Medical Technology

Baxter International, Inc.

The Company

Baxter International <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BAX)") else Response.Write("(NYSE: BAX)") end if %>, note the "international" in the company name, is the leading U.S. provider of cardiovascular, kidney dialysis, and intravenous products to the healthcare market. Roughly half of the company's revenues come from outside the U.S., which highlights an important concern when dealing with global medical device manufacturers -- currency risk. The company operates in a single industry segment as a global medical products and services company that is a leader in technologies related to the blood and circulatory system. Baxter spun off its hospital supplies operations and formed Allegiance Corp. in 1996. Allegiance distributes Baxter's intravenous (IV) solutions and other products in the U.S.

In addition to intravenous delivery, the company has market-leading positions in three other businesses: biotechnology, which develops therapies and products in transfusion medicine; cardiovascular medicine, which develops products and expands services to treat late-stage cardiovascular disease; and renal therapy, which develops products and services to improve therapies to fight kidney disease. Baxter has emerged as a solid blue chip in the industry after shrugging off earnings concerns and failed restructurings of years past.

Latest Financials

Baxter International reported first-quarter income of $150 million, an increase of 9% from the $138 million reported last year, excluding a previously announced $352 million in-process research and development charge for the company's acquisitions of Immuno International AG and Research Medical, Inc. On a per-share basis excluding the charge, Baxter's first-quarter earnings per share from continuing operations grew 8%, to $0.55 per share from the $0.51 reported last year. Baxter's sales in the first quarter totaled $1.44 billion, an increase of 11% over the $1.3 billion in sales reported for the same period last year. Without the impact of a stronger U.S. dollar, sales increased 13%. Sales outside the U.S. grew 17% to $765 million, representing 53% of Baxter's total sales in the first quarter.

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