Exhibit 99.1
FOR IMMEDIATE RELEASE
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| Media contacts: | | Deborah Spak, (847) 948-2349 Sally Benjamin Young, (847) 948-2304 |
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| Investor contacts: | | Mary Kay Ladone, (847) 948-3371 Mike Shapiro, (847) 948-3212 |
BAXTER REPORTS FOURTH QUARTER RESULTS IN LINE WITH
EXPECTATIONS AND PROVIDES FINANCIAL GUIDANCE
FOR FULL-YEAR 2005
Company Generates $1.4 Billion in Cash Flow from Operations in 2004
DEERFIELD, ILL. January 27, 2005 – Baxter International Inc. (NYSE:BAX) today announced financial results for the fourth quarter of 2004.
Income from continuing operations totaled $106 million, including a $245 million non-cash, after-tax asset impairment charge the company announced earlier this month related to its influenza vaccine program and other assets. Income from continuing operations per diluted share totaled $0.17. Excluding the asset impairment charge, earnings from continuing operations were $351 million in the fourth quarter, or $0.57 per diluted share, in line with the company’s expectations.
Worldwide sales in the fourth quarter totaled $2.6 billion, an increase of 3 percent over the same period last year (including a 3 percentage point benefit from foreign exchange). Domestic sales declined 1 percent to $1.2 billion, and international sales grew 7 percent (including a 6 percentage point benefit from foreign exchange) to $1.4 billion.
“We are very pleased with the progress made throughout 2004. We established a new executive management team, improved the company’s cost structure
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BAXTER REPORTS 4TH QUARTER RESULTS — Page 2
by successfully executing the restructuring plans, and demonstrated our ability to set realistic objectives and deliver on them,” said Robert L. Parkinson, Jr., chairman and chief executive officer. “The focus on disciplined, operational execution is clearly yielding solid and substantive results.”
Full-Year 2004 Results
Baxter’s income from continuing operations for full-year 2004 totaled $383 million, or $0.62 per diluted share, including restructuring and other special charges. Excluding the charges, Baxter reported 2004 income from continuing operations of $1.042 billion, or $1.69 per diluted share.
Cash flow from continuing operations totaled approximately $1.4 billion. Free cash flow (cash flow from continuing operations, less capital expenditures) for the full-year increased $181 million to $814 million. Capital spending of $558 million declined 30 percent compared to 2003, and the company reduced net debt by $464 million, resulting in a net-debt-to-capital ratio of 34.2 percent compared to 39.9 percent in the prior year.
“In 2004 we focused on meeting commitments, strengthening the balance sheet and improving the overall quality of earnings and cash flow,” said John Greisch, chief financial officer. “We exceeded the free cash flow objectives set for the year by improving working capital management and capital spending efficiency. We remain committed to delivering sustainable improvements in earnings and free cash flow in 2005 and beyond.”
For the full-year, worldwide sales increased 7 percent to $9.5 billion (including a 4 percentage point benefit from foreign exchange). Domestic sales grew 4 percent in
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BAXTER REPORTS 4TH QUARTER RESULTS — Page 3
2004 to $4.5 billion, and international sales grew 9 percent (including a 7 percentage point benefit from foreign exchange) to $5.0 billion.
Full-year sales for Baxter’s BioScience business totaled $3.5 billion, an increase of 7 percent (including a 4 percentage point benefit from foreign exchange), driven by strong growth of the company’s recombinant Factor VIII products. Recombinant sales totaled $1.3 billion in 2004, an increase of 18 percent over 2003, and included $286 million in sales of ADVATE® Antihemophilic Factor (Recombinant), Plasma/Albumin Free Method (rAHF-PFM), which has now been launched in the U.S. and 12 European countries.
Medication Delivery sales totaled $4.0 billion in 2004, an increase of 6 percent (including a 3 percentage point benefit from foreign exchange), driven by strong growth in the company’s drug delivery business unit. Renal sales advanced 8 percent (including a 4 percentage point benefit from foreign exchange) to $2.0 billion, led primarily by strong international sales of peritoneal dialysis products.
Financial Guidance for 2005
Baxter also announced today its financial guidance for full-year 2005, with organic sales growth of 2 to 4 percent. Sales growth for 2005 reflects the company’s decision to exit certain low margin businesses, which is expected to negatively impact sales growth by approximately 1 percent, or $125 million. The company expects earnings per diluted share from continuing operations to be $1.82 to $1.90. Baxter also expects to generate cash flow from continuing operations of approximately $1.5 billion, or free cash flow of approximately $900 million in 2005 (after $600 million of anticipated capital expenditures).
