Baxter International Inc. said its second-quarter earnings rose 6 percent, although costs associated with staff reductions reduced operating income.
Deerfield-based Baxter said net income rose to $132 million, or 48 cents a share, from $124 million, or 44 cents a share, a year earlier. Revenues rose to $2.2 billion from $2.1 billion.
Clouding the performance was a decline in operating income to $204 million in the most recent quarter from $252 million a year earlier. Baxter warned earlier about slippage in the figure, citing higher manufacturing costs, negative swings in foreign exchange rates and costs associated with staff reductions in the hospital business.
Baxter also increased spending on research and development 9 percent in the most recent quarter.
“We continue to invest in new products and technologies that will serve medical needs and benefit Baxter in the long term,” said Vernon R. Loucks Jr., chairman and chief executive. “I expect we will continue to invest in R&D at a rate that exceeds our sales growth.”
In the first half, profit from continuing operations declined to $189 million, or 68 cents a share, from $238 million, or 83 cents, a year earlier. Revenues rose to $4.26 billion from $4.05 billion.
