Baxter International Inc (NYSE:BAX) Q2 2020 Earnings Conference Call - Final Transcript

Jul 30, 2020 • 08:30 am ET

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Baxter International Inc (NYSE:BAX) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning, ladies and gentlemen, and welcome to Baxter International's Second Quarter 2020 Earnings Conference Call. [Operator Instructions] As a reminder, this call is being recorded by Baxter and is copyrighted material. It cannot be recorded or rebroadcasted without Baxter's permission. If you have any objections, please disconnect at this time. I would now like to turn the call over to Ms. Clare Trachtman, Vice President and Investor Relations at Baxter International. Ms. Trachtman, you may begin.

Executive
Clare Trachtman

Thanks, Catherine. Good morning, and welcome to our second quarter 2020 earnings conference call. Joining me today are Joe Almeida, Baxter's Chairman and Chief Executive Officer; and Jay Saccaro, Baxter's Chief Financial Officer. On the call this morning, we will be discussing Baxter's second quarter 2020 financial results and full year 2020 financial outlook. A supplemental presentation to complement this morning's discussion can be accessed on our website in the Investors section under Events and News. This presentation includes related non-GAAP reconciliations. With that, let me start our prepared remarks by reminding everyone that this presentation, including comments regarding our financial outlook for full year 2020, new product development, business development and regulatory matters contain forward-looking statements that involve risks and uncertainties, and of course, our actual results could differ materially from our current expectations. Please refer to today's press release and our SEC filings for more detail concerning factors that could cause actual results to differ materially. In addition, on today's call, non-GAAP financial measures will be used to help investors understand Baxter's ongoing business performance. A reconciliation of the non-GAAP financial measures being discussed today to the comparable GAAP financial measures is included in our earnings release issued this morning and available on our website. On the call this morning, we will be discussing operational sales growth, which adjusts for the impact of foreign exchange and the acquisition of Seprafilm, which closed on February 14 of this year. Now I'd like to turn the call over to Joe. Joe?

Executive
Jose (Joe) E. Almeida

Thank you, Clare, and thanks, everyone, for joining us today. I hope that you and your families are healthy and safe. Like the last quarter, I want to begin by recognizing all of the health care providers and the first responders who continue to work tirelessly in combating COVID-19. Our deep appreciation also goes to all the clinicians and researchers who are advancing knowledge, treatment and promising vaccine candidates to address this global pandemic. Three months ago, we were hoping to see some easing in the trajectory of this deadly pandemic by now. Sadly, while the hotspots may have shifted, the infection rates and impact remain staggering. Baxter's second quarter performance reflects the evolving impact of pandemic conditions on the global health care landscape and on our own operations. As you saw in today's press release, Baxter reported a year-over-year decline in both net sales and earnings in Q2 2020. While demand for certain pandemic-related treatments and technologies reached historic highs within the quarter, we also saw a negative impact on our results