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BAXTER REPORTS 4TH QUARTER RESULTS — Page 4
For the first quarter of 2005, the company expects organic sales growth of 3 to 4 percent, and earnings per diluted share from continuing operations of $0.33 to $0.35.
The company’s guidance does not include the effect of any potential future decision to repatriate foreign earnings relating to the American Jobs Creation Act of 2004, or the effect of new accounting rules requiring the expensing of stock options.
The Financial Accounting Standards Board (FASB) recently reissued FASB Statement No. 123 “Share–Based Payment,” which covers stock options, as well as other share–based compensation arrangements. The company expects to begin expensing stock options effective July 1, 2005, in accordance with the requirements of FASB Statement No. 123 and will provide the expected impact of this change on its second quarter earnings conference call in July 2005.
A webcast of Baxter’s fourth quarter conference call for investors can be accessed live from a link on Baxter’s website at www.baxter.com beginning at 7:30 a.m. CST on January 27, 2005.
Please visit Baxter’s website for more information regarding future investor events and webcasts, including investor presentations, the company’s Annual Meeting for shareholders in Chicago on May 3, and a company-sponsored Investor Conference in Chicago on May 25.
Baxter International Inc., through its subsidiaries, assists health-care professionals and their patients with the treatment of complex medical conditions, including cancer, hemophilia, immune disorders, kidney disease and trauma. The company applies its expertise in medical devices, pharmaceuticals and biotechnology to make a meaningful difference in patients’ lives.
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BAXTER REPORTS 4TH QUARTER RESULTS — Page 5
This news release contains forward-looking statements that involve risks and uncertainties, including: the company’s ability to realize in a timely manner the anticipated benefits of restructuring initiatives; the effect of economic conditions; the impact of geographic and/or product mix on the company’s sales; actions of regulatory bodies and other governmental authorities, including the FDA and foreign counterparts that could delay, limit or suspend product sales and distribution; product quality and/or patient safety concerns leading to product recalls, withdrawals, launch delays or declining sales; product development risks; interest rates; technological advances in the medical field; demand for and market acceptance risks for new and existing products, such as ADVATE, and other technologies; the impact of competitive products and pricing, including generic competition, drug reimportation and disruptive technologies; inventory reductions or fluctuations in buying patterns by wholesalers or distributors; foreign currency exchange rates; the availability of acceptable raw materials and component supply; global regulatory, trade and tax policies; regulatory, legal or other developments relating to the company’s A, AF and AX series dialyzers; the ability to obtain adequate insurance coverage at reasonable cost; ability to enforce patents; patents of third parties preventing or restricting the company’s manufacture, sale or use of affected products or technology; reimbursement policies of government agencies and private payers; internal and external factors that could impact commercialization; results of product testing; and other risks detailed in the company’s filings with the Securities and Exchange Commission. These forward-looking statements are based on estimates and assumptions within the bounds of management’s knowledge of the company’s business and operations, but there can be no assurance that the actual results or performance of the company will conform to any future results or performance expressed or implied by such forward-looking statements. The company does not undertake any obligation to update any forward-looking statements as a result of new information, future events, changed assumptions or otherwise; and all forward-looking statements speak only as of the time when made. Actual results or experience could differ materially from the forward-looking statements. This news release contains certain non-GAAP financial measures as defined by SEC rules. A reconciliation of these measures to the most directly comparable GAAP measure is included in the schedules entitled “Pro Forma Consolidated Statements of Income” and “GAAP to Pro Forma Reconciliation for Selected Income Statement Lines.”
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BAXTER — PAGE 6
BAXTER INTERNATIONAL INC.
