BD Announces Results for Third Fiscal Quarter
FRANKLIN LAKES, N.J., July 24 /PRNewswire-FirstCall/ -- BD (Becton, Dickinson and Company) (NYSE: BDX) today reported record quarterly revenues of $1.868 billion for the third fiscal quarter ended June 30, 2008, representing an increase of 14.5 percent over the prior year period. This quarter's revenue growth rate reflects the favorable impact on all segments from foreign currency translation, which overall is estimated to account for nearly 7 percentage points of the increase in quarterly revenues.
"We are pleased that all segments and regions, particularly Europe and Asia, contributed to solid revenue growth," said Edward J. Ludwig, Chairman, President and Chief Executive Officer. "We are also pleased with our operating results, which in part, have enabled us to raise our earnings guidance once again despite continued pressure from increasing raw material costs."
Analyses of Third Quarter and Nine-Month Periods of Fiscal Year 2008 and 2007 Earnings
Reported diluted earnings per share from continuing operations were $1.18 for the third quarter of fiscal 2008 and 95 cents for the third quarter of fiscal 2007. For the nine-month period ending June 30, 2008, reported diluted earnings per share from continuing operations were $3.34. For the nine-month period ending June 30, 2007, reported diluted earnings per share from continuing operations were $2.38.
The following analysis (Table 1) of diluted earnings per share from continuing operations for the three-month and nine-month periods ended June 30, 2008 and 2007, identifies the specified items that affect comparability of results between periods. As illustrated, diluted earnings per share from continuing operations of $1.18 for the third fiscal quarter of 2008 increased by 20 percent over diluted earnings per share from continuing operations, excluding the specified item, of 98 cents for the third fiscal quarter of 2007. For the nine-month periods, diluted earnings per share from continuing operations of $3.34 for fiscal 2008 increased by 17 percent over comparable fiscal 2007 diluted earnings per share from continuing operations of $2.86, which exclude the specified items.
(Table 1) Three Months Ended June 30, Nine Months Ended June 30,
FY2008 FY2007 % Change FY2008 FY2007 % Change
Diluted EPS
from
Continuing
Operations: $1.18 $0.95 24% $3.34 $2.38 40%
Specified Items:
In-Process
Research and
Development
Charge - 0.03 (1) - 0.48 (2)
Diluted EPS from
Continuing
Operations
Excluding
Specified
Items: $1.18 $0.98 20% $3.34 $2.86 17%
(1) Represents the effect on diluted earnings per share from continuing
operations of the in-process research and development ("IPR&D") charge
recorded in the third quarter of fiscal 2007 related to the Plasso
Technology acquisition.
(2) Represents the effect on diluted earnings per share from continuing
operations of the IPR&D charges recorded in the third and first
quarters of fiscal 2007 related to the Plasso and TriPath
acquisitions, respectively.
Segment Results
In the BD Medical segment, worldwide revenues for the quarter were $1.016 billion, representing an increase of 15 percent from the prior year period. Pharmaceutical Systems and Diabetes Care products led revenue growth in the segment. For the nine-month period ended June 30, 2008, the BD Medical segment reported 12 percent revenue growth.
In the BD Diagnostics segment, worldwide revenues for the quarter were $553 million, representing an increase of 13 percent from the prior year's quarter. Sales of safety-engineered devices, TriPath products and infectious disease testing systems contributed to revenue growth. For the nine-month period ended June 30, 2008, the BD Diagnostics segment reported 14 percent revenue growth.
In the BD Biosciences segment, worldwide revenues for the quarter were $298 million, representing an increase of 16 percent from the prior year's quarter. Demand for clinical and research instruments and reagents were the primary growth drivers. For the nine-month period ended June 30, 2008, the BD Biosciences segment reported 16 percent revenue growth.
Geographic Results
Third quarter revenues in the U.S. were $798 million, representing an increase of 4 percent over the prior year period. Revenues outside the U.S. were $1.069 billion, representing an increase of 24 percent over the prior year period, with approximately 13 percentage points of the increase resulting from the favorable impact of foreign currency translation.
