Exhibit 99.1
BAXTER REPORTS FINANCIAL RESULTS FOR THE THIRD QUARTER
COMPANY DELIVERS SOLID OPERATING RESULTS AND CONTINUED CASH FLOW IMPROVEMENT
DEERFIELD, Ill., Oct. 20 /PRNewswire-FirstCall/ -- Baxter International
Inc. (NYSE: BAX) today reported its financial results for the third quarter of
2005.
On an adjusted basis, excluding special charges described below, earnings
from continuing operations totaled $296 million, and earnings per diluted share
of $0.47 increased 12 percent compared to the third quarter of 2004. Including
these previously announced charges of $0.29 per diluted share in the quarter,
Baxter's earnings from continuing operations on a GAAP basis totaled $116
million, or $0.18 per diluted share.
The previously announced charges recorded in the third quarter include a
charge of $163 million (or $0.26 per diluted share) for the estimated tax
expense related to the company's planned repatriation of approximately $2.0
billion in foreign earnings under the American Jobs Creation Act, and an
after-tax charge of $20 million (or $0.03 per diluted share) for costs
associated with Baxter's decision to discontinue hemodialysis instrument
manufacturing.
Worldwide sales totaled $2.4 billion in the third quarter, an increase of 3
percent over the same period last year (including a 1 percentage point benefit
from foreign exchange). Domestic sales declined 2 percent to $1.1 billion, while
international sales grew 9 percent (including a 3 percentage point benefit from
foreign exchange) to $1.3 billion. Contributing to sales growth was the
continued strength of the BioScience business, with sales of $950 million,
representing an increase of 12 percent compared to the third quarter of 2004.
Sales growth in this business was driven by a 15 percent increase in the
recombinant business, including $162 million of sales of ADVATE, Antihemophilic
Factor (Recombinant), Plasma/Albumin Free Method (rAHF-PFM) for the treatment of
hemophilia A. Offsetting the strong sales in the BioScience business were lower
sales of the company's COLLEAGUE Infusion Pump, which was on hold during the
third quarter. COLLEAGUE Infusion Pump sales totaled approximately $65 million
in the third quarter of 2004.
Cash flow from continuing operations totaled $536 million for the quarter,
compared to $277 million in the same period last year. Free cash flow (cash flow
from continuing operations, less capital expenditures of $116 million in 2005
and $134 million in 2004) was $420 million for the quarter, an improvement of
$277 million from the third quarter last year.
"We continue to focus on driving improved operating results and cash flow,
which has enhanced our overall financial flexibility," said John Greisch, chief
financial officer. "We have again achieved our financial commitments through
improved operational execution across all of our businesses."
New Product Launches and Partnerships
"In addition to our strong operating results in the third quarter, we made
further progress on achieving R&D milestones and finalizing new partnerships,"
said Robert L. Parkinson, Jr., chairman and chief executive officer, "We remain
committed to providing value to our shareholders through predictable and
sustainable growth over the long term, improving cash flow generation and
capital allocation, and accelerating internal R&D and business development
initiatives."
During the third quarter, Baxter launched several new products and
announced new collaborations, including research agreements with Nektar
Therapeutics and Lipoxen Technologies. These collaborations focus on further
advancing ADVATE, with the objective of reducing the frequency of infusions and
enhancing quality of life for hemophilia patients. In addition to these
agreements, the company launched GAMMAGARD LIQUID [Immune Globulin Intravenous
(Human)] (IVIG) 10% Solution in the United States for the treatment of primary
immunodeficiencies, and recently received FDA approval of FLEXBUMIN, the first
preparation of human albumin to be packaged in a flexible container.
Nine-Month Results
For the first nine months of 2005, Baxter's worldwide sales grew 7 percent
to $7.4 billion, up from $6.9 billion in the same period last year. Foreign
exchange favorably impacted sales growth by 3 percentage points year-to-date.
Domestic sales totaled $3.3 billion, an increase of 2 percent over the same
period last year, while international sales increased 11 percent (including a 5
percentage point benefit from foreign exchange), to $4.1 billion.
