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 SECOND FISCAL QUARTER

 

Earnings per share from continuing operations increased 18% to $1.09;

Company raises earnings guidance for full fiscal year

 

Franklin Lakes, NJ (April 23, 2008) – BD (Becton, Dickinson and Company) (NYSE: BDX) today reported record quarterly revenues of $1.747 billion for the second fiscal quarter ended March 31, 2008, representing an increase of 11 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 5 percentage points of the increase in quarterly revenues.

 

"We are pleased with our strong results, which were once again driven by solid company-wide revenue growth and disciplined spending controls that more than offset the headwind we have been facing as a result of increasing raw material costs," said Edward J. Ludwig, Chairman, President and Chief Executive Officer. "Accordingly, we are increasing our earnings guidance for the full year."

 

Second Quarter and Six-Month Period of Fiscal Year 2008 and 2007 Earnings

Reported diluted earnings per share from continuing operations of $1.09 for the second quarter increased by 18 percent over diluted earnings per share from continuing operations of 92 cents for the second fiscal quarter of 2007. For the six-month period ending March 31, 2008, reported diluted earnings per share from continuing operations were $2.16. For the six-month period ending March 31, 2007, reported diluted earnings per share from continuing operations were $1.44. The following analysis (Table 1) of diluted earnings per share from continuing operations for the six-month periods ended March 31, 2008 and 2007 identifies the specified item that affects comparability of results between periods. As illustrated, diluted earnings per share from continuing operations of $2.16 for fiscal 2008 increased by 14 percent over comparable fiscal 2007 diluted earnings per share from continuing operations of $1.89, which exclude the specified item.

 

 



 

 

 

 

 

 

 

 

(Table 1)

Six Months Ended March 31,

 

FY2008

 

FY2007

 

% Change

 

 

 

 

 

 

Diluted EPS from Continuing Operations:

$ 2.16

 

$ 1.44

 

50%

 

 

 

 

 

 

Specified Item:

 

 

 

 

 

In-Process Research and Development Charge(1)

-

 

0.45

 

 

Diluted EPS from Continuing Operations Excluding Specified Items:

$ 2.16

 

$ 1.89

 

14%

 

 

 

 

 

 

 

(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 $922 million, representing an increase of 9 percent from the prior year period. For the six-month period ended March 31, 2008, the BD Medical segment reported 10 percent revenue growth. Pharmaceutical Systems and Diabetes Care products led revenue growth in the segment.

 

In the BD Diagnostics segment, worldwide revenues for the quarter were $531 million, representing an increase of 12 percent from the prior year’s quarter. For the six-month period ended March 31, 2008, the BD Diagnostics segment reported 15 percent revenue growth. Sales of safety-engineered devices, TriPath products, and molecular testing systems, including GeneOhm, contributed to revenue growth.

 

In the BD Biosciences segment, worldwide revenues for the quarter were $294 million, representing an increase of 14 percent from the prior year’s quarter. For the six-month period ended March 31, 2008, the BD Biosciences segment reported 16 percent revenue growth. Demand for research instruments as well as clinical and research reagents continued to be the primary growth drivers.

 

Geographic Results

Second quarter revenues in the U.S. were $784 million, representing an increase of 4 percent over the prior year period. Revenues outside the U.S. were $963 million, representing an increase of 17 percent over the prior year period, with approximately 10 percentage points of the increase resulting from the favorable impact of foreign currency translation.

 

For the six-month period ended March 31, 2008, revenues in the U.S. were $1.574 billion, representing an increase of 7 percent over the prior year period. Revenues outside of the U.S. were $1.879 billion, representing an increase of 17 percent over the prior year period, with approximately 10 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 13 to 14 percent from approximately 11 to 13 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 second 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. (ET) Wednesday, April 23, 2008. The conference call will be available for replay on BD’s website, www.bd.com/investors, or at 800-388-6197 (domestic) and 402-220-1115 (international), Conference ID: 7BDX, through the close of business on Wednesday, April 30, 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, 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 March 31,
     
2008
     
2007
  % Change  
 
REVENUES   $ 1,746,925     $ 1,575,922   10.9  
 
Cost of products sold     853,807       764,540   11.7  
Selling and administrative     415,523       406,631   2.2  
Research and development     96,034       86,687   10.8  
TOTAL OPERATING COSTS                    
   AND EXPENSES     1,365,364       1,257,858   8.5  
 
OPERATING INCOME     381,561       318,064   20.0  
 
Interest income     8,005       9,086   (11.9 )
Interest expense     (8,098 )     (11,686 ) (30.7 )
Other income, net     828       5,872   NM  
 
