Baxter Reports First-Quarter 2020 Results

Baxter International first-quarter revenue of $2.8 billion increased 6% on a reported basis and 8% on both a constant currency and operational basis

First-quarter U.S. GAAP earnings per share (EPS) of $0.64 declined 3 percent; Adjusted EPS of $0.82 increased 9 percent1

Company continues to take rapid action on multiple fronts in response to COVID-19 pandemic

DEERFIELD, IL (STL.News) Baxter International Inc. (NYSE:BAX), a leading global medical products company, today reported results for the first quarter of 2020.

“Baxter’s medically essential portfolio puts us on the front lines of the COVID-19 pandemic, and our deepest gratitude goes to the healthcare providers and first responders battling the spread and impact of COVID-19.  Thanks as well to Baxter’s 50,000 employees, whose tireless efforts are making a meaningful difference for patients around the world,” said José (Joe) E. Almeida, chairman and chief executive officer.  “In response to the COVID-19 pandemic, we saw significant increases in demand for several products, particularly in the latter part of the first quarter.  While the pandemic poses continued challenges, our ongoing transformation has strengthened our ability to respond to this global healthcare crisis while advancing our strategic priorities in line with our Mission to Save and Sustain Lives.”

Baxter International First-Quarter Financial Results

Worldwide sales in the first quarter totaled approximately $2.8 billion, an increase of 6% on a reported basis and 8% on both a constant currency and operational basis.  Operational sales in the first quarter exclude the impact of foreign exchange and the company’s recent acquisition of Seprafilm.

Sales in the U.S. totaled $1.2 billion, increasing 9% on a reported basis and 8% on an operational basis.  International sales of $1.6 billion increased 4% on a reported basis and 8% on both a constant currency and operational basis.  Growth across all six of Baxter’s Global Business Units (GBUs) and three geographic segments contributed to positive performance in the quarter.  In addition, sales in the quarter reflected increased demand for select product lines in response to the global COVID-19 pandemic.  These products include Baxter’s continuous renal replacement therapy (CRRT) portfolio, IV Solutions, certain generic injectables and parenteral nutrition therapies.

Please see the attached schedules accompanying this press release for additional details on sales performance in the quarter, including breakouts by Baxter’s GBUs and geographic segments.

For the first quarter, net income attributable to Baxter was $332 million, or $0.64 per diluted share, a decline of 3 percent on a U.S. GAAP (Generally Accepted Accounting Principles) basis.  These results include special items totaling $93 million after-tax, which were primarily related to intangible asset amortization and acquisition and integration expenses.  On an adjusted basis, Baxter’s first quarter net income totaled $425 million, or $0.82 per diluted share.  Adjusted earnings per diluted share advanced 9% in the quarter, driven by solid operational performance.

NOTE: this is NOT the complete release.

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