BD Announces Results for First Fiscal Quarter

The Company raises guidance for full fiscal year

Jan 28, 2010, 06:00 ET from BD (Becton, Dickinson and Company)

FRANKLIN LAKES, N.J., Jan. 28 /PRNewswire-FirstCall/ -- BD (Becton, Dickinson and Company) (NYSE: BDX) today reported quarterly revenues of $1.917 billion for the first fiscal quarter ended December 31, 2009, representing an increase of 12 percent from the prior-year period, or 9 percent on a foreign currency-neutral basis.  

"We are pleased with our solid start to fiscal 2010.  Our BD Medical and BD Diagnostics segments led our revenue growth, aided by flu-related sales," said Edward J. Ludwig, Chairman and Chief Executive Officer.  "Our revenue growth, good operating performance and a stabilizing Biosciences business this quarter give us the confidence to raise guidance for fiscal 2010."

Diluted earnings per share from continuing operations for the quarter were $1.30, an increase of 4 percent over diluted earnings per share from continuing operations of $1.25 for the first quarter of 2009.  On a foreign currency-neutral basis, diluted earnings per share from continuing operations for the first quarter of fiscal 2010 increased 11 percent.

Segment Results

In the BD Medical segment, worldwide revenues for the quarter were $1.019 billion, representing an increase of 16 percent from the prior-year period, or 13 percent on a foreign currency-neutral basis.  Strong sales of Medical Surgical Systems and Pharmaceutical Systems products, including about 7 percentage points from flu-related products, as well as Diabetes Care products contributed to revenue growth.

In the BD Diagnostics segment, worldwide revenues for the quarter were $595 million, representing an increase of 10 percent from the prior-year period, or 8 percent on a foreign currency-neutral basis.   Sales of safety-engineered devices and infectious disease testing systems, including about 2 percentage points from flu-related products, contributed to revenue growth.

In the BD Biosciences segment, worldwide revenues of $303 million for the quarter were flat compared with the prior-year period.  Revenues increased less than 1 percent on a foreign currency-neutral basis.  Demand for clinical and research instruments, as expected, continues to be impacted by capital funding constraints.

Geographic Results

First quarter revenues in the U.S. were $873 million, representing an increase of 10 percent from the prior-year period.  Revenues outside the U.S. were $1.044 billion, representing an increase of 13 percent from the prior-year period, or 8.5 percent on a foreign currency-neutral basis.

Fiscal 2010 Outlook

We expect reported revenues for the full fiscal year 2010 to increase approximately 7 percent, or 6 percent on a foreign currency-neutral basis, compared with our prior guidance of 6 percent, or 5 percent on a foreign currency-neutral basis.

We also expect diluted earnings per share from continuing operations for the full fiscal year 2010 to increase approximately 2 to 4 percent, to $5.05 to $5.15, over adjusted diluted earnings per share from continuing operations, excluding specified items, of $4.95 for the fiscal year 2009, or 8 to 10 percent on a foreign currency-neutral basis.  Our prior guidance was an increase of 1 to 3 percent, or 7 to 9 percent on a foreign currency-neutral basis.

Conference Call Information

A conference call regarding BD's first quarter results and its expectations for the full fiscal year will be broadcast live on BD's website, www.bd.com/investors, along with related slides, at 10:00 a.m. (ET) Thursday, January 28, 2010.  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 February 4, 2010, access code 49382392.

Non-GAAP Financial Measures

This news release contains certain non-GAAP financial measures.  A reconciliation of these to the comparable GAAP measures is 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 approximately 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 2010 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, earnings per share and income, or events or developments that BD expects to occur or anticipates occurring in the future.  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. For instance, various healthcare reform proposals, if enacted, would impose an excise tax applicable to medical device manufacturers, including BD.  Other 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 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, particularly in light of increased volatility in currency exchange rates; changes in government pricing and reimbursement policies or other healthcare cost containment reforms; 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; uncertainties of litigation (as described in BD's filings with the Securities and Exchange Commission); 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.

Contact:

Patricia A. Spinella, Investor Relations – 201-847-5453

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 December 31,

2009

2008

% Change

REVENUES

$

1,916,774 

$

1,717,919 

11.6 

Cost of products sold

919,542 

796,274 

15.5 

Selling and administrative

450,928 

406,019 

11.1 

Research and development

100,284 

97,314 

3.1 

TOTAL OPERATING COSTS

  AND EXPENSES

1,470,754 

1,299,607 

13.2 

OPERATING INCOME

446,020 

418,312 

6.6 

Interest income

8,789 

1,651 

NM

Interest expense

(12,987)

(7,824)

66.0 

Other (expense) income, net

(2,354)

9,411 

NM

INCOME FROM CONTINUING OPERATIONS BEFORE

  INCOME TAXES

439,468 

421,550 

4.3 

Income tax provision

123,490 

112,131 

10.1 

INCOME FROM CONTINUING OPERATIONS

315,978 

309,419 

2.1 

INCOME FROM DISCONTINUED OPERATIONS

  NET OF INCOME TAX PROVISION OF

    $152 AND $854, RESPECTIVELY

398 

2,649 

NM

NET INCOME

$

316,376 

$

312,068 

1.4 

EARNINGS PER SHARE

Basic:

Income from continuing operations

$

1.33 

$

1.28 

3.9 

Income from discontinued operations

$

$

0.01 

NM

Net income

$

1.33 

$

1.29 

3.1 

Diluted:

