Gambro buy dents Baxter Q3 profit, but boosts sales
This article was originally published in Clinica
Baxter International’s third-quarter profits were hit by $111m in costs related to its takeover of hemodialysis specialist Gambro, with earnings falling to $544m, versus $583m during the same period last year. But excluding these charges, income increased 4% to $655m, or $1.19 per diluted share, in line with previous guidance. On the plus side, the Gambro deal, agreed last year (www.clinica.co.uk, 4 December 2012), helped boost Baxter’s revenues, which grew 9% year-on-year to $3.77bn. The acquisition finally closed in September, months later than expected. Excluding Gambro’s contribution of $100m, Baxter’s Q3 sales were up 6%. For Q4, the company is predicting revenue growth of 12-13% (14-15% on a constant currency basis), which includes around $400m from Gambro, and earnings of $1.24-1.26 per diluted share. For full-year 2013, Baxter anticipates 6% revenue growth (7% at constant currency), including $500m Gambro sales, and earnings of $4.65-4.67 per diluted share.