BD Announces Results For 2011 First Fiscal Quarter

-- Reports diluted earnings per share from continuing operations of $1.35, including approximately $0.07 related to the timing of certain tax benefits. These benefits were included in the Company's full year guidance provided on its 2010 year-end earnings conference call.

-- Reports revenues of $1.842 billion, a decrease of 1.4 percent year-over-year.

-- Reaffirms full fiscal year 2011 guidance of reported revenues and EPS to increase about 4 percent and between 11 percent and 13 percent, respectively.

News provided by

BD (Becton, Dickinson and Company)

Feb 07, 2011, 04:04 ET

FRANKLIN LAKES, N.J., Feb. 7, 2011 /PRNewswire/ -- BD (Becton, Dickinson and Company) (NYSE: BDX), a leading global medical technology company, today reported quarterly revenues of $1.842 billion for the first fiscal quarter ended December 31, 2010, representing a decrease of 1.4 percent from the prior-year period. On a foreign currency-neutral basis, revenue decreased 1.5 percent. The revenue decline reflects an unfavorable comparison to the prior year of about 4 percentage points due to strong sales related to the pandemic flu and U.S. stimulus revenues in fiscal 2010.

The Company also repurchased $837 million of its common stock during the quarter. BD continues to plan aggregate share repurchases of $1.5 billion in fiscal 2011 and an additional $600 million in fiscal 2012.

"We are pleased with our performance in the first fiscal quarter given the challenging environment," said Edward J. Ludwig, Chairman and Chief Executive Officer. "While revenue came in slightly below our expectations, our discipline around operational excellence enabled us to deliver earnings per share in line with our previous guidance. We continued to return significant value to shareholders, while also investing in geographic expansion, new product platforms and operational excellence programs."

First Quarter Earnings

Reported diluted earnings per share for the first quarter were $1.35, compared with $1.25 in the prior-year period, representing an 8.0 percent increase. On a foreign currency-neutral basis, diluted earnings per share for the first quarter increased by 4.8 percent.

For the quarter, reported diluted earnings per share from continuing operations included an approximate $0.07 favorable impact due to the timing of certain tax benefits. These benefits, which were reflected in our previous full year guidance, resulted from certain first quarter events, including the retroactive extension of the U.S. research tax credit.

Segment Results

In the BD Medical segment, worldwide revenues for the quarter were $927 million, representing a decrease of 4.5 percent compared with the prior-year period, or a decrease of 4.3 percent on a foreign currency-neutral basis. The segment's revenue decline reflects an unfavorable comparison to the prior year of about 6 percentage points due to strong sales related to the H1N1 flu pandemic in fiscal year 2010, partially offset by solid growth in the Diabetes Care unit with particularly strong growth in pen needles.

In the BD Diagnostics segment, worldwide revenues for the quarter were $602 million, representing an increase of 1.0 percent compared with the prior-year period, or 0.6 percent on a foreign currency-neutral basis. Segment revenue growth was negatively impacted by about 2 percentage points due to strong sales related to the flu pandemic in fiscal year 2010. The segment growth was primarily driven by strong sales in Preanalytical Systems safety-engineered products, and Women's Health and Cancer in the Diagnostic Systems unit.

In the BD Biosciences segment, worldwide revenues for the quarter were $314 million, representing an increase of 3.7 percent compared with the prior-year period, or 3.5 percent on a foreign currency-neutral basis. Segment revenue growth was negatively impacted by about 2 percentage points due to strong sales related to stimulus spending in the U.S. in fiscal year 2010. Segment growth was primarily driven by instrument and reagent sales in the Cell Analysis unit.

Geographic Results

First quarter revenues in the U.S. were $829 million, representing a decrease of 2.9 percent compared with the prior-year period, including a negative impact of 6.0 percentage points due to flu pandemic-related sales in fiscal year 2010. Revenues outside of the U.S. were $1.013 billion, representing a decrease of 0.2 percent compared with the prior-year period, or a decrease of 0.3 percent on a foreign currency-neutral basis. International revenue growth was negatively impacted by about 3 percentage points related to the flu pandemic in fiscal year 2010. Revenues reflected continued strength in emerging markets, which was partially offset by a decline in sales in Europe.