For the nine-month period ended June 30, 2008, revenues in the U.S. were $2.372 billion, representing an increase of 6 percent over the prior year period. Revenues outside of the U.S. were $2.948 billion, representing an increase of 20 percent over the prior year period, with approximately 11 percentage points of the increase resulting from the favorable impact from foreign currency translation.
Fiscal 2008 Outlook for Full Year
The Company raised its guidance for full fiscal year 2008 diluted earnings per share from continuing operations to approximately 16 percent from approximately 13 to 14 percent over adjusted diluted earnings per share from continuing operations of $3.84 for the full fiscal year 2007. Reported diluted earnings per share from continuing operations for the full fiscal year 2007 were $3.36, which included 48 cents for in-process research and development charges related to the TriPath and Plasso acquisitions. Excluding these charges, adjusted diluted earnings per share from continuing operations for the full fiscal year 2007 were $3.84.
Conference Call Information
A conference call regarding BD's third fiscal quarter results and its expectations for the full fiscal year will be broadcast live on BD's website, www.bd.com/investors, at 10:00 a.m. (EDT) Thursday, July 24, 2008. The conference call will be available for replay on BD's website, www.bd.com/investors, or at 800-642-1687 (domestic) and 706-645-9291 (international), Conference ID: 52522900, through the close of business on Thursday, July 31, 2008.
This news release contains certain non-GAAP financial measures. A reconciliation of these and other measures to the comparable GAAP measures is included in this release and 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 28,000 people 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 2008 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, factors that could cause actual results to vary materially from any forward-looking statement include, but are not limited to: competitive factors; pricing and market share pressures; changes in interest or foreign currency exchange rates; difficulties inherent in product development and delays in product introductions; changes in regional, national or foreign economic conditions; further 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; changes in healthcare or other governmental regulation; and issuance of new or revised accounting standards, as well as other factors discussed in this press release and 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 June 30,
2008 2007 % Change
REVENUES $1,867,587 $1,631,159 14.5
Cost of products sold 917,362 791,071 16.0
Selling and
administrative 440,588 412,164 6.9
Research and
development 100,071 92,993 7.6
Acquired in-process
research and
development - 7,394 NM
TOTAL OPERATING COSTS
AND EXPENSES 1,458,021 1,303,622 11.8
OPERATING INCOME 409,566 327,537 25.0
Interest income 10,956 11,938 (8.2)
Interest expense (9,017) (11,598) (22.3)
Other income, net (1,285) 1,774 NM
INCOME FROM CONTINUING
OPERATIONS BEFORE
INCOME TAXES 410,220 329,651 24.4
Income tax provision 112,811 89,182 26.5
INCOME FROM CONTINUING
OPERATIONS 297,409 240,469 23.7
(LOSS)/INCOME FROM
DISCONTINUED
OPERATIONS NET OF INCOME
TAX (BENEFIT)/PROVISION
OF $(197) AND $2,704,
RESPECTIVELY (320) 4,340 NM
NET INCOME $297,089 $244,809 21.4
EARNINGS PER SHARE
Basic:
Income from continuing
operations $1.22 $0.98 24.5
Income from
discontinued
operations $- $0.02 NM
Net income $1.22 $1.00 22.0
Diluted:
Income from continuing
operations $1.18 $0.95 24.2
Income from
discontinued
operations $- $0.02 NM
Net income (1) $1.18 $0.96 22.9
AVERAGE SHARES
OUTSTANDING
Basic 244,273 244,918
Diluted 251,648 254,128
NM - Not Meaningful
(1) Total per share amounts may not add due to rounding.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
(Unaudited; Amounts in thousands, except per-share data)
Three Months Ended June 30, 2007
As Plasso Excluding
Reported IPR&D (1) Item
Operating Income $327,537 $7,394 $334,931
as a % of revenues 20.1% 20.5%
Income Taxes 89,182 - 89,182
effective tax rate 27.1% 26.5%
Income from continuing
operations 240,469 7,394 247,863
as a % of revenues 14.7% 15.2%
Diluted earnings per
share
Income from continuing
operations $0.95 $0.03 $0.98
(1) Represents the acquired in-process research and development charge of
$7,394 related to the Plasso acquisition.