On an adjusted basis, excluding charges, the company reported year-to-date
earnings from continuing operations of $829 million, or $1.32 per diluted share,
an increase of 18 percent over the same period last year. Including the charges
and restructuring benefits recorded in the second and third quarters, Baxter's
income from continuing operations totaled $664 million, or $1.06 per diluted
share, in the first nine months of the year.
Cash flow from continuing operations totaled $1.3 billion for the first
nine months of the year, compared to $529 million in the same period in 2004.
Free cash flow (cash flow from continuing operations, less capital expenditures
of $279 million in 2005 and $363 million in 2004) was $1.0 billion for the first
nine months of 2005, an improvement of $870 million from the same period last
year.
Fourth Quarter and Full-Year 2005 Outlook
For the fourth quarter of 2005, the company expects organic sales to
decline in low single digits, and adjusted earnings per diluted share from
continuing operations to total $0.56 to $0.58. Accordingly, for full-year 2005,
Baxter expects to achieve organic sales growth of 3 to 4 percent and adjusted
earnings per diluted share from continuing operations of $1.88 to $1.90. Baxter
also now expects cash flow from continuing operations for full-year 2005 to be
approximately $1.7 billion, and to generate free cash flow of approximately $1.2
billion in 2005 (after approximately $500 million of anticipated capital
expenditures).
The company's guidance excludes the $0.26 per diluted share from the second
and third quarter charges and restructuring adjustments, and also excludes
further special charges in the balance of the year, including additional tax
effects of the company's planned repatriation of approximately $2 billion under
the American Jobs Creation Act, future costs associated with the company's
decision to discontinue hemodialysis instrument manufacturing, any additional
COLLEAGUE Infusion Pump-related charges, and costs associated with early debt
retirement.
A webcast of Baxter's third quarter conference call for investors can be
accessed live from a link on the company's website at http://www.baxter.com
beginning at 7:30 a.m. CDT on October 20, 2005. The company's fourth quarter
conference call for investors is scheduled for January 26, 2006. At that time,
Baxter will provide its financial guidance for 2006. Please visit Baxter's
website for more information regarding this and future investor events and
webcasts, including investor presentations.
Baxter International Inc., through its subsidiaries, assists healthcare
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.
This release includes forward-looking statements concerning the company's
financial results. The statements are based on assumptions about many important
factors, including the following, which could cause actual results to differ
materially from those in the forward-looking statements: timely realization of
the benefits of the company's restructuring initiatives; the impact of
geographic and product mix on the company's sales; actions of regulatory bodies
and other governmental authorities, including the Food and Drug Administration
and foreign counterparts that could delay, limit or suspend product sales or
result in seizures, injunctions and monetary sanctions, including with respect
to the COLLEAGUE Infusion Pump; product quality or patient safety concerns
leading to product recalls, withdrawals, launch delays, litigation, or declining
sales; product development risks; interest rates; 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; the 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; results of
product testing; and other risks identified in the company's most recent filing
on Form 10-Q and other SEC filings, all of which are available on the company's
web site. The company does not undertake to update its forward-looking
statements. Financial schedules, including additional reconciliations of
non-GAAP measures, are attached to this release and available on the company's
web site.
BAXTER INTERNATIONAL INC.
