DEERFIELD, Ill., July 24, 1997 /PRNewswire/ -- Baxter International Inc. (NYSE:BAX) todayreported second-quarter sales increased 18 percent to $1.57 billion, from $1.33 billion in theyear-earlier period. Without the impact of a stronger U.S. dollar, sales rose 21 percent. Net incomefrom continuing operations increased 14 percent to $162 million, from $142 million in the 1996second quarter. Earnings per-share from continuing operations rose 12 percent to 58 cents pershare, from 52 cents per share the prior year. Baxter's second-quarter sales increase was fueled by strong growth in its Biotech and IVSystems/Medical Products businesses. Baxter also continued to drive strong growth in internationalmarkets, 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 increaseof 13 percent over the prior year. In the second quarter, Baxter generated $95 million in operational cash flow after investing $95million 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 drivesolid growth by successfully executing our strategies of technological innovation and globalexpansion. ``During the second quarter, we finalized the acquisition of Immuno International AG, whichsignificantly extends our position as the global leader in transfusion medicine. We introduced severalnew products that demonstrate our commitment to continually advancing our technologies toimprove patient care. Also, we made significant progress in our key research-and-developmentinitiatives, particularly for our hemoglobin therapeutic, HemAssist.' Key Highlights Baxter recently introduced the Colleague(TM) electronic intravenous (IV) infusion pump, whichprovides a wide range of flow rates, allowing it to be used with all types of patients. It is designed toensure ease and accuracy of use. Additionally, during the period the company introduced its SideBranch Occlusion System(TM), a system that enables surgeons to perform minimally invasivesurgery 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 EuropeanMedicines Evaluation Agency to market HemAssist(TM) (Diaspirin Crosslinked Hemoglobin) as analternative to blood in cardiac-surgery patients following cardiopulmonary bypass. The companyalso recently began final-stage clinical testing of HemAssist in trauma patients in Europe, andadvanced its U.S. Phase III trauma and surgery trials. Baxter has enrolled more than 750 patients inHemAssist clinical trials in 15 protocols to date, encompassing surgery, trauma, stroke and othercritically ill patients. Six-Month Results For the six-month period, Baxter's net income from continuing operations rose 11 percent to $311million, from $280 million in 1996, excluding a first-quarter charge of $352 million for in-processresearch and development pertaining to the company's acquisitions of Immuno International AG andResearch Medical, Inc. (RMI). Earnings per share from continuing operations, excluding thecharge, 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 $1.4billion. 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 inthe low double digits and to exceed our goal of generating a minimum of $300 million in operationalcash flow,' said Harry M. Jansen Kraemer, Baxter president. ``We also are making significant progress on integrating the operations of our recent acquisitions ofImmuno and RMI into our existing Biotech and Cardiovascular businesses, respectively,' Kraemercontinued. ``These acquisitions strengthen our global presence, enhance our leadership positions intransfusion medicine and minimally invasive cardiac surgery, and enable us to leverage the strengthsof each organization.'
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