BECTON DICKINSON AND COMPANY
CONSOLIDATED INCOME STATEMENTS
(Unaudited; Amounts in thousands, except per share data)
Nine Months Ended June 30,
2008 2007 % Change
REVENUES $5,320,279 $4,708,607 13.0
Cost of products sold 2,601,016 2,264,544 14.9
Selling and
administrative 1,277,828 1,202,879 6.2
Research and
development 287,633 259,620 10.8
Acquired in-process
research and
development - 122,133 NM
TOTAL OPERATING COSTS
AND EXPENSES 4,166,477 3,849,176 8.2
OPERATING INCOME 1,153,802 859,431 34.3
Interest income 32,489 37,138 (12.5)
Interest expense (27,455) (36,152) (24.1)
Other income, net 252 5,278 NM
INCOME FROM CONTINUING
OPERATIONS BEFORE
INCOME TAXES 1,159,088 865,695 33.9
Income tax provision 315,147 258,636 21.8
INCOME FROM CONTINUING
OPERATIONS 843,941 607,059 39.0
INCOME FROM DISCONTINUED
OPERATIONS NET OF INCOME
TAX PROVISION OF $538
AND $14,066, RESPECTIVELY 880 23,162 NM
NET INCOME $844,821 $630,221 34.1
EARNINGS PER SHARE
Basic:
Income from continuing
operations $3.45 $2.47 39.7
Income from
discontinued
operations $- $0.09 NM
Net income (1) $3.46 $2.57 34.6
Diluted:
Income from continuing
operations $3.34 $2.38 40.3
Income from
discontinued
operations $- $0.09 NM
Net income $3.34 $2.47 35.2
AVERAGE SHARES OUTSTANDING
Basic 244,478 245,296
Diluted 252,944 255,129
NM - Not Meaningful
(1) Total per share amounts may not add due to rounding.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
(Unaudited; Amounts in thousands, except per share data)
Nine Months Ended June 30, 2007
As TriPath Plasso Excluding
Reported IPR&D (1) IPR&D (1) Items
Operating Income $859,431 $114,739 $7,394 981,564
as a % of revenues 18.3% 20.8%
Income taxes 258,636 - - 258,636
effective tax rate 29.9% 26.2%
Income from continuing
operations 607,059 114,739 7,394 729,192
as a % of revenues 12.9% 15.5%
Diluted earnings per
share
Income from continuing
operations $2.38 $0.45 $0.03 $2.86
(1) Represents the acquired in-process research and development charges of
$114,739 and $7,394 related to the TriPath and Plasso acquisitions,
respectively.