Company Reaffirms Previously Communicated Fiscal Year 2011 Guidance

The Company continues to estimate that reported revenues for the full fiscal year 2011 will increase about 4 percent compared to fiscal year 2010. The Company also continues to expect reported diluted earnings per share from continuing operations for fiscal year 2011 to be between $5.45 and $5.55, an increase of approximately 11 to 13 percent over fiscal year 2010. Diluted earnings per share from continuing operations for fiscal year 2011 are expected to increase 10 to 12 percent over adjusted diluted earnings per share from continuing operations, excluding specified item, of $4.94 for fiscal year 2010. The specified item represents a 2010 non-cash charge of $0.04 cents per share related to healthcare reform impacting Medicare Part D reimbursements.

Conference Call Information

A conference call regarding BD's first quarter results and its expectations for the full fiscal year 2011 will be broadcast live on BD's website, www.bd.com/investors, along with related slides, at 10:00 a.m. (ET) Tuesday, February 8, 2011. The related slides are available concurrent with this press release at www.bd.com/investors. The conference call will be available for replay on BD's website, www.bd.com/investors, or at 1-800-642-1687 (domestic) and 1-706-645-9291 (international) through the close of business on Tuesday, February 15, 2011, access code 37117544.

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 and the Form 8-K that BD filed today with the SEC.

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 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. Forward-looking statements may be identified by the use of words such as "expect", "estimate" or words of similar meaning in conjunction with statements of our future performance. 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: the unknown consequences of the recently-enacted 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; adverse changes in regional, national or foreign economic conditions, including any impact that may result from the current global economic downturn on our ability to access credit markets and finance our operations, the demand for our products and services, or our suppliers' ability to provide products needed for our operations; changes in interest or foreign currency exchange rates; competitive factors; pricing and market share pressures; 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; our ability to successfully integrate any businesses we acquire; 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.

BECTON DICKINSON AND COMPANY
CONSOLIDATED INCOME STATEMENTS
(Unaudited; Amounts in thousands, except per share data)

	Three Months Ended December 31,
		2010		2009	% Change

REVENUES	$	1,842,005	$	1,868,818	(1.4)

Cost of products sold		865,431		894,324	(3.2)
Selling and administrative		447,954		445,673	0.5
Research and development		115,542		99,151	16.5
TOTAL OPERATING COSTS
AND EXPENSES		1,428,927		1,439,148	(0.7)

OPERATING INCOME		413,078		429,670	(3.9)

Interest income		15,222		8,789	73.2
Interest expense		(15,553)		(12,987)	19.8
Other expense, net		(4,596)		(2,354)	95.2

INCOME FROM CONTINUING OPERATIONS BEFORE
INCOME TAXES		408,151		423,118	(3.5)

Income tax provision		93,875		119,025	(21.1)

INCOME FROM CONTINUING OPERATIONS		314,276		304,093	3.3

INCOME FROM DISCONTINUED OPERATIONS
NET OF INCOME TAX PROVISION OF
$223 AND $4,617, RESPECTIVELY		1,661		12,283	NM

NET INCOME	$	315,937	$	316,376	(0.1)

EARNINGS PER SHARE

Basic:
Income from continuing operations	$	1.38	$	1.28	7.8
Income from discontinued operations	$	0.01	$	0.05	(80.0)
Net income	$	1.39	$	1.33	4.5

Diluted:
Income from continuing operations	$	1.35	$	1.25	8.0
Income from discontinued operations	$	0.01	$	0.05	(80.0)
Net income	$	1.36	$	1.30	4.6


AVERAGE SHARES OUTSTANDING

Basic		228,083		237,360
Diluted		232,915		242,965

NM - Not Meaningful

BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY SEGMENT AND GEOGRAPHIC AREA
(Unaudited; Amounts in thousands)

	Three Months Ended December 31,
		2010		2009	% Change

BD MEDICAL
United States	$	405,527	$	432,576	(6.3)
International		521,020		538,096	(3.2)
TOTAL	$	926,547	$	970,672	(4.5)

