2014

BD Announces Results for 2012 Second Fiscal Quarter

FRANKLIN LAKES, N.J., May 1, 2012 /PRNewswire/ -- BD (Becton, Dickinson and Company) (NYSE: BDX), a leading global medical technology company, today reported quarterly revenues of $1.991 billion for the second fiscal quarter ended March 31, 2012, representing an increase of 3.6 percent from the prior-year period, or 4.6 percent on a foreign currency-neutral basis. 

"We are very pleased with our second quarter results. We posted solid revenue growth led by our BD Medical and BD Diagnostics segments, despite continuing challenges in the U.S. in our BD Biosciences segment," said Vincent A. Forlenza, Chief Executive Officer and President. "We remain committed to our strategy of investing and innovating for growth, both organically and through acquisitions such as KIESTRA Lab Automation." 

Agreement to Sell Discovery Labware Unit, Excluding Advanced Bioprocessing

In April 2012, the Company signed a definitive agreement to sell its BD Biosciences - Discovery Labware unit, excluding its Advanced Bioprocessing platform. The transaction is expected to be completed by the end of calendar year 2012, subject to the satisfaction of customary closing conditions, including consultations and regulatory approvals. For the full fiscal year 2012, revenues and earnings per share associated with this asset group are estimated at $235 million and $0.23 to $0.27, respectively. The Company expects to record a gain on the sale at the time the transaction is completed.

Second Quarter and Six-Month Fiscal 2012 Operating Results

As expected, reported diluted earnings per share from continuing operations for the second quarter were $1.38, or flat compared with the prior-year period. On a foreign currency-neutral basis, diluted earnings per share from continuing operations for the second quarter increased by 2.9 percent.

For the six-month period ending March 31, 2012, reported diluted earnings per share from continuing operations were $2.59, compared with $2.72 in the prior-year period. This represents a decrease of 4.8 percent, or 3.3 percent on a currency-neutral basis.

Segment Results

In the BD Medical segment, worldwide revenues for the quarter were $1.021 billion, representing an increase of 4.1 percent compared with the prior-year period, or 5.3 percent on a currency-neutral basis. The segment's revenue growth reflected strong sales in the Pharmaceutical Systems and Diabetes Care units and solid sales in the Medical Surgical Systems unit. For the six-month period ended March 31, 2012, BD Medical revenues increased 3.3 percent, or 4.0 percent on a currency-neutral basis.

In the BD Diagnostics segment, worldwide revenues for the quarter were $630 million, representing an increase of 4.1 percent compared with the prior-year period, or 5.0 percent on a foreign currency-neutral basis. The segment's growth was primarily driven by strong sales in the Preanalytical Systems unit and solid growth in Women's Health and Cancer. For the six-month period ended March 31, 2012, BD Diagnostics revenues increased 3.6 percent, or 4.1 percent on a currency-neutral basis.

In the BD Biosciences segment, worldwide revenues for the quarter were $340 million, representing an increase of 1.3 percent compared with the prior-year period, or 1.7 percent on a foreign currency-neutral basis.  Segment growth was primarily driven by clinical reagent sales in the Cell Analysis unit and strong emerging market sales as overall segment growth continues to be negatively affected by weakness in the U.S. research market. For the six-month period ended March 31, 2012, BD Biosciences revenues increased 1.1 percent, or 1.0 percent on a currency-neutral basis.

Geographic Results

Second quarter revenues in the U.S. were $848 million, representing an increase of 2.2 percent compared with the prior-year period. Revenues outside of the U.S. were $1.143 billion, representing an increase of 4.6 percent compared with the prior-year period, or an increase of 6.3 percent on a foreign currency-neutral basis. International revenues reflected continued strength in emerging markets and strong sales of safety-engineered products. For the six-month period ended March 31, 2012, revenues in the U.S. were $1.676 billion, representing an increase of 1.1 percent compared with the prior-year period. Revenues outside of the U.S. were $2.202 billion, representing an increase of 4.5 percent when compared with the prior-year period, or 5.4 percent on a foreign currency-neutral basis.

Fiscal 2012 Outlook for Full Year

The Company is raising its previous guidance for reported revenue growth for the full fiscal year 2012 from about flat to be between 1 to 2 percent. This reflects the anticipated effects of favorable currency translation. On a currency-neutral basis, the Company is raising the lower end of its previous revenue growth guidance of 2 to 4 percent, to 3 to 4 percent. The Company is raising reported diluted earnings per share from continuing operations for fiscal year 2012 from $5.60 to $5.70 to be between $5.68 and $5.73, and plans to repurchase, subject to market conditions, $1.5 billion of its common stock in fiscal year 2012.