INCOME FROM CONTINUING OPERATIONS BEFORE                    
   INCOME TAXES     382,296       321,336   19.0  
 
Income tax provision     106,661       85,797   24.3  
 
INCOME FROM CONTINUING OPERATIONS     275,635       235,539   17.0  
 
INCOME FROM DISCONTINUED OPERATIONS                    
 NET OF INCOME TAX PROVISION OF                    
 $347 AND $4,222, RESPECTIVELY     550       6,994   NM  
 
NET INCOME  
$
276,185
    $ 242,533   13.9  
 
EARNINGS PER SHARE  
               
 
Basic:  
               
Income from continuing operations  
$
1.13     $ 0.96   17.7  
Income from discontinued operations  
$
-
    $ 0.03   NM  
Net income  
$
1.13     $ 0.99   14.1  
 
Diluted:  
               
Income from continuing operations  
$
1.09     $ 0.92   18.5  
Income from discontinued operations  
$
-
    $ 0.03   NM  
Net income  
$
1.09     $ 0.95   14.7  
 
 
AVERAGE SHARES OUTSTANDING                    
 
   Basic     244,869       245,418      
   Diluted     252,788       254,740      
 
NM - Not Meaningful                    

Page 1


BECTON DICKINSON AND COMPANY
CONSOLIDATED INCOME STATEMENTS

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

   
Six Months Ended March 31,
     
2008
     
2007
 
 
% Change
 
 
REVENUES   $ 3,452,692     $ 3,077,449     12.2  
 
Cost of products sold     1,683,654       1,473,474     14.3  
Selling and administrative     837,240       790,715     5.9  
Research and development     187,561       166,627     12.6  
Acquired in-process research and development     -       114,739     NM  
TOTAL OPERATING COSTS                      
   AND EXPENSES     2,708,455       2,545,555     6.4  
 
OPERATING INCOME     744,237       531,894     39.9  
 
Interest income     21,534       25,200     (14.5 )
Interest expense     (18,438 )     (24,555 )   (24.9 )
Other income, net     1,535       3,505     NM  
 
INCOME FROM CONTINUING OPERATIONS BEFORE                      
   INCOME TAXES     748,868       536,044     39.7  
 
Income tax provision     202,337       169,454     19.4  
 
INCOME FROM CONTINUING OPERATIONS     546,531       366,590     49.1  
 
INCOME FROM DISCONTINUED OPERATIONS                      
 NET OF INCOME TAX PROVISION OF                      
 $734 AND $11,362, RESPECTIVELY     1,201       18,822     NM  
 
NET INCOME   $ 547,732     $ 385,412     42.1  
 
EARNINGS PER SHARE                      
 
Basic:                      
Income from continuing operations   $ 2.23     $ 1.49     49.7  
Income from discontinued operations   $
-
    $ 0.08     NM  
Net income (1)   $ 2.24     $ 1.57     42.7  
 
Diluted:                      
Income from continuing operations   $ 2.16     $ 1.44     50.0  
Income from discontinued operations   $
-
    $ 0.07     NM  
Net income   $ 2.16     $ 1.51     43.0  
 
AVERAGE SHARES OUTSTANDING                      
 
   Basic     244,580       245,484        
   Diluted     253,288       255,178        

NM - Not Meaningful

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

Page 2


BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION

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

   
Six Months Ended March 31, 2007
   
As      
TriPath
Excluding
 
     
Reported      
IPR&D (1)
 
 
 
Items
 
 
Operating Income  
$
531,894     $ 114,739     $ 646,633  
 as a % of revenues  
17.3 %             21.0 %
 
Income taxes  
169,454      
-      
      169,454  
 effective tax rate  
31.6 %             26.0 %
 
Income from continuing operations  
366,590       114,739       481,329  
 as a % of revenues  
11.9 %             15.6 %
 
Diluted earnings per share  
                   
Income from continuing operations  
$
1.44     $ 0.45     $ 1.89  

(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.

