DEERFIELD, Ill.–(BUSINESS WIRE)–Baxter International Inc. (NYSE:BAX), a leading global medical products company, today reported results for the fourth quarter and full year ended December 31, 2020, and provided its financial guidance for 2021.
“Amid an unprecedented global public health crisis, Baxter remains focused on advancing our Mission for patients and driving value for all stakeholders,” said José (Joe) E. Almeida, chairman, president and chief executive officer. “Our 2020 performance demonstrates the underlying strength of our portfolio, as well as our heightened agility and resilience fueled by our ongoing transformation. As we enter 2021, we remain focused on our strategy to accelerate sales through enhanced commercial execution and innovation as well as driving margin expansion this year and beyond.”
Fourth-Quarter Financial Results
Worldwide sales in the fourth quarter totaled $3.2 billion, an increase of 5% on a reported basis, 3% on a constant currency basis and 2% on an operational basis. Operational sales in the fourth quarter exclude the impact of foreign exchange and the company’s February 2020 acquisition of Seprafilm.
Sales in the U.S. totaled $1.3 billion, remaining flat on a reported basis and declining 1% on an operational basis. International sales of $1.9 billion grew 8% on a reported basis, 5% on a constant currency basis and 4% on an operational basis.
Growth among Baxter’s global business units (GBUs) at both reported and constant currency rates was led by Acute Therapies, which continues to experience increased product demand due to the COVID-19 pandemic. Sales in Baxter’s Renal Care and Clinical Nutrition GBUs increased on both a reported and constant currency basis. Also contributing to growth in the quarter was increased sales in Advanced Surgery, which benefitted from the acquisition of Seprafilm. Performance in these GBUs helped offset sales declines in Medication Delivery and Pharmaceuticals on both a reported and constant currency basis, which continue to be impacted by lower rates of hospital admissions in the wake of the ongoing pandemic. During the quarter, the company estimates that, in the U.S., hospital admissions declined low double digits and surgical procedures were flat as compared to pre-COVID levels.
By geographic segment, strong performance in APAC and EMEA helped offset headwinds in the Americas, which declined 1% on both a reported and operational basis and was flat on a constant currency basis.
Please see the attached schedules accompanying this press release for additional details on sales performance in the quarter, including breakouts by Baxter’s GBUs and geographic segments.
For the fourth quarter, net income attributable to Baxter was $168 million, or $0.33 per diluted share, an increase of $0.38 per share on a U.S. GAAP (Generally Accepted Accounting Principles) basis. These results include special items totaling $244 million after-tax, which were primarily related to a loss on the extinguishment of debt, intangible asset amortization, business optimization expenses and a noncash pension settlement charge, among other factors. On an adjusted basis, net income attributable to Baxter totaled $412 million in the fourth quarter, or $0.80 per diluted share, a decrease of 18% compared to the prior-year period.
Full-Year Financial Results
Baxter’s 2020 worldwide sales totaled $11.7 billion, an increase of 3% on both a reported and constant currency basis and 2% on an operational basis. Operational sales for 2020 exclude the impact of foreign exchange and the company’s February 2020 acquisition of Seprafilm.
Sales in the U.S. totaled $4.9 billion, growing at 1% on a reported basis and remaining flat on an operational basis. International sales of $6.8 billion grew 4% on both a reported and operational basis and 5% on a constant…