Conference Call Information

A conference call regarding BD's second quarter results and its expectations for the full fiscal year 2012 will be broadcast live on BD's website, www.bd.com/investors, along with related slides, at 8:00 a.m. (ET) Tuesday, May 1, 2012.  The conference call will be available for replay on BD's website, www.bd.com/investors, or at 1-800-585-8367 (domestic) and 1-404-537-3406 (international) through the close of business on Tuesday, May 8, 2012, access code 68128968.

Non-GAAP Financial Measures

This news release contains certain non-GAAP financial measures.  Reconciliations of these and other non-GAAP measures to the comparable GAAP measures are included in the attached financial tables.

About BD

BD is a leading global medical technology company that develops, manufactures and sells medical devices, instrument systems and reagents. The Company is dedicated to improving people's health throughout the world.  BD is focused on improving drug delivery, enhancing the quality and speed of diagnosing infectious diseases and cancers, and advancing research, discovery and production of new drugs and vaccines. BD's capabilities are instrumental in combating many of the world's most pressing diseases. Founded in 1897 and headquartered in Franklin Lakes, New Jersey, BD employs approximately 29,000 associates in more than 50 countries throughout the world. The Company serves healthcare institutions, life science researchers, clinical laboratories, the pharmaceutical industry and the general public. For more information, please visit www.bd.com.

This press release, including the section entitled "Fiscal 2012 Outlook for Full Year", contains certain estimates and other forward-looking statements (as defined under Federal securities laws) regarding BD's performance, including future revenues and earnings per share.  All such statements are based upon current expectations of BD and involve a number of business risks and uncertainties.  Actual results could vary materially from anticipated results described, implied or projected in any forward-looking statement.  With respect to forward-looking statements contained herein, a number of factors could cause actual results to vary materially from any forward-looking statement.  These factors include, but are not limited to: adverse changes in regional, national or foreign economic conditions, including any impact that may result from the current global economic conditions on our ability to access credit markets and finance our operations, the demand for our products and services as a result of reduced government funding, lower utilization rates or otherwise, or our suppliers' ability to provide products needed for our operations; the unknown consequences of healthcare reform in the United States, including the impact of the reduction in Medicare and Medicaid payments to hospitals, pharmaceutical companies and other customers, which could reduce demand for our products and increase downward pricing pressure; changes in interest or foreign currency exchange rates; competitive factors; pricing and other market pressures; our ability to successfully integrate any businesses we acquire; difficulties inherent in product development and delays in product introductions; increases in energy costs and their effect on, among other things, the cost of producing BD's products; fluctuations in costs and availability of raw materials and in BD's ability to maintain favorable supplier arrangements and relationships; new or changing laws impacting our business or changes in enforcement practices with respect to such laws; uncertainties of litigation (as described in BD's filings with the Securities and Exchange Commission); future healthcare reform, including changes in government pricing and reimbursement policies or other cost containment reforms; the effects of potential pandemic diseases; and issuance of new or revised accounting standards, as well as other factors discussed in BD's filings with the Securities and Exchange Commission.  We do not intend to update any forward-looking statements to reflect events or circumstances after the date hereof except as required by applicable laws or regulations.  

Contact:
Monique N. Dolecki, Investor Relations – 201-847-5378
Colleen T. White, Corporate Communications – 201-847-5369





























BECTON DICKINSON AND COMPANY














CONSOLIDATED INCOME STATEMENTS














(Unaudited; Amounts in thousands, except per share data)





























Three Months Ended March 31,









2012


2011


% Change






















REVENUES

$

1,990,818

$

1,922,023


3.6






















Cost of products sold


970,832


920,589


5.5








Selling and administrative


495,020


441,942


12.0








Research and development


118,528


119,152


(0.5)








TOTAL OPERATING COSTS














     AND EXPENSES


1,584,380


1,481,683


6.9






















OPERATING INCOME


406,438


440,340


(7.7)






















Interest income


16,678


14,564


14.5








Interest expense


(35,140)


(23,921)


46.9








Other income (expense), net


4,657


(2,522)


        NM   






















INCOME FROM CONTINUING OPERATIONS BEFORE














     INCOME TAXES


392,633


428,461


(8.4)






















Income tax provision


102,085


117,399


(13.0)






















INCOME FROM CONTINUING OPERATIONS


290,548


311,062


(6.6)






















INCOME FROM DISCONTINUED OPERATIONS














   NET OF INCOME TAX (BENEFIT) PROVISION OF














$(140) AND $377, RESPECTIVELY


485


957


(49.3)






















NET INCOME

$

291,033

$

312,019


(6.7)






















EARNINGS PER SHARE




























Basic:














Income from continuing operations

$

1.41

$

1.41


-








Income from discontinued operations

$

-

$

-


-








Net income

$

1.41

$

1.41


-






















Diluted:














Income from continuing operations

$

1.38

$

1.38


-








Income from discontinued operations

$

-

$

-


-








Net income (1)

$

1.39

$

1.38


0.7




































AVERAGE SHARES OUTSTANDING




























     Basic


206,426


220,894










     Diluted


209,803


225,467
























NM - Not Meaningful














(1) Total per share amounts may not add due to rounding.






