Page 3


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

   
Three Months Ended March 31,
     
2008    
2007
 
% Change
 
 
BD MEDICAL  
             
 United States  
$
388,281   $ 378,789   2.5  
 International    
533,971     465,355   14.7  
TOTAL  
$
922,252   $ 844,144   9.3  
 
BD DIAGNOSTICS  
             
 United States  
$
281,088   $ 265,800   5.8  
 International    
249,484     207,430   20.3  
TOTAL  
$
530,572   $ 473,230   12.1  
 
BD BIOSCIENCES  
             
 United States  
$
114,581   $ 109,429   4.7  
 International    
179,520     149,119   20.4  
TOTAL  
$
294,101   $ 258,548   13.8  
 
TOTAL REVENUES  
             
 United States  
$
783,950   $ 754,018   4.0  
 International  
 
962,975     821,904   17.2  
TOTAL  
$
1,746,925   $ 1,575,922   10.9  

Page 4


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

   
Six Months Ended March 31,
     
2008    
2007
 
% Change
 
 
BD MEDICAL  
             
 United States  
$
795,772   $ 760,596   4.6  
 International    
1,035,764     909,795   13.8  
TOTAL  
$
1,831,536   $ 1,670,391   9.6  
 
BD DIAGNOSTICS  
             
 United States  
$
560,576   $ 508,699   10.2  
 International    
492,747     406,932   21.1  
TOTAL  
$
1,053,323   $ 915,631   15.0  
 
BD BIOSCIENCES  
             
 United States  
$
217,653   $ 205,349   6.0  
 International    
350,180     286,078   22.4  
TOTAL  
$
567,833   $ 491,427   15.5  
 
TOTAL REVENUES  
             
 United States  
$
1,574,001   $ 1,474,644   6.7  
 International    
1,878,691     1,602,805   17.2  
TOTAL  
$
3,452,692   $ 3,077,449   12.2  

Page 5


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

   
United States
     
2008    
2007
 
% Change
 
 
BD MEDICAL  
             
 Medical Surgical Systems  
$
232,447   $ 230,881   0.7  
 Diabetes Care  
96,883     97,647   (0.8 )
 Pharmaceutical Systems  
52,779     44,370   19.0  
 Ophthalmic Systems    
6,172     5,891   4.8  
TOTAL  
$
388,281   $ 378,789   2.5  
 
BD DIAGNOSTICS  
             
 Preanalytical Systems  
$
140,674   $ 131,937   6.6  
 Diagnostic Systems    
140,414     133,863   4.9  
TOTAL  
$
281,088   $ 265,800   5.8  
 
BD BIOSCIENCES  
             
 Cell Analysis (1)  
$
78,269   $ 71,719   9.1  
 Discovery Labware    
36,312     37,710   (3.7 )
TOTAL  
$
114,581   $ 109,429   4.7  
 
TOTAL UNITED STATES  
$
783,950   $ 754,018   4.0  

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

Page 6


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

   
International
   
         
% Change
     
2008    
2007
 
Reported
 
FX Neutral
 
 
FX Impact
 
 
BD MEDICAL  
                       
 Medical Surgical Systems  
$
248,269   $ 216,459  
14.7
  5.5     9.2  
 Diabetes Care  
90,577     73,544  
23.2
  11.7     11.5  
 Pharmaceutical Systems  
181,660     164,442  
10.5
  (0.5 )   11.0  
 Ophthalmic Systems    
13,465     10,910  
23.4
  14.0     9.4  
TOTAL  
$
533,971   $ 465,355  
14.7
  4.5     10.2  
 
BD DIAGNOSTICS  
         
           
 Preanalytical Systems  
$
133,518   $ 112,809  
18.4
  8.1     10.3  
 Diagnostic Systems    
115,966     94,621  
22.6
  13.1     9.5  
TOTAL  
$
249,484   $ 207,430  
20.3
  10.4     9.9  
 
BD BIOSCIENCES  
         
           
 Cell Analysis (1)  
$
141,452   $ 116,494  
21.4
  11.4     10.0  
 Discovery Labware    
38,068     32,625  
16.7
  6.5     10.2  
TOTAL  
$
179,520   $ 149,119  
20.4
  10.4     10.0  
 
