Form: 8-K

Current report filing

January 24, 2008

Documents

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

 

 

News Release

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 11% to $1.07

  • Raises guidance for full fiscal year 2008 earnings per share from continuing operations, excluding specified items, to a range of 11% to 13% from 10% to 12%

Franklin Lakes, NJ (January 24, 2008) – BD (Becton, Dickinson and Company) (NYSE: BDX) today reported record quarterly revenues of $1.706 billion for the first fiscal quarter ended December 31, 2007, representing an increase of 14 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 6 percentage points of the growth.

“We are pleased with our strong start to fiscal 2008. Our BD Diagnostics and BD Biosciences segments led our revenue growth,” said Edward J. Ludwig, Chairman, President and Chief Executive Officer. “Disciplined expense management enables us to offset the challenges of raw material price increases and manufacturing start-up costs related to increasing capacity to meet growing demand.”

Analysis of First Quarter Fiscal Year 2008 and 2007 Earnings
The following analysis (Table 1) of diluted earnings per share from continuing operations for the first quarters of fiscal 2008 and 2007 identifies the specified item that affects comparability of results between periods. As illustrated, diluted earnings per share from continuing operations of $1.07 for the first fiscal quarter of 2008 increased by 11 percent over diluted earnings per share from continuing operations, excluding specified item, of 96 cents for the first fiscal quarter of 2007.

(Table 1)
Three Months Ended December 31,
    FY2008       FY2007     % Change
 
Diluted EPS from Continuing Operations:
$
           1.07            $            0.51                       110 %
 
Specified Item:                        
   In-Process Research and Development Charge(1)  
-
      0.45        
 
Diluted EPS from Continuing Operations                    
Excluding Specified Item:
  $
1.07       $ 0.96     11 %

(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.

Segment Results
In the BD Medical segment, worldwide revenues for the quarter were $909 million, representing an increase of 10 percent over the prior year period. Pharmaceutical Systems and Diabetes Care products led revenue growth in the segment.

In the BD Diagnostics segment, worldwide revenues for the quarter were $523 million, representing an increase of 18 percent over the prior year period. Five percentage points of this growth is attributable to TriPath, which was acquired near the end of the first fiscal quarter of 2007. Sales of safety-engineered devices and molecular testing systems, including GeneOhm, also contributed to growth.

In the BD Biosciences segment, worldwide revenues for the quarter were $274 million, representing an increase of 18 percent over the prior year period. Demand for research instruments as well as clinical and research reagents continued to be the primary growth drivers.

Geographic Results
First quarter revenues in the U.S. were $790 million, representing an increase of 10 percent over the prior year period. Revenues outside the U.S. were $916 million, representing an increase of 17 percent over the prior year period, and reflect an estimated 11 percent favorable impact from foreign currency translation.

Fiscal 2008 Outlook for Full Year
The Company estimates that diluted earnings per share from continuing operations for the full fiscal year 2008 will increase approximately 11 to 13 percent over diluted earnings per share from continuing operations, excluding the 48 cents in-process research and development charge related to the TriPath and Plasso acquisitions, of $3.84 for the fiscal year 2007.

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 24, 2008. The conference call will be available for replay on BD’s website, www.bd.com/investors, or at 1-800-475-6701 (domestic) and 1-320-365-3844 (international) through the close of business on January 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 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 28,000 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 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 December 31,
  2007    2006    % Change
                     
REVENUES $ 1,705,767    $ 1,501,526    13.6 
                     
Cost of products sold   829,846      708,933    17.1 
Selling and administrative   421,718      384,084    9.8 
Research and development   91,527      79,940    14.5 
Acquired in-process research and development   -      114,739    NM
TOTAL OPERATING COSTS              
     AND EXPENSES   1,343,091      1,287,696    4.3 
                     
OPERATING INCOME   362,676      213,830    69.6 
                     
Interest income   13,528      16,114    (16.0)
Interest expense   (10,339)     (12,868)   (19.7)
Other income (expense), net   707      (2,368)   NM
                     
INCOME FROM CONTINUING OPERATIONS BEFORE              
     INCOME TAXES   366,572      214,708    70.7 
                     
Income tax provision   95,676      83,657    14.4 
                     
INCOME FROM CONTINUING OPERATIONS   270,896      131,051    NM
                     
INCOME FROM DISCONTINUED OPERATIONS              
     NET OF INCOME TAX PROVISION OF              
     $386 AND $7,140, RESPECTIVELY   652      11,828    (94.5)
                     
NET INCOME $ 271,548    $ 142,879    90.1 
                     
EARNINGS PER SHARE              
                     
Basic:              
Income from continuing operations $ 1.11    $ 0.53    NM
Income from discontinued operations $ -    $ 0.05    NM
Net income $ 1.11    $ 0.58    91.4 
                     
Diluted:              
Income from continuing operations $ 1.07    $ 0.51    NM
Income from discontinued operations $ -    $ 0.05    NM
Net income $ 1.07    $ 0.56    91.1 
                     
AVERAGE SHARES OUTSTANDING              
                     
     Basic   244,292      245,550     
     Diluted   253,116      254,941     

NM - Not Meaningful

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BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
(Unaudited; Amounts in thousands, except per share data)

  Three Months Ended December 31, 2006
  As   TriPath   Excluding
  Reported  
IPR&D (1)
  Items
                 
Operating Income $ 213,830    $ 114,739    $ 328,569 
 as a % of revenues   14.2%           21.9%
                 
Income taxes   83,657      -      83,657 
 effective tax rate   39.0%           25.4%
                 
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 acquired in-process research and development charge of $114,739 related to the TriPath acquisition.

