Plus   Neg

Baxter International Q3 Worldwide Sales Up 3%; Launches Probe Of Misstatements

Baxter International Inc. (BAX) on Thursday announced certain preliminary operating results for the third quarter ended September 30, 2019.

Baxter further indicated it is investigating misstatements in previously reported non-operating income related to foreign exchange gains and losses. The company does not expect to file its quarterly report on Form 10-Q for the period ended September 30, 2019 on a timely basis.

Baxter noted that the investigation is in its early stages and the company cannot predict its duration or outcome.

Upon completion of the investigation, the company expects to either amend its periodic reports previously filed with the SEC to include restated financial statements that correct those misstatements, or include in reports for future periods restated comparative financial statements that correct those misstatements.

The company's worldwide sales in the third quarter totaled about $2.85 billion, an increase of 3 percent on a reported basis, and 5 percent on both a constant currency and operational basis. Operational sales exclude the impact of foreign exchange and generic competition for U.S. cyclophosphamide.

Baxter reported operating income of $503 million for the third quarter. This includes special items totaling $52 million, primarily related to intangible asset amortization and business optimization initiatives, partially offset by insurance recoveries related to the impact of Hurricane Maria.

On an adjusted basis, Baxter's third quarter operating income totaled $555 million, or 19.5 percent of sales.

Looking ahead to the fourth quarter, Baxter expects sales growth of 3 percent to 4 percent on a reported basis, and approximately 5 percent on a constant currency and operational basis.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT