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Author: TMFMensa Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 138  
Subject: Earnings Date: 7/24/1997 8:30 AM
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DEERFIELD, Ill., July 24, 1997 /PRNewswire/ -- Baxter International Inc. (NYSE:BAX) today
reported second-quarter sales increased 18 percent to $1.57 billion, from $1.33 billion in the
year-earlier period. Without the impact of a stronger U.S. dollar, sales rose 21 percent. Net income
from continuing operations increased 14 percent to $162 million, from $142 million in the 1996
second quarter. Earnings per-share from continuing operations rose 12 percent to 58 cents per
share, from 52 cents per share the prior year.

Baxter's second-quarter sales increase was fueled by strong growth in its Biotech and IV
Systems/Medical Products businesses. Baxter also continued to drive strong growth in international
markets, particularly in Latin America and Asia. International sales grew 22 percent to $832 million,
up from $684 million in the 1996 second quarter. Without the impact of a stronger U.S. dollar,
international sales rose 29 percent. Second-quarter domestic sales were $737 million, an increase
of 13 percent over the prior year.

In the second quarter, Baxter generated $95 million in operational cash flow after investing $95
million in research and development and $80 million in capital expenditures.

``Our strong second-quarter performance is right on track with our 1997 financial commitments,'
said Vernon R. Loucks Jr., Baxter chairman and chief executive officer. ``We continue to drive
solid growth by successfully executing our strategies of technological innovation and global
expansion.

``During the second quarter, we finalized the acquisition of Immuno International AG, which
significantly extends our position as the global leader in transfusion medicine. We introduced several
new products that demonstrate our commitment to continually advancing our technologies to
improve patient care. Also, we made significant progress in our key research-and-development
initiatives, particularly for our hemoglobin therapeutic, HemAssist.'

Key Highlights

Baxter recently introduced the Colleague(TM) electronic intravenous (IV) infusion pump, which
provides a wide range of flow rates, allowing it to be used with all types of patients. It is designed to
ensure ease and accuracy of use. Additionally, during the period the company introduced its Side
Branch Occlusion System(TM), a system that enables surgeons to perform minimally invasive
surgery inside patients' veins to treat peripheral vascular disease.

Baxter also became the first company to file for regulatory approval for a hemoglobin therapeutic,
or ``blood substitute.' Baxter filed an application for marketing authorization with the European
Medicines Evaluation Agency to market HemAssist(TM) (Diaspirin Crosslinked Hemoglobin) as an
alternative to blood in cardiac-surgery patients following cardiopulmonary bypass. The company
also recently began final-stage clinical testing of HemAssist in trauma patients in Europe, and
advanced its U.S. Phase III trauma and surgery trials. Baxter has enrolled more than 750 patients in
HemAssist clinical trials in 15 protocols to date, encompassing surgery, trauma, stroke and other
critically ill patients.

Six-Month Results

For the six-month period, Baxter's net income from continuing operations rose 11 percent to $311
million, from $280 million in 1996, excluding a first-quarter charge of $352 million for in-process
research and development pertaining to the company's acquisitions of Immuno International AG and
Research Medical, Inc. (RMI). Earnings per share from continuing operations, excluding the
charge, increased 10 percent to $1.13, from $1.03 in the year-earlier period.

Sales rose 14 percent to $3.01 billion for the 1997 six-month period, from $2.63 billion in 1996.
International sales grew 19 percent to $1.6 billion, while domestic sales increased 9 percent to $1.4
billion. Without the impact of a stronger U.S. dollar, international sales rose 25 percent.

``We expect our positive financial trends to continue. We expect to grow our 1997 net income in
the low double digits and to exceed our goal of generating a minimum of $300 million in operational
cash flow,' said Harry M. Jansen Kraemer, Baxter president.

``We also are making significant progress on integrating the operations of our recent acquisitions of
Immuno and RMI into our existing Biotech and Cardiovascular businesses, respectively,' Kraemer
continued. ``These acquisitions strengthen our global presence, enhance our leadership positions in
transfusion medicine and minimally invasive cardiac surgery, and enable us to leverage the strengths
of each organization.'
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