximately $1.4 billion, an increase
of 16 percent. Double-digit growth across the portfolio was the result of
robust sales of plasma-based therapies, products used for the treatment of
hemophilia and immune disorders, biosurgery products and strong demand for the
company's encephalitis vaccine.
Medication Delivery sales grew 12 percent in the quarter to approximately
$1.2 billion, driven by strong international sales of IV therapy products and
injectable drugs, as well as anesthesia products globally. Renal sales
increased 8 percent to approximately $600 million as a result of an increase
in peritoneal dialysis patients in many markets around the world.
The company continues to advance its product pipeline across its business
portfolio. Investments in research and development in the quarter totaled
$222 million, reflecting an increase of 25 percent over the prior-year period.
Six-Month Results
For the first six months of 2008, Baxter's net income totaled $973 million
and increased 17 percent, with earnings per diluted share increasing 21
percent to $1.52. On an adjusted basis, Baxter's net income of $1.0 billion
increased 16 percent from $880 million last year. Adjusted earnings per
diluted share for the six-month period of $1.59 increased 20 percent, from
$1.33 per diluted share in the prior year period.
Baxter's worldwide sales grew 10 percent in the first half of the year to
$6.1 billion, an increase from $5.5 billion last year. Excluding the impact
of foreign exchange, sales growth for the first six months of the year was 3
percent. Sales within the United States totaled $2.4 billion, an increase of
4 percent over the same period last year, and international sales grew 15
percent (or 3 percent excluding the impact of foreign exchange) to $3.6
billion.
Third Quarter and Full-Year 2008 Outlook
As a result of the strong performance in the first half of the year,
Baxter is raising its financial outlook for full-year 2008. The company
expects sales growth for the year, excluding the impact of foreign exchange,
of 5 to 6 percent, with earnings per diluted share of $3.28 to $3.32, before
any special items. This compares to the company's previous earnings guidance
of $3.18 to $3.24. In addition, the company expects cash flow from operations
of at least $2.6 billion.
For the third quarter of 2008, Baxter expects sales growth of 6 to 8
percent, excluding the impact of foreign exchange, and earnings per diluted
share, before any special items, of $0.81 to $0.83.
A webcast of Baxter's second 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 July 17, 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;
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.
BAXTER INTERNATIONAL INC.
Consolidated Statements of Income
Three Months Ended June 30, 2008 and 2007
(unaudited)
(in millions, except per share and percentage data)
Three Months Ended
June 30,
-------------------
2008 2007 Change
------ ------- --------
NET SALES $3,189 $2,829 13%
COST OF GOODS SOLD 1,562 1,437 9%
--------------------------------------------------------------------------
GROSS PROFIT 1,627 1,392 17%
--------------------------------------------------------------------------
% of Sales 51.0% 49.2% 1.8 pts
MARKETING AND ADMINISTRATIVE EXPENSES 703 621 13%
% of Sales 22.0% 22.0% 0 pts
RESEARCH AND DEVELOPMENT EXPENSES 222 177 25%
% of Sales 7.0% 6.3% 0.7 pts
RESTRUCTURING CHARGE - 70 (1) (100%)
NET INTEREST EXPENSE (INCOME) 25 (1) N/M
OTHER EXPENSE, NET 5 17 (71%)
--------------------------------------------------------------------------
PRE-TAX INCOME 672 508 32%
--------------------------------------------------------------------------
INCOME TAX EXPENSE 128 77 (2) 66%
--------------------------------------------------------------------------
% of Pre-Tax Income 19.0% 15.2% 3.8 pts
NET INCOME $544 $431 26%
==========================================================================
BASIC EPS $0.87 $0.66 32%
==========================================================================
DILUTED EPS $0.85 $0.65 31%
==========================================================================
WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING
Basic 626 650
Diluted 638 661
--------------------------------------------------------------------------
ADJUSTED PRE-TAX INCOME (excluding
specified item) $672 $578 (3) 16%
ADJUSTED NET INCOME (excluding
specified item) $544 $477 (3) 14%
ADJUSTED DILUTED EPS (excluding
specified item) $0.85 $0.72 (3) 18%
(1) A restructuring charge of $70 million ($46 million, or $0.07 per
share, on an after-tax basis) in 2007 was primarily for costs and
asset impairments associated with the consolidation of certain
commercial and manufacturing operations outside of the United States.
