BD Announces Results for Second Quarter Fiscal 2010
- Reports earnings per share from continuing operations of $1.24, or $1.27 after excluding specified item
- Reaffirms guidance for full-year fiscal 2010 earnings per share from continuing operations, excluding specified items
FRANKLIN LAKES, N.J., April 29 /PRNewswire-FirstCall/ -- BD (Becton, Dickinson and Company) (NYSE: BDX) today reported quarterly revenues of $1.845 billion for the second fiscal quarter ended March 31, 2010, representing an increase of 7.0 percent from the prior-year period, or 6.6 percent on a foreign currency-neutral basis.
"We are pleased with our second quarter results, which are in line with the Company's expectations," said Edward J. Ludwig, Chairman and Chief Executive Officer. "Solid revenue growth in our Medical segment and a continued improvement in our Biosciences segment offset lower than expected growth in our Diagnostics segment. Our strong overall operating performance for the first half of fiscal 2010 gives us the confidence to reaffirm our guidance for full-year adjusted earnings."
Second Quarter and Six-Month Fiscal 2010 Operating Results
Reported diluted earnings per share from continuing operations for the second quarter were $1.24 compared with $1.05 in the prior-year period. Current quarter results included a non-cash charge of $8.9 million, or $0.04 per share from continuing operations related to healthcare reform impacting Medicare Part D reimbursements, and the prior-year period included a litigation charge of $45 million, or $0.11 per share. Excluding these items, adjusted diluted earnings per share from continuing operations increased by 8.5 percent to $1.27, compared with $1.17 adjusted earnings per share in the prior-year period. On a foreign currency-neutral basis, adjusted diluted earnings per share from continuing operations for the second quarter increased by 16.2 percent.
For the six-month period ending March 31, 2010, reported diluted earnings per share from continuing operations were $2.53 compared with $2.30 in the prior-year period. Excluding the aforementioned charges, diluted earnings per share from continuing operations were $2.57, an increase of 6.6 percent over adjusted diluted earnings per share from continuing operations of $2.41 in the prior-year period. On a foreign currency-neutral basis, adjusted diluted earnings per share from continuing operations for the six-month period increased 14.1 percent.
Segment Results
In the BD Medical segment, worldwide revenues for the quarter were $967 million, representing an increase of 9.7 percent compared with the prior-year period, or 7.8 percent on a foreign currency-neutral basis. Revenues reflect strong sales of Diabetes Care and Pharmaceutical Systems products. For the six-month period ended March 31, 2010, BD Medical revenues increased 13.0 percent, or 10.2 percent on a foreign currency-neutral basis.
In the BD Diagnostics segment, worldwide revenues for the quarter were $556 million, representing an increase of 3.0 percent compared with the prior-year period. Segment revenues increased 2.7 percent on a foreign currency-neutral basis, impacted by a reduction in lab testing and a decline in flu-related testing due to an exceptionally mild flu season. These were offset by strong growth in cancer and STD product platforms. For the six-month period ended March 31, 2010, BD Diagnostics revenues increased 6.6 percent, or 5.4 percent on a foreign currency-neutral basis.
In the BD Biosciences segment, worldwide revenues for the quarter were $322 million, representing an increase of 6.0 percent compared with the prior-year period. Revenues increased 9.8 percent on a foreign currency-neutral basis, driven by Cell Analysis and Discovery Labware growth in certain markets. For the six-month period ended March 31, 2010, BD Biosciences revenues increased by 3.0 percent, or 5.2 percent on a foreign currency-neutral basis.
Geographic Results
Second quarter revenues in the U.S. were $810 million, representing an increase of 6.0 percent from the prior-year period. Revenues outside of the U.S. were $1.035 billion, representing an increase of 7.7 percent compared with the prior-year period, or 7.0 percent on a foreign currency-neutral basis.
For the six-month period ended March 31, 2010, revenues in the U.S. were $1.683 billion, representing an increase of 7.9 percent compared with the prior-year period. Revenues outside of the U.S. were $2.078 billion, representing an increase of 10.4 percent compared with the prior-year period, or 7.8 percent on a foreign currency-neutral basis.
Fiscal 2010 Outlook
We expect reported revenues for the full year fiscal 2010 to increase approximately 6 percent, or about 1 percent less than our previously communicated guidance due to currency fluctuations. On a foreign currency-neutral basis, we expect revenues to increase approximately 6 percent, which is in line with our previously communicated guidance.
