Latest news with #BrentShafer
Yahoo
07-07-2025
- Business
- Yahoo
Baxter International appoints new CEO, months after former leader abruptly retired
Deerfield-based Baxter International has named a new president and CEO, about five months after its former leader abruptly retired. Andrew Hider will serve as the new CEO of Baxter no later than Sept. 3, the company announced Monday morning. Hider, 48, is now CEO of ATS Corporation, which provides automation solutions for companies in the life sciences, food and beverage, transportation, consumer products and energy industries. Baxter makes IV fluids, a number of pharmaceuticals and other hospital products. Hider will earn an annual base salary of $1.35 million, with the potential to earn an annual bonus equal to 150% of his salary, as well as being eligible to participate in the company's long term incentive equity program. He will also receive a one-time sign-on payment of $1 million, as well as various other payments and benefits. Baxter's current chair and interim CEO Brent Shafer, called Hider an 'exceptional leader with a strong track record of operational excellence, disciplined execution and innovation,' in a news release. Hider said in the release that he looks forward to working with the board and his new colleagues to 'redefine healthcare delivery while driving sustainable, long-term growth.' 'Baxter has undergone a significant transformation over the last few years, refocusing the company and better positioning it for the future,' Hider said. In February of this year, Baxter announced that then-CEO and Board Chair José Almeida would retire, effective immediately. Baxter did not say at the time why Almeida was retiring effective immediately, but Almeida said in a news release, 'With the key elements of our broad strategic transformation complete, this is the right time for a new CEO to lead the company into its next chapter.' Almeida had led the company since 2016, and his retirement was announced just days after Baxter closed on its sale of its kidney care business to global investment firm Carlyle for $3.7 billion. That business is now a new company called Vantive with headquarters in Deerfield. Baxter's sale of its kidney care business was part of a three-pronged strategy, intended to strengthen and transform the company after facing significant challenges. In late 2021, Baxter acquired medical equipment and technology company Hillrom for $10.5 billion. The following year, Baxter revealed an impairment charge of $3.1 billion related to the acquisition, meaning Hillrom was no longer worth what Baxter had paid for it. As part of its restructuring following the acquisition, Baxter said in 2023 that it planned to lay off less than 5% of its workers across the globe. Baxter also focused last year on ramping back up production of IV solutions, after its largest manufacturing plant, in North Carolina, was damaged by Hurricane Helene – a situation that alarmed hospitals that depend on those fluids. That plant is now back up to its pre-hurricane production levels. As the new CEO, Hider may also have to deal with fallout from potential tariffs. Baxter's chief financial officer said during a May earnings call that tariffs could cost the company $60 million to $70 million this year, though he said a majority of the products Baxter sells in the U.S. are manufactured in the U.S. and consist largely of U.S.-made components. Sign in to access your portfolio
Business Wire
24-06-2025
- Business
- Business Wire
Baxter Publishes Annual Corporate Responsibility Report, Demonstrating Ongoing Action to Make a Meaningful Difference Around the World
DEERFIELD, Ill.--(BUSINESS WIRE)--Baxter International Inc. (NYSE:BAX), a global medtech leader, today published its 2024 Corporate Responsibility Report. The annual report demonstrates Baxter's commitment to transparent reporting and provides updates on the company's 2030 Corporate Responsibility Commitment and Goals, 1 which strive to create a more sustainable and responsible business model. The annual report demonstrates Baxter's commitment to transparent reporting and provides updates on the company's 2030 Corporate Responsibility Commitment and Goals, which strive to create a more sustainable and responsible business model. Share 'Baxter's Mission to Save and Sustain Lives inspires our work every day and has remained a guiding force even as we redefined the company's business, portfolio and operating model in recent years,' said Brent Shafer, chair and interim chief executive officer. 'Our mission extends to Baxter's commitment as a responsible corporation and our aim to make a meaningful difference in the world. I thank Baxter's 38,000 global employees for continuing to shape who we are as a company and the positive impact we have on the patients, healthcare professionals and communities who rely on us.' 2024 Corporate Responsibility Highlights Baxter's 2024 Corporate Responsibility Report shares updates on the company's 2030 Corporate Responsibility Commitment and Goals, supporting an overarching pledge to 'Empower our Patients,' 'Protect our Planet' and 'Champion our People and Communities.' Key accomplishments from 2024 include: Reduced Scope 1 and 2 greenhouse gas emissions (GHG) by 13.5% compared to 2023 and 18.8% compared to the baseline year of 2020. This marks three-quarters of the way to Baxter's 2030 goal of a 25% emissions reduction, aligned with a well-below 2⁰ Celsius science-based target. Additionally, in 2024, Baxter invested approximately $12 million to complete 175 energy conservation projects across the company's