Exhibit 99.1
BAXTER REPORTS STRONG EARNINGS FOR THE THIRD QUARTER WITH EPS OF $0.57 PER SHARE
BAXTER RAISES FULL-YEAR EPS GUIDANCE
DEERFIELD, Ill., Oct. 19 /PRNewswire-FirstCall/ -- Baxter International Inc.
(NYSE: BAX) today reported strong growth in earnings for the third quarter
driven by accelerated revenue growth, continued improvement in operational
performance, expansion of gross and operating margins, and lower interest
expense.
Baxter's third quarter net income of $374 million increased from $116
million in 2005. Earnings per diluted share of $0.57 increased from $0.18 per
diluted share in the prior year period, and were at the high end of the guidance
range previously provided by the company of $0.55 to $0.57 per diluted share.
On an adjusted basis, excluding special items recorded in the prior year
period, third quarter net income increased 26 percent from $296 million in 2005
and earnings per diluted share increased 21 percent from $0.47 per diluted
share. In the third quarter last year, the company recorded $180 million (or
$0.29 per diluted share) for charges associated with the exit of hemodialysis
instrument manufacturing and for the tax expense related to the repatriation of
foreign earnings.
Baxter's worldwide sales totaled $2.6 billion in the third quarter, an
increase of 7 percent, or 6 percent excluding the benefit from foreign exchange.
Sales within the United States totaled $1.1 billion, an increase of 3 percent
over the same period last year, and sales outside of the United States increased
9 percent (or 7 percent excluding the impact of foreign exchange) to $1.5
billion in the quarter.
Contributing to sales growth was Baxter's BioScience business, with sales of
$1.1 billion, an increase of 15 percent. Driving this performance was growth
from several products used for the treatment of hemophilia and immune disorders,
including ADVATE [Antihemophilic Factor (Recombinant), Plasma/Albumin-Free
Method (rAHF-PFM)] and Baxter's portfolio of intravenous immunoglobulins (IVIG),
as well as solid growth from other plasma-based therapies and biosurgery
products.
Renal sales increased 6 percent to $519 million in the third quarter due to
continued gains in peritoneal dialysis patients. Medication Delivery sales
declined 1 percent to $950 million as a result of generic drug competition.
"I'm particularly pleased with the continued and balanced improvement in
margins across all of our businesses. This is a strength of our diversified
model, and provides leverage for us to continue to accelerate investments to
grow our company," said Robert L. Parkinson, Jr., chairman and chief executive
officer of Baxter. "Over the company's 75-year history, Baxter has pioneered
many technological and therapeutic breakthroughs for the benefit of patients
worldwide, and with our renewed investments in the company, we expect to
continue to drive future benefits and value for both patients and shareholders."
Recent Highlights
Baxter has recently announced several initiatives and milestones that
leverage the company's unique technology platforms, further expand its global
presence and focus its resources and investments on areas that provide long-term
strategic value. These include:
-- Preliminary results from the company's Phase I/II clinical trial of
whole-virus H5N1 influenza candidate vaccine, which suggest that the
vaccine is well-tolerated in humans and it can induce antibodies that
neutralize widely divergent strains of H5N1.
-- Approval from regulatory authorities in Canada and Australia to begin
marketing ADVATE. ADVATE is now approved for use in 31 countries around
the world.
-- Re-launching the COLLEAGUE Infusion Pump in all key markets outside the
United States. Baxter has now completed the remediation of the majority
of infusion pumps currently in use outside the United States, and is
awaiting FDA approval of its corrective action plan in the United
States.
-- Signing a definitive agreement for the sale of the Transfusion
Therapies business for $540 million. Subject to regulatory approvals
and other customary closing conditions, the company expects to close
the transaction by the first quarter of 2007.
Nine-Month Results
For the first nine months of 2006, Baxter's net income totaled $965 million
and increased 45 percent, with earnings per diluted share of $1.47, which
increased 39 percent. On an adjusted basis, Baxter's net income of $1.0 billion
increased 24 percent from $829 million last year. Adjusted earnings per diluted
share for the nine-month period of $1.57 increased 19 percent from $1.32 per
diluted share in the prior year period. Details related to charges recorded in
both nine-month periods can be found on the supplemental schedule on page 10 of
this release.