Fiscal Year 2007
As Excluding
Reported IPR&D (2) Items
Diluted earnings per share
Income from continuing
operations $3.36 $0.48 $3.84
(2) Represents the acquired in-process research and development charges
related to the TriPath and Plasso acquisitions.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY SEGMENT AND GEOGRAPHIC AREA
(Unaudited; Amounts in thousands)
Three Months Ended June 30,
2008 2007 % Change
BD MEDICAL
United States $401,918 $385,546 4.2
International 614,478 496,440 23.8
TOTAL $1,016,396 $881,986 15.2
BD DIAGNOSTICS
United States $280,118 $272,946 2.6
International 273,304 218,579 25.0
TOTAL $553,422 $491,525 12.6
BD BIOSCIENCES
United States $116,239 $109,593 6.1
International 181,530 148,055 22.6
TOTAL $297,769 $257,648 15.6
TOTAL REVENUES
United States $798,275 $768,085 3.9
International 1,069,312 863,074 23.9
TOTAL $1,867,587 $1,631,159 14.5
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY SEGMENT AND GEOGRAPHIC AREA
(Unaudited; Amounts in thousands)
Nine Months Ended June 30,
2008 2007 % Change
BD MEDICAL
United States $1,197,689 $1,146,143 4.5
International 1,650,243 1,406,233 17.4
TOTAL $2,847,932 $2,552,376 11.6
BD DIAGNOSTICS
United States $840,695 $781,644 7.6
International 766,050 625,512 22.5
TOTAL $1,606,745 $1,407,156 14.2
BD BIOSCIENCES
United States $333,891 $314,942 6.0
International 531,711 434,133 22.5
TOTAL $865,602 $749,075 15.6
TOTAL REVENUES
United States $2,372,275 $2,242,729 5.8
International 2,948,004 2,465,878 19.6
TOTAL $5,320,279 $4,708,607 13.0
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS
Three Months Ended June 30,
(Unaudited; Amounts in thousands)
United States
2008 2007 % Change
BD MEDICAL
Medical Surgical
Systems $243,960 $238,360 2.3
Diabetes Care 102,663 92,116 11.4
Pharmaceutical
Systems 49,125 48,692 0.9
Ophthalmic Systems 6,170 6,378 (3.3)
TOTAL $401,918 $385,546 4.2
BD DIAGNOSTICS
Preanalytical
Systems $144,416 $139,572 3.5
Diagnostic Systems 135,702 133,374 1.7
TOTAL $280,118 $272,946 2.6
BD BIOSCIENCES
Cell Analysis (1) $80,186 $71,686 11.9
Discovery Labware 36,053 37,907 (4.9)
TOTAL $116,239 $109,593 6.1
TOTAL UNITED STATES $798,275 $768,085 3.9
(1) Cell Analysis consists of the Immunocytometry Systems and the
Pharmingen units that were previously reported separately.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS
Three Months Ended June 30, (continued)
(Unaudited; Amounts in thousands)
International
% Change
FX FX
2008 2007 Reported Neutral Impact
BD MEDICAL
Medical Surgical
Systems $272,064 $233,835 16.3 6.1 10.2
Diabetes Care 97,298 82,754 17.6 4.8 12.8
Pharmaceutical
Systems 230,346 168,057 37.1 19.6 17.5
Ophthalmic Systems 14,770 11,794 25.2 12.6 12.6
TOTAL $614,478 $496,440 23.8 10.6 13.2
BD DIAGNOSTICS
Preanalytical
Systems $146,345 $121,761 20.2 7.5 12.7
Diagnostic Systems 126,959 96,818 31.1 18.4 12.7
TOTAL $273,304 $218,579 25.0 12.3 12.7
BD BIOSCIENCES
Cell Analysis (1) $141,889 $115,494 22.9 10.4 12.5
Discovery Labware 39,641 32,561 21.7 8.7 13.0
TOTAL $181,530 $148,055 22.6 10.0 12.6
TOTAL INTERNATIONAL $1,069,312 $863,074 23.9 10.9 13.0
(1) Cell Analysis consists of the Immunocytometry Systems and the
Pharmingen units that were previously reported separately.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS
Three Months Ended June 30, (continued)
(Unaudited; Amounts in thousands)
Total
% Change
FX FX
2008 2007 Reported Neutral Impact
