1 Becton Drive
Franklin Lakes, NJ 07417
www.bd.com

 

 

News Release

(BD LOGO)

Contact:
Patricia A. Spinella, Investor Relations – 201-847-5453
Colleen T. White, Corporate Communications – 201-847-5369

 

BD ANNOUNCES RESULTS FOR FIRST FISCAL QUARTER

 

•

First-quarter earnings per share from continuing operations, excluding specified item, increased 12% to 96 cents

 

•

Raises guidance for full fiscal year 2007 earnings per share from continuing operations, excluding specified item, to a range of $3.71 to $3.77

 

Franklin Lakes, NJ (January 25, 2007) – BD (Becton, Dickinson and Company) (NYSE: BDX) today reported record quarterly revenues of $1.502 billion for the first fiscal quarter ended December 31, 2006, representing an increase of 8 percent over the prior year period. This quarter’s growth rate reflects the favorable impact on all segments from foreign currency translation, which overall is estimated to account for 2 percentage points of the growth.

 

“We are pleased with our strong start to fiscal 2007,” said Edward J. Ludwig, Chairman, President and Chief Executive Officer. “Increased sales of safety-engineered devices, prefillable drug delivery devices, and Biosciences products demonstrate the breadth of our growth drivers. Higher margin products and increased operating effectiveness continued to expand our operating profit margin. This performance has enabled us to increase the pace of our R&D spending while delivering double-digit earnings growth.”

 

TriPath Imaging Acquisition Completed

On December 20, 2006, BD completed its acquisition of TriPath Imaging, a maker of innovative solutions to improve the clinical management of cancer. The Company recorded an in-process research and development charge of $115 million associated with the acquisition, which reduced diluted earnings per share from continuing operations by 45 cents in the first quarter (see Table 1 below).

 

 

 

 

BGM Product Line Sold

Following the receipt of an unsolicited offer during the quarter, the Company sold the blood glucose monitoring (BGM) product line for $20 million, resulting in a pre-tax gain of $15 million. Consequently, the results of operations of the BGM product line have been classified as discontinued operations for all quarters and years referred to in this release. Included in the attached financial tables are the Company’s Consolidated Income Statements for fiscal year 2006, which reflect this classification change.

 

Analysis of First Quarter Fiscal Year 2007 and 2006 Earnings

Reported diluted earnings per share from continuing operations was 51 cents for the first quarter of fiscal 2007, which included the in-process research and development charge of 45 cents related to the TriPath acquisition. The following analysis of diluted earnings per share from continuing operations for the first quarter of fiscal 2007 and 2006 identifies specified items that affect comparability of results between periods. As illustrated in Table 1, diluted earnings per share from continuing operations, excluding specified item, for the first fiscal quarter of 2007 of 96 cents increased by 12 percent over diluted earnings per share from continuing operations, excluding specified items, of 86 cents for the first fiscal quarter of 2006.

 

(Table 1)
Three Months Ended December 31,
  
 
FY2007
FY2006
% Change
  
Diluted EPS from Continuing Operations:     $ 0.51   $ 0.87     -41%  
     
Specified Items:    
   In-Process Research and Development Charge(1)       0.45     —        
   Insurance Settlement(2)       —     (0.02 )      
   Rounding       —     0.01        
        0.45     (0.01 )      
Diluted EPS from Continuing Operations Excluding
Specified Items:		     $ 0.96   $ 0.86     12%  

 

 

(1) Represents the effect on diluted earnings per share from continuing operations of the in-process research and development charge recorded in the first quarter of fiscal 2007 related to the TriPath acquisition.

(2)Represents the effect on diluted earnings per share from continuing operations related to proceeds received from insurance settlements regarding the Company’s previously owned latex glove business.

 

Segment Results

In the BD Medical segment, worldwide revenues for the quarter were $826 million, representing an increase of 10 percent over the prior year period. Strong sales of Pharmaceutical Systems products and safety-engineered devices contributed to growth.

