Drug and medical-device maker Baxter International reported lower profit in its second quarter, but its 2013 acquisition of Gambro helped raise worldwide sales.
The Deerfield, Ill.-based company officially acquired Gambro for $3.9 billion in September 2013. Gambro, based in Sweden, mostly produces dialysis products. In the second quarter, Baxter officials said, sales of renal products topped $1 billion, a 60% jump from the same period a year ago.
Antihemophilic medicines, biosurgery products and injectable drugs also boosted sales. Overall second-quarter revenue surged 16% to $4.3 billion, compared with $3.7 billion the year prior.
Baxter's net income dropped 12% to $520 million, representing a 12% profit margin. Several one-time charges—like costs related to its Gambro purchase and a recall of some of its infusion pumps—dragged earnings down. Baxter also has started accruing charges related to its plan to split into two companies.
In March, Baxter announced it would splinter into a biopharmaceuticals company and a medical-device company, similar to what competitor Abbott Laboratories has done. Baxter Chairman and CEO Robert Parkinson Jr. said the company is on track to separate by mid-2015.
Adjusted for those one-time expenses in both periods, Baxter's profit increased 5%.
For the six months ended June 30, Baxter's profit dropped 6% to a little less than $1.1 billion. Revenue jumped 15% to $8.2 billion.
The company confirmed its outlook for the rest of the year, saying adjusted earnings per diluted share would be between $5.10 and $5.20.
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