Baxter International Inc. (BAX) posted a 12% gain in third-quarter profit that was helped by lower costs this year and a bigger tally of charges a year ago, although its sales were flat due to the effects of currency rates and delays in its business for plasma-based medical products.

Executives explained during a conference call that the delays affected international contracts and would simply shift about $35 million in sales to the fourth quarter. Still, shares slipped on Thursday and were recently down 3.5% to $55.00.

The Deerfield, Ill., maker of products for serious issues such as hemophilia and kidney failure also boosted its full-year profit forecast, although this included a fourth-quarter guidance range that still landed mostly short of Wall Street's expectations.

Additionally, the company also reiterated its forecast for $30 million to $40 million in sales this year linked to a vaccine it's developed for the H1N1 flu, also known as swine flu, while saying its production capabilities continue to improve Baxter reported a third-quarter profit of $530 million, or 87 cents a share, up from $472 million, or 74 cents a share, a year earlier. Excluding costs in both quarters from product discontinuation and other items, earnings rose to 98 cents from 88 cents.

The adjusted tally came in ahead of Baxter's July forecast for third-quarter earnings of 95 cents to 97 cents per share, and was a penny above the average forecast among analysts surveyed by Thomson Reuters.

Sales of $3.15 billion were basically flat compared with the total a year ago, restrained by unfavorable currency conditions. Excluding the currency effect, Baxter said sales were up 6%.

Analysts, on average, had expected a higher sales total of $3.19 billion.

U.S. sales were up 5% while international sales fell 4% due to currency, but otherwise were up 7%.

Gross margin rose to 51.9% from 48.3% amid a lower cost of sales in the recent period.

Amid Baxter businesses, the bioscience business - the company's largest unit - posted a 2% rise in sales, or 8% excluding currency. Sales were helped by a treatment for hemophilia, antibody therapies and products derived from plasma, the company said.

Analysts noted that sales of products derived from plasma looked soft following Baxter's earnings release. But during the call, executives noted the delay in government contracts from Eastern Europe and Latin America that is pushing about $35 million in sales to the fourth quarter.

"It purely is timing," Robert L. Parkinson, Jr., Baxter's chairman and chief executive, said on the call. JPMorgan analyst Michael Weinstein said following this explanation that the quarter was better than it looked at first, although shares still traded lower.

Sales in the medication delivery business rose 1%, or 7% excluding currency. Sales in the renal business were down 3% due to currency, but increased 4% when this impact is excluded.

Regarding the swine flu vaccine, for which Baxter has received orders for about 80 million doses, Parkinson said the company continues to see "significant improvements in manufacturing process yields."

Parkinson also said Baxter increasingly believes "this has the potential to translate into a significant longer term opportunity for the company." But because of open questions about production capabilities, dosing and where the flu could head, it's premature to talk about financial benefits beyond this year, he said.

Looking ahead, Baxter now forecasts some currency-related benefits due to the weaker U.S. dollar after watching currency take a bite from sales so far this year. The company sees sales in the fourth quarter rising 8% to 10% with some currency help.

It sees fourth quarter earnings of $1.02 to $1.04 per share, before any special items, which compares with Wall Street's $1.04 forecast.

For the full year, Baxter now sees potential for a slight sales gain due to the currency changes, although its sales-growth forecast excluding currency remains at 7% to 8%. It now sees earnings of $3.79 to $3.81 per share, which is up from the $3.76 to $3.80 per share forecast given in July.

-By Jon Kamp, Dow Jones Newswires; 617-654-6728; jon.kamp@dowjones.com

(Mike Barris contributed to this article.)