We also expect reported diluted earnings per share from continuing operations for the full year fiscal 2010 to be $5.01 to $5.11. Excluding the aforementioned charge of $0.04 related to healthcare reform impacting Medicare Part D reimbursements, we reaffirm our guidance that we expect diluted earnings per share from continuing operations for the full year fiscal 2010 will increase approximately 2 to 4 percent to $5.05 to $5.15, or 8 to 10 percent on a foreign currency-neutral basis. This is compared to adjusted diluted earnings per share from continuing operations, excluding the litigation charge of $0.11 and a tax benefit adjustment of $0.08, of $4.95 for fiscal year 2009. Reported diluted earnings per share from continuing operations for fiscal year 2009 were $4.92.
Conference Call Information
A conference call regarding BD's second 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, April 29, 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 May 6, 2010, access code 67104728.
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. 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; 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 March 31,
2010 2009 % Change
REVENUES $ 1,844,854 $ 1,724,967 7.0
Cost of products sold 886,895 829,350 6.9
Selling and administrative 426,346 436,359 (2.3)
Research and development 101,118 98,588 2.6
TOTAL OPERATING COSTS
AND EXPENSES 1,414,359 1,364,297 3.7
OPERATING INCOME 430,495 360,670 19.4
Interest income 9,652 4,312 NM
Interest expense (12,913) (7,495) 72.3
Other income (expense), net 164 (5,701) NM
INCOME FROM CONTINUING OPERATIONS BEFORE
INCOME TAXES 427,398 351,786 21.5
Income tax provision 129,673 92,612 40.0
INCOME FROM CONTINUING OPERATIONS 297,725 259,174 14.9
(LOSS) INCOME FROM DISCONTINUED OPERATIONS
NET OF INCOME TAX (BENEFIT) PROVISION OF
$(54) AND $611, RESPECTIVELY (94) 2,115 NM
NET INCOME $ 297,631 $ 261,289 13.9
EARNINGS PER SHARE
Basic:
Income from continuing operations $ 1.27 $ 1.08 17.6
(Loss) income from discontinued operations $ - $ 0.01 NM
Net income (1) $ 1.26 $ 1.09 15.6
Diluted:
Income from continuing operations $ 1.24 $ 1.05 18.1
(Loss) income from discontinued operations $ - $ 0.01 NM
Net income $ 1.24 $ 1.06 17.0
AVERAGE SHARES OUTSTANDING
Basic 235,325 240,239
Diluted 240,863 245,890
NM - Not Meaningful
(1) Total per share amounts may not add
due to rounding
BECTON DICKINSON AND COMPANY
CONSOLIDATED INCOME STATEMENTS
(Unaudited; Amounts in thousands, except per share data)
Six Months Ended March 31,
2010 2009 % Change
REVENUES $ 3,761,628 $ 3,442,886 9.3
Cost of products sold 1,806,437 1,625,624 11.1
Selling and administrative 877,275 842,378 4.1
Research and development 201,402 195,902 2.8
TOTAL OPERATING COSTS
AND EXPENSES 2,885,114 2,663,904 8.3
OPERATING INCOME 876,514 778,982 12.5
Interest income 18,441 5,963 NM
Interest expense (25,900) (15,319) 69.1
Other (expense) income, net (2,189) 3,710 NM
INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES 866,866 773,336 12.1
Income tax provision 253,163 204,743 23.6
INCOME FROM CONTINUING OPERATIONS 613,703 568,593 7.9
INCOME FROM DISCONTINUED OPERATIONS
NET OF INCOME TAX PROVISION OF
$99 AND $1,465, RESPECTIVELY 304 4,764 NM
NET INCOME $ 614,007 $ 573,357 7.1
EARNINGS PER SHARE
Basic:
Income from continuing operations $ 2.60 $ 2.36 10.2
Income from discontinued operations $ - $ 0.02 NM
Net income $ 2.60 $ 2.38 9.2
