Published on January 25, 2007
1 Becton Drive
Franklin Lakes, NJ 07417
www.bd.com
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News Release |
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Contact:
Patricia A. Spinella, Investor Relations
201-847-5453
Colleen T. White, Corporate Communications 201-847-5369
BD ANNOUNCES RESULTS FOR FIRST FISCAL QUARTER
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First-quarter earnings per share from continuing operations, excluding specified item, increased 12% to 96 cents |
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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 quarters 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 Companys 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, |
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FY2007 |
FY2006
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%
Change |
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| 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 Companys 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, |
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FY2007 |
FY2006
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%
Change |
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| (Estimated) | ||||||||||||
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| 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 Companys previously owned latex glove business.
Conference Call Information
A conference call regarding BDs first quarter results and its expectations for the full fiscal year will be broadcast live on BDs website, www.bd.com/investors, at 10:00 a.m. (ET) Thursday, January 25, 2007. The conference call will be available for replay on BDs 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 peoples 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 Companys
capabilities are instrumental in combating many of the worlds 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 BDs 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 BDs products; fluctuations in costs and availability of raw materials and in BDs ability to maintain favorable supplier arrangements and relationships; uncertainties of litigation (as described in BDs 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 BDs 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.
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BECTON
DICKINSON AND COMPANY |
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Three
Months Ended December 31, |
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2006 |
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2005 |
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% Change |
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REVENUES |
$ |
1,501,526 |
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$ |
1,393,845 |
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7.7 |
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Cost of products sold |
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708,933 |
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665,946 |
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6.5 |
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Selling and administrative |
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384,084 |
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349,027 |
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10.0 |
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Research and development |
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194,679 |
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68,359 |
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NM |
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TOTAL
OPERATING COSTS |
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1,287,696 |
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1,083,332 |
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18.9 |
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OPERATING INCOME |
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213,830 |
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310,513 |
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(31.1) |
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Interest income |
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16,114 |
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14,671 |
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9.8 |
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Interest expense |
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(12,868) |
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(16,760) |
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(23.2) |
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Other expense, net |
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(2,368) |
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(1,163) |
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NM |
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INCOME FROM CONTINUING OPERATIONS BEFORE |
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INCOME TAXES |
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214,708 |
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307,261 |
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(30.1) |
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Income tax provision |
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83,657 |
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83,559 |
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0.1 |
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INCOME FROM CONTINUING OPERATIONS |
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131,051 |
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223,702 |
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(41.4) |
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INCOME/(LOSS) FROM DISCONTINUED OPERATIONS |
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NET OF INCOME TAX PROVISION/(BENEFIT) OF |
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$7,140 AND $(3,550), RESPECTIVELY |
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11,828 |
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(5,842) |
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NM |
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NET INCOME |
$ |
142,879 |
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$ |
217,860 |
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(34.4) |
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EARNINGS PER SHARE |
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Basic: |
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Income from continuing operations |
$ |
0.53 |
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$ |
0.90 |
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(41.1) |
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Income/(loss) from discontinued operations |
$ |
0.05 |
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$ |
(0.02) |
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NM |
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Net income |
$ |
0.58 |
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$ |
0.88 |
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(34.1) |
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Diluted: |
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Income from continuing operations |
$ |
0.51 |
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$ |
0.87 |
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(41.4) |
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Income/(loss) from discontinued operations |
$ |
0.05 |
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$ |
(0.02) |
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NM |
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Net income |
$ |
0.56 |
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$ |
0.85 |
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(34.1) |
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AVERAGE SHARES OUTSTANDING |
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Basic |
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245,550 |
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|
248,046 |
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Diluted |
|
254,941 |
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|
255,851 |