Page 1
































BECTON DICKINSON AND COMPANY














CONSOLIDATED INCOME STATEMENTS














(Unaudited; Amounts in thousands, except per share data)





























Six Months Ended March 31,









2012


2011


% Change






















REVENUES

$

3,878,464

$

3,764,028


3.0






















Cost of products sold


1,897,015


1,786,020


6.2








Selling and administrative


983,978


889,897


10.6








Research and development


232,464


234,693


(0.9)








TOTAL OPERATING COSTS














     AND EXPENSES


3,113,457


2,910,610


7.0






















OPERATING INCOME


765,007


853,418


(10.4)






















Interest income


32,126


29,786


7.9








Interest expense


(64,518)


(39,474)


63.4








Other income (expense), net


4,272


(7,118)


        NM   






















INCOME FROM CONTINUING OPERATIONS BEFORE














     INCOME TAXES


736,887


836,612


(11.9)






















Income tax provision


183,328


211,273


(13.2)






















INCOME FROM CONTINUING OPERATIONS


553,559


625,339


(11.5)






















INCOME FROM DISCONTINUED OPERATIONS














   NET OF INCOME TAX (BENEFIT) PROVISION OF














$(159) AND $601, RESPECTIVELY


460


2,617


(82.4)






















NET INCOME

$

554,019

$

627,956


(11.8)






















EARNINGS PER SHARE




























Basic:














Income from continuing operations

$

2.63

$

2.79


(5.7)








Income from discontinued operations

$

-

$

0.01


        NM   








Net income

$

2.63

$

2.80


(6.1)






















Diluted:














Income from continuing operations

$

2.59

$

2.72


(4.8)








Income from discontinued operations

$

-

$

0.01


        NM   








Net income (1)

$

2.59

$

2.74


(5.5)




































AVERAGE SHARES OUTSTANDING




























     Basic


210,385


224,528










     Diluted


213,970


229,529
























NM - Not Meaningful














(1) Total per share amounts may not add due to rounding.






































Page 2
































BECTON DICKINSON AND COMPANY














SUPPLEMENTAL REVENUE INFORMATION














REVENUES BY SEGMENT AND GEOGRAPHIC AREA














(Unaudited; Amounts in thousands)





























Three Months Ended March 31,









2012


2011


% Change






















BD MEDICAL














   United States

$

418,521

$

398,487


5.0








   International


602,666


582,845


3.4








TOTAL

$

1,021,187

$

981,332


4.1






















BD DIAGNOSTICS














   United States

$

318,597

$

310,617


2.6








   International


311,422


294,730


5.7








TOTAL

$

630,019

$

605,347


4.1






















BD BIOSCIENCES














   United States

$

110,502

$

120,077


(8.0)








   International


229,110


215,267


6.4








TOTAL

$

339,612

$

335,344


1.3






















TOTAL REVENUES














   United States

$

847,620

$

829,181


2.2








   International


1,143,198


1,092,842


4.6








TOTAL

$

1,990,818

$

1,922,023


3.6










































































Page 3
































BECTON DICKINSON AND COMPANY














SUPPLEMENTAL REVENUE INFORMATION














REVENUES BY SEGMENT AND GEOGRAPHIC AREA














(Unaudited; Amounts in thousands)





























Six Months Ended March 31,









2012


2011


% Change






















BD MEDICAL














   United States

$

833,190

$

804,014


3.6








   International


1,138,394


1,103,863


3.1








TOTAL

$

1,971,584

$

1,907,877


3.3






















BD DIAGNOSTICS














   United States

$

630,220

$

619,467


1.7








   International


620,542


587,603


5.6








TOTAL

$

1,250,762

$

1,207,070


3.6






















BD BIOSCIENCES














   United States

$

213,003

$

234,302


(9.1)








   International


443,115


414,779


6.8








TOTAL

$

656,118

$

649,081


1.1






















TOTAL REVENUES














   United States

$

1,676,413

$

1,657,783


1.1








   International


2,202,051


2,106,245


4.5








TOTAL

$

3,878,464

$

3,764,028


3.0










































































Page 4
































BECTON DICKINSON AND COMPANY














SUPPLEMENTAL REVENUE INFORMATION














REVENUES BY BUSINESS SEGMENTS AND UNITS














Three Months Ended March 31,














(Unaudited; Amounts in thousands)





