(2) Income tax expense in 2007 included a $15 million benefit related to
an audit settlement and the extension of tax incentives in
jurisdictions outside the United States. The effective income tax
rate in 2007 was also favorably impacted by the restructuring charge
described in Note 1 above.
(3) Refer to page 6 for a description of the adjustment 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, net income and per-share earnings,
excluding certain 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.
BAXTER INTERNATIONAL INC.
Note to Consolidated Statement of Income
Three Months Ended June 30, 2007
Description of Adjustment and Reconciliation of GAAP to Non-GAAP Measures
(unaudited)
(in millions, except per share and percentage data)
The company's GAAP results for the three months ended June 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, which impacted the GAAP results
as follows:
Income
Pre-tax Tax Net Diluted
Income Expense Income EPS
-----------------------------------------
GAAP $508 $77 $431 $0.65
Restructuring charge 70 24 46 0.07
-----------------------------------------
Excluding specified item $578 $101 $477 $0.72
=========================================
Effective tax rate 17.5%
BAXTER INTERNATIONAL INC.
Consolidated Statements of Income
Six Months Ended June 30, 2008 and 2007
(unaudited)
(in millions, except per share and percentage data)
Six Months Ended
June 30,
---------------------
2008 2007 Change
-------- ------- -------
NET SALES $6,066 $5,504 10%
COST OF GOODS SOLD 3,059 (1) 2,846 7%
--------------------------------------------------------------------------
GROSS PROFIT 3,007 2,658 13%
--------------------------------------------------------------------------
% of Sales 49.6% 48.3% 1.3 pts
MARKETING AND ADMINISTRATIVE EXPENSES 1,343 1,204 12%
% of Sales 22.1% 21.9% 0.2 pts
RESEARCH AND DEVELOPMENT EXPENSES 412 336 23%
% of Sales 6.8% 6.1% 0.7 pts
RESTRUCTURING CHARGE - 70 (2) (100%)
NET INTEREST EXPENSE 42 4 N/M
OTHER EXPENSE, NET 4 7 (43%)
--------------------------------------------------------------------------
PRE-TAX INCOME 1,206 1,037 16%
--------------------------------------------------------------------------
INCOME TAX EXPENSE 233 203 15%
--------------------------------------------------------------------------
% of Pre-Tax Income 19.3% 19.6% (0.3 pts)
NET INCOME $973 $834 17%
==========================================================================
BASIC EPS $1.55 $1.28 21%
==========================================================================
DILUTED EPS $1.52 $1.26 21%
==========================================================================
WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING
Basic 629 650
Diluted 641 660
--------------------------------------------------------------------------
ADJUSTED PRE-TAX INCOME (excluding
specified items) $1,259 (3) $1,107 (3) 14%
ADJUSTED NET INCOME (excluding
specified items) $1,018 (3) $880 (3) 16%
ADJUSTED DILUTED EPS (excluding
specified items) $1.59 (3) $1.33 (3) 20%
(1) Cost of goods sold in the first quarter of 2008 included a charge of
$53 million ($45 million, or $0.07 per share, on an after-tax basis)
related to COLLEAGUE infusion pumps.
(2) A restructuring charge of $70 million ($46 million, or $0.07 per
share, on an after-tax basis) in 2007 was primarily for costs and
asset impairments associated with the consolidation of certain
commercial and manufacturing operations outside of the United States.
(3) Refer to page 8 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, net income and per-share earnings,
excluding certain 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.
BAXTER INTERNATIONAL INC.
Notes to Consolidated Statements of Income
Six Months Ended June 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 adjustment and reconciliation of GAAP to Non-GAAP
---------------------------------------------------------------------
The company's GAAP results for the six months ended June 30, 2008
included a first quarter charge related to COLLEAGUE infusion pumps,
which impacted the GAAP results as follows:
Income
Pre-tax Tax Net Diluted
Income Expense Income EPS
-----------------------------------
GAAP $1,206 $233 $973 $1.52
COLLEAGUE infusion pump charge (A) 53 8 45 0.07
-----------------------------------
Excluding specified item $1,259 $241 $1,018 $1.59
===================================
Effective tax rate 19.1%
(A) Included in the Cost of Goods Sold line in the accompanying
consolidated statement of income. Excluding this charge, adjusted
gross profit was $3,060 and the adjusted gross profit percentage
was 50.4%.