In the nine-month period, Baxter's worldwide sales grew 3 percent to $7.6
billion, up from $7.4 billion last year. Excluding the impact of foreign
exchange, organic sales growth for the first nine months of the year was 4
percent. Domestic sales totaled $3.4 billion, an increase of 3 percent over the
same period last year, and international sales grew 4 percent (or 6 percent
excluding the impact of foreign exchange) to $4.3 billion.
Cash flow from operations totaled $1.4 billion for the nine-month period,
compared to $1.3 billion in the same period in 2005. Free cash flow (cash flow
from operations, less capital expenditures of $336 million through the third
quarter of 2006) was $1.1 billion, reflecting an improvement of $50 million from
the same period last year.
Fourth Quarter and Full-Year 2006 Guidance
For full-year 2006, the company expects to achieve organic sales growth of
approximately 6 percent, and earnings per diluted share of $2.17 to $2.19,
before special items (or $2.07 to $2.09 on a GAAP basis). In addition, the
company expects cash flow from operations for full-year 2006 to approach $2.0
billion, with free cash flow in excess of $1.4 billion (after approximately $550
million of anticipated capital expenditures).
For the fourth quarter of 2006, the company expects organic sales (excluding
the impact of foreign exchange) to grow 7 to 8 percent, and earnings per diluted
share of $0.60 to $0.62, before any special items.
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 19, 2006. On Friday, October 20, 2006,
Baxter executives will be ringing The Closing Bell at the New York Stock
Exchange as part of the company's 75th anniversary celebration. To access a live
webcast of The Closing Bell, go to http://www.nyse.com .
Baxter International Inc., through its subsidiaries, assists healthcare
professionals and their patients with the treatment of complex medical
conditions, including hemophilia, immune disorders, cancer, infectious diseases,
kidney disease, trauma and other conditions. 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: demand for and market
acceptance risks for new and existing products, such as ADVATE, and other
technologies; future actions of regulatory bodies and other governmental
authorities, including the FDA and foreign counterparts that could limit or
suspend product development, manufacturing or sales or result in sanctions;
product quality or patient safety concerns leading to product recalls,
withdrawals, launch delays, litigation, or declining sales; product development
risks; inventory reductions or fluctuations in buying patterns by wholesalers or
distributors; the impact of geographic and product mix on the company's sales;
the impact of competitive products and pricing, including generic competition,
drug reimportation and disruptive technologies; reimbursement policies of
government agencies and private payers; the availability of acceptable raw
materials and component supply; the ability to enforce company patents; patents
of third parties preventing or restricting the company's manufacture, sale or
use of affected products or technology; failure to obtain necessary consents or
to satisfy other closing conditions related to the sale of the Transfusion
Therapies business; 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 website. The company does not undertake to update its forward-looking
statements. Financial schedules are attached to this release and available on
the company's website.
BAXTER INTERNATIONAL INC.
Consolidated Statements of Income
Three Months Ended September 30, 2006 and 2005
(unaudited)
(in millions, except per share and percentage data)
Three Months Ended
September 30,
----------------------
2006 2005 Change
--------- --------- ---------
NET SALES $ 2,557 $ 2,398 7%
GROSS PROFIT 1,215 1,010 20%
% of Sales 47.5% 42.1% 5.4 pts
MARKETING AND ADMINISTRATIVE EXPENSES 562 491 14%
% of Sales 22.0% 20.5% 1.5 pts
RESEARCH AND DEVELOPMENT EXPENSES 149 133 12%
RESTRUCTURING ADJUSTMENTS - (5) (100)%
- ------------------------------------------------------------------------------------
OPERATING INCOME 504 391 29%
- ------------------------------------------------------------------------------------
% of Sales 19.7% 16.3% 3.4 pts
INTEREST, NET 5 31 (84)%
OTHER EXPENSE, NET 20 10 100%
- ------------------------------------------------------------------------------------
INCOME BEFORE INCOME TAXES 479 350 37%
INCOME TAX EXPENSE 105 234 (55)%
- ------------------------------------------------------------------------------------
NET INCOME $ 374 $ 116 222%
====================================================================================
BASIC EPS $ 0.58 $ 0.19 205%
====================================================================================
DILUTED EPS $ 0.57 $ 0.18 217%
====================================================================================
WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING
Basic 653 622
Diluted 661 632
- ------------------------------------------------------------------------------------
ADJUSTED NET INCOME (excluding certain items) $ 374 $ 296(1)
ADJUSTED DILUTED EPS (excluding certain items) $ 0.57 $ 0.47(1)
(1) See page 8 for description of adjustments and reconciliation to GAAP
(generally accepted accounting principles) measures.