 

In the BD Diagnostics segment, worldwide revenues for the quarter were $442 million, representing an increase of 2 percent over the prior year period. The Preanalytical Systems unit of the segment reported revenue growth of 8 percent due to strong sales of safety-engineered devices. Revenues in the Diagnostic Systems unit of the segment decreased 5 percent. The decline in sales of flu diagnostics tests, as compared to strong sales in the prior year period, more than offset double-digit growth from the BD ProbeTec™ ET and BD Phoenix™ instruments.

 

In the BD Biosciences segment, worldwide revenues for the quarter were $233 million, representing an increase of 11 percent over the prior year period. Research instruments and reagent sales continued to be the primary growth contributors, driven by increased demand for research analyzers and clinical reagents.

 

 

 

 

Geographic Results

First quarter revenues in the U.S. were $721 million, representing an increase of 9 percent over the prior year period. Revenues outside the U.S. were $781 million, representing an increase of 7 percent over the prior year period, and reflect an estimated 4 percent favorable impact from foreign currency translation.

 

Fiscal 2007 Outlook for Full Year  

The following analysis of estimated diluted earnings per share from continuing operations for the full fiscal year identifies specified items that affect the comparability of results between periods. As illustrated in Table 2, the Company estimates that diluted earnings per share from continuing operations, excluding specified item, for the full fiscal year 2007 will be in the $3.71 to $3.77 range, representing an increase of approximately 11 to 13 percent over diluted earnings per share from continuing operations, excluding specified items, of $3.34 for the fiscal year 2006.

 

(Table 2)
Twelve Months Ended
September 30,
  
 
FY2007
FY2006
 
% Change
  
(Estimated)  
Diluted EPS from Continuing Operations:     $ 3.26-$3.32   $ 3.18       3%-4%  
     
Specified Items:    
   In-Process Research and Development Charge(1)       0.45     0.21           
   Insurance Settlements(2)       —     (0.04 )         
   Rounding       —     (0.01 )         
 
         0.45     0.16           
Diluted EPS from Continuing Operations Excluding Specified Items:     $ 3.71-$3.77   $ 3.34       11%-13%  
 

 

(1) Represents the effect on diluted earnings per share from continuing operations of the in-process research and development charge recorded in the first quarter of fiscal 2007 related to the TriPath acquisition and in the second quarter of fiscal 2006 related to the GeneOhm acquisition.

(2) Represents the effect on diluted earnings per share from continuing operations related to proceeds received from insurance settlements regarding the Company’s previously owned latex glove business.

 

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, at 10:00 a.m. (ET) Thursday, January 25, 2007. The conference call will be available for replay on BD’s website, www.bd.com/investors, or at 1-866-427-6404 (domestic) and 1-203-369-0894 (international) through the close of business on February 1, 2007.

 

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 the attached financial tables.

 

About BD

BD, a leading global medical technology company that manufactures and sells medical devices, instrument systems and reagents, is dedicated to improving people’s health throughout the world. BD is focused on improving drug therapy, enhancing the quality and speed of diagnosing infectious diseases, and advancing research and discovery of new drugs and vaccines. The Company’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 27,000 people in approximately 50 countries throughout the world. The Company serves healthcare institutions, life science researchers, clinical laboratories, industry and the general public. For more information, please visit www.bd.com.

***

 

This press release, including the section entitled “Fiscal 2007 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 December 31,
    

 

 

2006

 

 

2005

 

 

% Change

 

 

 

 

 

 

 

 

 

 

 

REVENUES

$

1,501,526

 

$

1,393,845

 

 

7.7

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of products sold

 

708,933

 

 

665,946

 

 

6.5

 

 

Selling and administrative

 

384,084

 

 

349,027

 

 

10.0

 

 

Research and development

 

194,679

 

 

68,359

 

 

NM

 

 

TOTAL OPERATING COSTS
AND EXPENSES

 

1,287,696

 

 

1,083,332

 

 

18.9

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

213,830

 

 

310,513

 

 

(31.1)

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

16,114

 

 

14,671

 

 

9.8

 

 

Interest expense

 

