DEERFIELD, IL – Baxter International Inc. (NYSE:{{7951|BABAX), a global leader in medical products, announced today that Mr. Peter M. Wilver will resign from its Board of Directors, including his roles on the Audit Committee and Compensation and Human Capital Committee, effective December 31, 2024. The company stated that Mr. Wilver's departure is due to personal reasons and is not related to any disagreements with the company’s management, operations, policies, or practices.
With Mr. Wilver's upcoming departure, Baxter’s board will be reduced from 12 to 11 directors. Concurrently, Mr. Jeffrey A. Craig will assume the position of chairperson of the Audit Committee. Mr. Craig, already serving as a director on Baxter's board, has a significant background in corporate finance and leadership. He is the former CEO and President of Meritor (NYSE:MTOR), Inc., where he worked in various capacities from 2006 to 2021. Prior to Meritor, Mr. Craig held leadership roles at General Motors (NYSE:GM) Acceptance Corp. (GMAC), including President and CEO of its Commercial Finance organization and Business Credit division, after a tenure as an audit partner at Deloitte & Touche LLP.
The transition in the board's composition reflects Baxter's ongoing governance and oversight processes. The company, headquartered in Deerfield, Illinois, operates under the SIC code for Surgical & Medical (TASE:PMCN) Instruments & Apparatus, and is well-known for its diverse range of medical products and services. The information disclosed is based on the recent 8-K filing with the Securities and Exchange Commission. Baxter International remains committed to maintaining strong leadership and governance to support its mission in the healthcare industry.
In other recent news, Baxter International reported a 4% increase in sales year-over-year in Q3 2024, reaching $3.85 billion. The company's adjusted earnings per share (EPS) of $0.80 exceeded their guidance, led by a 7% growth in the Medical Products & Therapies segment, primarily driven by the demand for the Novum IQ platform. Despite operational challenges due to Hurricane Helene, Baxter anticipates a resumed production of IV solutions by late November. In addition, Baxter announced the pending sale of their Kidney Care business to Carlyle, expected to close in late 2024 or early 2025.
Despite anticipating a $200 million sales decrease in Q4 due to Hurricane Helene, Baxter projects full-year 2024 sales growth at 1% to 2%, with an adjusted EPS of $2.90 to $2.94. The company aims for 4% to 5% top-line growth and an adjusted operating margin of 16.5% in 2025 post-separation from the Kidney Care business. Baxter's executive team remains optimistic about the company's future, with a strong emphasis on growth through innovation and operational efficiency. These are recent developments for the company.
InvestingPro Insights
As Baxter International Inc. (NYSE:BAX) navigates this transition in its Board of Directors, investors may find additional context from recent financial data and expert insights. According to InvestingPro, Baxter's market capitalization stands at $16.99 billion, reflecting its significant presence in the Healthcare Equipment & Supplies industry. The company's revenue for the last twelve months as of Q3 2024 was $15.06 billion, with a notable revenue growth of 32.37% over the same period.
InvestingPro Tips highlight that Baxter has maintained dividend payments for an impressive 54 consecutive years, demonstrating a strong commitment to shareholder returns. This consistency aligns with the company's stable governance practices, as evidenced by the orderly transition in its board composition. Additionally, analysts predict that Baxter will remain profitable this year, which could provide reassurance to stakeholders during this leadership change.
It's worth noting that Baxter is currently trading near its 52-week low, which may present an opportunity for investors who believe in the company's long-term prospects. For those seeking a more comprehensive analysis, InvestingPro offers 11 additional tips that could provide deeper insights into Baxter's financial health and market position.
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