Baxter sees strong Q2, raises full-year outlook

Baxter International has posted strong financial results for the second quarter of 2008 and raised its full-year financial outlook.

For the second quarter, Baxter reported net income of $544 million, which is an increase of 26 percent compared to $431 million reported in the second quarter of 2007, and the earnings increased 31 percent compared to earnings last year. 

Net sales for the second quarter amounted to $3.2 billion, up 13 percent from previous year's sales of $2.8 billion, according to the Deerfield, Ill.-based company. Excluding the impact of foreign exchange, sales grew 5 percent.

Baxter said that sales within the U.S. rose 4 percent to $1.24 billion and international sales amounted to $1.95 billion, a growth of 19 percent over the same period last year. However, excluding the impact of foreign exchange, international sales grew only 6 percent.

Based on the company's strong half-yearly performance, Baxter is raising its earnings forecast for fiscal 2008, before any special items, to a range of $3.28 - $3.32 per share from the previous estimate in the range of $3.18 - $3.24 per share. Baxter expects sales growth for the year, excluding foreign exchange impact, of 5 percent to 6 percent to anticipated earnings on revenues of $12.22 billion.