Baxter posts first-quarter earnings gain of 6%.

Earnings at Baxter International Inc. jumped 6% in the first quarter of this year, prompting the company to raise its 2008 outlook.

Deerfield, IL-based Baxter reported net income of $429 million, or 67 cents per share, compared with $403 million, or 61 cents per share, in the first quarter of 2007. The numbers include a $45 million after-tax charge for additional costs associated with the company's efforts to get its Colleague infusion pump back on the market. The device was recalled nearly three years ago after it was discovered that it could shut down while delivering medication and fluids to patients. Excluding the after tax charge, Baxter earned 74 cents per share, an increase of 21%.

Revenue for the first quarter, which ended March 31, rose 8% to $2.87 billion. That increase, for the most part, was driven by a 13% sales surge in Baxter's BioScience business, which manufactures plasma-based and recombinant proteins used to treat hemophilia and other chronic blood-related conditions. Sales in this sector soared to $1.2 billion, a 13% increase over first-quarter 2007 numbers.

The company attributed the growth in its BioScience business to strong sales of products used to treat hemophilia and other immune disorders. Baxter also reported strong sales of its plasma-based therapies, biosurgery products and vaccines.

Medication delivery sales also grew 8% to $1.1 billion. Sales of dialysis systems totaled $558 million, an increase of 6%.

Baxter's $190 million investment in re search and development jumped 19% in the first quarter. Baxter expects continued growth in both sales and research and development this year. The company predicted that its sales for the year (ending Dec. 31) would grow between 5% and 6%, excluding the impact of foreign exchange. Expectations for earnings per diluted share were raised to a range of $3.18 to $3.24 from a previous forecast range of $3.10 to $3.18.

Overall, Baxter predicts it will generate $2.5 billion this year from its operations.

For the second quarter, which ends June 30, the company expects sales to grow 4% to 5%.