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  • Baxter Achieves Its First Quarter Expectations And Confirms 2013 Full-Year Guidance

    Baxter Achieves Its First Quarter Expectations and Confirms 2013 Full-Year Guidance

    DEERFIELD, Ill.-(BUSINESS WIRE)- Baxter International Inc. (NYS: BAX) today reported first quarter financial results in line with the company's previously issued guidance and confirmed its full-year 2013 financial outlook.

    For the first quarter, Baxter reported net income of $552 million and earnings per diluted share of $1.00, compared to net income of $588 million and earnings per diluted share of $1.04 in the same period last year. First quarter 2013 results include after-tax special items totaling $29 million (or $0.05 per diluted share) primarily for deal-related costs associated with Baxter's planned acquisition of Gambro AB, a global medical technology company focused on developing, manufacturing and supplying dialysis products and therapies for patients with acute or chronic kidney disease. First quarter 2012 results included a net after-tax benefit from special items totaling $19 million of income (or $0.03 per diluted share) for payments and adjustments pertaining to business development transactions.

    On an adjusted basis, excluding special items in both periods, Baxter's first quarter net income of $581 million increased 2 percent from $569 million reported in 2012. Adjusted earnings per diluted share of $1.05 rose 4 percent from $1.01 per diluted share last year, in line with the company's previously issued earnings guidance of $1.03 to $1.05 per diluted share.

    Worldwide sales of $3.45 billion increased 2 percent compared to $3.39 billion reported in the first quarter of 2012. Sales within the United States increased 1 percent, totaling $1.48 billion, while international sales of $1.97 billion increased 2 percent. The impact of foreign currency on sales growth in the quarter was immaterial.

    By business, BioScience revenues of $1.53 billion rose 5 percent, driven primarily by strong demand for ADVATE [Antihemophilic Factor (Recombinant), Plasma/Albumin-Free Method] for the treatment of hemophilia, as well as certain plasma-based therapeutics and vaccines. Medical Products sales of $1.92 billion were comparable to the prior-year period as growth for intravenous therapies was more than offset by lower sales in the company's pharma-partnering business.


    Apr 26 7:46 AM | Link | Comment!
  • Pimco's Rising Stars Pull In Money For Future After Gross

    Pacific Investment Management Co. is becoming less dependent on Bill Gross, preparing for an eventual future without the world's best-known bond investor and adding pressure on its rising stars to live up to his legacy.

    Gross is overseeing a smaller share of Pimco's mutual-fund assets and pulling in less of its cash. His $289 billion Pimco Total Return Fund (PTTRX) got 19 percent of Pimco's new mutual-fund deposits in the two years ended March 31, down from 42 percent in the prior period and 79 percent before that, Morningstar Inc. (NASDAQ:MORN) estimates. The portion of mutual-fund assets run by Gross fell to 63 percent as of March 31 from 84 percent a decade ago.

    For the $2 trillion Newport Beach, California-based firm, diversifying from funds overseen by its 69-year-old co-founder is critical as interest rates approach zero and investors move beyond traditional U.S. bond funds to capture higher returns. Among the firm's rising stars are fixed-income managers Daniel Ivascyn of Pimco Income, Chris Dialynas of Pimco Unconstrained Bond Fund and Mark Kiesel, global head of corporate bonds. An expansion into stocks is proving more challenging amid mediocre returns and the departure of Pimco's equities chief.

    "Pimco has tried to downplay Gross and build an institutional brand," said Burton Greenwald, a consultant based in Philadelphia. "If your appeal is based on a single personality your assets are at risk."


    Apr 26 7:45 AM | Link | Comment!
  • An Option To Purchase Real Estate: How To Creatively Buy, Sell, And Profit With Options

    History can be a great teacher of techniques that can be a game changer in today's real estate market. Real Estate evolved in the early 2000's to a 100% financing contract that was negotiated solely on price. The creative real estate offers and strategies innovation in turn died. We started discussing the different category of strategies in the past article titled How to Execute a Sale-Leaseback Strategy. Today we chat about a speculation oriented investment strategy that first arose in the 1970's.

    Lease option sales were popular financing instruments in the late 1970s and early 1980s. They were primarily used as a way to creatively buy real estate in an environment where 100% financing did not exist and hard moneylenders were tougher to locate. Here is a dirty little secret that has not been publicized as much. Banks consider lease-options a violation of the due on sale clause so if a lender discovers that a property owner has entered into a lease option agreement, the lender could call the mortgage or deed of trust loan due and foreclose if the loan was not paid off in full (Review Title 12 of the Code of Federal Regulations which refers specifically to lease-option contracts).

    Options are misunderstood but when they are fully understood, properly prepared, and used correctly, real estate options are an excellent way to conserve capital, create leverage, reduce risks, and gain control of properties with immediate resale profit potential.


    Apr 23 10:35 AM | Link | Comment!
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