Consolidated Statements of Income
(unaudited)
(in millions, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
----------------------- -----------------------
2005 2004 Change 2005 2004 Change
---------- ---------- ---------- ---------- ---------- ----------
CONTINUING OPERATIONS:
NET SALES $ 2,398 $ 2,320 3% $ 7,358 $ 6,908 7%
GROSS PROFIT 1,010 963 5% 3,092 2,795 11%
% to Sales 42.1% 41.5% 0.6 pts 42.0% 40.5% 1.5 pts
MARKETING AND
ADMINISTRATIVE
EXPENSES 491 462 6% 1,511 1,460 3%
% to Sales 20.5% 19.9% 0.6 pts 20.5% 21.1% (0.6 pts)
RESEARCH AND
DEVELOPMENT EXPENSES 133 124 7% 399 389 3%
SPECIAL CHARGES, NET (5) - NM (32) 543 (106)%
- -----------------------------------------------------------------------------------------------------------------
OPERATING INCOME 391 377 4% 1,214 403 201%
- -----------------------------------------------------------------------------------------------------------------
% to Sales 16.3% 16.3% - pts 16.5% 5.8% 10.7 pts
INTEREST, NET 31 20 55% 95 66 44%
OTHER EXPENSE, NET 10 11 (9)% 59 74 (20)%
- -----------------------------------------------------------------------------------------------------------------
INCOME BEFORE INCOME
TAXES 350 346 1% 1,060 263 303%
INCOME TAX EXPENSE
(BENEFIT) 234 87 169% 396 (14) NM
- -----------------------------------------------------------------------------------------------------------------
INCOME FROM CONTINUING
OPERATIONS $ 116 $ 259 (55)% $ 664 $ 277 140%
- -----------------------------------------------------------------------------------------------------------------
BASIC EPS FROM
CONTINUING
OPERATIONS $ 0.19 $ 0.42 (55)% $ 1.07 $ 0.45 138%
- -----------------------------------------------------------------------------------------------------------------
DILUTED EPS FROM
CONTINUING
OPERATIONS $ 0.18 $ 0.42 (57)% $ 1.06 $ 0.45 136%
- -----------------------------------------------------------------------------------------------------------------
WEIGHTED AVERAGE NUMBER
OF COMMON SHARES
OUTSTANDING
Basic 622 615 621 613
Diluted 632 619 627 617
- -----------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------
RECONCILIATION TO NET
INCOME
- -----------------------------------
Income from continuing
operations $ 116 $ 259 $ 664 $ 277
Discontinued
operations - 17 - 5
- ----------------------------------------------------------------------------------------------------
Net income $ 116 $ 276 $ 664 $ 282
- ----------------------------------------------------------------------------------------------------
NM - Not meaningful
BAXTER INTERNATIONAL INC.
Adjusted Consolidated Statements of Income
(unaudited)
(in millions, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
----------------------- -----------------------
2005 2004 Change 2005 2004 Change
---------- ---------- ---------- ---------- ---------- ----------
CONTINUING OPERATIONS:
NET SALES $ 2,398 $ 2,320 3% $ 7,358 $ 6,908 7%
GROSS PROFIT 1,037 963 8% 3,119 2,840 10%
% to Sales 43.2% 41.5% 1.7 pts 42.4% 41.1% 1.3 pts
MARKETING AND
ADMINISTRATIVE
EXPENSES 490 462 6% 1,510 1,405 7%
% to Sales 20.4% 19.9% 0.5 pts 20.5% 20.3% 0.2 pts
RESEARCH AND
DEVELOPMENT
EXPENSES 133 124 7% 399 389 3%
- -----------------------------------------------------------------------------------------------------------------
OPERATING INCOME 414 377 10% 1,210 1,046 16%
- -----------------------------------------------------------------------------------------------------------------
% to Sales 17.3% 16.3% 1.0 pts 16.4% 15.1% 1.3 pts
INTEREST, NET 31 20 55% 95 66 44%
OTHER EXPENSE, NET 10 11 (9)% 59 59 -%
- -----------------------------------------------------------------------------------------------------------------
INCOME BEFORE INCOME
TAXES 373 346 8% 1,056 921 15%
INCOME TAX EXPENSE 77 87 (11)% 227 230 (1)%
- -----------------------------------------------------------------------------------------------------------------
INCOME FROM CONTINUING
OPERATIONS $ 296 $ 259 14% $ 829 $ 691 20%
- -----------------------------------------------------------------------------------------------------------------
BASIC EPS FROM
CONTINUING
OPERATIONS $ 0.48 $ 0.42 14% $ 1.34 $ 1.13 19%
- -----------------------------------------------------------------------------------------------------------------
DILUTED EPS FROM
CONTINUING
OPERATIONS $ 0.47 $ 0.42 12% $ 1.32 $ 1.12 18%
