Baxter International Inc. announced unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2013. For the quarter, the company reported net sales of $4,368 million compared to $3,753 million for the same period a year ago. Pre-tax income was $431 million compared to $574 million for the same period a year ago. Net income was $326 million or $0.59 per diluted share compared to net income of $494 million or $0.89 per diluted share for the same period a year ago. Adjusted pre-tax income (excluding special items) was $902 million compared to $894 million for the same period a year ago. Adjusted net income excluding special items was $692 million or $1.26 per diluted share compared to $700 million or $1.26 per diluted share for the same period a year ago. Cash flows from operations were $945 million compared to $892 million for the same period a year ago. Cash flows from operations were $1,083 million compared to $945 million for the same period a year ago. Net debt as at December 31, 2012 was $6,433 million compared to $2,660 million for the same period a year ago. Capital expenditures were $488 million compared to $399 million for the same period a year ago.

For the full year, the company reported net sales of $15,259 million compared to $14,190 million for the same period a year ago. Pre-tax income was $2,549 million compared to $2,889 million for the same period a year ago. Net income was $2,012 million or $3.66 per diluted share compared to net income of $2,326 million or $4.18 per diluted share for the same period a year ago. Adjusted pre-tax income (excluding special items) was $3,293 million compared to $3,223 million for the same period a year ago. Adjusted net income excluding special items was $2,567 million or $4.67 per diluted share compared to $2,516 million or $4.53 per diluted share for the same period a year ago. Cash flows from operations were $3,198 million compared to $3,106 million for the same period a year ago. Net debt as at December 31, 2012 was $6,433 million compared to $2,660 million for the same period a year ago. Capital expenditures were $1,525 million compared to $1,161 million for the same period a year ago.

The company also provided earnings guidance for the first quarter and full year 2014. The company expects sales growth for full-year 2014 of 9% to 10%, before the impact of foreign exchange. Also, for the full year, the company expects earnings, before special items, of $5.05 to $5.25 per diluted share and cash flows from operations of approximately $3.5 billion. Gross margin to decline by approximately 150 basis points from the restated 2013 margin of 52%. The company expected the tax rate to improve to approximately 21.5%, which includes a benefit related to the structure of the Gambro transaction. Capital expenditures are expected to be of approximately $1.8 billion, which includes Gambro and the investments are making to enhance plasma manufacturing footprint in Covington.

For the first quarter of 2014, the company expects sales growth of approximately 13% to 14%, excluding the impact of foreign currency. Baxter expects GAAP earnings of $1.00 to $1.03 per diluted share in the first quarter, including approximately $0.06 per diluted share of intangible asset amortization expense. The company expected gross margin to be fairly stable due to the timing of certain headwinds and tailwinds and assumptions related to new competitive entrants.