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Baxter International Inc BAX
Q4 2010 Earnings Call Transcript

Transcript Call Date 01/27/2011

Operator: Good morning, ladies and gentlemen and welcome to Baxter International's Fourth Quarter Earnings Conference Call. Your lines will remain in a listen-only mode until the question-and-session segment of today's call. As a reminder, this call is being recorded by Baxter and is copyrighted material. It cannot be recorded or rebroadcast without Baxter's permission. If you have any objections, please disconnect at this time.

I would now like to turn the call over to Ms. Mary Kay Ladone, Corporate Vice President of Investor Relations at Baxter International. Ms. Ladone, you may begin.

Mary Kay Ladone - Corporate VP, IR: Thanks, Sean and good morning, everyone. Welcome to our fourth quarter 2010 earnings conference call. Joining me today are Bob Parkinson, CEO and Chairman of Baxter International; and Bob Hombach, Chief Financial Officer.

Before we get started, let me remind you that this presentation, including comments regarding our financial outlook, new product developments and regulatory matters contain forward-looking statements that involve risks and uncertainties and of course, our actual results could different materially from our current expectations. Please refer to today's press release and our SEC filings for more details concerning factors that could cause actual results to differ materially.

In addition, in today's call, non-GAAP financial measures will be used to help investors understand Baxter's ongoing business performance. A reconciliation of the non-GAAP financial measures being discussed today to the comparable GAAP financial measures is included in our earnings release issued this morning and available on our website.

Now, I'd like to turn the call over to Bob Parkinson.

Robert L. Parkinson, Jr. - Chairman, President and CEO: Thanks, Mary Kay. Good morning and thanks for calling in this morning. As you all know 2010 was an unusually challenging year for Baxter that presented some unique obstacles in an evolving macro environment. The global economic landscape continued to exert intense pressure, U.S. healthcare reform legislation added additional complexity and further impacted our business performance and healthcare austerity measures continue to be implemented around the world as emphasis remains on providing increased access to care at a lower cost.

Finally and specific to Baxter, as you know market dynamics in the plasma protein business had an adverse effect on our financial performance for the year, however, we're seeing encouraging signs that our competitive position is strengthening and we continue to be optimistic about the growth prospects for this business over time.

Despite these challenges there were array of Baxter's successes that I'd like to highlight this morning. First, while we were disappointed that we lowered our guidance in the first quarter of 2010, our financial performance was in line with our revised expectations for the remainder of the year.

Earlier this morning, we reported our fourth quarter financial results with adjusted EPS that increased 8% to $1.11 per diluted share. For the full year, adjusted EPS was $3.98 per diluted share at the high end of our revised guidance range of $3.92 to $4 per share.

Read our Earnings Call Transcript disclaimer.
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