Consolidated Statements of Income
(unaudited)
($ in millions, except per share data)
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| | | Three Months Ended
December 31,
| | | Change
| | | Twelve Months Ended December 31,
| | | Change
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| | | 2004
| | | 2003
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| | | 2003
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CONTINUING OPERATIONS: | | | | | | | | | | | | | | | | | | | | | | |
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NET SALES | | $ | 2,601 | | | $ | 2,531 | | | 3 | % | | $ | 9,509 | | | $ | 8,904 | | | 7 | % |
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GROSS PROFIT | | | 1,120 | | | | 1,135 | | | (1 | %) | | | 3,915 | | | | 3,953 | | | (1 | %) |
% to Sales | | | 43.1 | % | | | 44.8 | % | | (1.7 | pts) | | | 41.2 | % | | | 44.4 | % | | (3.2 | pts) |
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MARKETING AND ADMINISTRATIVE EXPENSES | | | 500 | | | | 485 | | | 3 | % | | | 1,960 | | | | 1,805 | | | 9 | % |
% to Sales | | | 19.2 | % | | | 19.2 | % | | — | pts | | | 20.6 | % | | | 20.3 | % | | 0.3 | pts |
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RESEARCH AND DEVELOPMENT EXPENSES | | | 128 | | | | 141 | | | (9 | %) | | | 517 | | | | 553 | | | (7 | %) |
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RESTRUCTURING AND IMPAIRMENT CHARGES | | | 289 | | | | — | | | — | % | | | 832 | | | | 337 | | | 147 | % |
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OPERATING INCOME | | | 203 | | | | 509 | | | (60 | %) | | | 606 | | | | 1,258 | | | (52 | %) |
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% to Sales | | | 7.8 | % | | | 20.1 | % | | (12.3 | pts) | | | 6.4 | % | | | 14.1 | % | | (7.7 | pts) |
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INTEREST, NET | | | 33 | | | | 16 | | | 106 | % | | | 99 | | | | 87 | | | 14 | % |
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OTHER EXPENSE (INCOME), NET | | | 3 | | | | (4) | | | N/A | | | | 77 | | | | 42 | | | 83 | % |
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INCOME BEFORE INCOME TAXES | | | 167 | | | | 497 | | | (66 | %) | | | 430 | | | | 1,129 | | | (62 | %) |
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INCOME TAX EXPENSE | | | 61 | | | | 126 | | | (52 | %) | | | 47 | | | | 222 | | | (79 | %) |
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INCOME FROM CONTINUING OPERATIONS | | $ | 106 | | | $ | 371 | | | (71 | %) | | $ | 383 | | | $ | 907 | | | (58 | %) |
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BASIC EPS FROM CONTINUING OPERATIONS | | $ | 0.17 | | | $ | 0.61 | | | (72 | %) | | $ | 0.62 | | | $ | 1.51 | | | (59 | %) |
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DILUTED EPS FROM CONTINUING OPERATIONS | | $ | 0.17 | | | $ | 0.60 | | | (72 | %) | | $ | 0.62 | | | $ | 1.50 | | | (59 | %) |
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WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING | | | | | | | | | | | | | | | | | | | | | | |
Basic | | | 617 | | | | 611 | | | | | | | 614 | | | | 599 | | | | |
Diluted | | | 620 | | | | 614 | | | | | | | 618 | | | | 606 | | | | |
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RECONCILIATION TO NET INCOME | | | | | | | | | | | | | | | | | | | | | | |
Income from continuing operations | | $ | 106 | | | $ | 371 | | | | | | $ | 383 | | | $ | 907 | | | | |
Discontinued operations | | | — | | | | (7) | | | | | | | 5 | | | | (24) | | | | |
Cumulative effect of accounting changes | | | — | | | | — | | | | | | | — | | | | (17) | | | | |
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Net income | | $ | 106 | | | $ | 364 | | | | | | $ | 388 | | | $ | 866 | | | | |
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BAXTER — PAGE 7
PRO FORMA
BAXTER INTERNATIONAL INC.