BD MEDICAL
Medical Surgical
Systems $516,024 $472,195 9.3 4.2 5.1
Diabetes Care 199,961 174,870 14.3 8.3 6.0
Pharmaceutical
Systems 279,471 216,749 28.9 15.4 13.5
Ophthalmic Systems 20,940 18,172 15.2 7.0 8.2
TOTAL $1,016,396 $881,986 15.2 7.8 7.4
BD DIAGNOSTICS
Preanalytical
Systems $290,761 $261,333 11.3 5.3 6.0
Diagnostic Systems 262,661 230,192 14.1 8.7 5.4
TOTAL $553,422 $491,525 12.6 6.9 5.7
BD BIOSCIENCES
Cell Analysis (1) $222,075 $187,180 18.6 10.9 7.7
Discovery Labware 75,694 70,468 7.4 1.4 6.0
TOTAL $297,769 $257,648 15.6 8.3 7.3
TOTAL REVENUES $1,867,587 $1,631,159 14.5 7.6 6.9
(1) Cell Analysis consists of the Immunocytometry Systems and the
Pharmingen units that were previously reported separately.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS
Nine Months Ended June 30,
(Unaudited; Amounts in thousands)
United States
2008 2007 % Change
BD MEDICAL
Medical Surgical
Systems $729,152 $711,545 2.5
Diabetes Care 298,071 280,255 6.4
Pharmaceutical
Systems 151,882 135,961 11.7
Ophthalmic Systems 18,584 18,382 1.1
TOTAL $1,197,689 $1,146,143 4.5
BD DIAGNOSTICS
Preanalytical
Systems $428,391 $403,211 6.2
Diagnostic Systems 412,304 378,433 9.0
TOTAL $840,695 $781,644 7.6
BD BIOSCIENCES
Cell Analysis (1) $225,814 $205,237 10.0
Discovery Labware 108,077 109,705 (1.5)
TOTAL $333,891 $314,942 6.0
TOTAL UNITED STATES $2,372,275 $2,242,729 5.8
(1) Cell Analysis consists of the Immunocytometry Systems and the
Pharmingen units that were previously reported separately.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS
Nine Months Ended June 30, (continued)
(Unaudited; Amounts in thousands)
International
% Change
2008 2007 Reported FX Neutral FX Impact
BD MEDICAL
Medical
Surgical
Systems $766,401 $675,741 13.4 3.7 9.7
Diabetes
Care 278,736 234,491 18.9 7.1 11.8
Pharmaceutical
Systems 563,969 462,540 21.9 8.3 13.6
Ophthalmic
Systems 41,137 33,461 22.9 11.6 11.3
TOTAL $1,650,243 $1,406,233 17.4 6.0 11.4
BD DIAGNOSTICS
Preanalytical
Systems $408,031 $342,941 19.0 7.5 11.5
Diagnostic
Systems 358,019 282,571 26.7 15.8 10.9
TOTAL $766,050 $625,512 22.5 11.3 11.2
BD BIOSCIENCES
Cell
Analysis(1) $421,095 $339,146 24.2 13.0 11.2
Discovery
Labware 110,616 94,987 16.5 5.4 11.1
TOTAL $531,711 $434,133 22.5 11.4 11.1
TOTAL
INTER-
NATIONAL $2,948,004 $2,465,878 19.6 8.3 11.3
(1) Cell Analysis consists of the Immunocytometry Systems and the
Pharmingen units that were previously reported separately.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS
Nine Months Ended June 30, (continued)
(Unaudited; Amounts in thousands)
Total
% Change
2008 2007 Reported FX Neutral FX Impact
BD MEDICAL
Medical
Surgical
Systems $1,495,553 $1,387,286 7.8 3.1 4.7
Diabetes
Care 576,807 514,746 12.1 6.7 5.4
Pharmaceutical
Systems 715,851 598,501 19.6 9.0 10.6
Ophthalmic
Systems 59,721 51,843 15.2 7.9 7.3
TOTAL $2,847,932 $2,552,376 11.6 5.3 6.3
BD DIAGNOSTICS
Preanalytical
Systems $836,422 $746,152 12.1 6.8 5.3
Diagnostic
Systems 770,323 661,004 16.5 11.9 4.6
TOTAL $1,606,745 $1,407,156 14.2 9.2 5.0
BD BIOSCIENCES
Cell
Analysis(1) $646,909 $544,383 18.8 11.9 6.9
Discovery
Labware 218,693 204,692 6.8 1.7 5.1
TOTAL $865,602 $749,075 15.6 9.1 6.5
TOTAL
REVENUES $5,320,279 $4,708,607 13.0 7.1 5.9
(1) Cell Analysis consists of the Immunocytometry Systems and the
Pharmingen units that were previously reported separately.
SOURCE BD (Becton, Dickinson and Company)
Released July 24, 2008