Baxter 1Q profit falls 6 percent on Gambro costs

Baxter 1st-qtr profit falls on charges related to Gambro acquisition; company backs guidance

Associated Press

DEERFIELD, Ill. (AP) -- Drug and medical device maker Baxter International Inc. said Thursday its net income fell 6 percent in the first quarter on charges related to its pending purchase of dialysis product maker Gambro AB.

Baxter agreed to buy Gambro in December for $2.76 billion, and it took $29 million in charges related to the deal during the first quarter. Gambro, with annual sales of about $1.6 billion, makes dialysis products for patients with acute or chronic kidney disease. Baxter, which reported $14.19 billion in sales in 2012, expects to complete the deal at the end of the second quarter.

Baxter's net income decreased to $552 million, or $1 per share, from $588 million, or $1.04 per share. Excluding one-time items, the company earned $1.05 per share in the latest quarter.

Revenue rose 2 percent, to $3.45 billion from $3.39 billion.

Analysts expected net income of $1.04 per share on $3.48 billion in revenue, according to FactSet.

Baxter said it expects to earn between $1.12 and $1.14 per share in the second quarter, and it maintained its full-year guidance for income of $4.60 to $4.70 per share, which excludes 10 to 15 cents per share in costs related to the Gambro deal. Sales excluding the impact of foreign currency are expected to grow about 4 percent in the second quarter and about 10 percent for the full year.

Analysts forecast income of $1.14 per share in the second quarter and $4.66 per share for the year, on average.

Shares of Baxter fell 54 cents to $69.69 in morning trading.

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