      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.

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BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY SEGMENT AND GEOGRAPHIC AREA
(Unaudited; Amounts in thousands)

  Three Months Ended December 31,
    2007     2006   % Change
               
BD MEDICAL              
 United States $ 407,491   $ 381,806   6.7
 International   501,793     444,441   12.9
TOTAL $ 909,284   $ 826,247   10.0
               
BD DIAGNOSTICS              
 United States $ 279,488   $ 242,899   15.1
 International   243,263     199,501   21.9
TOTAL $ 522,751   $ 442,400   18.2
               
BD BIOSCIENCES              
 United States $ 103,071   $ 95,921   7.5
 International   170,661     136,958   24.6
TOTAL $ 273,732   $ 232,879   17.5
               
TOTAL REVENUES              
 United States $ 790,050   $ 720,626   9.6
 International   915,717     780,900   17.3
TOTAL $ 1,705,767   $ 1,501,526   13.6

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BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS
Three Months Ended December 31,
(Unaudited; Amounts in thousands)

    United States
    2007   2006   % Change
                 
BD MEDICAL                
 Medical Surgical Systems   $ 252,745   $ 242,301   4.3
 Diabetes Care     98,526     90,492   8.9
 Pharmaceutical Systems     49,978     42,899   16.5
 Ophthalmic Systems     6,242     6,114   2.1
TOTAL   $ 407,491   $ 381,806   6.7
                 
BD DIAGNOSTICS                
 Preanalytical Systems   $ 143,300   $ 131,703   8.8
 Diagnostic Systems     136,188     111,196   22.5
TOTAL   $ 279,488   $ 242,899   15.1
                 
BD BIOSCIENCES                
 Cell Analysis (1)   $ 67,358   $ 61,833   8.9
 Discovery Labware     35,713     34,088   4.8
TOTAL   $ 103,071   $ 95,921   7.5
                 
TOTAL UNITED STATES   $ 790,050   $ 720,626   9.6

(1) Cell Analysis consists of the Immunocytometry Systems and the Pharmingen units that were previously reported separately.

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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
   
2007
  2006   Reported   FX Neutral   FX Impact
                         
BD MEDICAL                        
 Medical Surgical Systems   $ 246,066  
$
225,450   9.1   (0.4)   9.5
 Diabetes Care     90,861  
78,194   16.2   5.2    11.0
 Pharmaceutical Systems     151,963  
130,041   16.9   4.7    12.2
 Ophthalmic Systems     12,903  
 
 10,756   20.0   8.3    11.7
TOTAL   $ 501,793  
$
444,441   12.9   2.3    10.6
         
             
BD DIAGNOSTICS        
             
 Preanalytical Systems   $ 128,169  
$
108,369   18.3   6.9    11.4
 Diagnostic Systems     115,094  
 
 91,132   26.3   15.9    10.4
TOTAL   $ 243,263  
$
199,501   21.9   11.0    10.9
         
             
BD BIOSCIENCES        
             
 Cell Analysis (1)   $ 137,755  
$
107,158   28.6   26.3    2.3
 Discovery Labware     32,906  
 
 29,800   10.4   0.7    9.7
TOTAL   $ 170,661  
$
136,958   24.6   13.9    10.7
         
             
TOTAL INTERNATIONAL   $ 915,717  
$
780,900   17.3   6.5    10.8

(1) Cell Analysis consists of the Immunocytometry Systems and the Pharmingen units that were previously reported separately.

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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
      2007     2006   Reported   FX Neutral   FX Impact
                         
BD MEDICAL                        
 Medical Surgical Systems   $ 498,811  
$
467,751   6.6   2.0   4.6
 Diabetes Care     189,387  
168,686   12.3   7.2   5.1
 Pharmaceutical Systems     201,941  
172,940   16.8   7.6   9.2
 Ophthalmic Systems     19,145  
 
 16,870   13.5   6.0   7.5
TOTAL   $ 909,284  
$
826,247   10.0   4.3   5.7
         
             
BD DIAGNOSTICS        
             
 Preanalytical Systems   $ 271,469  
$
240,072   13.1   8.0   5.1
 Diagnostic Systems     251,282  
 
 202,328   24.2   19.5   4.7
TOTAL   $ 522,751  
$
442,400   18.2   13.2   5.0
         
             
BD BIOSCIENCES        
             
 Cell Analysis (1)   $ 205,113  
$
168,991   21.4   19.9   1.5
 Discovery Labware     68,619  
 
 63,888   7.4   2.9   4.5
TOTAL   $ 273,732  
$
232,879   17.5   11.2   6.3
         
             
TOTAL REVENUES   $ 1,705,767  
$
1,501,526   13.6   8.0   5.6

(1) Cell Analysis consists of the Immunocytometry Systems and the Pharmingen units that were previously reported separately.

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