Pro Forma Consolidated Statements of Income
(unaudited)
($ in millions, except per share data)
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| | | Three Months Ended December 31,
| | | Change
| | | Twelve Months Ended December 31,
| | | Change
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| | | 2004
| | | 2003
| | | | 2004
| | | 2003
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CONTINUING OPERATIONS: | | | | | | | | | | | | | | | | | | | | | | |
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NET SALES | | $ | 2,601 | | | $ | 2,531 | | | 3 | % | | $ | 9,509 | | | $ | 8,904 | | | 7 | % |
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GROSS PROFIT | | | 1,120 | | | | 1,135 | | | (1 | %) | | | 3,960 | | | | 3,953 | | | — | % |
% to Sales | | | 43.1 | % | | | 44.8 | % | | (1.7 | pts) | | | 41.6 | % | | | 44.4 | % | | (2.8 | pts) |
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MARKETING AND ADMINISTRATIVE EXPENSES | | | 500 | | | | 485 | | | 3 | % | | | 1,905 | | | | 1,805 | | | 6 | % |
% to Sales | | | 19.2 | % | | | 19.2 | % | | — | pts | | | 20.0 | % | | | 20.3 | % | | (0.3 | pts) |
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RESEARCH AND DEVELOPMENT EXPENSES | | | 128 | | | | 141 | | | (9 | %) | | | 517 | | | | 553 | | | (7 | %) |
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OPERATING INCOME | | | 492 | | | | 509 | | | (3 | %) | | | 1,538 | | | | 1,595 | | | (4 | %) |
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% to Sales | | | 18.9 | % | | | 20.1 | % | | (1.2 | pts) | | | 16.2 | % | | | 17.9 | % | | (1.7 | pts) |
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INTEREST, NET | | | 33 | | | | 16 | | | 106 | % | | | 99 | | | | 87 | | | 14 | % |
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OTHER EXPENSE (INCOME), NET | | | 3 | | | | (4 | ) | | N/A | | | | 62 | | | | 42 | | | 48 | % |
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INCOME BEFORE INCOME TAXES | | | 456 | | | | 497 | | | (8 | %) | | | 1,377 | | | | 1,466 | | | (6 | %) |
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INCOME TAX EXPENSE | | | 105 | | | | 126 | | | (17 | %) | | | 335 | | | | 357 | | | (6 | %) |
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INCOME FROM CONTINUING OPERATIONS | | $ | 351 | | | $ | 371 | | | (5 | %) | | $ | 1,042 | | | $ | 1,109 | | | (6 | %) |
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BASIC EPS FROM CONTINUING OPERATIONS | | $ | 0.57 | | | $ | 0.61 | | | (7 | %) | | $ | 1.69 | | | $ | 1.85 | | | (9 | %) |
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DILUTED EPS FROM CONTINUING OPERATIONS | | $ | 0.57 | | | $ | 0.60 | | | (5 | %) | | $ | 1.69 | | | $ | 1.83 | | | (8 | %) |
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WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING | | | | | | | | | | | | | | | | | | | | | | |
Basic | | | 617 | | | | 611 | | | | | | | 614 | | | | 599 | | | | |
Diluted | | | 620 | | | | 614 | | | | | | | 618 | | | | 606 | | | | |
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RECONCILIATION OF PRO FORMA AMOUNTS TO GAAP AMOUNTS | | | | | | | | | | | | | | | | | | | | | | |
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Net Income | | | | | | | | | | | | | | | | | | | | | | |
Pro forma net income from continuing operations | | $ | 351 | | | $ | 371 | | | | | | $ | 1,042 | | | $ | 1,109 | | | | |
Restructuring and impairment charges | | | (245 | ) | | | — | | | | | | | (639 | ) | | | (202 | ) | | | |
Other charges | | | — | | | | — | | | | | | | (20 | ) | | | — | | | | |
Discontinued operations | | | — | | | | (7 | ) | | | | | | 5 | | | | (24 | ) | | | |
Cumulative effect of accounting changes | | | — | | | | — | | | | | | | — | | | | (17 | ) | | | |
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GAAP net income | | $ | 106 | | | $ | 364 | | | | | | $ | 388 | | | $ | 866 | | | | |
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| Diluted EPS | | | | | | | | | | | | | | | | | | | | | | |
| Pro forma net income from continuing operations | | $ | 0.57 | | | $ | 0.60 | | | | | | $ | 1.69 | | | $ | 1.83 | | | | |
| Restructuring and impairment charges | | | (0.40 | ) | | | — | | | | | | | (1.04 | ) | | | (0.33 | ) | | | |
| Other charges | | | — | | | | — | | | | | | | (0.03 | ) | | | — | | | | |
| Discontinued operations | | | — | | | | (0.01 | ) | | | | | | 0.01 | | | | (0.04 | ) | | | |
| Cumulative effect of accounting changes | | | — | | | | — | | | | | | | — | | | | (0.03 | ) | | | |
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| GAAP net income | | $ | 0.17 | | | $ | 0.59 | | | | | | $ | 0.63 | | | $ | 1.43 | | | | |
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Non-GAAP Financial Measures: In some cases, certain unusual or non-recurring items can be so significant as to obscure patterns and trends of the company’s business in total. The non-GAAP (generally accepted accounting principles) financial measures contained in this press release (including the presentation above of earnings and per-share earnings, excluding certain items) adjust for factors that are unusual or non-recurring. Therefore, management believes that these non-GAAP financial measures facilitate a fuller analysis of the company’s results of operations. Management believes that the presentation of these non-GAAP financial measures provide useful information to investors regarding results of operations as these non-GAAP financial measures allow investors to better evaluate ongoing business performance. Management uses these non-GAAP financial measures internally to monitor performance.
