Baxter International Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, showing a mixed performance amid significant strategic developments. Total net sales for Q3 2024 reached $2,699 million, a 4% increase from $2,599 million in Q3 2023. For the nine months, net sales were $7,883 million, up 3% from $7,634 million in the prior year. The U.S. market contributed $1,500 million in Q3 2024, reflecting a 2% increase, while international sales grew by 6% to $1,199 million.

The company’s profitability faced challenges, with net income for Q3 2024 reported at $140 million, a significant decline from $2,508 million in Q3 2023. This drop was largely attributed to special items that adversely impacted net income by $271 million in Q3 2024, compared to a positive impact of $2.09 billion in the same quarter of the previous year. For the nine months, Baxter reported a net loss of $137 million, contrasting sharply with a net income of $2,411 million in the same period of 2023.

Baxter's operating income for Q3 2024 was $155 million, down from $179 million in Q3 2023, while for the nine months, it increased to $449 million from $403 million. The company’s effective income tax rate for Q3 2024 was 11.6%, significantly lower than 42.2% in Q3 2023, influenced by a favorable geographic earnings mix and a $26 million valuation allowance related to the pending sale of its Kidney Care segment.

Strategically, Baxter announced the sale of its Kidney Care business to Carlyle Group for $3.80 billion, with expected net proceeds between $3.15 billion and $3.25 billion. This segment is classified as held-for-sale and reported as a discontinued operation. The company also faced operational disruptions due to Hurricane Helene, incurring $25 million in pre-tax charges related to inventory and fixed asset write-offs.

Baxter's total assets decreased to $26,676 million as of September 30, 2024, from $28,276 million at the end of 2023, while total stockholders' equity fell to $7,942 million from $8,468 million. The company’s long-term debt decreased to $10,437 million, down from $11,089 million at the end of 2023. Cash and cash equivalents were reported at $1,420 million, a decline from $5,716 million a year earlier, reflecting increased cash outflows primarily due to debt repayments and operational costs.