Quote you on that: “As we move forward, we will continue to streamline spending”, said James K. Saccaro, corporate vice president and chief financial officer, possibly signaling more job cuts. Sales within the United States declined 1 percent to $1.0 billion, while worldwide sales of $1.5 billion declined 12 percent, primarily as a result of the effects of foreign exchange. The Company operates in two segments: BioScience segment, which include three commercial franchises: Hemophilia, BioTherapeutics and BioSurgery, and Medical Products segment, which include four commercial franchises: Fluid Systems, Renal, Specialty Pharmaceuticals and BioPharma Solutions. Third Point partner Munib Islam was added to Baxter’s board and placed on the executive search committee, formed in July to find a successor to CEO Robert Parkinson, who is leaving the company after 11 years.
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Just last month Baxter reached a settlement with Daniel Loeb’s Third Point LLC, giving the activist a seat on the board. On a reported basis, including the impact of foreign exchange, the company expects sales to decline about 9 percent. Sales were $2.49 billion, down 8 percent. The company’s 2015 results included costs related to the Baxalta spinoff. Excluding the impact of foreign exchange, the company said sales grew 2% in the quarter.
Revenue totaled $2.5 million, compared with $2.7 million a year ago.
Baxter also expects earnings from continuing operations, before special items, of $0.30 to $0.32 per diluted share for the fourth quarter, The Street expects the company to earn $0.30 per share for the quarter on revenues of $2.55 billion.
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Shares closed at $35.91 and were inactive premarket.
