BD Announces Results for 2012 Second Fiscal Quarter

May 01, 2012, 06:00 ET from BD (Becton, Dickinson and Company)

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