DEERFIELD, Ill. (Dow Jones/AP) - Baxter International Inc., a maker of medical products, sank to a loss in the second quarter as a hefty restructuring charge hurt its bottom line.
The Deerfield-based company also said Thursday it will restate earnings from 2001 through 2003 mainly because of an error in the way it recognizes revenue and inadequate bad-debt provisions in Brazil.
For the latest quarter, Baxter posted a loss of $170 million, or 28 cents a share, compared with profit of $38 million, or 6 cents a share, in the same quarter a year ago.
The latest results included restructuring and other charges of $414 million, or 68 cents a share.
In January, Baxter said it would cut about 4,000 jobs, or about 8 percent of its work force. It also will reduce plasma production by 13 percent a year as it closes certain collection centers.
Excluding the charges, Baxter said it would have reported second-quarter earnings of $245 million, or 40 cents a share, matching the average estimate of analysts polled by Thomson First Call.
Sales for the latest quarter rose 10 percent to $2.38 billion from $2.16 billion a year ago.
The restatement will reduce net income for 2001 through 2003 by no more than $40 million, or 7 cents a share, Baxter said.
For the first six months of the year, Baxter had net income of $8 million, or 1 cent a share, compared with $254 million, or 42 cents a share, a year before.
Shares of Baxter closed Thursday at $30.79, down $1.48, or 4.6 percent, on the New York Stock Exchange.
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