manufacturing sites, including four solar installations and one biomass-fired steam generator installation. Completed a circular economy pilot—a model of keeping materials in circulation to help avoid waste—as part of Baxter's ongoing efforts and goal to mitigate waste across its integrated supply chain, from procurement to distribution. The pilot, which included employee education and an exploration of how circularity principles can be applied to Baxter's manufacturing processes, is helping to inform materials and waste management plans and builds on existing reuse and recycle practices in manufacturing, product and packaging. One existing example is Baxter's HR 900 hospital beds, which are manufactured in Pluvigner, France and made from nearly 37% recycled materials. Invested approximately $31.5 million in underserved and disaster-affected communities worldwide through strategic partnerships and product donations from both Baxter and the Baxter Foundation, including more than $4 million to support employees and communities affected by Hurricane Helene in the U.S. The Baxter Foundation focuses on collaborations with leading global humanitarian organizations to increase access to healthcare, bolster science, technology, engineering and math (STEM) education and promote community resilience. In 2024, Baxter's charitable giving reached people in more than 100 countries. For the fourth consecutive year – since the current goal set was launched – achieved an annual goal of top quartile workplace safety performance in total recordable incident rate. Prioritizing Stakeholder Engagement and Transparent Reporting Baxter periodically conducts materiality assessments to understand and prioritize topics that are important to the long-term sustainability of Baxter's business and most relevant to the company's stakeholders. In 2024, Baxter conducted a double materiality assessment to analyze how the company impacts the environment and society as well as how environmental, social and governance topics impact the company's operational results and financial position. The findings help inform Baxter's corporate responsibility strategy, commitment and goals and provide critical insights as the company evaluates its commitment and goals following the sale of its Kidney Care business in January 2025. An overview of the assessment and its findings are included in this year's report. In addition, the 2024 Corporate Responsibility Report includes Baxter's annual Sustainability Accounting Standards Board (SASB) Index, based on the SASB Medical Equipment and Supplies Sustainability Accounting Standard, and the annual Task Force on Climate-related Financial Disclosures (TCFD) Index. Learn more about Baxter's corporate responsibility initiatives here. About Baxter At Baxter, we are everywhere healthcare happens – and everywhere it is going, with essential solutions in the hospital, physician's office and other sites of care. For nearly a century, our customers have counted on us as a vital and trusted partner. And every day, millions of patients and healthcare providers rely on our unmatched portfolio of connected solutions, medical devices, and advanced injectable technologies. Approximately 38,000 Baxter team members live our enduring mission: to save and sustain lives. Together, we are redefining how care is delivered to make a greater impact today, tomorrow and beyond. To learn more, visit and follow us on X, LinkedIn and Facebook. This release includes forward-looking statements concerning Baxter's 2030 Corporate Responsibility Commitment and Goals and other plans and initiatives described in the release. The statements are based on assumptions about many important factors, including the following, which could cause actual results to differ materially from those in the forward-looking statements: the company's ability to achieve the intended benefits of our strategic actions, including the sale of our Kidney Care business, business strategy and development activities and cost saving initiatives; demand for and market acceptance risks for, and competitive pressures (including pricing) related to new and existing products and services; product development risks; inability to create additional production capacity in a timely manner or the occurrence of other manufacturing, sterilization, or supply difficulties (including as a result of natural disaster or severe weather event, war, terrorism, global public health crises and epidemics/pandemics, regulatory actions or otherwise); satisfaction of regulatory and other requirements; product quality, manufacturing or supply, or patient safety issues; actions of regulatory bodies and other governmental authorities and changes in law and regulations and other governmental pressures in the United States and globally; the impact of physical effects of climate change, severe storms (including Hurricane Helene) and storm-related events; the company's ability to meet evolving and varied corporate responsibility expectations of our stakeholders, including compliance with new and emerging sustainability regulations; and other risks identified in Baxter's most recent filing on Form 10-K and Form 10-Q and other SEC filings, all of which are available on Baxter's website. Baxter does not undertake to update its forward-looking statements unless otherwise required by the federal securities laws. Baxter and HR 900 are trademarks of Baxter International Inc. or its subsidiaries. 1 Data presented in the 2024 report includes Baxter's Kidney Care business, which was sold in January 2025, unless otherwise noted.