Diluted:
Income from continuing operations $ 2.53 $ 2.30 10.0
Income from discontinued operations $ - $ 0.02 NM
Net income $ 2.53 $ 2.32 9.1
AVERAGE SHARES OUTSTANDING
Basic 236,353 241,330
Diluted 242,327 247,436
NM - Not Meaningful
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY SEGMENT AND GEOGRAPHIC AREA
(Unaudited; Amounts in thousands)
Three Months Ended March 31,
2010 2009 % Change
BD MEDICAL
United States $ 400,241 $ 375,003 6.7
International 566,837 506,484 11.9
TOTAL $ 967,078 $ 881,487 9.7
BD DIAGNOSTICS
United States $ 292,841 $ 285,113 2.7
International 262,831 254,527 3.3
TOTAL $ 555,672 $ 539,640 3.0
BD BIOSCIENCES
United States $ 117,151 $ 104,039 12.6
International 204,953 199,801 2.6
TOTAL $ 322,104 $ 303,840 6.0
TOTAL REVENUES
United States $ 810,233 $ 764,155 6.0
International 1,034,621 960,812 7.7
TOTAL $ 1,844,854 $ 1,724,967 7.0
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY SEGMENT AND GEOGRAPHIC AREA
(Unaudited; Amounts in thousands)
Six Months Ended March 31,
2010 2009 % Change
BD MEDICAL
United States $ 852,627 $ 769,165 10.9
International 1,133,077 987,512 14.7
TOTAL $ 1,985,704 $ 1,756,677 13.0
BD DIAGNOSTICS
United States $ 603,045 $ 572,681 5.3
International 548,102 507,150 8.1
TOTAL $ 1,151,147 $ 1,079,831 6.6
BD BIOSCIENCES
United States $ 227,787 $ 217,790 4.6
International 396,990 388,588 2.2
TOTAL $ 624,777 $ 606,378 3.0
TOTAL REVENUES
United States $ 1,683,459 $ 1,559,636 7.9
International 2,078,169 1,883,250 10.4
TOTAL $ 3,761,628 $ 3,442,886 9.3
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS
Three Months Ended March 31,
(Unaudited; Amounts in thousands)
United States
2010 2009 % Change
BD MEDICAL
Medical Surgical Systems $ 248,601 $ 242,350 2.6
Diabetes Care 92,515 83,233 11.2
Pharmaceutical Systems 52,078 43,065 20.9
Ophthalmic Systems 7,047 6,355 10.9
TOTAL $ 400,241 $ 375,003 6.7
BD DIAGNOSTICS
Preanalytical Systems $ 149,932 $ 147,436 1.7
Diagnostic Systems 142,909 137,677 3.8
TOTAL $ 292,841 $ 285,113 2.7
BD BIOSCIENCES
Cell Analysis $ 78,183 $ 71,770 8.9
Discovery Labware 38,968 32,269 20.8
TOTAL $ 117,151 $ 104,039 12.6
TOTAL UNITED STATES $ 810,233 $ 764,155 6.0
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
2010 2009 Reported FXN FX Impact
BD MEDICAL
Medical Surgical Systems $ 257,488 $ 230,233 11.8 6.6 5.2
Diabetes Care 95,471 85,159 12.1 9.3 2.8
Pharmaceutical Systems 200,305 178,085 12.5 11.1 1.4
Ophthalmic Systems 13,573 13,007 4.4 5.9 (1.5)
TOTAL $ 566,837 $ 506,484 11.9 8.6 3.3
BD DIAGNOSTICS
Preanalytical Systems $ 137,738 $ 131,029 5.1 3.1 2.0
Diagnostic Systems 125,093 123,498 1.3 2.4 (1.1)
TOTAL $ 262,831 $ 254,527 3.3 2.8 0.5
BD BIOSCIENCES
Cell Analysis $ 164,292 $ 159,223 3.2 9.1 (5.9)
Discovery Labware 40,661 40,578 0.2 5.8 (5.6)
TOTAL $ 204,953 $ 199,801 2.6 8.4 (5.8)
TOTAL INTERNATIONAL $ 1,034,621 $ 960,812 7.7 7.0 0.7
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
2010 2009 Reported FXN FX Impact
BD MEDICAL
Medical Surgical Systems $ 506,089 $ 472,583 7.1 4.6 2.5
Diabetes Care 187,986 168,392 11.6 10.2 1.4
Pharmaceutical Systems 252,383 221,150 14.1 13.0 1.1
Ophthalmic Systems 20,620 19,362 6.5 7.5 (1.0)
TOTAL $ 967,078 $ 881,487 9.7 7.8 1.9
BD DIAGNOSTICS
Preanalytical Systems $ 287,670 $ 278,465 3.3 2.4 0.9
Diagnostic Systems 268,002 261,175 2.6 3.1 (0.5)
TOTAL $ 555,672 $ 539,640 3.0 2.7 0.3
BD BIOSCIENCES
Cell Analysis $ 242,475 $ 230,993 5.0 9.0 (4.0)