2007 description of adjustment and reconciliation of GAAP to Non-GAAP
---------------------------------------------------------------------
The company's GAAP results for the six months ended June 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, which impacted the
GAAP results as follows:
Income
Pre-tax Tax Net Diluted
Income Expense Income EPS
-----------------------------------
GAAP $1,037 $203 $834 $1.26
Restructuring charge 70 24 46 0.07
-----------------------------------
Excluding specified item $1,107 $227 $880 $1.33
===================================
Effective tax rate 20.5%
BAXTER INTERNATIONAL INC.
Condensed Consolidated Balance Sheets
(unaudited)
($ in millions)
June 30, 2008 December 31, 2007
-------------- ------------------
Assets
------
Cash and equivalents $2,147 $2,539
Receivables 2,217 2,026
Inventories 2,571 2,334
Other current assets 624 656
------------------------------------
Total current assets 7,559 7,555
------------------------------------
Property, plant and equipment, net 4,680 4,487
Other long-term assets 3,231 3,252
--------------------------------------------------------------------------
Total assets $15,470 $15,294
==========================================================================
Liabilities and Shareholders' Equity
------------------------------------
Short-term debt $62 $425
Other current liabilities 3,331 3,387
Long-term debt 3,172 2,664
Other long-term liabilities 1,686 1,902
Shareholders' equity 7,219 6,916
--------------------------------------------------------------------------
Total liabilities and
shareholders' equity $15,470 $15,294
==========================================================================
BAXTER INTERNATIONAL INC.
Cash Flows from Operations and Changes in Net Debt
(unaudited)
($ in millions)
Cash Flows from Operations
(Brackets denote cash outflows) Three Months Ended Six Months Ended
June 30, June 30,
------------------ ----------------
2008 2007 2008 2007
--------- ------- ------ -------
Net income $544 $431 $973 $834
Adjustments
Depreciation and amortization 160 147 316 287
Deferred income taxes 49 31 110 18
Stock compensation 35 36 73 63
Restructuring and infusion pump
charges - 70 53 70
Other 14 33 23 37
Changes in balance sheet items
Receivables (111) (56) (93) (154)
Inventories (50) (42) (155) (170)
Accounts payable and accrued
liabilities 87 67 (254) (91)
Restructuring payments (14) (3) (26) (6)
Other 6 17 62 58
-------------------------------------------------------------------------
Cash flows from operations $720 $731 $1,082 $946
=========================================================================
Changes in Net Debt
Increase (decrease) Three Months Ended Six Months Ended
June 30, June 30,
------------------ ----------------
2008 2007 2008 2007
--------- ------- ------ -------
Net debt, beginning of period $1,136 $336 $550 $316
Cash flows from operations (720) (731) (1,082) (946)
Capital expenditures 207 165 364 258
Dividends 137 109 275 489
Proceeds from sale of Transfusion
Therapies business - - - (421)
Proceeds from stock issued under
employee benefit plans (133) (227) (245) (428)
Purchases of treasury stock 388 544 933 814
Acquisitions of and investments in
businesses and technologies - 11 61 43
Payments relating to settlements of
cross-currency swaps 132 - 301 147
Other, including the effect of
exchange rate changes (60) 24 (70) (41)
-------------------------------------------------------------------------
Increase (decrease) in net debt (49) (105) 537 (85)
-------------------------------------------------------------------------
Net debt, June 30 $1,087 $231 $1,087 $231
=========================================================================
Key statistics, June 30:
Days sales outstanding 56.8 56.0 56.8 56.0
Inventory turns 2.3 2.6 2.3 2.6
Baxter International Inc.
Net Sales
Periods Ending June 30, 2008 and 2007
(unaudited)
($ in millions)
--------------------------------------------------------------------------
% Growth % Growth
@ @
Q2 Q2 Actual Constant
2008 2007 Rates Rates
--------------------------------------------------------------------------
--------------------------------------------------------------------------
BioScience (1)
United States $590 $532 11% 11%
International 795 658 21% 6%
Total $1,385 $1,190 16% 8%
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Medication Delivery
United States $525 $535 (2%) (2%)
International 639 504 27% 13%
Total $1,164 $1,039 12% 5%
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Renal
United States $97 $95 2% 2%
International 501 458 9% (2%)
Total $598 $553 8% (1%)
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Baxter excluding Transfusion Therapies
United States $1,212 $1,162 4% 4%
International 1,935 1,620 19% 6%
Total $3,147 $2,782 13% 5%
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Transfusion Therapies (1)
United States $29 $34 (15%) (15%)
International 13 13 0% (15%)
Total $42 $47 (11%) (15%)
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Baxter International Inc.