- -----------------------------------------------------------------------------------------------------------------
WEIGHTED AVERAGE
NUMBER OF COMMON
SHARES OUTSTANDING
Basic 622 615 621 613
Diluted 632 619 627 617
- -----------------------------------------------------------------------------------------------------------------
RECONCILIATION OF
ADJUSTED AMOUNTS TO
GAAP AMOUNTS
- -----------------------------------------------------------------------------------------------------------------
Net Income
- -----------------------------------
Adjusted net income
from continuing
operations $ 296 $ 259 $ 829 $ 691
Special items (180) - (165) (414)
Discontinued
operations - 17 - 5
- ----------------------------------------------------------------------------------------------------
GAAP net income $ 116 $ 276 $ 664 $ 282
- ----------------------------------------------------------------------------------------------------
Diluted EPS
- -----------------------------------
Adjusted net income
from continuing
operations $ 0.47 $ 0.42 $ 1.32 $ 1.12
Special items (0.29) - (0.26) (0.67)
Discontinued
operations - 0.03 - 0.01
- ----------------------------------------------------------------------------------------------------
GAAP net income $ 0.18 $ 0.45 $ 1.06 $ 0.46
- ----------------------------------------------------------------------------------------------------
Non-GAAP Financial Measures: 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 nonrecurring. Unusual or nonrecurring
items can be highly variable, difficult to predict, and of a size that may
substantially impact the company's reported operations for a period. Management
believes that non-GAAP financial measures can facilitate a fuller analysis of
the company's results of operations, particularly in evaluating performance
period over period. Management uses these non-GAAP financial measures internally
in financial planning, to monitor performance, and in setting performance
compensation targets.
BAXTER INTERNATIONAL INC.
Consolidated Statements of Income
Reconciliation of GAAP to Adjusted
Three Months Ended September 30, 2005 and 2004
(unaudited)
(in millions, except per share data)
Three Months Ended Three Months Ended
September 30, 2005 September 30, 2004
------------------------------------- ------------------------------------
Special Special
GAAP Items Adjusted GAAP Items Adjusted
---------- ---------- ---------- ---------- ---------- ----------
CONTINUING OPERATIONS:
- --------------------------
NET SALES $ 2,398 $ 2,398 $ 2,320 $ 2,320
GROSS PROFIT 1,010 $ 27(A) 1,037 963 963
MARKETING AND
ADMINISTRATIVE EXPENSES 491 1(A) 490 462 462
RESEARCH AND DEVELOPMENT
EXPENSES 133 133 124 124
SPECIAL CHARGES, NET (5) (5)(B) - - -
- ---------------------------------------------------------------------------------------------------------
OPERATING INCOME 391 23 414 377 377
- ---------------------------------------------------------------------------------------------------------
INTEREST, NET 31 31 20 20
OTHER EXPENSE, NET 10 10 11 11
- ---------------------------------------------------------------------------------------------------------
INCOME BEFORE INCOME
TAXES 350 23 373 346 346
INCOME TAX EXPENSE 234 157(C) 77 87 87
- ---------------------------------------------------------------------------------------------------------
INCOME FROM CONTINUING
OPERATIONS $ 116 $ 180 $ 296 $ 259 $ 259
- ---------------------------------------------------------------------------------------------------------
BASIC EPS FROM CONTINUING
OPERATIONS $ 0.19 $ 0.29 $ 0.48 $ 0.42 $ 0.42
- ---------------------------------------------------------------------------------------------------------
DILUTED EPS FROM
CONTINUING OPERATIONS $ 0.18 $ 0.29 $ 0.47 $ 0.42 $ 0.42
- ---------------------------------------------------------------------------------------------------------
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING
Basic 622 622 615 615
Diluted 632 632 619 619
- ---------------------------------------------------------------------------------------------------------
(A) Hemodialysis
instruments
charge $ 28
----------
(B) Restructuring
reserve
adjustments $ (5)
----------
(C) Tax benefit
on hemodialysis
instruments
charge $ (8)
Tax expense
on restructuring
reserve
adjustments 2
Tax expense
on repatriation
of foreign
earnings 163
----------
Total income
tax expense $ 157
----------
BAXTER INTERNATIONAL INC.