Note: Effective January 1, 2006, the company adopted SFAS No. 123-R using the
modified prospective method. After-tax stock-option expense for the third
quarter of 2006 was $18 million, or $0.03 per diluted share. In accordance with
the modified prospective adoption method, the company did not adjust its
historical consolidated financial statements to reflect the impact of
stock-option expense. Based on the pro forma application of SFAS No. 123 for the
calculation of stock-option expense prior to January 1, 2006 (as previously
disclosed in the company's consolidated financial statements), pro forma
after-tax stock-option expense in the third quarter of 2005 was $13 million, or
$0.02 per diluted share.
Non-GAAP Financial Measures: The non-GAAP financial measures contained in this
press release (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 business unit performance, and in evaluating
management performance. Refer to the Company's filing on Form 8-K of today's
date for additional information.
BAXTER INTERNATIONAL, INC.
Consolidated Statements of Income
Three Months Ended September 30, 2005
Description of Adjustments and Reconciliation of GAAP to Non-GAAP
(unaudited)
(in millions, except per share and percentage data)
The Company's GAAP results for the three months ended September 30, 2005
included charges relating to the exit of hemodialysis instrument manufacturing,
taxes on the repatriation of foreign earnings, and a credit related to
restructuring adjustments, which impacted the GAAP results as follows:
Income
Operating Tax Net Diluted
Income Expense Income EPS
------------------------------------------------
GAAP $ 391 $ 234 $ 116 $ 0.18
Hemodialysis instruments charge (A) 28 8 20 0.03
Restructuring adjustments (B) (5) (2) (3) -
Tax expense on repatriation
of foreign earnings - (163) 163 0.26
------------------------------------------------
Excluding specified items $ 414 $ 77 $ 296 $ 0.47
================================================
Adjusted operating income % 17.3%
(A) Included in the Gross Profit line in the accompanying consolidated
statement of income. Excluding this item, adjusted gross profit is $1.04
billion and the adjusted gross profit percentage is 43.2%.
(B) Included in the Restructuring Adjustments line in the accompanying
consolidated statement of income.
BAXTER INTERNATIONAL INC.
Consolidated Statements of Income
Nine Months Ended September 30, 2006 and 2005
(unaudited)
(in millions, except per share and percentage data)
Nine Months Ended
September 30,
---------------------
2006 2005 Change
--------- --------- ---------
NET SALES $ 7,615 $ 7,358 3%
GROSS PROFIT 3,422 3,015 13%
% of Sales 44.9% 41.0% 3.9 pts
MARKETING AND ADMINISTRATIVE EXPENSES 1,670 1,511 11%
% of Sales 21.9% 20.5% 1.4 pts
RESEARCH AND DEVELOPMENT EXPENSES 433 399 9%
RESTRUCTURING ADJUSTMENTS - (109) (100)%
- -----------------------------------------------------------------------------------
OPERATING INCOME 1,319 1,214 9%
- -----------------------------------------------------------------------------------
% of Sales 17.3% 16.5% 0.8 pts
INTEREST, NET 33 95 (65)%
OTHER EXPENSE, NET 55 59 (7)%
- -----------------------------------------------------------------------------------
INCOME BEFORE INCOME TAXES 1,231 1,060 16%
INCOME TAX EXPENSE 266 396 (33)%
- -----------------------------------------------------------------------------------
NET INCOME $ 965 $ 664 45%
===================================================================================
BASIC EPS $ 1.49 $ 1.07 39%
===================================================================================
DILUTED EPS $ 1.47 $ 1.06 39%
===================================================================================
WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING
Basic 650 621
Diluted 656 627
- -----------------------------------------------------------------------------------
ADJUSTED NET INCOME (excluding certain items) $ 1,029(1)$ 829(1)
ADJUSTED DILUTED EPS (excluding certain items) $ 1.57(1)$ 1.32(1)
(1) See page 10 for description of adjustments and reconciliation to GAAP
measures.
