Baxter has strong Q2, raises outlook for Q3

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Baxter International has reported strong financial results for the second quarter of 2009, causing the company to raise its third quarter financial outlook.

The Deerfield, Ill.-based company said its second quarter net income of $587 million increased 8 percent from the $544 million reported in the second quarter of 2008.

Baxter said its global sales of $3.1 billion declined 2 percent in the second quarter, which was impacted by foreign currency -- without which global sales increased 8 percent. Sales within the U.S. increased 7 percent to $1.3 billion, while international sales declined 8 percent to $1.8 billion.

In the second quarter, the company said sales for its medication delivery unit, under which falls heparin, were $1.1 billion, a decline of 3 percent from the previous-year second quarter (and excluding foreign currency, increased 8 percent). Contributing to its results was growth across product categories, including products used in peritoneal dialysis treatment, intravenous therapies, anesthesia products and injectable drugs.

For the 2009 third quarter, Baxter said it expects sales growth, excluding the impact of foreign currency, of approximately 7 to 8 percent. Based on current foreign exchange rates, the company expects reported sales including the impact of foreign currency to be approximately flat over the prior-year period.