Consolidated Statements of Income
Reconciliation of GAAP to Adjusted
Nine Months Ended September 30, 2005 and 2004
(unaudited)
(in millions, except per share data)
Nine Months Ended Nine Months Ended
September 30, 2005 September 30, 2004
-------------------------------------- --------------------------------------
Special Special
GAAP Items Adjusted GAAP Items Adjusted
---------- ---------- ---------- ---------- ---------- ----------
CONTINUING OPERATIONS:
NET SALES $ 7,358 $ 7,358 $ 6,908 $ 6,908
GROSS PROFIT 3,092 $ 27(A) 3,119 2,795 $ 45(D) 2,840
MARKETING AND
ADMINISTRATIVE
EXPENSES 1,511 1(A) 1,510 1,460 55(E) 1,405
RESEARCH AND
DEVELOPMENT
EXPENSES 399 399 389 389
SPECIAL CHARGES, NET (32) (32)(B) - 543 543(F) -
- ------------------------------------------------------------------------------------------------------------
OPERATING INCOME 1,214 (4) 1,210 403 643 1,046
- ------------------------------------------------------------------------------------------------------------
INTEREST, NET 95 95 66 66
OTHER EXPENSE, NET 59 59 74 15(G) 59
- ------------------------------------------------------------------------------------------------------------
INCOME BEFORE INCOME
TAXES 1,060 (4) 1,056 263 658 921
INCOME TAX EXPENSE
(BENEFIT) 396 169(C) 227 (14) (244)(H) 230
- ------------------------------------------------------------------------------------------------------------
INCOME FROM CONTINUING
OPERATIONS $ 664 $ 165 $ 829 $ 277 $ 414 $ 691
- ------------------------------------------------------------------------------------------------------------
BASIC EPS FROM
CONTINUING OPERATIONS $ 1.07 $ 0.27 $ 1.34 $ 0.45 $ 0.68 $ 1.13
- ------------------------------------------------------------------------------------------------------------
DILUTED EPS FROM
CONTINUING OPERATIONS $ 1.06 $ 0.26 $ 1.32 $ 0.45 $ 0.67 $ 1.12
- ------------------------------------------------------------------------------------------------------------
WEIGHTED AVERAGE
NUMBER OF COMMON
SHARES OUTSTANDING
Basic 621 621 613 613
Diluted 627 627 617 617
- ------------------------------------------------------------------------------------------------------------
(A) Hemodialysis
instruments
charge $ 28 (D) Inventory reserves $ 28
---------- Excess cash flow
hedges 17
----------
(B) Pump repairs and
replacements $ 77 Total $ 45
Restructuring ----------
reserve
adjustments (109)
Total special ----------
charges, net $ (32) (E) Loan and receivable
---------- reserves $ 55
----------
(C) Tax benefit on
hemodialysis
instruments
charge $ (8) (F) Restructuring
charge $ 543
----------
Tax expense on
special charges,
net 14
Tax expense on
repatriation of
foreign earnings 163 (G) Asset
---------- impairments $ 15
Total income ----------
tax expense $ 169 (H) Tax benefit
---------- on restructuring
charge $ (149)
Reversal of tax
reserves (55)
Tax benefit on
other charges (40)
Total income ----------
tax benefit $ (244)
----------
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) Three Months Ended Nine Months Ended
September 30, September 30,
----------------------- -----------------------
2005 2004 2005 2004
---------- ---------- ---------- ----------
Income from continuing operations $ 116 $ 259 $ 664 $ 277
Adjustments
Depreciation and amortization 145 150 437 445
Deferred income taxes 80 (35) 199 (238)
Restructuring and hemodialysis
charges, net 23 - (81) 543
Infusion pump charge - - 77 -
Other 24 4 57 151
Changes in balance sheet items
Receivables 98 7 118 (155)
Inventories (22) 31 68 (44)
Accounts payable and accrued
liabilities 52 (41) (273) (270)
Restructuring payments (22) (74) (95) (136)
Other 42 (24) 144 (44)
- --------------------------------------------------------------------------------------------
Cash flows from continuing
operations $ 536 $ 277 $ 1,315 $ 529
- --------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------
Changes in Net Debt
- --------------------------------------------------------------------------------------------
