Fed probe, job cuts at Baxter.(Briefs)(Baxter International Inc.'s earnings forecasts )(Brief Article)

Crain's Chicago Business, July, 2003

Baxter International Inc. said it's cooperating with federal regulators who want to know why the company has lowered its earnings forecasts so many times over the last few months. The Deerfield-based maker of medical supplies said it recorded a second-quarter charge of $337 million, or 33 cents per share, mainly to cover severance costs as it cuts 3,200 employees, or 6% of its workforce.

Baxter originally said it would eliminate 2,500 jobs, or 5% of its workforce. Additionally, the company said earnings tumbled 76% in the quarter, to $49 million, or 8 cents per share, compared with the year-earlier period. Revenues rose 11% to $2.16 billion.