BAXTER — PAGE 8
BAXTER INTERNATIONAL INC.
GAAP to Pro Forma Reconciliation for Selected Income Statement Lines
Continuing Operations
(unaudited)
($ in millions)
| | | | | | | | | | |
| | | Twelve Months Ended December 31, 2004
|
| | | GAAP
| | Q2 2004
Other
Charges
| | | Q2 2004
Restructuring &
Q4 2004
Impairment
Charges
| | | Pro Forma
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Gross Profit | | $3,915 | | $45 | (A) | | $— | | | $3,960 |
Marketing and Administrative Expenses | | 1,960 | | 55 | (B) | | — | | | 1,905 |
Operating Income | | 606 | | 100 | | | 832 | (E) | | 1,538 |
Other Expense, Net | | 77 | | 15 | (C) | | — | | | 62 |
Income before Income Taxes | | 430 | | 115 | | | 832 | | | 1,377 |
Income Tax Expense (Benefit) | | 47 | | (95 | )(D) | | (193 | ) | | 335 |
Income from Continuing Operations | | 383 | | 20 | | | 639 | | | 1,042 |
| (A) | Includes inventory reserves of $28 million and excess cash flow hedges of $17 million. |
| (B) | Loan and receivable reserves. |
| (D) | Includes reversal of tax reserves of $55 million and tax benefit of other charges above of $40 million. |
| (E) | Includes restructuring charges of $543 million and impairment charges of $289 million. |
BAXTER — PAGE 9
BAXTER INTERNATIONAL INC.
Cash Flows from Continuing Operations and Changes in Net Debt
(unaudited)
($ in millions)
Cash Flows from Continuing Operations
(Brackets denote cash outflows)
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| | | Twelve Months Ended
December 31,
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| | | 2004
| | | 2003
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Income from continuing operations | | $ | 383 | | | $ | 907 | |
Adjustments | | | | | | | | |
Depreciation and amortization | | | 601 | | | | 547 | |
Deferred income taxes | | | (119 | ) | | | 106 | |
Impairments, special charges and asset dispositions | | | 404 | | | | (14 | ) |
Restructuring charges | | | 543 | | | | 337 | |
Other | | | 26 | | | | 14 | |
Changes in balance sheet items | | | | | | | | |
Accounts receivable | | | (188 | ) | | | 24 | |
Inventories | | | 28 | | | | (148 | ) |
Accounts payable and accrued liabilities | | | (94 | ) | | | (73 | ) |
Restructuring payments | | | (195 | ) | | | (79 | ) |
Contributions to pension trusts | | | (95 | ) | | | (86 | ) |
Other | | | 78 | | | | (110 | ) |
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Cash flows from continuing operations | | $ | 1,372 | | | $ | 1,425 | |
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Changes in Net Debt Increase (decrease) | | | | | | | | |
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| | | Twelve Months Ended
December 31,
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| | | 2004
| | | 2003
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Net debt, January 1 | | $ | 3,649 | | | $ | 3,449 | |
Cash flows from continuing operations | | | (1,372 | ) | | | (1,425 | ) |
Capital expenditures | | | 558 | | | | 792 | |
Dividends | | | 361 | | | | 346 | |
Acquisitions, net | | | 20 | | | | 97 | |
Issuance of stock | | | — | | | | (644 | ) |
Purchases of treasury stock | | | 18 | | | | 714 | |
Other, including the effect of exchange rate changes | | | (49 | ) | | | 320 | |
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Increase (decrease) in net debt | | | (464 | ) | | | 200 | |
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Net debt, December 31 | | $ | 3,185 | | | $ | 3,649 | |
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Key statistics, December 31: | | | | | | | | |
Days sales outstanding | | | 55.3 | | | | 50.7 | |
Inventory turns | | | 2.7 | | | | 2.6 | |
Net-debt-to-capital ratio(A) | | | 34.2% | | | | 39.9% | |
| (A) | The net-debt-to-capital ratio was calculated in accordance with the company’s primary credit agreements, which give 70% equity credit to the company’s December 2002 $1.25 billion issuance of equity units. |
BAXTER — PAGE 10
BAXTER INTERNATIONAL INC.