Note: Effective January 1, 2006, the company adopted SFAS No. 123-R using the
modified prospective method. After-tax stock-option expense for the nine months
ended September 30, 2006 was $38 million, or $0.06 per diluted share. In
accordance with the modified prospective adoption method, the company did not
adjust its historical consolidated financial statements to reflect the impact of
stock-option expense. Based on the pro forma application of SFAS No. 123 for the
calculation of stock-option expense prior to January 1, 2006 (as previously
disclosed in the company's consolidated financial statements), pro forma
after-tax stock-option expense for the nine months ended September 30, 2005 was
$41 million, or $0.07 per diluted share.
Non-GAAP Financial Measures: The non-GAAP financial measures contained in this
press release (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 business unit performance, and in evaluating
management performance. Refer to the Company's filing on Form 8-K of today's
date for additional information.
BAXTER INTERNATIONAL, INC.
Consolidated Statements of Income
Nine Months Ended September 30, 2006 and 2005
Description of Adjustments and Reconciliation of GAAP to Non-GAAP
(unaudited)
(in millions, except per share and percentage data)
2006 description of adjustments and reconciliation of GAAP to Non-GAAP
----------------------------------------------------------------------
The Company's GAAP results for the nine months ended September 30, 2006 included
a charge related to COLLEAGUE infusion pumps, which impacted the GAAP results as
follows:
Income
Operating Tax Net Diluted
Income Expense Income EPS
----------------------------------------------
GAAP $ 1,319 $ 266 $ 965 $ 1.47
COLLEAGUE infusion pump charge (A) 76 12 64 0.10
----------------------------------------------
Excluding specified items $ 1,395 $ 278 $ 1,029 $ 1.57
==============================================
Adjusted operating income % 18.3%
(A) Included in the Gross Profit line in the accompanying consolidated
statement of income. Excluding this item, adjusted gross profit is $3.50
billion and the adjusted gross profit percentage is 45.9%.
2005 description of adjustments and reconciliation of GAAP to Non-GAAP
----------------------------------------------------------------------
The Company's GAAP results for the nine months ended September 30, 2005 included
charges relating to COLLEAGUE infusion pumps, the exit of hemodialysis
instrument manufacturing, taxes on the repatriation of foreign earnings, and a
credit related to restructuring adjustments, which impacted the GAAP results as
follows:
Income
Operating Tax Net Diluted
Income Expense Income EPS
----------------------------------------------
GAAP $ 1,214 $ 396 $ 664 $ 1.06
COLLEAGUE infusion pump charge (B) 77 12 65 0.10
Hemodialysis instruments charge (B) 28 8 20 0.03
Restructuring adjustments (C) (109) (26) (83) (0.13)
Tax expense on repatriation of
foreign earnings - (163) 163 0.26
----------------------------------------------
Excluding specified items $ 1,210 $ 227 $ 829 $ 1.32
==============================================
Adjusted operating income % 16.4%
(B) Included in the Gross Profit line in the accompanying consolidated
statement of income. Excluding these items, adjusted gross profit is $3.12
billion and the adjusted gross profit percentage is 42.4%.
(C) Included in the Restructuring Adjustments line in the accompanying
consolidated statement of income.
BAXTER INTERNATIONAL INC.
Condensed Consolidated Balance Sheets
(unaudited)
(in millions)
September 30, December 31,
2006 2005
------------- -------------
ASSETS
- ------
Cash and equivalents $ 2,067 $ 841
Receivables 1,751 1,766
Inventories 2,089 1,925
Other current assets 512 584
-----------------------------
Total current assets 6,419 5,116
-----------------------------
Property, plant and equipment, net 4,095 4,144
Other long-term assets 3,417 3,467
- ----------------------------------------------------------------------------
Total assets $ 13,931 $ 12,727
============================================================================
LIABILITIES AND SHAREHOLDERS' EQUITY
- ------------------------------------
Short-term debt $ 128 $ 924
Other current liabilities 2,841 3,241
Long-term debt 2,680 2,414
Other long-term liabilities 1,944 1,849
Shareholders' equity 6,338 4,299
- ----------------------------------------------------------------------------
Total liabilities and shareholders' equity $ 13,931 $ 12,727
============================================================================
BAXTER INTERNATIONAL INC.
