Baxter Projects Rosy Outlook For 1994

Ahead of year-end results coming out, Baxter International says it expects to register substantial improvement in operational cash flow for 1994, "significantly above our goal of $450 million," said the company's senior vice president and chief financial officer, Harry Kraemer.

Moreover, according to Mr Kraemer, with an increased emphasis on cash flow and with the management incentives put in place, Baxter believes it will meet its goal of $500 million in 1995. He added that the "impressive performance reflects initiatives including better management of accounts receivable and inventory, which have led to improvements in working capital."

Mr Kraemer also said: "we want investors to understand that this year will be marked by delivering on commitments that we made in November 1993, when we restructured the company to improve our return to shareholders." At that time, he explained, Baxter reorganized its domestic hospital supply operations to make them more efficient and responsive in an increasingly competitive environment. At the same time, he said, "the company is accelerating the growth of its higher-margin medical technology business worldwide."