Increase (decrease) Three Months Ended Nine Months Ended
September 30, September 30,
----------------------- -----------------------
2005 2004 2005 2004
---------- ---------- ---------- ----------
Net debt, beginning of period $ 3,061 $ 3,874 $ 3,185 $ 3,649
Cash flows from continuing
operations (536) (277) (1,315) (529)
Capital expenditures 116 134 279 363
Dividends - - 359 361
Acquisitions, net 14 - 14 20
Purchases of treasury stock - - - 18
Other, including the effect of
exchange rate changes (5) 36 128 (115)
- --------------------------------------------------------------------------------------------
Increase (decrease) in net debt (411) (107) (535) 118
- --------------------------------------------------------------------------------------------
Net debt, September 30 $ 2,650 $ 3,767 $ 2,650 $ 3,767
- --------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------
Key statistics, September 30:
Days sales outstanding 61.0 63.9 61.0 63.9
Inventory turns 2.7 2.5 2.7 2.5
Net-debt-to-capital ratio (A) 25.3% 38.3% 25.3% 38.3%
- --------------------------------------------------------------------------------------------
(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 $1.25 billion issuance of equity units.
BAXTER INTERNATIONAL INC.
Condensed Consolidated Balance Sheets
(unaudited)
($ in millions)
September 30, December 31,
2005 2004
-------------- --------------
ASSETS
- ----------------------------------------
Cash and equivalents $ 1,712 $ 1,109
Receivables 1,863 2,091
Inventories 1,948 2,135
Other current assets (1) 556 684
-------------------------------
Total current assets 6,079 6,019
-------------------------------
Property, plant and equipment, net 4,114 4,369
Other long-term assets (1) 3,590 3,759
- --------------------------------------------------------------------------
Total assets $ 13,783 $ 14,147
- --------------------------------------------------------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY
- ----------------------------------------
Short-term debt (2) $ 1,354 $ 361
Other current liabilities (1) 2,917 3,925
Long-term debt 3,008 3,933
Other long-term liabilities (1) 2,128 2,223
Stockholders' equity 4,376 3,705
- --------------------------------------------------------------------------
Total liabilities and
stockholders' equity $ 13,783 $ 14,147
- --------------------------------------------------------------------------
(1) The following is a summary of the company's cross-currency swap assets
(liabilities).
September 30, December 31,
2005 2004
-------------- --------------
Original swaps
- ----------------------------------------
Other current liabilities $ - $ (465)
Other long-term liabilities (540) (831)
-------------- --------------
Total (540) (1,296)
-------------- --------------
Mirror swaps
- ----------------------------------------
Other current assets - 109
Other long-term assets - 20
Other long-term liabilities (102) (5)
-------------- --------------
Total (102) 124
-------------- --------------
Net total of all cross-currency swaps $ (642) $ (1,172)
-------------- --------------
Note: As further discussed in the company's SEC filings, during the fourth
quarter of 2004 the company executed offsetting or mirror swaps. 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. At
September 30, 2005, approximately 52% of the net swaps liability has been
fixed by the mirror swaps.
During the nine months ended September 30, 2005, the company settled
certain swap agreements (and related mirror swaps, as applicable), and made
net payments totaling $379 million. In accordance with GAAP, $432 million
of outflows were classified in the financing section of the statement of
cash flows, and $53 million of inflows were classified in the operating
section of the statement of cash flows.
(2) The increase in short-term debt from December 31, 2004 to September 30,
2005 principally related to the reclassification of approximately $800
million of notes due in 2006 from long-term to short-term.
Baxter International Inc.