Discovery Labware 79,629 72,847 9.3 12.4 (3.1)
TOTAL $ 322,104 $ 303,840 6.0 9.8 (3.8)
TOTAL REVENUES $ 1,844,854 $ 1,724,967 7.0 6.6 0.4
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS
Six Months Ended March 31,
(Unaudited; Amounts in thousands)
United States
2010 2009 % Change
BD MEDICAL
Medical Surgical Systems $ 535,136 $ 498,605 7.3
Diabetes Care 189,079 171,699 10.1
Pharmaceutical Systems 114,099 85,717 33.1
Ophthalmic Systems 14,313 13,144 8.9
TOTAL $ 852,627 $ 769,165 10.9
BD DIAGNOSTICS
Preanalytical Systems $ 306,167 $ 296,666 3.2
Diagnostic Systems 296,878 276,015 7.6
TOTAL $ 603,045 $ 572,681 5.3
BD BIOSCIENCES
Cell Analysis $ 155,787 $ 149,150 4.4
Discovery Labware 72,000 68,640 4.9
TOTAL $ 227,787 $ 217,790 4.6
TOTAL UNITED STATES $ 1,683,459 $ 1,559,636 7.9
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS
Six Months Ended March 31, (continued)
(Unaudited; Amounts in thousands)
International
% Change
2010 2009 Reported FX Neutral FX Impact
BD MEDICAL
Medical Surgical
Systems $ 530,976 $ 454,480 16.8 10.9 5.9
Diabetes Care 200,428 176,699 13.4 8.5 4.9
Pharmaceutical
Systems 374,258 330,214 13.3 9.3 4.0
Ophthalmic Systems 27,415 26,119 5.0 4.3 0.7
TOTAL $ 1,133,077 $ 987,512 14.7 9.8 4.9
BD DIAGNOSTICS
Preanalytical
Systems $ 281,670 $ 259,953 8.4 4.9 3.5
Diagnostic Systems 266,432 247,197 7.8 6.2 1.6
TOTAL $ 548,102 $ 507,150 8.1 5.5 2.6
BD BIOSCIENCES
Cell Analysis $ 318,025 $ 311,364 2.1 5.6 (3.5)
Discovery Labware 78,965 77,224 2.3 5.4 (3.1)
TOTAL $ 396,990 $ 388,588 2.2 5.5 (3.3)
TOTAL INTERNATIONAL $ 2,078,169 $ 1,883,250 10.4 7.8 2.6
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS
Six Months Ended March 31, (continued)
(Unaudited; Amounts in thousands)
Total
% Change
2010 2009 Reported FX Neutral FX Impact
BD MEDICAL
Medical Surgical
Systems $ 1,066,112 $ 953,085 11.9 9.0 2.9
Diabetes Care 389,507 348,398 11.8 9.3 2.5
Pharmaceutical
Systems 488,357 415,931 17.4 14.2 3.2
Ophthalmic Systems 41,728 39,263 6.3 5.9 0.4
TOTAL $ 1,985,704 $ 1,756,677 13.0 10.2 2.8
BD DIAGNOSTICS
Preanalytical
Systems $ 587,837 $ 556,619 5.6 4.0 1.6
Diagnostic Systems 563,310 523,212 7.7 6.9 0.8
TOTAL $ 1,151,147 $ 1,079,831 6.6 5.4 1.2
BD BIOSCIENCES
Cell Analysis $ 473,812 $ 460,514 2.9 5.2 (2.3)
Discovery Labware 150,965 145,864 3.5 5.1 (1.6)
TOTAL $ 624,777 $ 606,378 3.0 5.2 (2.2)
TOTAL REVENUES $ 3,761,628 $ 3,442,886 9.3 7.8 1.5
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
SAFETY REVENUES
(Unaudited; Amounts in thousands)
Three Months Ended March 31,
% Change
2010 2009 Reported FXN FX Impact
TOTAL SAFETY REVENUES
United States $ 268,773 $ 255,026 5.4 5.4 -
International 149,475 136,718 9.3 6.8 2.5
TOTAL $ 418,248 $ 391,744 6.8 5.9 0.9
BY SEGMENT
BD Medical $ 200,355 $ 183,591 9.1 8.0 1.1
BD Diagnostics 217,893 208,153 4.7 4.0 0.7
TOTAL $ 418,248 $ 391,744 6.8 5.9 0.9
Six Months Ended March 31,
% Change
2010 2009 Reported FXN FX Impact
TOTAL SAFETY REVENUES
United States $ 567,031 $ 523,995 8.2 8.2 -
International 305,489 270,798 12.8 8.6 4.2
TOTAL $ 872,520 $ 794,793 9.8 8.4 1.4
BY SEGMENT
BD Medical $ 428,857 $ 376,342 14.0 12.3 1.7
BD Diagnostics 443,663 418,451 6.0 4.8 1.2
TOTAL $ 872,520 $ 794,793 9.8 8.4 1.4
Contact: Sherry L. Bertner, Investor Relations – 201-847-5453 Colleen T. White, Corporate Communications – 201-847-5369
SOURCE BD (Becton, Dickinson and Company)
Released April 29, 2010