Cash Flows from Operations and Changes in Net Debt
(unaudited)
($ in millions)
- --------------------------------------------------------------------------------
Cash Flows from Operations
- --------------------------------------------------------------------------------
(Brackets denote cash outflows)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------- --------------------
2006 2005 2006 2005
-------- -------- -------- --------
Net income $ 374 $ 116 $ 965 $ 664
Adjustments
Depreciation and amortization 146 145 431 437
Deferred income taxes 58 80 76 198
Stock compensation 30 3 68 7
Infusion pump and hemodialysis
instrument charges - 28 76 105
Restructuring adjustments - (5) - (109)
Other 7 20 29 46
Changes in balance sheet items
Receivables 18 98 33 133
Inventories (58) (22) (108) 68
Accounts payable and accrued
liabilities (22) 54 (159) (287)
Restructuring payments (9) (22) (34) (95)
Other 29 41 44 147
- --------------------------------------------------------------------------------
Cash flows from operations $ 573 $ 536 $ 1,421 $ 1,314
================================================================================
- --------------------------------------------------------------------------------
Changes in Net Debt
- --------------------------------------------------------------------------------
Increase (decrease)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------- --------------------
2006 2005 2006 2005
-------- -------- -------- --------
Net debt, beginning of period $ 1,298 $ 3,061 $ 2,497 $ 3,185
Cash flows from operations (573) (536) (1,421) (1,314)
Capital expenditures 138 116 336 279
Dividends - - 363 359
Acquisitions, net 1 14 3 14
Issuances of common stock - - (1,249) -
Purchases of treasury stock 87 - 479 -
Other, including the effect of
exchange rate changes (210) (5) (267) 127
- --------------------------------------------------------------------------------
Decrease in net debt (557) (411) (1,756) (535)
- --------------------------------------------------------------------------------
Net debt, September 30 $ 741 $ 2,650 $ 741 $ 2,650
================================================================================
- --------------------------------------------------------------------------------
Key statistics, September 30:
Days sales outstanding 55.9 61.0 55.9 61.0
Inventory turns 2.4 2.7 2.4 2.7
Net-debt-to-capital ratio (A) 10.5% 25.3% 10.5% 25.3%
- --------------------------------------------------------------------------------
(A) The decrease in the debt-to-capital ratio from September 30, 2005 to
September 30, 2006 primarily related to the settlement of the company's
equity units. In February 2006, the purchase contracts included in the
company's equity units matured, and the company issued approximately 35
million common shares in exchange for $1.25 billion. Management used a
portion of the cash proceeds to pay down maturing debt. The
net-debt-to-capital ratio at September 30, 2005 was calculated in
accordance with the company's primary credit agreements, which gave 70%
equity credit to the company's $1.25 billion equity units debt outstanding
on that date (the majority of which was repurchased and retired in the
fourth quarter of 2005). Refer to the company's Form 10-K for the year
ended December 31, 2005 for additional information regarding the equity
units.
Baxter International Inc.
Net Sales from Continuing Operations
Period Ended September 30, 2006
(unaudited)
($ in millions)
% Growth % Growth
@ @
Q3 Q3 Actual Constant
2006 2005 Rates Rates
- -----------------------------------------------------------------------------
BioScience
United States $ 528 $ 449 18% 18%
International 560 501 12% 8%
Total $ 1,088 $ 950 15% 13%
- -----------------------------------------------------------------------------
Medication Delivery
United States $ 489 $ 531 (8)% (8)%
International 461 426 8% 6%
Total $ 950 $ 957 (1)% (2)%
- -----------------------------------------------------------------------------
Renal
United States $ 95 $ 96 (1)% (1)%
International 424 395 7% 7%
Total $ 519 $ 491 6% 5%
- -----------------------------------------------------------------------------
Baxter International Inc.
United States $ 1,112 $ 1,076 3% 3%
International 1,445 1,322 9% 7%
Total $ 2,557 $ 2,398 7% 6%
- -----------------------------------------------------------------------------
% Growth % Growth
@ @
YTD YTD Actual Constant
2006 2005 Rates Rates
- -----------------------------------------------------------------------------
BioScience
United States $ 1,540 $ 1,285 20% 20%
International 1,669 1,557 7% 9%
Total $ 3,209 $ 2,842 13% 14%
- -----------------------------------------------------------------------------
Medication Delivery
United States $ 1,532 $ 1,702 (10)% (10)%
International 1,346 1,316 2% 3%
Total $ 2,878 $ 3,018 (5)% (4)%
- -----------------------------------------------------------------------------
Renal
United States $ 286 $ 289 (1)% (1)%
International 1,242 1,209 3% 4%
Total $ 1,528 $ 1,498 2% 3%
- -----------------------------------------------------------------------------
Baxter International Inc.