United States $1,241 $1,196 4% 4%
International 1,948 1,633 19% 6%
Total $3,189 $2,829 13% 5%
==========================================================================
% Growth % Growth
@ @
YTD YTD Actual Constant
2008 2007 Rates Rates
--------------------------------------------------------------------------
--------------------------------------------------------------------------
BioScience (1)
United States $1,137 $1,016 12% 12%
International 1,458 1,246 17% 5%
Total $2,595 $2,262 15% 8%
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Medication Delivery
United States $1,028 $1,050 (2%) (2%)
International 1,201 979 23% 10%
Total $2,229 $2,029 10% 4%
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Renal
United States $195 $192 2% 2%
International 961 886 8% (2%)
Total $1,156 $1,078 7% (1%)
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Baxter excluding Transfusion Therapies
United States $2,360 $2,258 5% 5%
International 3,620 3,111 16% 5%
Total $5,980 $5,369 11% 5%
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Transfusion Therapies (1)
United States $60 $77 (22%) (22%)
International 26 58 (55%) (60%)
Total $86 $135 (36%) (39%)
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Baxter International Inc.
United States $2,420 $2,335 4% 4%
International 3,646 3,169 15% 3%
Total $6,066 $5,504 10% 3%
==========================================================================
(1) The results of operations of the Transfusion Therapies (TT) business
were previously reported in the BioScience business. The TT business
was sold on February 28, 2007. The TT totals above include sales of
TT products through the date of divestiture, as well as revenues
associated with manufacturing, distribution and other services
provided by the company to the buyer of the TT business post-
divestiture.
Baxter International Inc.
Key Product Line Sales
Periods Ending June 30, 2008 and 2007
(unaudited)
($ in millions)
--------------------------------------------------------------------------
% Growth % Growth
@ @
Q2 Q2 Actual Constant
2008 2007 Rates Rates
--------------------------------------------------------------------------
--------------------------------------------------------------------------
BioScience
Recombinants $508 $431 18% 10%
Plasma Proteins 291 243 20% 12%
Antibody Therapy 315 238 32% 27%
Regenerative Medicine (1) 109 87 25% 17%
Other (2) 162 191 (15%) (27%)
--------------------------------------------------------------------------
Total BioScience (3) $1,385 $1,190 16% 8%
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Medication Delivery
IV Therapies $408 $346 18% 8%
Global Injectables 393 381 3% (2%)
Infusion Systems 229 208 10% 5%
Anesthesia 122 96 27% 22%
Other 12 8 50% 38%
--------------------------------------------------------------------------
Total Medication Delivery $1,164 $1,039 12% 5%
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Renal
PD Therapy $479 $443 8% (1%)
HD Therapy 119 110 8% (2%)
--------------------------------------------------------------------------
Total Renal $598 $553 8% (1%)
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Baxter excluding Transfusion Therapies $3,147 $2,782 13% 5%
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Transfusion Therapies (3) $42 $47 (11%) (15%)
--------------------------------------------------------------------------
--------------------------------------------------------------------------
TOTAL BAXTER $3,189 $2,829 13% 5%
==========================================================================
--------------------------------------------------------------------------
% Growth % Growth
@ @
YTD YTD Actual Constant
2008 2007 Rates Rates
--------------------------------------------------------------------------
--------------------------------------------------------------------------
BioScience
Recombinants $944 $819 15% 9%
Plasma Proteins 551 468 18% 11%
Antibody Therapy 601 460 31% 26%
Regenerative Medicine (1) 203 169 20% 14%
Other (2) 296 346 (14%) (25%)
--------------------------------------------------------------------------
Total BioScience (3) $2,595 $2,262 15% 8%
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Medication Delivery
IV Therapies $779 $666 17% 8%
Global Injectables 761 742 3% (2%)
Infusion Systems 449 417 8% 3%
Anesthesia 221 185 19% 15%
Other 19 19 0% (5%)
--------------------------------------------------------------------------
Total Medication Delivery $2,229 $2,029 10% 4%
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Renal
PD Therapy $924 $862 7% (1%)
HD Therapy 232 216 7% (2%)
--------------------------------------------------------------------------
Total Renal $1,156 $1,078 7% (1%)
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Baxter excluding Transfusion Therapies $5,980 $5,369 11% 5%
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Transfusion Therapies (3) $86 $135 (36%) (39%)
--------------------------------------------------------------------------
--------------------------------------------------------------------------
TOTAL BAXTER $6,066 $5,504 10% 3%
==========================================================================
(1) Previously referred to as BioSurgery.