Yahoo
01-05-2025
- Business
- Yahoo
Baxter's (NYSE:BAX) Q1: Beats On Revenue
Healthcare company Baxter International (NYSE:BAX) beat Wall Street's revenue expectations in Q1 CY2025, with sales up 5.4% year on year to $2.63 billion. On the other hand, next quarter's revenue guidance of $2.82 billion was less impressive, coming in 0.5% below analysts' estimates. Its non-GAAP profit of $0.55 per share was 13.8% above analysts' consensus estimates. Is now the time to buy Baxter? Find out in our full research report. Revenue: $2.63 billion vs analyst estimates of $2.58 billion (5.4% year-on-year growth, 1.9% beat) Adjusted EPS: $0.55 vs analyst estimates of $0.48 (13.8% beat) Adjusted Operating Income: $392 million vs analyst estimates of $388.4 million (14.9% margin, 0.9% beat) Revenue Guidance for Q2 CY2025 is $2.82 billion at the midpoint, below analyst estimates of $2.83 billion Management slightly raised its full-year Adjusted EPS guidance to $2.51 at the midpoint Operating Margin: 2.2%, down from 4.6% in the same quarter last year Constant Currency Revenue rose 5% year on year (2% in the same quarter last year) Market Capitalization: $15.99 billion 'Our solid performance in the first quarter of 2025 reflects the ongoing impact of our transformation journey,' said Brent Shafer, chair and interim chief executive officer. With a history dating back to 1931 and products used in over 100 countries, Baxter International (NYSE:BAX) provides essential healthcare products including dialysis therapies, IV solutions, infusion systems, surgical products, and patient monitoring technologies to hospitals and clinics worldwide. A company's long-term sales performance can indicate its overall quality. Any business can have short-term success, but a top-tier one grows for years. Over the last five years, Baxter's demand was weak and its revenue declined by 1.3% per year. This wasn't a great result and suggests it's a low quality business. We at StockStory place the most emphasis on long-term growth, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. Baxter's recent performance shows its demand remained suppressed as its revenue has declined by 10.3% annually over the last two years. We can better understand the company's sales dynamics by analyzing its constant currency revenue, which excludes currency movements that are outside their control and not indicative of demand. Over the last two years, its constant currency sales averaged 3.9% year-on-year growth. Because this number is better than its normal revenue growth, we can see that foreign exchange rates have been a headwind for Baxter. This quarter, Baxter reported year-on-year revenue growth of 5.4%, and its $2.63 billion of revenue exceeded Wall Street's estimates by 1.9%. Company management is currently guiding for a 4.5% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 5.2% over the next 12 months, an improvement versus the last two years. This projection is above the sector average and implies its newer products and services will fuel better top-line performance. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Adjusted operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It's also useful for comparing profitability across companies because it excludes non-recurring expenses, interest on debt, and taxes. Baxter has managed its cost base well over the last five years. It demonstrated solid profitability for a healthcare business, producing an average adjusted operating margin of 16.1%. Analyzing the trend in its profitability, Baxter's adjusted operating margin decreased by 3 percentage points over the last five years. A silver lining is that on a two-year basis, its margin has stabilized. Still, shareholders will want to see Baxter become more profitable in the future. In Q1, Baxter generated an adjusted operating profit margin of 14.9%, up 2.6 percentage points year on year. This increase was a welcome development and shows it was more efficient. We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Sadly for Baxter, its EPS declined by 9.3% annually over the last five years, more than its revenue. This tells us the company struggled because its fixed cost base made it difficult to adjust to shrinking demand. Diving into the nuances of Baxter's earnings can give us a better understanding of its performance. As we mentioned earlier, Baxter's adjusted operating margin improved this quarter but declined by 3 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its lower earnings; taxes and interest expenses can also affect EPS but don't tell us as much about a company's fundamentals. In Q1, Baxter reported EPS at $0.55, up from $0.36 in the same quarter last year. This print easily cleared analysts' estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Baxter's full-year EPS of $2.08 to grow 21.4%. We were impressed by how significantly Baxter blew past analysts' constant currency revenue expectations this quarter. We were also glad its EPS outperformed Wall Street's estimates. On the other hand, its revenue guidance for next quarter slightly missed. Overall, we think this was still a solid quarter with some key areas of upside. The stock traded up 1.5% to $31.63 immediately after reporting. Baxter may have had a good quarter, but does that mean you should invest right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free.
