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Baxter profits plunge 81 percent
Chicago, July 18: Baxter International Inc. delivered a double dose of bad news today, reporting an 81 percent profit drop due to a bigger-than-expected restructuring charge and disclosing an federal investigation into its recent earnings forecast cuts.
Chicago, July 18: Baxter International Inc. delivered a double dose of bad news today, reporting an 81 percent profit drop due to a bigger-than-expected restructuring charge and disclosing an federal investigation into its recent earnings forecast cuts.
The medical products maker said it was eliminating 3,200 jobs - 700 more than it said it would earlier this month - which resulted in a larger charge of USD 337 million, or USD 202 million after taxes. That means Baxter is laying off 6 percent of its work force instead of 5 percent.
Baxter also said that the US Securities and Exchange Commission had asked it to provide information concerning recent downward revisions to its growth and earnings forecasts for 2003. Company officials said they were cooperating with regulators; the government agency did not issue a statement.
Baxter has trimmed its estimates three times since mid-March. Despite an 11 percent rise in sales, net earnings for the second quarter fell to USD 38 million, or 6 cents a share, down from USD 200 million, or 32 cents a share, a year earlier. Excluding the restructuring charge, income from continuing operations was 41 cents a share, matching analysts' consensus estimate.
Revenue climbed to USD 2.16 billion from USD 1.95 billion, with nearly half the increase attributable to beneficial foreign-currency rates. US sales rose 4 percent to USD 997 million.
Bureau Report
Baxter also said that the US Securities and Exchange Commission had asked it to provide information concerning recent downward revisions to its growth and earnings forecasts for 2003. Company officials said they were cooperating with regulators; the government agency did not issue a statement.
Baxter has trimmed its estimates three times since mid-March. Despite an 11 percent rise in sales, net earnings for the second quarter fell to USD 38 million, or 6 cents a share, down from USD 200 million, or 32 cents a share, a year earlier. Excluding the restructuring charge, income from continuing operations was 41 cents a share, matching analysts' consensus estimate.
Revenue climbed to USD 2.16 billion from USD 1.95 billion, with nearly half the increase attributable to beneficial foreign-currency rates. US sales rose 4 percent to USD 997 million.
Bureau Report