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.
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.
Contact: Zachary A. Nagle, Investor Relations – 201-847-5453 Colleen T. White, Corporate Communications – 201-847-5369
SOURCE BD (Becton, Dickinson and Company)
Released February 7, 2011