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NM - Not Meaningful |
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Page 1 |
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BECTON DICKINSON AND COMPANY |
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SUPPLEMENTAL INFORMATION |
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Three Months Ended December 31, |
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(Unaudited; Amounts in thousands, except per-share data) |
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2006 |
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As |
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Tri Path |
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Excluding |
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Reported |
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IPR&D (1) |
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Items |
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Research and Development |
$ |
194,679 |
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$ |
(114,739) |
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$ |
79,940 |
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as a % of Revenue |
|
13.0% |
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|
|
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|
5.3% |
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|
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Operating Income |
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213,830 |
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|
114,739 |
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|
328,569 |
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as a % of revenues |
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14.2% |
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21.9% |
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Income from continuing operations |
|
131,051 |
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114,739 |
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|
245,790 |
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as a % of revenues |
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8.7% |
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16.4% |
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Diluted earnings per share |
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Income from continuing operations |
$ |
0.51 |
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$ |
0.45 |
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$ |
0.96 |
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| (1) | Represents the in-process research and development (IPR&D) charge related to the TriPath acquisiton. |
2005 |
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As |
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Insurance |
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Excluding |
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Reported |
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Settlement (2) |
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Items |
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Selling and administrative |
$ |
349,027 |
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$ |
7,000 |
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$ |
356,027 |
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|
|
as a % of revenues |
|
25.0% |
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|
|
|
|
25.5% |
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|
|
|
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|
|
|
|
|
|
|
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Operating Income |
|
310,513 |
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|
(7,000) |
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|
303,513 |
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as a % of revenues |
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22.3% |
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|
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21.8% |
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Income taxes |
|
83,559 |
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|
(2,660) |
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|
80,899 |
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|
|
effective tax rate |
|
27.2% |
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|
|
|
|
26.9% |
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Income from continuing operations |
|
223,702 |
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|
(4,340) |
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|
219,362 |
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as a % of revenues |
|
16.0% |
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|
|
|
|
15.7% |
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Diluted earnings per share |
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|
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Income from continuing operations (3) |
$ |
0.87 |
|
$ |
(0.02) |
|
$ |
0.86 |
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| (2) | Represents the effect in 2006 related to proceeds received from insurance settlements in connection with the Companys previously owned latex glove business. |
| (3) | Total per share amounts may not add due to rounding. |
Page 2 |
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BECTON DICKINSON AND COMPANY |
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SUPPLEMENTAL REVENUE INFORMATION |
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REVENUES BY SEGMENT AND GEOGRAPHIC AREA |
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(Unaudited; Amounts in thousands) |
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|
Three
Months Ended December 31, |
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2006 |
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2005 |
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% Change |
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BD MEDICAL |
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|
United States |
$ |
381,806 |
|
$ |
347,670 |
|
|
9.8 |
|
|
|
International |
|
444,441 |
|
|
402,814 |
|
|
10.3 |
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|
|
TOTAL |
$ |
826,247 |
|
$ |
750,484 |
|
|
10.1 |
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BD DIAGNOSTICS |
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|
|
|
United States |
$ |
242,899 |
|
$ |
224,731 |
|
|
8.1 |
|
|
|
International |
|
199,501 |
|
|
209,387 |
|
|
(4.7) |
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|
|
TOTAL |
$ |
442,400 |
|
$ |
434,118 |
|
|
1.9 |
|
|
|
|
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BD BIOSCIENCES |
|
|
|
|
|
|
|
|
|
|
|
United States |
$ |
95,921 |
|
$ |
89,670 |
|
|
7.0 |
|
|
|
International |
|
136,958 |
|
|
119,573 |
|
|
14.5 |
|
|
|
TOTAL |
$ |
232,879 |
|
|
209,243 |
|
|
11.3 |
|
|
|
|
|
|
|
|
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TOTAL REVENUES |
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|
|
|
|
|
|
|
|
|
|
United States |
$ |
720,626 |
|
$ |
662,071 |
|
|
8.8 |
|
|
|
International |
|
780,900 |
|
|
731,774 |
|
|
6.7 |
|
|
|
TOTAL |
$ |
1,501,526 |
|
$ |
1,393,845 |
|
|
7.7 |
|
|
|
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Page 3 |
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BECTON DICKINSON AND COMPANY |
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SUPPLEMENTAL REVENUE INFORMATION |
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REVENUES BY BUSINESS SEGMENTS AND UNITS |
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|
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|
|
|
|
Three Months Ended December 31, |
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|
|
|
|
|
|
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|
|
(Unaudited; Amounts in thousands) |
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|
United States |
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|
|||||||
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|
|
2006 |
|
|
2005 |
|
|
% Change |
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|
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|
|
|
|
|
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 Companys 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 |
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