Net Sales from Continuing Operations
Period Ending September 30, 2005
(unaudited)
- --------------------------------------------------------------------------------------
% Growth @ % Growth @
Q3 Q3 Actual Constant
2005 2004 Rates Rates
- --------------------------------------------------------------------------------------
($ in millions)
- --------------------------------------------------------------------------------------
BioScience
United States $ 449 $ 408 10% 10%
International 501 441 14% 12%
Total $ 950 $ 849 12% 11%
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
Medication Delivery
United States $ 531 $ 593 (10)% (10)%
International 426 393 8% 5%
Total $ 957 $ 986 (3)% (4)%
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
Renal
United States $ 96 $ 101 (5)% (5)%
International 395 384 3% -%
Total $ 491 $ 485 1% (1)%
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
Baxter International Inc.
United States $ 1,076 $ 1,102 (2)% (2)%
International 1,322 1,218 9% 6%
Total $ 2,398 $ 2,320 3% 2%
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
% Growth @ % Growth @
YTD YTD Actual Constant
2005 2004 Rates Rates
- --------------------------------------------------------------------------------------
($ in millions)
- --------------------------------------------------------------------------------------
BioScience
United States $ 1,285 $ 1,196 7% 7%
International 1,557 1,356 15% 10%
Total $ 2,842 $ 2,552 11% 9%
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
Medication Delivery
United States $ 1,702 $ 1,716 (1)% (1)%
International 1,316 1,202 9% 5%
Total $ 3,018 $ 2,918 3% 1%
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
Renal
United States $ 289 $ 303 (5)% (5)%
International 1,209 1,135 7% 2%
Total $ 1,498 $ 1,438 4% -%
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
Baxter International Inc.
United States $ 3,276 $ 3,215 2% 2%
International 4,082 3,693 11% 6%
Total $ 7,358 $ 6,908 7% 4%
- --------------------------------------------------------------------------------------
Baxter International Inc.
Key Product Line Sales
Period Ending September 30, 2005
(unaudited)
- --------------------------------------------------------------------------------------
% Growth @ % Growth @
Q3 Q3 Actual Constant
2005 2004 Rates Rates
- --------------------------------------------------------------------------------------
($ in millions)
- --------------------------------------------------------------------------------------
BioScience
Recombinants $ 392 $ 341 15% 15%
Plasma Proteins(1) 242 254 (5)% (6)%
Antibody Therapy 123 82 50% 50%
Transfusion Therapies 134 124 8% 6%
Other(2) 59 48 23% 23%
- --------------------------------------------------------------------------------------
Total BioScience $ 950 $ 849 12% 11%
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
Medication Delivery
IV Therapies(3) $ 301 $ 275 9% 7%
Drug Delivery 192 198 (3)% (4)%
Infusion Systems 184 248 (26)% (27)%
Anesthesia 259 248 4% 4%
Other(4) 21 17 24% 18%
- --------------------------------------------------------------------------------------
Total Medication
Delivery(5) $ 957 $ 986 (3)% (4)%
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
Renal
PD Therapy $ 381 $ 361 6% 3%
HD Therapy 105 123 (15)% (17)%
Other 5 1 400% 400%
- --------------------------------------------------------------------------------------
Total Renal $ 491 $ 485 1% (1)%
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
TOTAL BAXTER $ 2,398 $ 2,320 3% 2%
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
% Growth @ % Growth @
YTD YTD Actual Constant
2005 2004 Rates Rates
- --------------------------------------------------------------------------------------
($ in millions)
- --------------------------------------------------------------------------------------
BioScience
Recombinants $ 1,133 $ 953 19% 16%
Plasma Proteins(1) 767 759 1% (2)%
Antibody Therapy 305 252 21% 19%
Transfusion Therapies 407 400 2% (1)%
Other(2) 230 188 22% 19%
- --------------------------------------------------------------------------------------
Total BioScience $ 2,842 $ 2,552 11% 9%
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
Medication Delivery
IV Therapies(3) $ 909 $ 845 8% 4%
Drug Delivery 622 588 6% 5%
Infusion Systems 659 669 (1)% (3)%
Anesthesia 772 749 3% 2%
Other(4) 56 67 (16)% (19)%
- --------------------------------------------------------------------------------------
Total Medication
Delivery(5) $ 3,018 $ 2,918 3% 1%
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
Renal
PD Therapy $ 1,140 $ 1,063 7% 4%
HD Therapy 345 365 (5)% (10)%
Other 13 10 30% 30%
- --------------------------------------------------------------------------------------
Total Renal $ 1,498 $ 1,438 4% -%
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
TOTAL BAXTER $ 7,358 $ 6,908 7% 4%
- --------------------------------------------------------------------------------------
(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 other hospital-distributed products.