BD DIAGNOSTICS
United States	$	308,851	$	310,205	(0.4)
International		292,871		285,269	2.7
TOTAL	$	601,722	$	595,474	1.0

BD BIOSCIENCES
United States	$	114,224	$	110,636	3.2
International		199,512		192,036	3.9
TOTAL	$	313,736	$	302,672	3.7

TOTAL REVENUES
United States	$	828,602	$	853,417	(2.9)
International		1,013,403		1,015,401	(0.2)
TOTAL	$	1,842,005	$	1,868,818	(1.4)


BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS
Three Months Ended December 31,
(Unaudited; Amounts in thousands)

	United States
		2010		2009	% Change

BD MEDICAL
Medical Surgical Systems	$	254,254	$	273,991	(7.2)
Diabetes Care		99,585		96,564	3.1
Pharmaceutical Systems		51,688		62,021	(16.7)
TOTAL	$	405,527	$	432,576	(6.3)

BD DIAGNOSTICS
Preanalytical Systems	$	162,059	$	156,236	3.7
Diagnostic Systems		146,792		153,969	(4.7)
TOTAL	$	308,851	$	310,205	(0.4)

BD BIOSCIENCES
Cell Analysis	$	80,255	$	77,604	3.4
Discovery Labware		33,969		33,032	2.8
TOTAL	$	114,224	$	110,636	3.2

TOTAL UNITED STATES	$	828,602	$	853,417	(2.9)

BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS
Three Months Ended December 31, (continued)
(Unaudited; Amounts in thousands)

	International
					% Change
		2010		2009	Reported	FXN	FX Impact

BD MEDICAL
Medical Surgical Systems	$	258,474	$	259,186	(0.3)	(2.2)	1.9
Diabetes Care		114,297	$	104,957	8.9	8.8	0.1
Pharmaceutical Systems		148,249	$	173,953	(14.8)	(10.9)	(3.9)
TOTAL	$	521,020	$	538,096	(3.2)	(2.8)	(0.4)

BD DIAGNOSTICS
Preanalytical Systems	$	150,569	$	143,930	4.6	4.0	0.6
Diagnostic Systems		142,302		141,339	0.7	(0.3)	1.0
TOTAL	$	292,871	$	285,269	2.7	1.9	0.8

BD BIOSCIENCES
Cell Analysis	$	160,487	$	153,731	4.4	4.6	(0.2)
Discovery Labware		39,025		38,305	1.9	(0.1)	2.0
TOTAL	$	199,512	$	192,036	3.9	3.6	0.3

TOTAL INTERNATIONAL	$	1,013,403	$	1,015,401	(0.2)	(0.3)	0.1

BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS
Three Months Ended December 31, (continued)
(Unaudited; Amounts in thousands)

	Total
					% Change
		2010		2009	Reported	FXN	FX Impact

BD MEDICAL
Medical Surgical Systems	$	512,728	$	533,177	(3.8)	(4.7)	0.9
Diabetes Care		213,882		201,521	6.1	6.1	-
Pharmaceutical Systems		199,937		235,974	(15.3)	(12.4)	(2.9)
TOTAL	$	926,547	$	970,672	(4.5)	(4.3)	(0.2)

BD DIAGNOSTICS
Preanalytical Systems	$	312,628	$	300,166	4.2	3.9	0.3
Diagnostic Systems		289,094		295,308	(2.1)	(2.6)	0.5
TOTAL	$	601,722	$	595,474	1.0	0.6	0.4

BD BIOSCIENCES
Cell Analysis	$	240,742	$	231,335	4.1	4.2	(0.1)
Discovery Labware		72,994		71,337	2.3	1.2	1.1
TOTAL	$	313,736	$	302,672	3.7	3.5	0.2

TOTAL REVENUES	$	1,842,005	$	1,868,818	(1.4)	(1.5)	0.1

BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
SAFETY REVENUES
(Unaudited; Amounts in thousands)