United States $ 3,358 $ 3,276 3% 3%
International 4,257 4,082 4% 6%
Total $ 7,615 $ 7,358 3% 4%
- -----------------------------------------------------------------------------
Baxter International Inc.
Key Product Line Sales
Period Ended September 30, 2006
(unaudited)
($ in millions)
% Growth % Growth
@ @
Q3 Q3 Actual Constant
2006 2005(1) Rates Rates
- -----------------------------------------------------------------------------
BioScience
Recombinants $ 433 $ 392 10% 8%
Plasma Proteins (2) 214 176 22% 19%
Antibody Therapy 196 123 59% 57%
BioSurgery (3) 72 63 14% 13%
Transfusion Therapies 121 134 (10)% (11)%
Other (4) 52 62 (16)% (16)%
- -----------------------------------------------------------------------------
Total BioScience $ 1,088 $ 950 15% 13%
- -----------------------------------------------------------------------------
Medication Delivery
IV Therapies (5) $ 317 $ 301 5% 4%
Drug Delivery 205 192 7% 5%
Infusion Systems 197 184 7% 7%
Anesthesia and Injectable
Drugs 221 259 (15)% (15)%
Other (6) 10 21 (52)% (48)%
- -----------------------------------------------------------------------------
Total Medication Delivery $ 950 $ 957 (1)% (2)%
- -----------------------------------------------------------------------------
Renal
PD Therapy $ 409 $ 386 6% 6%
HD Therapy 110 105 5% 5%
- -----------------------------------------------------------------------------
Total Renal (7) $ 519 $ 491 6% 5%
- -----------------------------------------------------------------------------
TOTAL BAXTER $ 2,557 $ 2,398 7% 6%
=============================================================================
% Growth % Growth
@ @
YTD YTD Actual Constant
2006 2005(1) Rates Rates
- -----------------------------------------------------------------------------
BioScience
Recombinants $ 1,244 $ 1,133 10% 11%
Plasma Proteins (2) 619 516 20% 21%
Antibody Therapy 578 305 90% 90%
BioSurgery (3) 220 199 11% 12%
Transfusion Therapies 371 407 (9)% (8)%
Other (4) 177 282 (37)% (35)%
- -----------------------------------------------------------------------------
Total BioScience $ 3,209 $ 2,842 13% 14%
- -----------------------------------------------------------------------------
Medication Delivery
IV Therapies (5) $ 944 $ 909 4% 5%
Drug Delivery 613 622 (1)% (1)%
Infusion Systems 596 659 (10)% (9)%
Anesthesia and Injectable
Drugs 691 772 (10)% (10)%
Other (6) 34 56 (39)% (38)%
- -----------------------------------------------------------------------------
Total Medication Delivery $ 2,878 $ 3,018 (5)% (4)%
- -----------------------------------------------------------------------------
Renal
PD Therapy $ 1,205 $ 1,153 5% 6%
HD Therapy 323 345 (6)% (6)%
- -----------------------------------------------------------------------------
Total Renal (7) $ 1,528 $ 1,498 2% 3%
- -----------------------------------------------------------------------------
TOTAL BAXTER $ 7,615 $ 7,358 3% 4%
=============================================================================
(1) Prior year sales data has been reclassified to reflect the changes that are
described in notes 2, 3, 4 and 7 below.
(2) Includes plasma-derived hemophilia (FVII, FVIII, FIX and FEIBA), albumin,
and certain other plasma-based products. Sales of Tisseel, sales of plasma
to third parties, and contract manufacturing revenues were previously
reported in Plasma Proteins, and are now reported in other product lines,
as detailed below.
(3) Includes sales of Tisseel and FloSeal/CoSeal, which were previously
reported in Plasma Proteins and Other, respectively.
(4) Principally includes vaccines and sales of plasma to third parties. The
sales of plasma to third parties were previously reported in Plasma
Proteins. The prior year sales include contract manufacturing revenues.
(5) Principally includes intravenous solutions and nutritional products.
(6) Principally includes other hospital-distributed products.
(7) Sales of pharmaceutical and certain other products, which were previously
reported in Other, are now reported in PD Therapy.
Baxter International Inc.