Condensed Consolidated Balance Sheets
(unaudited)
($ in millions)
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| | | December 31, 2004
| | December 31, 2003
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ASSETS | | | | |
Cash and equivalents | | $ 1,109 | | $ 925 |
Receivables | | 2,091 | | 1,914 |
Inventories | | 2,135 | | 2,104 |
Other current assets(1) | | 684 | | 417 |
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Total current assets | | 6,019 | | 5,360 |
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Property, plant and equipment, net | | 4,369 | | 4,592 |
Other assets(1) | | 3,803 | | 3,757 |
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Total assets | | $14,191 | | $13,709 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | |
Short-term debt | | $ 361 | | $ 153 |
Other current liabilities(1) | | 4,071 | | 3,645 |
Long-term debt | | 3,933 | | 4,421 |
Other long-term liabilities(1) | | 2,251 | | 2,216 |
Stockholders’ equity | | 3,575 | | 3,274 |
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Total liabilities and stockholders’ equity | | $14,191 | | $13,709 |
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| (1) | The following is a summary of the company’s cross-currency swaps. |
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| | | December 31, 2004
| | | December 31, 2003
|
Original swaps | | | | | |
Other current liabilities | | $ 465 | | | $ 172 |
Other long-term liabilities | | 831 | | | 785 |
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Total | | 1,296 | | | 957 |
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Mirror swaps | | | | | |
Other current assets | | 109 | | | — |
Other long-term assets | | 20 | | | — |
Other long-term liabilities | | (5 | ) | | — |
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Total | | 124 | | | — |
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Net total of all cross-currency swaps | | $1,172 | | | $ 957 |
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Note: As further discussed in the company’s SEC filings, during the fourth quarter of 2004 the company executed offsetting or mirror swaps relating to approximately 58% of the portfolio. These mirror swaps fix the net amount the company will ultimately pay to settle the swaps subject to this strategy. After execution of the mirror swaps, as the market value of the fixed portion of the original portfolio decreases, the market value of the mirror swaps increases, and vice versa.
BAXTER — PAGE 11
Baxter International Inc.
Net Sales from Continuing Operations
Period Ending December 31, 2004
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | |
($ in millions)
| | Q4
2004
| | Q4
2003
| | % Growth @ Actual Rates
| | | % Growth @ Constant Rates
| | | YTD
2004
| | YTD
2003
| | % Growth @ Actual Rates
| | | % Growth @ Constant Rates
| |
BioScience | | | | | | | | | | | | | | | | | | | | | | | | |
United States | | $ | 448 | | $ | 474 | | (5 | %) | | (5 | %) | | $ | 1,644 | | $ | 1,532 | | 7 | % | | 7 | % |
International | | | 504 | | | 462 | | 9 | % | | 2 | % | | | 1,860 | | | 1,737 | | 7 | % | | (2 | %) |
Total | | $ | 952 | | $ | 936 | | 2 | % | | (2 | %) | | $ | 3,504 | | $ | 3,269 | | 7 | % | | 3 | % |
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Medication Delivery | | | | | | | | | | | | | | | | | | | | | | | | |
United States | | $ | 694 | | $ | 685 | | 1 | % | | 1 | % | | $ | 2,410 | | $ | 2,353 | | 2 | % | | 2 | % |
International | | | 435 | | | 412 | | 6 | % | | 0 | % | | | 1,637 | | | 1,474 | | 11 | % | | 3 | % |
Total | | $ | 1,129 | | $ | 1,097 | | 3 | % | | 1 | % | | $ | 4,047 | | $ | 3,827 | | 6 | % | | 3 | % |
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Renal | | | | | | | | | | | | | | | | | | | | | | | | |
United States | | $ | 103 | | $ | 100 | | 3 | % | | 3 | % | | $ | 406 | | $ | 394 | | 3 | % | | 3 | % |
International | | | 417 | | | 398 | | 5 | % | | 1 | % | | | 1,552 | | | 1,414 | | 10 | % | | 4 | % |
Total | | $ | 520 | | $ | 498 | | 4 | % | | 1 | % | | $ | 1,958 | | $ | 1,808 | | 8 | % | | 4 | % |
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Baxter International Inc. | | | | | | | | | | | | | | | | | | | | | | | | |
United States | | $ | 1,245 | | $ | 1,259 | | (1 | %) | | (1 | %) | | $ | 4,460 | | $ | 4,279 | | 4 | % | | 4 | % |
International | | | 1,356 | | | 1,272 | | 7 | % | | 1 | % | | | 5,049 | | | 4,625 | | 9 | % | | 2 | % |
Total | | $ | 2,601 | | $ | 2,531 | | 3 | % | | 0 | % | | $ | 9,509 | | $ | 8,904 | | 7 | % | | 3 | % |
BAXTER — PAGE 12
Baxter International Inc.
