Healthcare products maker Baxter International Inc. on said quarterly earnings fell 13 percent amid high marketing costs and announced plans to cut up to 8 percent of its workforce to control costs.
The Deerfield, Illinois-based company, which named a new chief executive officer earlier this week, also said it plans to cut production of its plasma products in a bid to shore up earnings growth, despite stabilizing prices in that key market.
Baxter reported first-quarter earnings from continuing operations of $189 million, or 31 cents per share, compared with $217 million, or 36 cents per share, a year earlier.
Analysts on average were expecting 31 cents a share, according to Reuters Research, a unit of Reuters Group Plc.
Baxter’s sales rose 11 percent to $2.21 billion in the first quarter. Excluding impact of the weak dollar, sales grew just 4 percent.
The company plans to record an after-tax charge in the second quarter of 2004 of about $350 to $400 million, or 55 cents to 65 cents per share, mainly for severance and costs associated with the closing of facilities.
Baxter forecast second quarter earnings from continuing operations of 37 to 41 cents a share, excluding the impact special charges and gains in the quarter.
Analysts on average were looking for earnings of 41 cents in the quarter.
