Baxter third-qtr earnings hit by costs, but sales rise

US health care product company Baxter International (NYSE: BAX) today reported a 14% drop in net income of $468 million and earnings per share of $0.86 for the third quarter of 2014, compared with $544 million and earnings per share of $0.99 in the like year-earlier period, but still exceeding its own expectations. Excluding special items, its adjusted earnings climbed 9% to $1.35 per share from $1.24 per share.

The downturn reflect costs from the integration of the company’s acquisition of dialysis firm Gambro and Baxter’s planned spinoff of Baxalta next year. However, the company says it continues to bolster its business portfolios by establishing new collaborations and advancing its new product pipeline with the achievement of significant milestones, and remains on track for the anticipated separation into two independent, leading health care companies in mid-2015.

Baxter now forecasts full-year revenue growth of 11% to 12%, versus its earlier outlook of growth of 10% to 11%, and projects earnings of $4.86 to $4.89 per share, versus it earlier guidance of $5.10 to $5.20 per share.