Baxter International Inc. announced unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2014. For the quarter, the company reported net sales of $4,472 million compared to $4,322 million for the same period a year ago. Pre-tax income from continuing operations was $598 million compared to $524 million for the same period a year ago. Adjusted pre-tax income from continuing operations was $922 million compared to $941 million for the same period a year ago. Income from continuing operations before income taxes was $598 million compared to $524 million for the same period a year ago. Income from continuing operations was $524 million or $0.96 per diluted share compared to $409 million or $0.74 per diluted share, for the same period a year ago. Net income was $953 million or $1.74 per diluted share compared to $326 million or $0.59 per diluted share for the same period a year ago. Adjusted pre-tax income (excluding special items) was $922 million compared to $941 million for the same period a year ago. Adjusted net income from continuing operations, excluding special items was $733 million or $1.34 per diluted share compared to $720 million or $1.31 per diluted share for the same period a year ago. Adjusted net income was $745 million or $1.36 per diluted share compared to $727 million or $1.33 per diluted share for the same period a year ago. Cash flows from operations were $1,143 million compared to $1,083 million for the same period a year ago. Net debt, as at December 31, 2014 was $6,380 million compared to $6,433 million, as at December 31, 2013. Capital expenditures were $573 million compared to $488 million for the same period a year ago.

For the full year, the company reported net sales of $16,671 million compared to $16,671 million for the same period a year ago. Pre-tax income from continuing operations was $2,439 million compared to $2,546 million for the same period a year ago. Adjusted pre-tax income from continuing operations was $3,427 million compared to $3,319 million for the same period a year ago. Income from continuing operations before income taxes was $2,439 million compared to $2,546 million for the same period a year ago. Income from continuing operations was $1,946 million or $3.56 per diluted share compared to $2,012 million or $3.66 per diluted share, for the same period a year ago. Net income was $2,497 million or $4.56 per diluted share compared to $2,012 million or 3.66 per diluted share for the same period a year ago. Adjusted pre-tax income (excluding special items) was $3,427 million compared to $3,319 million for the same period a year ago. Adjusted net income from continuing operations, excluding special items was $2.683 million or $4.90 per diluted share compared to $2,577 million or $4.69 per diluted share for the same period a year ago. Adjusted net income was $2,830 million or $5.17 per diluted share compared to $2,668 million or $4.86 per diluted share for the same period a year ago. Cash flows from operations were $3,215 million compared to $3,198 million for the same period a year ago. Net debt, as at December 31, 2014 was $6,380 million compared to $6,433 million, as at December 31, 2013. The company generated cash flows from operations of approximately $3.215 billion compared to $3.198 billion for the same period a year ago and invested record levels in research and development and capital improvements. The company's investments in research and development grew 22% to more than $1.4 billion, while capital expenditures increased 24% to $1.898 billion against last year's $1.525 billion, reflecting investments in manufacturing capacity to support future demand and growth opportunities across the company's global portfolio.

The company also provided earnings guidance for the first quarter of 2015. For the first quarter of 2015, the company expects sales growth of approximately 2% to 3%, excluding the impact of foreign currency. Including the impact of foreign currency, the company expects sales to decline approximately 3% to 4%. The company also expects earnings from continuing operations, before special items, of $0.85 to $0.90 per diluted shaconsolidatedre, which reflects traditional seasonality, the impact of foreign currency, increased generic competition, and additional manufacturing and operational costs which are expected to be pronounced in the first quarter of 2015. The first quarter 2015 earnings guidance excludes approximately $0.09 per diluted share of projected intangible amortization expense. Reconciling for the inclusion of intangible asset amortization results in GAAP (Generally Accepted Accounting Principles), the earnings will be expected to be from $0.76 to $0.81 per diluted share, before other special items, for the quarter.