BD Announces Results for First Fiscal Quarter
The Company raises guidance for full fiscal year
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)
Released January 28, 2010