(12,868)

 

 

(16,760)

 

 

(23.2)

 

 

Other expense, net

 

(2,368)

 

 

(1,163)

 

 

NM

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME FROM CONTINUING OPERATIONS BEFORE

 

 

 

 

 

 

 

INCOME TAXES

 

214,708

 

 

307,261

 

 

(30.1)

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision

 

83,657

 

 

83,559

 

 

0.1

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME FROM CONTINUING OPERATIONS

 

131,051

 

 

223,702

 

 

(41.4)

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME/(LOSS) FROM DISCONTINUED OPERATIONS

 

 

 

 

 

 

 

 

 

 

NET OF INCOME TAX PROVISION/(BENEFIT) OF

 

 

 

 

 

 

 

 

 

 

$7,140 AND $(3,550), RESPECTIVELY

 

11,828

 

 

(5,842)

 

 

NM

 

 

 

 

 

 

 

 

 

 

NET INCOME

$

142,879

 

$

217,860

 

 

(34.4)

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS PER SHARE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic:

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

$

0.53

 

$

0.90

 

 

(41.1)

 

 

Income/(loss) from discontinued operations

$

0.05

 

$

(0.02)

 

 

NM

 

 

Net income

$

0.58

 

$

0.88

 

 

(34.1)

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted:

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

$

0.51

 

$

0.87

 

 

(41.4)

 

 

Income/(loss) from discontinued operations

$

0.05

 

$

(0.02)

 

 

NM

 

 

Net income

$

0.56

 

$

0.85

 

 

(34.1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AVERAGE SHARES OUTSTANDING

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

245,550

 

 

248,046

 

 

 

 

 

Diluted

 

254,941

 

 

255,851

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NM - Not Meaningful

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Page 1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BECTON DICKINSON AND COMPANY

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL INFORMATION

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

 

 

 

 

 

 

 

 

 

(Unaudited; Amounts in thousands, except per-share data)

 

 

 

 

 

 

 

 

 

 

 

2006

  

 

 

As

 

 

Tri Path

 

 

Excluding

 

 

 

 

Reported

 

 

IPR&D (1)

 

 

Items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and Development

$

194,679

 

$

(114,739)

 

$

79,940

 

 

as a % of Revenue

 

13.0%

 

 

 

 

 

5.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income

 

213,830

 

 

114,739 

 

 

328,569

 

 

as a % of revenues

 

14.2%

 

 

 

 

 

21.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

131,051

 

 

114,739 

 

 

245,790

 

 

as a % of revenues

 

8.7%

 

 

 

 

 

16.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

$

0.51

 

$

0.45 

 

$

0.96

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Represents the in-process research and development (“IPR&D”) charge related to the TriPath acquisiton.
 
 
2005
  

 

 

As

 

 

Insurance

 

 

Excluding

 

 

 

 

Reported

 

 

Settlement (2)

 

 

Items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling and administrative

$

349,027

 

$

7,000 

 

$

356,027

 

 

as a % of revenues

 

25.0%

 

 

 

 

 

25.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income

 

310,513

 

 

(7,000)

 

 

303,513

 

 

as a % of revenues

 

22.3%

 

 

 

 

 

21.8%

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

83,559

 

 

(2,660)

 

 

80,899

 

 

effective tax rate

 

27.2%

 

 

 

 

 

26.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

223,702

 

 

(4,340)

 

 

219,362

 

 

as a % of revenues

 

16.0%

 

 

 

 

 

15.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share

 

 

 

 

 

 

 

 

 

 

Income from continuing operations (3)

$

0.87

 

$

(0.02)

 

$

0.86

 

 
   
   
(2) Represents the effect in 2006 related to proceeds received from insurance settlements in connection with the Company’s previously owned latex glove business.
   
(3) Total per share amounts may not add due to rounding.
 
