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Baxter Reports Strong Third Quarter Sales and Earnings
Date:10/18/2007

earch and development expenses were $168 million, or 6.1%

of sales.

BAXTER INTERNATIONAL INC.

Consolidated Statements of Income

Nine Months Ended September 30, 2007 and 2006

(unaudited)

(in millions, except per share and percentage data)

Nine Months Ended

September 30,

-------------------

2007 2006 Change

-------- -------- ------

NET SALES $8,254 $7,615 8%

COST OF GOODS SOLD 4,220 4,193(1) 1%

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GROSS PROFIT 4,034 3,422 18%

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% of Sales 48.9% 44.9% 4.0 pts

MARKETING AND ADMINISTRATIVE EXPENSES 1,867(2) 1,670 12%

% of Sales 22.6% 21.9% 0.7 pts

RESEARCH AND DEVELOPMENT EXPENSES 539(3) 433 24%

% of Sales 6.5% 5.7% 0.8 pts

RESTRUCTURING CHARGES 70(4) -- N/A

NET INTEREST EXPENSE 10 33 (70%)

OTHER EXPENSE, NET 28(5) 55 (49%)

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PRE-TAX INCOME 1,520 1,231 23%

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INCO
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SOURCE Baxter International Inc.
Copyright©2007 PR Newswire.
All rights reserved

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