Baxter posts rise in second-quarter profits

Health-care products maker Baxter International today reported second-quarter profits at the upper end of Wall Street's forecasts…

Health-care products maker Baxter International today reported second-quarter profits at the upper end of Wall Street's forecasts, as demand for treatments for haemophilia and immune disorders led growth.

The company, whose products include kidney dialysis filters and blood clotting compounds, posted earnings of $253 million, up from $223 million a year earlier. Results for the 2000 period exclude a charge for in-process research and development and acquisition-related costs.

Baxter, which employs over 1,200 people in Co Mayo, reported a 15 per cent rise in sales before the impact of foreign exchange, or 10 per cent after the impact of foreign exchange.

Sales totalled $1.87 billion in the quarter, compared with $1.69 billion in the year-earlier period.

READ MORE

Baxter's BioScience division posted second-quarter sales of $686 million, up 19 per cent over a year ago, fuelled by manufacturing capacity increases put in place in the second half of last year.

The markets welcomed the results. "The numbers look good. The only question is, 'What are they going to do for an encore?' said Salomon Smith Barney analyst Ms Anne Malone.

For the full year 2001, Baxter said it expects to accelerate its annual sales growth percentage to the low double digits, from 8 per cent reported for 2000.

Shares in Baxter closed on the New York Stock Exchange yesterday at $47.50, $7 below their all-time high set about a month ago. During the past 52 weeks, Baxter shares have outperformedthe Standard & Poor's Medical Device index by over 40 per cent.