DEERFIELD, Ill. (AP) -- Baxter International Inc. said Thursday that its net income fell 11 percent in the second quarter on costs connected to its upcoming purchase of dialysis product maker Gambro AB.
Baxter took $49 million in charges related to the Gambro deal, which was struck in December and is expected to close in the third quarter. Excluding those charges the company's net income was greater than Wall Street expected. Sales rose 3 percent and met analysts' estimates.
Net income declined to $590 million, or $1.07 per share, from $661 million, or $1.19 per share. A year ago the company's results got a boost of $42 million, or 7 cents per share, from a tax benefit. Excluding one-time items net income was $1.16 per share. Revenue grew to $3.67 billion from $3.57 billion.
Analysts expected the company to report earnings of $1.07 per share and $3.67 billion in revenue, according to FactSet.
Baxter shares edged up 64 cents to $73.70 in afternoon trading. Earlier the stock reached an all-time high of $74.14.
The company said medical products revenue rose 1 percent to $2 billion on rising sales of dialysis products, injectable drugs, and anesthesia products. BioScience revenue grew 5 percent to $1.6 billion on sales of hemophilia treatments, plasma therapies, and vaccines.
Baxter plans to buy Gambro for $2.76 billion. The Swedish company makes dialysis products for patients with acute or chronic kidney disease and it has annual sales of about $1.6 billion.
The company expects third-quarter earnings of $1.18 to $1.21 per share. Analysts are looking for $1.18 per share.
Baxter maintained its outlook for the full year, saying it expects to earn between $4.62 and $4.70 per share, excluding costs and revenue related to the Gambro purchase. Analysts estimate $4.66 per share on average.
The company said that including Gambro's revenue, it expects total sales to grow 7 to 8 percent in 2013. That suggests a total of $15.18 billion to $15.33 billion. Analysts are forecasting $15.5 billion in revenue.