Baxter 1Q sales up 4 percent
DEERFIELD - Baxter International reported first quarter sales were up 4 percent and the company increased its earnings per share outlook for the year.
First quarter worldwide sales totaled $2.4 billion, an increase of 4 percent on a constant currency basis as compared to the prior year period. On a reported basis, sales declined 1 point as foreign exchange negatively impacted sales by five percentage points in the quarter.
"We are off to a strong start in 2016, with first quarter results exceeding our expectations," said José (Joe) E. Almeida, chairman and chief executive officer. "Our new strategic framework focused on portfolio optimization, operational excellence and capital allocation is driving improved performance throughout the organization and is reflected in our increased financial outlook for the year. We are confident our strategy positions the company for sustainable growth and value creation for all our stakeholders.''
Baxter reported income from continuing operations of $3.4 billion, or $6.13 per diluted share, which included an after-tax net gain of approximately $3.3 billion from the disposition of shares the company retained following the spin off of Baxalta in July 2015. Partially offsetting these results were net after-tax special items totaling $109 million (or $0.20 per diluted share) primarily related to debt extinguishment, intangible asset amortization, Baxalta related spin off costs and certain business optimization initiatives.
On an adjusted basis, excluding special items, Baxter's first quarter income from continuing operations totaled $199 million, or $0.36 per diluted share, exceeding the company's previously-issued guidance of $0.28 to $0.30 per diluted share.
Sales within the United States advanced 5 percent to $992 million, while international sales totaled $1.4 billion, representing a 4 percent increase on a constant currency basis, and a 5 percent decline on a reported basis. There was no impact on Baxter's total sales growth in the quarter from U.S. cyclophosphamide.
Based on the company's strong first quarter performance, Baxter is raising its financial outlook for full-year 2016. The company now expects constant currency sales growth for full-year 2016 of approximately 3 percent, or approximately 4 percent after adjusting for increased U.S. competition for cyclophosphamide. On a reported basis, including the impact of foreign exchange,
Baxter now expects sales to increase approximately 1 percent as compared to previous guidance of a decline of approximately 1 percent. In addition, the company now expects earnings from continuing operations, before special items, of $1.59 to $1.67 per diluted share for the full year as compared to previous guidance of $1.46 to $1.54 per diluted share.