Key Product Line Sales
Period Ending December 31, 2004
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | |
($ in millions)
| | Q4
2004
| | Q4
2003
| | % Growth @
Actual Rates
| | | % Growth @
Constant Rates
| | | YTD
2004
| | YTD
2003
| | % Growth @
Actual Rates
| | | % Growth @
Constant Rates
| |
BioScience | | | | | | | | | | | | | | | | | | | | | | | | |
Recombinants | | $ | 376 | | $ | 335 | | 12 | % | | 9 | % | | $ | 1,329 | | $ | 1,123 | | 18 | % | | 14 | % |
Plasma Proteins1 | | | 278 | | | 295 | | (6 | %) | | (7 | %) | | | 1,037 | | | 1,005 | | 3 | % | | 0 | % |
Antibody Therapy | | | 84 | | | 96 | | (12 | %) | | (15 | %) | | | 336 | | | 311 | | 8 | % | | 5 | % |
Transfusion Therapies | | | 150 | | | 150 | | 0 | % | | (3 | %) | | | 550 | | | 553 | | (1 | %) | | (5 | %) |
Other2 | | | 64 | | | 60 | | 5 | % | | (8 | %) | | | 252 | | | 277 | | (9 | %) | | (21 | %) |
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Total BioScience | | $ | 952 | | $ | 936 | | 2 | % | | (2 | %) | | $ | 3,504 | | $ | 3,269 | | 7 | % | | 3 | % |
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Medication Delivery | | | | | | | | | | | | | | | | | | | | | | | | |
IV Therapies3 | | $ | 309 | | $ | 306 | | 1 | % | | (3 | %) | | $ | 1,154 | | $ | 1,100 | | 5 | % | | 0 | % |
Drug Delivery | | | 241 | | | 195 | | 24 | % | | 23 | % | | | 789 | | | 699 | | 13 | % | | 11 | % |
Infusion Systems | | | 236 | | | 253 | | (7 | %) | | (8 | %) | | | 846 | | | 803 | | 5 | % | | 3 | % |
Anesthesia | | | 234 | | | 229 | | 2 | % | | 2 | % | | | 827 | | | 808 | | 2 | % | | 2 | % |
Other4 | | | 109 | | | 114 | | (4 | %) | | (8 | %) | | | 431 | | | 417 | | 3 | % | | (2 | %) |
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Total Medication Delivery5 | | $ | 1,129 | | $ | 1,097 | | 3 | % | | 1 | % | | $ | 4,047 | | $ | 3,827 | | 6 | % | | 3 | % |
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Renal | | | | | | | | | | | | | | | | | | | | | | | | |
PD Therapy | | $ | 382 | | $ | 367 | | 4 | % | | 1 | % | | $ | 1,445 | | $ | 1,344 | | 8 | % | | 3 | % |
HD Therapy | | | 134 | | | 126 | | 6 | % | | 2 | % | | | 499 | | | 447 | | 12 | % | | 6 | % |
Other | | | 4 | | | 5 | | (13 | %) | | 0 | % | | | 14 | | | 17 | | (17 | %) | | (35 | %) |
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Total Renal | | $ | 520 | | $ | 498 | | 4 | % | | 1 | % | | $ | 1,958 | | $ | 1,808 | | 8 | % | | 4 | % |
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TOTAL BAXTER | | $ | 2,601 | | $ | 2,531 | | 3 | % | | 0 | % | | $ | 9,509 | | $ | 8,904 | | 7 | % | | 3 | % |
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| 1 | Includes plasma-derived hemophilia (FVII, FVIII, FIX and FEIBA), albumin, biosurgery (Tisseel) and other plasma-based products. |
| 2 | Principally includes vaccines and non-plasma-based biosurgery products (FloSeal & CoSeal). |
| 3 | Principally includes intravenous solutions and nutritional products. |
| 4 | Principally includes oncology and other hospital-distributed products. |
| 5 | Sales of pain management products, which were previously included in Anesthesia, are now reported in Infusion Systems or Other, depending on the product. All prior sales data has been reclassified to reflect this change. |
BAXTER — PAGE 13
Baxter International Inc.
