Baxter raises outlook on strong 2nd qtr

USA-based health care firm Baxter International has raised its outlook for full-year 2008 off the back of solid second-quarter figures due to continued gross margin expansion, the firm says.

Net income for the quarter ended June 30, 2008, rose 26% on the same period of last year, to $544.0 million, or $0.85 per diluted share. The firm's guidance for the period had previously been between $0.81 and $0.83 per share.

Revenue for the quarter was $3.19 billion, up 13%. This figure comprised sales of: $1.39 billion from the firm's bioscience division, up 16%; $1.16 billion from medication delivery, rising 12%; $598.0 million from renal turnover, up 8%; and $42.0 million from the Transfusion Therapies subsidiary, which was down 11%. The firm also drew attention to a 25% increase in R&D spending over the same period the year earlier, to $222.0 million.