Page 2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BECTON DICKINSON AND COMPANY

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL REVENUE INFORMATION

 

 

 

 

 

 

 

 

 

 

REVENUES BY SEGMENT AND GEOGRAPHIC AREA

 

 

 

 

 

 

 

 

 

 

(Unaudited; Amounts in thousands)

 

 

 

 

 

 

 

 

 

 

 

 
Three Months Ended December 31,
    

 

 

2006

 

 

2005

 

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

BD MEDICAL

 

 

 

 

 

 

 

 

 

 

United States

$

381,806

 

$

347,670

 

 

9.8 

 

 

International

 

444,441

 

 

402,814

 

 

10.3 

 

 

TOTAL

$

826,247

 

$

750,484

 

 

10.1 

 

 

 

 

 

 

 

 

 

 

 

 

 

BD DIAGNOSTICS

 

 

 

 

 

 

 

 

 

 

United States

$

242,899

 

$

224,731

 

 

8.1 

 

 

International

 

199,501

 

 

209,387

 

 

(4.7)

 

 

TOTAL

$

442,400

 

$

434,118

 

 

1.9 

 

 

 

 

 

 

 

 

 

 

 

 

 

BD BIOSCIENCES

 

 

 

 

 

 

 

 

 

 

United States

$

95,921

 

$

89,670

 

 

7.0 

 

 

International

 

136,958

 

 

119,573

 

 

14.5 

 

 

TOTAL

$

232,879

 

 

209,243

 

 

11.3 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL REVENUES

 

 

 

 

 

 

 

 

 

 

United States

$

720,626

 

$

662,071

 

 

8.8 

 

 

International

 

780,900

 

 

731,774

 

 

6.7 

 

 

TOTAL

$

1,501,526

 

$

1,393,845

 

 

7.7 

 

 

 

 

 

 

 

 

 

 

 

 

 Page 3

 

 

BECTON DICKINSON AND COMPANY

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL REVENUE INFORMATION

 

 

 

 

 

 

 

 

 

 

REVENUES BY BUSINESS SEGMENTS AND UNITS

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

 

 

 

 

 

 

 

 

 

(Unaudited; Amounts in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

 

 

 

2006

 

 

2005

 

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

BD MEDICAL

 

 

 

 

 

 

 

 

 

 

Medical Surgical Systems

$

242,301

 

$

222,266

 

 

9.0 

 

 

Diabetes Care

 

90,492

 

 

91,488

 

 

(1.1)

 

 

Pharmaceutical Systems

 

42,899

 

 

28,400

 

 

51.1 

 

 

Ophthalmic Systems

 

6,114

 

 

5,516

 

 

10.8 

 

 

TOTAL

$

381,806

 

$

347,670

 

 

9.8 

 

 

 

 

 

 

 

 

 

 

 

 

 

BD DIAGNOSTICS

 

 

 

 

 

 

 

 

 

 

Preanalytical Systems

$

131,703

 

$

122,789

 

 

7.3 

 

 

Diagnostic Systems (1)

 

111,196

 

 

101,942

 

 

9.1 

 

 

TOTAL

$

242,899

 

$

224,731

 

 

8.1 

 

 

 

 

 

 

 

 

 

 

 

 

 

BD BIOSCIENCES

 

 

 

 

 

 

 

 

 

 

Discovery Labware (1)

$

34,088

 

$

32,056

 

 

6.3 

 

 

Immunocytometry Systems

 

43,905

 

 

40,437

 

 

8.6 

 

 

Pharmingen

 

17,928

 

 

17,177

 

 

4.4 

 

 

TOTAL

$

95,921

 

$

89,670

 

 

7.0 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL UNITED STATES

$

720,626

 

$

662,071

 

 

8.8 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Refer to page 9.