Income from continuing operations

$

1.30 

$

1.25 

4.0 

Income from discontinued operations

$

$

0.01 

NM

Net income

$

1.30 

$

1.26 

3.2 

AVERAGE SHARES OUTSTANDING

    Basic

237,360 

242,397 

    Diluted

242,965 

248,311 

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,

2009

2008

% Change

BD MEDICAL

  United States

$

452,385 

$

394,161 

14.8 

  International

566,243 

481,029 

17.7 

TOTAL

$

1,018,628 

$

875,190 

16.4 

BD DIAGNOSTICS

  United States

$

310,205 

$

287,568 

7.9 

  International

285,269 

252,623 

12.9 

TOTAL

$

595,474 

$

540,191 

10.2 

BD BIOSCIENCES

  United States

$

110,636 

$

113,751 

(2.7)

  International

192,036 

188,787 

1.7 

TOTAL

$

302,672 

$

302,538 

TOTAL REVENUES

  United States

$

873,226 

$

795,480 

9.8 

  International

1,043,548 

922,439 

13.1 

TOTAL

$

1,916,774 

$

1,717,919 

11.6 

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

REVENUES BY BUSINESS SEGMENTS AND UNITS

Three Months Ended December 31,

(Unaudited; Amounts in thousands)

United States

2009

2008

% Change

BD MEDICAL

  Medical Surgical Systems

$

286,535 

$

256,255 

11.8 

  Diabetes Care

96,564 

88,465 

9.2 

  Pharmaceutical Systems

62,021 

42,652 

45.4 

  Ophthalmic Systems

7,265 

6,789 

7.0 

TOTAL

$

452,385 

$

394,161 

14.8 

BD DIAGNOSTICS

  Preanalytical Systems

$

156,236 

$

149,230 

4.7 

  Diagnostic Systems

153,969 

138,338 

11.3 

TOTAL

$

310,205 

$

287,568 

7.9 

BD BIOSCIENCES

  Cell Analysis

$

77,604 

$

77,379 

0.3 

  Discovery Labware

33,032 

36,372 

(9.2)

TOTAL

$

110,636 

$

113,751 

(2.7)

TOTAL UNITED STATES

$

873,226 

$

795,480 

9.8 

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

2009

2008

Reported

FXN

FX Impact

BD MEDICAL

  Medical Surgical Systems

$

273,491 

$

224,246 

22.0 

15.3 

6.7 

  Diabetes Care

104,957 

91,541 

14.7 

7.7 

7.0 

  Pharmaceutical Systems

173,953 

152,129 

14.3 

7.3 

7.0 

  Ophthalmic Systems

13,842 

13,113 

5.6 

2.8 

2.8 

TOTAL

$

566,243 

$

481,029 

17.7 

11.0 

6.7 

BD DIAGNOSTICS

  Preanalytical Systems

$

143,930 

$

128,924 

11.6 

6.8 

4.8 

  Diagnostic Systems

141,339 

123,699 

14.3 

10.0 

4.3 

TOTAL

$

285,269 

$

252,623 

12.9 

8.3 

4.6 

BD BIOSCIENCES

  Cell Analysis

$

153,731 

$

152,142 

1.0 

1.9 

(0.9)

  Discovery Labware

38,305 

36,645 

4.5 

4.9 

(0.4)

TOTAL

$

192,036 

$

188,787 

1.7 

2.5 

(0.8)

TOTAL INTERNATIONAL

$

1,043,548 

$

922,439 

13.1 

8.5 

4.6 

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

2009

2008

Reported

FXN

FX Impact

BD MEDICAL

  Medical Surgical Systems

$

560,026 

$

480,501 

16.6 

13.4 

3.2 

  Diabetes Care

201,521 

180,006 

12.0 

8.4 

3.6 

  Pharmaceutical Systems

235,974 

194,781 

21.1 

15.6 

5.5 

  Ophthalmic Systems

21,107 

19,902 

6.1 

4.3 

1.8 

TOTAL

$

1,018,628 

$

875,190 

16.4 

12.7 

3.7 

BD DIAGNOSTICS

  Preanalytical Systems

$

300,166 

$

278,154 

7.9 

5.7 

2.2 

  Diagnostic Systems

295,308 

262,037 

12.7 

10.7 

2.0 

TOTAL

$

595,474 

$

540,191 

10.2 

8.1 

2.1 

BD BIOSCIENCES

  Cell Analysis

$

231,335 

$

229,521 

0.8 

1.3 

(0.5)

  Discovery Labware

71,337 

73,017 

(2.3)

(2.1)

(0.2)

TOTAL

$

302,672 

$

302,538 

0.5 

(0.5)

TOTAL REVENUES

$

1,916,774 

$

1,717,919 

11.6 

9.1 

2.5 

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

SAFETY REVENUES

(Unaudited; Amounts in thousands)

Three Months Ended December 31,

% Change

2009

2008

Reported

FXN

FX Impact

TOTAL SAFETY REVENUES

  United States

$

298,258

$

268,969

10.9

10.9

-

  International

156,015

134,080

16.4

10.5

5.9

TOTAL

$

454,273

$

403,049

12.7

10.8

1.9

BY SEGMENT

  BD Medical

$

228,503

$

192,751

18.5

16.4

2.1

  BD Diagnostics

225,770

210,298

7.4

5.5

1.9

TOTAL

$

454,273

$

403,049

12.7

10.8

1.9

SOURCE BD (Becton, Dickinson and Company)



RELATED LINKS

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