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Baxter alerts typhoon disruptions at IV facility might strike financials in 2025

Baxter International warned on Friday that hurricane-related interruptions at its North Carolina IV options center could impact its financials through early 2025.

Shares of the medical products maker fell 4.4% in early morning trading.

The company has actually been trying to reinstate production at the plant, which makes 60% of the United States' supply of intravenous fluids and some crucial dialysis services, after it was closed in late September due to flooding throughout Cyclone Helene.

While all manufacturing lines at the facility are anticipated to resume before completion of this year, the production of a secret IV item will reach complete capacity only in early 2025, CEO ? José Almeida stated in an earnings call.

This might partially impact first-quarter 2025 financials as the 1-liter IV bags constitute practically half of the IV production at the North Carolina center, Almeida stated.

Baxter approximates the hurricane-related influence on fourth-quarter 2024 sales to be about $200 million and anticipates a. hit of between 15 cents and 20 cents per share to adjusted. earnings.

The medical products maker also cut its adjusted earnings. forecast for 2024 to between $2.90 and $2.94 per share, from. $ 2.93 to $3.01 per share previously.

The projection cut was largely anticipated, although the. magnitude was a bit greater than what we thought, according to. Evercore expert Vijay Kumar.

Baxter reaffirmed its adjusted operating margin forecast. of about 16.5% and operational sales development of between 4% and 5%. in 2025 regardless of the effect from the hurricane.

On an adjusted basis, the business made 80 cents per share. in the 3rd quarter, compared with an expectation of 78 cents. per share, according to estimates compiled by LSEG.

(source: Reuters)