 

 

 

 

 

 

 

 

 

 
                   
Page 4

 

 

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

 

 

2006

 

 

2005

 

 

Reported

 

FX Neutral

 

FX Impact

 

 

 

 

 

 

 

 

 

 

 

 

 

BD MEDICAL

 

 

 

 

 

 

 

 

 

 

 

 

Medical Surgical Systems

$

225,450

 

$

205,897

 

 

9.5 

 

6.2 

 

3.3

Diabetes Care

 

78,194

 

 

71,992

 

 

8.6 

 

5.1 

 

3.5

Pharmaceutical Systems

 

130,041

 

 

115,363

 

 

12.7 

 

7.9 

 

4.8

Ophthalmic Systems

 

10,756

 

 

9,562

 

 

12.5 

 

7.7 

 

4.8

TOTAL

$

444,441

 

$

402,814

 

 

10.3 

 

6.5 

 

3.8

 

 

 

 

 

 

 

 

 

 

 

 

 

BD DIAGNOSTICS

 

 

 

 

 

 

 

 

 

 

 

 

Preanalytical Systems

$

108,369

 

$

99,374

 

 

9.1 

 

4.8 

 

4.3

Diagnostic Systems (1)

 

91,132

 

 

110,013

 

 

(17.2)

 

(19.3)

 

2.1

TOTAL

$

199,501

 

$

209,387

 

 

(4.7)

 

(7.8)

 

3.1

 

 

 

 

 

 

 

 

 

 

 

 

 

BD BIOSCIENCES

 

 

 

 

 

 

 

 

 

 

 

 

Discovery Labware (1)

$

29,800

 

$

27,389

 

 

8.8 

 

5.7 

 

3.1

Immunocytometry Systems

 

85,696

 

 

72,415

 

 

18.3 

 

14.4 

 

3.9

Pharmingen

 

21,462

 

 

19,769

 

 

8.6 

 

5.2 

 

3.4

TOTAL

$

136,958

 

$

119,573

 

 

14.5 

 

10.9 

 

3.6

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL INTERNATIONAL

$

780,900

 

$

731,774

 

 

6.7 

 

3.1 

 

3.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Refer to page 9.

 

 

 

 

 

 

 

 

 

 

 

 

 
                       
Page 5

 

 

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

 

 

2006

 

 

2005

 

 

Reported

 

FX Neutral

 

FX Impact

 

 

 

 

 

 

 

 

 

 

 

 

 

BD MEDICAL

 

 

 

 

 

 

 

 

 

 

 

 

Medical Surgical Systems

$

467,751

 

$

428,163

 

 

9.2 

 

7.6 

 

1.6

Diabetes Care

 

168,686

 

 

163,480

 

 

3.2 

 

1.6 

 

1.6

Pharmaceutical Systems

 

172,940

 

 

143,763

 

 

20.3 

 

16.5 

 

3.8

Ophthalmic Systems

 

16,870

 

 

15,078

 

 

11.9 

 

8.9 

 

3.0

TOTAL

$

826,247

 

 

750,484

 

 

10.1 

 

8.0 

 

2.1

 

 

 

 

 

 

 

 

 

 

 

 

 

BD DIAGNOSTICS

 

 

 

 

 

 

 

 

 

 

 

 

Preanalytical Systems

$

240,072

 

$

222,163

 

 

8.1 

 

6.2 

 

1.9

Diagnostic Systems (1)

 

202,328

 

 

211,955

 

 

(4.5)

 

(5.6)

 

1.1

TOTAL

$

442,400

 

 

434,118

 

 

1.9 

 

0.4 

 

1.5

 

 

 

 

 

 

 

 

 

 

 

 

 

BD BIOSCIENCES

 

 

 

 

 

 

 

 

 

 

 

 

Discovery Labware (1)

$

63,888

 

$

59,445

 

 

7.5 

 

6.0 

 

1.5

Immunocytometry Systems

 

129,601

 

 

112,852

 

 

14.8 

 

12.3 

 

2.5

Pharmingen

 

39,390

 

 

36,946

 

 

6.6 

 

4.8 

 

1.8

TOTAL

$

232,879

 

 

209,243

 

 

11.3 

 

9.2 

 

2.1

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL REVENUES

$

1,501,526

 

$

1,393,845

 

 

7.7 

 

5.8 

 

1.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Refer to page 9.

