Baxter International Inc. reported first quarter financial results for 2014 that exceeded the company's previously issued guidance and confirmed its full-year 2014 financial outlook. For the first quarter, Baxter reported net income of $556 million and earnings per diluted share of $1.01, compared to net income of $552 million and earnings per diluted share of $1.00 in the same period last year.  First quarter 2014 results include after-tax special items totaling $96 million (or $0.18 per diluted share), for intangible asset amortization and costs associated with the integration of its Gambro AB acquisition, business development and business optimization initiatives. 

Medical Products sales increased 22% to $2.34 billion, which the company attributes to its Gambro acquisition and strong sales of peritoneal dialysis products and certain injectable drugs.  Excluding revenues associated with the Gambro acquisition, medical products sales increased
1% (or 4 percent excluding the impact of foreign currency).

Adjusted income, which excludes certain one-time items, increased 8% to $652 million,  from $601 million reported in 2013.  Adjusted earnings per diluted share grew 9% to $1.19, compared to $1.09 per diluted share last year, exceeding the company's previously issued earnings guidance of $1.06 to $1.09 per diluted share. 

Related: Baxter to divide into two companies

Worldwide sales increased 15% (or 16 percent excluding foreign exchange) to $3.95 billion, compared to $3.45 billion reported in the first quarter of 2013.  Excluding the contribution of Gambro revenues, which totaled $400 million, Baxter's worldwide sales increased 3% to $3.55 billion (or 5% excluding the impact of foreign currency).

"Positive momentum is building and Baxter is off to a strong start in 2014," said Robert L. Parkinson, Jr., chairman and chief executive officer.  "We delivered strong financial results, continued to enhance our flexibility to invest for future growth, build and advance the new product pipeline, expand our business portfolios and position the company for sustained performance and success."