(2) Principally includes vaccines, sales of plasma to third parties, and
recombinant FIX (BeneFIX). Sales of BeneFIX ceased as of June 30,
2007.
(3) The results of operations of the TT business were previously reported
in the BioScience business. The TT business was sold on February 28,
2007. The TT totals above include sales of TT products through the
date of divestiture, as well as revenues associated with
manufacturing, distribution and other services provided by the company
to the buyer of the TT business post-divestiture.
Baxter International Inc.
Key Product Line Sales by US and International
Three-Month Periods Ending June 30, 2008 and 2007
(unaudited)
($ in millions)
--------------------------------------------------------------------------
Q2 2008 Q2 2007
--------------------- ----------------------
Interna- Interna-
US tional Total US tional Total
--------------------------------------------------------------------------
BioScience
Recombinants $206 $302 $508 $198 $233 $431
Plasma Proteins 97 194 291 96 147 243
Antibody Therapy 220 95 315 176 62 238
Regenerative Medicine (1) 55 54 109 46 41 87
Other (2) 12 150 162 16 175 191
--------------------------------------------------------------------------
Total BioScience (3) $590 $795 $1,385 $532 $658 $1,190
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Medication Delivery
IV Therapies $113 $295 $408 $107 $239 $346
Global Injectables 199 194 393 237 144 381
Infusion Systems 134 95 229 127 81 208
Anesthesia 76 46 122 62 34 96
Other 3 9 12 2 6 8
--------------------------------------------------------------------------
Total Medication Delivery $525 $639 $1,164 $535 $504 $1,039
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Renal
PD Therapy $73 $406 $479 $68 $375 $443
HD Therapy 24 95 119 27 83 110
--------------------------------------------------------------------------
Total Renal $97 $501 $598 $95 $458 $553
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Baxter excluding
Transfusion Therapies $1,212 $1,935 $3,147 $1,162 $1,620 $2,782
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Transfusion Therapies (3) $29 $13 $42 $34 $13 $47
--------------------------------------------------------------------------
--------------------------------------------------------------------------
TOTAL BAXTER $1,241 $1,948 $3,189 $1,196 $1,633 $2,829
==========================================================================
% Growth @ Actual Rates
-----------------------------
Interna-
US tional Total
--------------------------------------------------------------------------
BioScience
Recombinants 4% 30% 18%
Plasma Proteins 1% 32% 20%
Antibody Therapy 25% 53% 32%
Regenerative Medicine (1) 20% 32% 25%
Other (2) (25%) (14%) (15%)
--------------------------------------------------------------------------
Total BioScience (3) 11% 21% 16%
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Medication Delivery
IV Therapies 6% 23% 18%
Global Injectables (16%) 35% 3%
Infusion Systems 6% 17% 10%
Anesthesia 23% 35% 27%
Other 50% 50% 50%
--------------------------------------------------------------------------
Total Medication Delivery (2%) 27% 12%
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Renal
PD Therapy 7% 8% 8%
HD Therapy (11%) 14% 8%
--------------------------------------------------------------------------
Total Renal 2% 9% 8%
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Baxter excluding Transfusion Therapies 4% 19% 13%
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Transfusion Therapies (3) (15%) 0% (11%)
--------------------------------------------------------------------------
--------------------------------------------------------------------------
TOTAL BAXTER 4% 19% 13%
==========================================================================
(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.
SOURCE Baxter International Inc.
Media, Deborah Spak, +1-847-948-2349, Investors, Mary Kay Ladone,
+1-847-948-3371, or Clare Trachtman, +1-847-948-3085, all of Baxter
International Inc.