 

 

 

 

 

 

 

 

 

 

 

 
                       
Page 6

 

 

BECTON DICKINSON AND COMPANY

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED INCOME STATEMENTS FISCAL 2006

 

 

 

 

 

 

 

 

 

 

 

 

 

Revised for Blood Glucose Monitoring Discontinued Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited; Amounts in thousands, except per-share data)

 

 

 

 

Quarter 1

 

 

Quarter 2

 

 

Quarter 3

 

Quarter 4

 

Year

REVENUES

$

1,393,845 

 

$

1,424,209 

 

$

1,457,347 

$

1,462,616 

$

5,738,017 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of products sold

 

665,946 

 

 

698,766 

 

 

719,515 

 

709,038 

 

2,793,265 

Selling and administrative

 

349,027 

 

 

346,322 

 

 

374,565 

 

378,252 

 

1,448,166 

Research and development

 

68,359 

 

 

127,715 

 

 

76,699 

 

82,399 

 

355,172 

TOTAL OPERATING COSTS

 

 

 

 

 

 

 

 

 

 

 

 

AND EXPENSES

 

1,083,332 

 

 

1,172,803 

 

 

1,170,779 

 

1,169,689 

 

4,596,603 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

310,513 

 

 

251,406 

 

 

286,568 

 

292,927 

 

1,141,414 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

(16,760)

 

 

(19,805)

 

 

(15,425)

 

(14,056)

 

(66,046)

Interest income

 

14,671 

 

 

16,991 

 

 

12,146 

 

15,488 

 

59,296 

Other expense, net

 

(1,163)

 

 

(451)

 

 

(2,385)

 

(4,763)

 

(8,762)

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME FROM CONTINUING OPERATIONS BEFORE

 

 

 

 

 

 

 

 

 

 

 

 

INCOME TAXES

 

307,261 

 

 

248,141 

 

 

280,904 

 

289,596 

 

1,125,902 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision

 

83,559 

 

 

84,683 

 

 

69,834 

 

72,716 

 

310,792 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME FROM CONTINUING OPERATIONS

 

223,702 

 

 

163,458 

 

 

211,070 

 

216,880 

 

815,110 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from Discontinued Operations before Income Tax

 

(9,392)

 

 

(15,102)

 

 

(7,562)

 

(63,597)

 

(95,653)

Income Tax Benefit

 

(3,550)

 

 

(5,712)

 

 

(2,865)

 

(20,696)

 

(32,823)

 

 

 

 

 

 

 

 

 

 

 

 

 

NET LOSS FROM DISCONTINUED OPERATIONS

 

(5,842)

 

 

(9,390)

 

 

(4,697)

 

(42,901)

 

(62,830)

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME

$

217,860 

 

$

154,068 

 

$

206,373 

$

173,979 

$

752,280 

 

 

 

 

 

 

 

 

EARNINGS PER SHARE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic:

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

$

0.90 

 

$

0.66 

 

$

0.86 

$

0.88 

$

3.30 

Loss from discontinued operations

$

(0.02)

 

$

(0.04)

 

$

(0.02)

$

(0.17)

$

(0.25)

Net income (1)

$

0.88 

 

$

0.62 

 

$

0.84 

$

0.71 

$

3.04 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted:

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

$

0.87 

 

$

0.63 

 

$

0.83 

$

0.85 

$

3.18 

Loss from discontinued operations (1)

$

(0.02)

 

$

(0.04)

 

$

(0.02)

$

(0.17)

$

(0.24)

Net income (1)

$

0.85 

 

$

0.60 

 

$

0.81 

$

0.68 

$

2.93 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AVERAGE SHARES OUTSTANDING

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

248,046 

 

 

248,088 

 

 

246,633 

 

245,522 

 

247,067 

Diluted

 

255,851 

 

 

258,299 

 

 

255,070 

 

254,843 

 

256,554 
                         

(1) Total per share amounts may not add due to rounding.