(5) Sales of oncology products, which were previously included in Other, are
now reported in Drug Delivery, Infusion Systems or Anesthesia, depending on
the product. All prior year sales data has been reclassified to reflect
this change.
Baxter International Inc.
Key Product Line Sales -- US/International
Period Ending September 30, 2005
(unaudited)
- -----------------------------------------------------------------------------
Q3 2005
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($ in millions) US International Total
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BioScience
Recombinants $ 170 $ 222 $ 392
Plasma Proteins (1) 104 138 242
Antibody Therapy 83 40 123
Transfusion Therapies 66 68 134
Other (2) 26 33 59
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Total BioScience $ 449 $ 501 $ 950
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Medication Delivery
IV Therapies (3) $ 101 $ 200 $ 301
Drug Delivery 120 72 192
Infusion Systems 118 66 184
Anesthesia 184 75 259
Other (4) 8 13 21
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Total Medication Delivery (5) $ 531 $ 426 $ 957
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Renal
PD Therapy $ 65 $ 316 $ 381
HD Therapy 30 75 105
Other 1 4 5
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Total Renal $ 96 $ 395 $ 491
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TOTAL BAXTER $ 1,076 $ 1,322 $ 2,398
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Q3 2004
- -----------------------------------------------------------------------------
($ in millions) US International Total
- -----------------------------------------------------------------------------
BioScience
Recombinants $ 153 $ 188 $ 341
Plasma Proteins (1) 135 119 254
Antibody Therapy 49 33 82
Transfusion Therapies 62 62 124
Other (2) 9 39 48
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Total BioScience $ 408 $ 441 $ 849
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- -----------------------------------------------------------------------------
Medication Delivery
IV Therapies (3) $ 93 $ 182 $ 275
Drug Delivery 136 62 198
Infusion Systems 179 69 248
Anesthesia 180 68 248
Other (4) 5 12 17
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Total Medication Delivery (5) $ 593 $ 393 $ 986
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Renal
PD Therapy $ 65 $ 296 $ 361
HD Therapy 36 87 123
Other - 1 1
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Total Renal $ 101 $ 384 $ 485
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TOTAL BAXTER $ 1,102 $ 1,218 $ 2,320
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% Growth
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($ in millions) US International Total
- -----------------------------------------------------------------------------
BioScience
Recombinants 11% 18% 15%
Plasma Proteins (1) (23)% 16% (5)%
Antibody Therapy 69% 21% 50%
Transfusion Therapies 6% 10% 8%
Other (2) 189% (15)% 23%
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Total BioScience 10% 14% 12%
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Medication Delivery
IV Therapies (3) 9% 10% 9%
Drug Delivery (12)% 16% (3)%
Infusion Systems (34)% (4)% (26)%
Anesthesia 2% 10% 4%
Other (4) 60% 8% 24%
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Total Medication Delivery (5) (10)% 8% (3)%
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Renal
PD Therapy -% 7% 6%
HD Therapy (17)% (14)% (15)%
Other NM 300% 400%
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Total Renal (5)% 3% 1%
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TOTAL BAXTER (2)% 9% 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 other hospital-distributed products.
(5) Sales of oncology products, which were previously included in Other, are
now reported in Drug Delivery, Infusion Systems or Anesthesia, depending on
the product. All prior year sales data has been reclassified to reflect
this change.
SOURCE Baxter International Inc.
-0- 10/20/2005
/CONTACT: Media, Deborah Spak, +1-847-948-2349, or Tom Kline,
+1-847-948-2251, or Investors, Mary Kay Ladone, +1-847-948-3371, or
Clare Sullivan, +1-847-948-3085, all of Baxter International Inc./