Key Product Line Sales -- US/International
Period Ended September 30, 2006
(unaudited)
($ in millions)
Q3 2006 Q3 2005(1)
---------------------------------------------------------------------
Inter- Inter-
US national Total US national Total
---------------------------------------------------------------------
BioScience
Recombinants $ 182 $ 251 $ 433 $ 170 $ 222 $ 392
Plasma Proteins (2) 87 127 214 61 115 176
Antibody Therapy 146 50 196 83 40 123
BioSurgery (3) 40 32 72 35 28 63
Transfusion Therapies 60 61 121 66 68 134
Other (4) 13 39 52 34 28 62
- ---------------------------------------------------------------------------------------------------
Total BioScience $ 528 $ 560 $ 1,088 $ 449 $ 501 $ 950
- ---------------------------------------------------------------------------------------------------
Medication Delivery
IV Therapies (5) $ 103 $ 214 $ 317 $ 101 $ 200 $ 301
Drug Delivery 128 77 205 120 72 192
Infusion Systems 118 79 197 118 66 184
Anesthesia and Injectable
Drugs 135 86 221 184 75 259
Other (6) 5 5 10 8 13 21
- ---------------------------------------------------------------------------------------------------
Total Medication Delivery $ 489 $ 461 $ 950 $ 531 $ 426 $ 957
- ---------------------------------------------------------------------------------------------------
Renal
PD Therapy $ 67 $ 342 $ 409 $ 66 $ 320 $ 386
HD Therapy 28 82 110 30 75 105
- ---------------------------------------------------------------------------------------------------
Total Renal (7) $ 95 $ 424 $ 519 $ 96 $ 395 $ 491
- ---------------------------------------------------------------------------------------------------
TOTAL BAXTER $ 1,112 $ 1,445 $ 2,557 $ 1,076 $ 1,322 $ 2,398
===================================================================================================
% Growth
---------------------------------
Inter-
US national Total
---------------------------------
BioScience
Recombinants 7% 13% 10%
Plasma Proteins (2) 43% 10% 22%
Antibody Therapy 76% 25% 59%
BioSurgery (3) 14% 14% 14%
Transfusion Therapies (9)% (10)% (10)%
Other (4) (62)% 39% (16)%
- ---------------------------------------------------------------
Total BioScience 18% 12% 15%
- ---------------------------------------------------------------
Medication Delivery
IV Therapies (5) 2% 7% 5%
Drug Delivery 7% 7% 7%
Infusion Systems -% 20% 7%
Anesthesia and Injectable
Drugs (27)% 15% (15)%
Other (6) (38)% (62)% (52)%
- ---------------------------------------------------------------
Total Medication Delivery (8)% 8% (1)%
- ---------------------------------------------------------------
Renal
PD Therapy 2% 7% 6%
HD Therapy (7)% 9% 5%
- ---------------------------------------------------------------
Total Renal (7) (1)% 7% 6%
- ---------------------------------------------------------------
TOTAL BAXTER 3% 9% 7%
===============================================================
(1) Prior year sales data has been reclassified to reflect the changes that are
described in notes 2, 3, 4 and 7 below.
(2) Includes plasma-derived hemophilia (FVII, FVIII, FIX and FEIBA), albumin,
and certain other plasma-based products. Sales of Tisseel, sales of plasma
to third parties, and contract manufacturing revenues were previously
reported in Plasma Proteins, and are now reported in other product lines,
as detailed below.
(3) Includes sales of Tisseel and FloSeal/CoSeal, which were previously
reported in Plasma Proteins and Other, respectively.
(4) Principally includes vaccines and sales of plasma to third parties. The
sales of plasma to third parties were previously reported in Plasma
Proteins. The prior year sales include contract manufacturing revenues.
(5) Principally includes intravenous solutions and nutritional products.
(6) Principally includes other hospital-distributed products.
(7) Sales of pharmaceutical and certain other products, which were previously
reported in Other, are now reported in PD Therapy.
SOURCE Baxter International Inc.
-0- 10/19/2006
/CONTACT: Media Contacts, Deborah Spak, +1-847-948-2349, or Tom Kline,
+1-847-948-2251, or Investor Contacts, Mary Kay Ladone, +1-847-948-3371, or
Clare Trachtman, +1-847-948-3085, all of Baxter International Inc./
/Web site: http://www.baxter.com /