 

 

 

 

 

 

 
                       

Page 7

 

 

BECTON DICKINSON AND COMPANY

 

 

 

 

 

 

 

 

 

 

 

REVISED SUPPLEMENTAL INFORMATION

 

 

 

 

 

 

 

 

 

 

 

Revised for Blood Glucose Monitoring Discontinued Operations

 

 

 

 

 

 

 

 

 

 

 

(Unaudited; Amounts in thousands, except per-share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Second Quarter 2006 (1)

 

 

As

 

 

Insurance

 

 

GeneOhm

 

Excluding

 

 

 

Revised

 

 

Settlement (2)

 

 

IPR&D (3)

 

Items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling and administrative

$

346,322

 

$

10,000 

 

$

- 

$

356,322

 

as a % of revenues

 

24.3%

 

 

 

 

 

 

 

25.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

127,715

 

 

-

 

 

(53,300)

 

74,415

 

as a % of revenues

 

9.0%

 

 

 

 

 

 

 

5.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income

 

251,406

 

 

(10,000)

 

 

53,300 

 

294,706

 

as a % of revenues

 

17.7%

 

 

 

 

 

 

 

20.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

84,683

 

 

(3,800)

 

 

- 

 

80,883

 

effective tax rate

 

34.1%

 

 

 

 

 

 

 

27.8%

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

163,458

 

 

(6,200)

 

 

53,300 

 

210,558

 

as a % of revenues

 

11.5%

 

 

 

 

 

 

 

14.8%

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations (4)

$

0.63

 

$

(0.02)

 

$

0.21 

$

0.81

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year 2006 (1)

 

 

As

 

 

Insurance

 

 

GeneOhm

 

Excluding

 

 

 

Revised

 

 

Settlement (2)

 

 

IPR&D (3)

 

Items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling and administrative

$

1,448,166

 

$

17,000 

 

 

- 

$

1,465,166

 

as a % of revenues

 

25.2%

 

 

 

 

 

 

 

25.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

355,172

 

 

-

 

 

(53,300)

 

301,872

 

as a % of revenues

 

6.2%

 

 

 

 

 

 

 

5.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income

 

1,141,414

 

 

(17,000)

 

 

53,300

 

1,177,714

 

as a % of revenues

 

19.9%

 

 

 

 

 

 

 

20.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

310,792

 

 

(6,460)

 

 

- 

 

304,332

 

effective tax rate

 

27.6%

 

 

 

 

 

 

 

26.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

815,110

 

 

(10,540)

 

 

53,300 

 

857,870

 

as a % of revenues

 

14.2%

 

 

 

 

 

 

 

15.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations (4)

$

3.18

 

$

(0.04)

 

$

0.21 

$

3.34

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Revised supplemental information is not applicable for the third and fourth quarters of 2006.
   
(2) Represents the effect in 2006 related to proceeds received from insurance settlements in connection with the Company’s previously owned latex glove business.
   
(3) Represents the IPR&D charge related to the GeneOhm acquisiton.
   
(4) Total per share amounts may not add due to rounding.

 

Page 8


BECTON DICKINSON AND COMPANY

 

 

 

 

 

 

 

 

SEGMENT RECLASSIFICATION FOR FISCAL 2006 REVENUES

 

 

 

 

 

 

 

 

(Unaudited; Amounts in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States (1)

 

 

International (1)

 

 

Total (1)

Quarter 1

$

4,357

 

$

5,379

 

$

9,736

 

 

 

 

 

 

 

 

 

Quarter 2

 

4,344

 

 

4,568

 

 

8,912

 

 

 

 

 

 

 

 

 

Quarter 3

 

4,389

 

 

5,085

 

 

9,474

 

 

 

 

 

 

 

 

 

Quarter 4

 

5,432

 

 

6,222

 

 

11,654

 

 

 

 

 

 

 

 

 

TOTAL

$

18,522

 

$

21,254

 

$

39,776

 

 

(1) Represents the impact of the reclassification of BD Advanced Bioprocessing revenues from the Diagnostic Systems unit of the BD Diagnostics Segment to the Discovery Labware unit of the BD Biosciences segment to conform to the current year presentation.  
   
 
Page 9