TOTAL INTERNATIONAL  
$
962,975   $ 821,904  
17.2
  7.1     10.1  

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

Page 7


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

   
Total
   
         
% Change
     
2008    
2007
 
Reported
 
FX Neutral
 
FX Impact
 
 
BD MEDICAL  
                     
 Medical Surgical Systems  
$
480,716   $ 447,340   7.5   3.0  
4.5
 
 Diabetes Care  
187,460     171,191   9.5   4.6  
4.9
 
 Pharmaceutical Systems  
234,439     208,812   12.3   3.6  
8.7
 
 Ophthalmic Systems    
19,637     16,801   16.9   10.7  
6.2
 
TOTAL  
$
922,252   $ 844,144   9.3   3.6  
5.7
 
 
BD DIAGNOSTICS  
                 
 
 Preanalytical Systems  
$
274,192   $ 244,746   12.0   7.3  
4.7
 
 Diagnostic Systems    
256,380     228,484   12.2   8.3  
3.9
 
TOTAL  
$
530,572   $ 473,230   12.1   7.8  
4.3
 
 
BD BIOSCIENCES  
                 
 
 Cell Analysis (1)  
$
219,721   $ 188,213   16.7   10.6  
6.1
 
 Discovery Labware    
74,380     70,335   5.8   1.0  
4.8
 
TOTAL  
$
294,101   $ 258,548   13.8   8.0  
5.8
 
 
TOTAL REVENUES  
$
1,746,925   $ 1,575,922   10.9   5.6  
5.3
 

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

Page 8


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

   
United States
     
2008
 
 
2007
 
% Change
 
 
BD MEDICAL  
             
 Medical Surgical Systems  
$
485,192   $ 473,183   2.5  
 Diabetes Care  
195,409     188,139   3.9  
 Pharmaceutical Systems  
102,757     87,269   17.7  
 Ophthalmic Systems    
12,414     12,005   3.4  
TOTAL  
$
795,772   $ 760,596   4.6  
 
BD DIAGNOSTICS  
             
 Preanalytical Systems  
$
283,974   $ 263,640   7.7  
 Diagnostic Systems    
276,602     245,059   12.9  
TOTAL  
$
560,576   $ 508,699   10.2  
 
BD BIOSCIENCES  
             
 Cell Analysis (1)  
$
145,629   $ 133,551   9.0  
 Discovery Labware    
72,024     71,798   0.3  
TOTAL  
$
217,653   $ 205,349   6.0  
 
TOTAL UNITED STATES  
$
1,574,001   $ 1,474,644   6.7  

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

Page 9


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

   
International
   
% Change
     
2008
 
 
2007
 
Reported
 
FX Neutral
 
FX Impact
 
 
BD MEDICAL  
                     
 Medical Surgical Systems  
$
494,336   $ 441,909  
11.9
  2.5   9.4  
 Diabetes Care  
181,438     151,738  
19.6
  8.4   11.2  
 Pharmaceutical Systems  
333,623     294,483  
13.3
  1.8   11.5  
 Ophthalmic Systems    
26,367     21,665  
21.7
  11.1   10.6  
TOTAL  
$
1,035,764   $ 909,795  
13.8
  3.4   10.4  
 
BD DIAGNOSTICS  
         
         
 Preanalytical Systems  
$
261,687   $ 221,179  
18.3
  7.5   10.8  
 Diagnostic Systems    
231,060     185,753  
24.4
  14.5   9.9  
TOTAL  
$
492,747   $ 406,932  
21.1
  10.7   10.4  
 
BD BIOSCIENCES  
         
         
 Cell Analysis (1)  
$
279,205   $ 223,652  
24.8
  14.4   10.4  
 Discovery Labware    
70,975     62,426  
13.7
  3.7   10.0  
TOTAL  
$
350,180   $ 286,078  
22.4
  12.0   10.4  
 
TOTAL INTERNATIONAL  
$
1,878,691   $ 1,602,805  
17.2
  6.8   10.4  

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

Page 10


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

   
Total
   
% Change
     
2008
 
 
2007
 
Reported
 
FX Neutral
 
FX Impact
 
 
BD MEDICAL  
                     
 Medical Surgical Systems  
$
979,528   $ 915,092   7.0   2.5  
4.5
 
 Diabetes Care  
376,847     339,877   10.9   5.9  
5.0
 
 Pharmaceutical Systems  
436,380     381,752   14.3   5.4  
8.9
 
 Ophthalmic Systems    
38,781     33,670   15.2   8.4  
6.8
 
TOTAL  
$
1,831,536   $ 1,670,391   9.6   4.0  
5.6
 
 
BD DIAGNOSTICS  
                 
 
 Preanalytical Systems  
$
545,661   $ 484,819   12.5   7.6  
4.9
 
 Diagnostic Systems    
507,662     430,812   17.8   13.6  
4.2
 
TOTAL  
$
1,053,323   $ 915,631   15.0   10.4  
4.6
 
 
BD BIOSCIENCES  
                 
 
 Cell Analysis (1)  
$
424,834   $ 357,203   18.9   12.4  
6.5
 
 Discovery Labware    
142,999     134,224   6.5   1.9  
4.6
 
TOTAL  
$
567,833   $ 491,427   15.5   9.5  
6.0
 
 
TOTAL REVENUES  
$
3,452,692   $ 3,077,449   12.2   6.8  
5.4
 

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

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