Key Product Line Sales — US/International
Period Ending December 31, 2004
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Q4 2004
| | Q4 2003
| | | | % Growth
| |
($ in millions)
| | US
| | International
| | Total
| | US
| | International
| | Total
| | | | US
| | | International
| | | Total
| |
BioScience | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Recombinants | | $ | 173 | | $ 203 | | $ | 376 | | $ | 172 | | $ 163 | | $ | 335 | | | | 1 | % | | 25 | % | | 12 | % |
Plasma Proteins1 | | | 118 | | 160 | | | 278 | | | 151 | | 144 | | | 295 | | | | (22 | %) | | 12 | % | | (6 | %) |
Antibody Therapy | | | 46 | | 38 | | | 84 | | | 58 | | 38 | | | 96 | | | | (20 | %) | | 0 | % | | (12 | %) |
Transfusion Therapies | | | 76 | | 74 | | | 150 | | | 76 | | 74 | | | 150 | | | | 0 | % | | 0 | % | | 0 | % |
Other2 | | | 35 | | 29 | | | 64 | | | 17 | | 43 | | | 60 | | | | 111 | % | | (36 | %) | | 5 | % |
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Total BioScience | | $ | 448 | | $ 504 | | $ | 952 | | $ | 474 | | $ 462 | | $ | 936 | | | | (5 | %) | | 9 | % | | 2 | % |
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Medication Delivery | | | | | | | | | | | | | | | | | | | | | | | | | | | |
IV Therapies3 | | $ | 104 | | $ 205 | | $ | 309 | | $ | 116 | | $ 190 | | $ | 306 | | | | (11 | %) | | 8 | % | | 1 | % |
Drug Delivery | | | 186 | | 55 | | | 241 | | | 147 | | 48 | | | 195 | | | | 26 | % | | 16 | % | | 24 | % |
Infusion Systems | | | 182 | | 54 | | | 236 | | | 204 | | 49 | | | 253 | | | | (10 | %) | | 9 | % | | (7 | %) |
Anesthesia | | | 214 | | 20 | | | 234 | | | 208 | | 21 | | | 229 | | | | 3 | % | | (5 | %) | | 2 | % |
Other4 | | | 8 | | 101 | | | 109 | | | 10 | | 104 | | | 114 | | | | (19 | %) | | (3 | %) | | (4 | %) |
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Total Medication Delivery5 | | $ | 694 | | $ 435 | | $ | 1,129 | | $ | 685 | | $ 412 | | $ | 1,097 | | | | 1 | % | | 6 | % | | 3 | % |
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Renal | | | | | | | | | | | | | | | | | | | | | | | | | | | |
PD Therapy | | $ | 65 | | $ 317 | | $ | 382 | | $ | 65 | | $ 302 | | $ | 367 | | | | 0 | % | | 5 | % | | 4 | % |
HD Therapy | | | 35 | | 99 | | | 134 | | | 32 | | 94 | | | 126 | | | | 8 | % | | 5 | % | | 6 | % |
Other | | | 3 | | 1 | | | 4 | | | 3 | | 2 | | | 5 | | | | 14 | % | | (52 | %) | | (13 | %) |
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Total Renal | | $ | 103 | | $ 417 | | $ | 520 | | $ | 100 | | $ 398 | | $ | 498 | | | | 3 | % | | 5 | % | | 4 | % |
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TOTAL BAXTER | | $ | 1,245 | | $1,356 | | $ | 2,601 | | $ | 1,259 | | $1,272 | | $ | 2,531 | | | | (1 | %) | | 7 | % | | 3 | % |
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| 1 | Includes plasma-derived hemophilia (FVII, FVIII, FIX and FEIBA), albumin, biosurgery (Tisseel) and other plasma-based products. |
| 2 | Principally includes vaccines and non-plasma-based biosurgery products (FloSeal & CoSeal). |
| 3 | Principally includes intravenous solutions and nutritional products. |
| 4 | Principally includes oncology and other hospital-distributed products. |
| 5 | Sales of pain management products, which were previously included in Anesthesia, are now reported in Infusion Systems or Other, depending on the product. All prior sales data has been reclassified to reflect this change. |
