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BAXTER REPORTS RECORD SECOND-QUARTER RESULTS SALES INCREASE 10 PERCENT, EARNINGS PER SHARE UP 17 PERCENT

 BAXTER REPORTS RECORD SECOND-QUARTER RESULTS
 SALES INCREASE 10 PERCENT, EARNINGS PER SHARE UP 17 PERCENT
 DEERFIELD, Ill., July 20 /PRNewswire/ -- Baxter International (NYSE: BAX) today reported record second-quarter sales of $2.4 billion, a 10 percent increase over sales in the second quarter of 1991. Net income rose 11 percent to $156 million. Earnings per common share were 56 cents, an increase of 17 percent over the year-earlier period.
 Domestic sales for the quarter were approximately $1.8 billion. Sales from international markets were $593 million. International sales growth in local currency was approximately 11 percent for the quarter.
 "Worldwide revenue growth in all our health-care-related products and services segments continues to be strong," said Vernon R. Loucks Jr., Baxter's chairman and chief executive officer. "At the same time, we're continuing to invest in research and development, new technology and added customer-service capabilities."
 The company plans to increase its investment in research and development in the second half of 1992. Baxter this month began the first phase of human clinical trials of its hemoglobin-based blood substitute. If successful, the tests will be expanded in the fourth quarter to several sites in the United States and Europe. Other ongoing research priorities that will require continued investment include a new bone-marrow treatment for cancer patients, the Novacor(R) left ventricular assist system and an anti-rejection drug for kidney transplantation.
 Baxter announced in June that it will create by the end of the year a separate, free-standing company made up of three of its alternate site businesses, Caremark Inc., the Orthopedic Services Division and the Prescription Service Division. These businesses are leaders in providing health-care services outside hospitals. The creation of a new and separate company is designed to resolve increasing conflicts between the alternate-site businesses and Baxter's hospital customers, to make the alternate-site businesses more competitive, and to provide financial flexibility and incentives for alternate-site management to expand the business. A new stock representing the new alternate-site company will be issued this year to Baxter shareholders. The new alternate-site company's results will be reported as discontinued operations in Baxter's second-quarter report to shareholders.
 Baxter International Inc. is the leading manufacturer and marketer of health-care products, systems and services worldwide. The company offers 120,000 products to health-care providers in 100 countries.
 BAXTER INTERNATIONAL INC.
 Consolidated Statements of Income
 (Unaudited - in millions, except per share data)
 Three months ended June 30
 Pct
 1992 1991 Increase
 Operations
 Net sales $2,421 $2,197 10
 Operating costs and expenses
 Cost of goods and services sold 1,544 1,388
 Marketing and administrative expenses 490 450
 Research and development expenses 77 75
 Goodwill amortization 17 17
 Total operating costs and expenses 2,128 1,930
 Operating income 293 267 10
 Non-operating expenses (income)
 Interest expense 54 57
 Interest income (6) (8)
 Other, net 30 23
 Total non-operating expenses 78 72
 Income before income taxes 215 195
 Income tax expense 59 54
 Net income 156 141 11
 Less preferred stock dividends -- 6
 Net income available for common stock $156 $135 16
 Per share data
 Primary earnings per common share $0.56 $0.48 17
 Fully diluted earnings per
 common share $0.55 $0.48 15
 Average number of common shares and equivalents outstanding
 Primary 279 280
 Fully diluted 282 284
 BAXTER INTERNATIONAL INC.
 Consolidated Statement of Income
 (Unaudited -- in millions, except per share data)
 Six months ended June 30
 Pct.
 Operations: 1992 1991 Increase
 Net sales $4,717 $4,319 9
 Operating costs and expenses
 Cost of goods and services sold 3,025 2,754
 Marketing and administrative expenses 967 896
 Research and development expenses 151 145
 Goodwill amortization 34 34
 Total operating costs and expenses 4,177 3,829
 Operating income 540 490 10
 Non-operating expenses (income)
 Interest expense 108 112
 Interest income (13) (15)
 Other, net 50 49
 Total non-operating expenses 145 146
 Income before income taxes 395 344
 Income tax expense 108 93
 Net income 287 251 14
 Less preferred stock dividends 5 12
 Net income available for common stock $282 $239 18
 Per share data
 Primary earnings per common share $1.01 $0.85 19
 Fully diluted earnings per common share $1.00 $0.84 19
 Average number of common shares
 and equivalents outstanding
 Primary 279 280
 Fully diluted 282 283
 BAXTER INTERNATIONAL INC.
 Net Sales By Industry Segments
 (Unaudited)
 Three months ended June 30
 Pct.
 1992 1991 Increase
 (Decrease)
 Hospital products and services $1,167 $1,075 9
 Alternate site products and services 638 539 18
 Medical systems and specialties 498 463 8
 Industrial products 118 120 (2)
 Total Net Sales $2,421 $2,197 10
 Six months ended June 30
 Pct.
 1992 1991 Increase
 (Decrease)
 Hospital products and services $2,277 $2,123 7
 Alternate site products and
 services 1,251 1,053 19
 Medical systems and specialties 959 907 6
 Industrial products 230 236 (3)
 Total net sales $4,717 $4,319 9
 -0- 7/20/92
 /CONTACT: Les Jacobson of Baxter, 708-948-4555/
 (BAX) CO: Baxter International Inc. ST: Illinois IN: MTC SU: ERN


KD -- NY016 -- 0600 07/20/92 09:34 EDT
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Date:Jul 20, 1992
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