	Three Months Ended December 31,
					% Change
		2010		2009	Reported	FXN	FX Impact

TOTAL SAFETY REVENUES
United States	$	283,782	$	291,815	(2.8)	(2.8)	-
International		169,254		155,129	9.1	7.5	1.6
TOTAL	$	453,036	$	446,944	1.4	0.9	0.5

BY SEGMENT
BD Medical	$	213,309	$	221,174	(3.6)	(4.3)	0.7
BD Diagnostics		239,727		225,770	6.2	5.8	0.4
TOTAL	$	453,036	$	446,944	1.4	0.9	0.5

BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS FISCAL 2010
Revised for discontinued operations of certain Medical segment divestitures
(Unaudited; Amounts in thousands)

		United States
		Quarter 1		Quarter 2		Quarter 3		Quarter 4		Year
BD MEDICAL
Medical Surgical Systems	$	273,991	$	237,174	$	239,866	$	256,290	$	1,007,322
Diabetes Care		96,564		92,515		96,071		98,633		383,783
Pharmaceutical Systems		62,021		52,078		45,824		45,308		205,231
TOTAL	$	432,576	$	381,767	$	381,761	$	400,231	$	1,596,336

BD DIAGNOSTICS
Preanalytical Systems	$	156,236	$	149,932	$	159,228	$	162,024	$	627,421
Diagnostic Systems		153,969		142,909		144,293		145,697		586,867
TOTAL	$	310,205	$	292,841	$	303,521	$	307,721	$	1,214,288

BD BIOSCIENCES
Cell Analysis	$	77,604	$	78,183	$	84,365	$	86,765	$	326,916
Discovery Labware		33,032		38,968		39,781		37,244		149,025
TOTAL	$	110,636	$	117,151	$	124,146	$	124,009	$	475,941

TOTAL UNITED STATES	$	853,417	$	791,759	$	809,428	$	831,961	$	3,286,565


		International
		Quarter 1		Quarter 2		Quarter 3		Quarter 4		Year
BD MEDICAL
Medical Surgical Systems	$	259,186	$	244,090	$	253,687	$	245,724	$	1,002,687
Diabetes Care		104,957		95,471		101,081		100,468		401,976
Pharmaceutical Systems		173,953		200,305		208,993		212,182		795,433
TOTAL	$	538,096	$	539,866	$	563,761	$	558,374	$	2,200,096

BD DIAGNOSTICS
Preanalytical Systems	$	143,930	$	137,738	$	144,298	$	144,421	$	570,386
Diagnostic Systems		141,339		125,093		128,450		139,322		534,205
TOTAL	$	285,269	$	262,831	$	272,748	$	283,743	$	1,104,591

BD BIOSCIENCES
Cell Analysis	$	153,731	$	164,292	$	146,068	$	160,230	$	624,322
Discovery Labware		38,305		40,661		38,906		38,887		156,759
TOTAL	$	192,036	$	204,953	$	184,974	$	199,117	$	781,081

TOTAL INTERNATIONAL	$	1,015,401	$	1,007,650	$	1,021,483	$	1,041,234	$	4,085,768


		Total
		Quarter 1		Quarter 2		Quarter 3		Quarter 4		Year
BD MEDICAL
Medical Surgical Systems	$	533,177	$	481,264	$	493,553	$	502,014	$	2,010,009
Diabetes Care		201,521		187,986		197,152		199,101		785,759
Pharmaceutical Systems		235,974		252,383		254,817		257,490		1,000,664
TOTAL	$	970,672	$	921,633	$	945,522	$	958,605	$	3,796,432

BD DIAGNOSTICS
Preanalytical Systems	$	300,166	$	287,670	$	303,526	$	306,445	$	1,197,807
Diagnostic Systems		295,308		268,002		272,743		285,019		1,121,072
TOTAL	$	595,474	$	555,672	$	576,269	$	591,464	$	2,318,879

BD BIOSCIENCES
Cell Analysis	$	231,335	$	242,475	$	230,433	$	246,995	$	951,238
Discovery Labware		71,337		79,629		78,687		76,131		305,784
TOTAL	$	302,672	$	322,104	$	309,120	$	323,126	$	1,257,022

TOTAL REVENUES	$	1,868,818	$	1,799,409	$	1,830,911	$	1,873,195	$	7,372,333


Certain quarterly amounts may not add to the year-to-date totals due to rounding.

BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS FISCAL 2009
Revised for discontinued operations of certain Medical segment divestitures
(Unaudited; Amounts in thousands)

		United States
		Quarter 1		Quarter 2		Quarter 3		Quarter 4		Year
BD MEDICAL
Medical Surgical Systems	$	244,037	$	231,041	$	244,077	$	255,168	$	974,324
Diabetes Care		88,465		83,233		91,330		88,590		351,618
Pharmaceutical Systems		42,652		43,065		43,460		48,353		177,529
TOTAL	$	375,154	$	357,339	$	378,867	$	392,111	$	1,503,471

BD DIAGNOSTICS
Preanalytical Systems	$	149,230	$	147,436	$	155,760	$	156,328	$	608,754
Diagnostic Systems		138,338		137,677		143,614		149,160		568,789
TOTAL	$	287,568	$	285,113	$	299,374	$	305,488	$	1,177,543

BD BIOSCIENCES
Cell Analysis	$	77,379	$	71,770	$	70,518	$	84,179	$	303,846
Discovery Labware		36,372		32,269		37,618		39,046		145,305
TOTAL	$	113,751	$	104,039	$	108,136	$	123,225	$	449,151

TOTAL UNITED STATES	$	776,473	$	746,491	$	786,377	$	820,824	$	3,130,165


		International
		Quarter 1		Quarter 2		Quarter 3		Quarter 4		Year
BD MEDICAL
Medical Surgical Systems	$	211,595	$	219,079	$	230,934	$	253,384	$	914,990
Diabetes Care		91,541		85,159		94,521		92,098		363,319
Pharmaceutical Systems		152,129		178,085		220,503		224,195		774,914
TOTAL	$	455,265	$	482,323	$	545,958	$	569,677	$	2,053,223

BD DIAGNOSTICS
Preanalytical Systems	$	128,924	$	131,029	$	136,427	$	138,297	$	534,677
Diagnostic Systems		123,699		123,498		130,578		136,224		513,999
TOTAL	$	252,623	$	254,527	$	267,005	$	274,521	$	1,048,676

BD BIOSCIENCES
Cell Analysis	$	152,142	$	159,223	$	139,251	$	150,055	$	600,671
Discovery Labware		36,645		40,578		37,818		38,946		153,987
TOTAL	$	188,787	$	199,801	$	177,069	$	189,001	$	754,658

TOTAL INTERNATIONAL	$	896,675	$	936,651	$	990,032	$	1,033,199	$	3,856,557


		Total
		Quarter 1		Quarter 2		Quarter 3		Quarter 4		Year
BD MEDICAL
Medical Surgical Systems	$	455,632	$	450,120	$	475,011	$	508,552	$	1,889,314
Diabetes Care		180,006		168,392		185,851		180,688		714,937
Pharmaceutical Systems		194,781		221,150		263,963		272,548		952,443
TOTAL	$	830,419	$	839,662	$	924,825	$	961,788	$	3,556,694

BD DIAGNOSTICS
Preanalytical Systems	$	278,154	$	278,465	$	292,187	$	294,625	$	1,143,431
Diagnostic Systems		262,037		261,175		274,192		285,384		1,082,788
TOTAL	$	540,191	$	539,640	$	566,379	$	580,009	$	2,226,219

BD BIOSCIENCES
Cell Analysis	$	229,521	$	230,993	$	209,769	$	234,234	$	904,517
Discovery Labware		73,017		72,847		75,436		77,992		299,292
TOTAL	$	302,538	$	303,840	$	285,205	$	312,226	$	1,203,809

TOTAL REVENUES	$	1,673,148	$	1,683,142	$	1,776,409	$	1,854,023	$	6,986,722


Certain quarterly amounts may not add to the year-to-date totals due to rounding.