United States










2012


2011


 % Change






















BD MEDICAL














   Medical Surgical Systems

$

237,599

$

234,571


1.3








   Diabetes Care


105,725


95,939


10.2








   Pharmaceutical Systems


75,197


67,977


10.6








TOTAL

$

418,521

$

398,487


5.0






















BD DIAGNOSTICS














   Preanalytical Systems

$

163,455

$

156,978


4.1








   Diagnostic Systems


155,142


153,639


1.0








TOTAL

$

318,597

$

310,617


2.6






















BD BIOSCIENCES














   Cell Analysis

$

78,841

$

83,006


(5.0)








   Discovery Labware


31,661


37,071


(14.6)








TOTAL

$

110,502

$

120,077


(8.0)






















TOTAL UNITED STATES

$

847,620

$

829,181


2.2










































































 Page 5
































BECTON DICKINSON AND COMPANY














SUPPLEMENTAL REVENUE INFORMATION














REVENUES BY BUSINESS SEGMENTS AND UNITS














Three Months Ended March 31, (continued)














(Unaudited; Amounts in thousands)





























International










 % Change






2012


2011


 Reported


FXN


FX Impact


















BD MEDICAL














   Medical Surgical Systems

$

281,340

$

270,020


4.2


6.0


(1.8)




   Diabetes Care


113,520


111,820


1.5


3.3


(1.8)




   Pharmaceutical Systems


207,806


201,005


3.4


5.9


(2.5)




TOTAL

$

602,666

$

582,845


3.4


5.4


(2.0)


















BD DIAGNOSTICS














   Preanalytical Systems

$

159,858

$

149,261


7.1


9.6


(2.5)




   Diagnostic Systems


151,564


145,469


4.2


5.5


(1.3)




TOTAL

$

311,422

$

294,730


5.7


7.6


(1.9)


















BD BIOSCIENCES














   Cell Analysis

$

182,702

$

172,510


5.9


6.6


(0.7)




   Discovery Labware


46,408


42,757


8.5


8.7


(0.2)




TOTAL

$

229,110

$

215,267


6.4


7.0


(0.6)


















TOTAL INTERNATIONAL

$

1,143,198

$

1,092,842


4.6


6.3


(1.7)






































































Page 6
































BECTON DICKINSON AND COMPANY














SUPPLEMENTAL REVENUE INFORMATION














REVENUES BY BUSINESS SEGMENTS AND UNITS














Three Months Ended March 31, (continued)














(Unaudited; Amounts in thousands)





























Total










 % Change






2012


2011


 Reported


FXN


FX Impact


















BD MEDICAL














   Medical Surgical Systems

$

518,939

$

504,591


2.8


3.8


(1.0)




   Diabetes Care


219,245


207,759


5.5


6.5


(1.0)




   Pharmaceutical Systems


283,003


268,982


5.2


7.1


(1.9)




TOTAL

$

1,021,187

$

981,332


4.1


5.3


(1.2)


















BD DIAGNOSTICS














   Preanalytical Systems

$

323,313

$

306,239


5.6


6.8


(1.2)




   Diagnostic Systems


306,706


299,108


2.5


3.2


(0.7)




TOTAL

$

630,019

$

605,347


4.1


5.0


(0.9)


















BD BIOSCIENCES














   Cell Analysis

$

261,543

$

255,516


2.4


2.8


(0.4)




   Discovery Labware


78,069


79,828


(2.2)


(2.1)


(0.1)




TOTAL

$

339,612

$

335,344


1.3


1.7


(0.4)


















TOTAL REVENUES

$

1,990,818

$

1,922,023


3.6


4.6


(1.0)






































































Page 7
































BECTON DICKINSON AND COMPANY














SUPPLEMENTAL REVENUE INFORMATION














REVENUES BY BUSINESS SEGMENTS AND UNITS














Six Months Ended March 31,














(Unaudited; Amounts in thousands)





























United States










2012


2011


 % Change






















BD MEDICAL














   Medical Surgical Systems

$

486,015

$

488,825


(0.6)








   Diabetes Care


211,251


195,524


8.0








   Pharmaceutical Systems


135,924


119,665


13.6








TOTAL

$

833,190

$

804,014


3.6






















BD DIAGNOSTICS














   Preanalytical Systems

$

325,570

$

319,036


2.0








   Diagnostic Systems


304,650


300,431


1.4








TOTAL

$

630,220

$

619,467


1.7






















BD BIOSCIENCES














   Cell Analysis

$

152,634

$

163,262


(6.5)








   Discovery Labware


60,369


71,040


(15.0)








TOTAL

$

213,003

$

234,302


(9.1)






















TOTAL UNITED STATES

$

1,676,413

$

1,657,783


1.1










































































 Page 8