July 24, 2008 - - 8-K: Current report filing | Becton, Dickinson and Company (BDX)

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 THIRD FISCAL QUARTER

Franklin Lakes, NJ (July 24, 2008) BD (Becton, Dickinson and Company) (NYSE: BDX) today reported record quarterly revenues of $1.868 billion for the third fiscal quarter ended June 30, 2008, representing an increase of 14.5 percent over the prior year period. This quarters revenue growth rate reflects the favorable impact on all segments from foreign currency translation, which overall is estimated to account for nearly 7 percentage points of the increase in quarterly revenues.

"We are pleased that all segments and regions, particularly Europe and Asia, contributed to solid revenue growth," said Edward J. Ludwig, Chairman, President and Chief Executive Officer. "We are also pleased with our operating results, which in part, have enabled us to raise our earnings guidance once again despite continued pressure from increasing raw material costs."

Analyses of Third Quarter and Nine-Month Periods of Fiscal Year 2008 and 2007 Earnings

Reported diluted earnings per share from continuing operations were $1.18 for the third quarter of fiscal 2008 and 95 cents for the third quarter of fiscal 2007. For the nine-month period ending June 30, 2008, reported diluted earnings per share from continuing operations were $3.34. For the nine-

month period ending June 30, 2007, reported diluted earnings per share from continuing operations were $2.38.

The following analysis (Table 1) of diluted earnings per share from continuing operations for the three-month and nine-month periods ended June 30, 2008 and 2007, identifies the specified items that affect comparability of results between periods. As illustrated, diluted earnings per share from continuing operations of $1.18 for the third fiscal quarter of 2008 increased by 20 percent over diluted earnings per share from continuing operations, excluding the specified item, of 98 cents for the third fiscal quarter of 2007. For the nine-month periods, diluted earnings per share from continuing operations of $3.34 for fiscal 2008 increased by 17 percent over comparable fiscal 2007 diluted earnings per share from continuing operations of $2.86, which exclude the specified items.

(Table 1)

Three Months Ended June 30,

Nine Months Ended June 30,

FY2008

FY2007

% Change

FY2008

FY2007

% Change

Diluted EPS from Continuing Operations:

1.18

0.95

24%

3.34

2.38

40%

Specified Items:

In-Process Research and Development Charge

0.03

(1)

0.48

(2)

Diluted EPS from Continuing Operations

Excluding Specified Items:

1.18

0.98

20%

3.34

2.86

17%

	(1)	Represents the effect on diluted earnings per share from continuing operations of the in-process research and development (IPR&D) charge recorded in the third quarter of fiscal 2007 related to the Plasso Technology acquisition.

	(2)	Represents the effect on diluted earnings per share from continuing operations of the IPR&D charges recorded in the third and first quarters of fiscal 2007 related to the Plasso and TriPath acquisitions, respectively.

Segment Results

In the BD Medical segment, worldwide revenues for the quarter were $1.016 billion, representing an increase of 15 percent from the prior year period. Pharmaceutical Systems and Diabetes Care products

led revenue growth in the segment. For the nine-month period ended June 30, 2008, the BD Medical segment reported 12 percent revenue growth.

In the BD Diagnostics segment, worldwide revenues for the quarter were $553 million, representing an increase of 13 percent from the prior years quarter. Sales of safety-engineered devices, TriPath products and infectious disease testing systems contributed to revenue growth. For the nine-month period ended June 30, 2008, the BD Diagnostics segment reported 14 percent revenue growth.

In the BD Biosciences segment, worldwide revenues for the quarter were $298 million, representing an increase of 16 percent from the prior years quarter. Demand for clinical and research instruments and reagents were the primary growth drivers. For the nine-month period ended June 30, 2008, the BD Biosciences segment reported 16 percent revenue growth.

Geographic Results

Third quarter revenues in the U.S. were $798 million, representing an increase of 4 percent over the prior year period. Revenues outside the U.S. were $1.069 billion, representing an increase of 24 percent over the prior year period, with approximately 13 percentage points of the increase resulting from the favorable impact of foreign currency translation.

For the nine-month period ended June 30, 2008, revenues in the U.S. were $2.372 billion, representing an increase of 6 percent over the prior year period. Revenues outside of the U.S. were $2.948 billion, representing an increase of 20 percent over the prior year period, with approximately 11 percentage points of the increase resulting from the favorable impact from foreign currency translation.

Fiscal 2008 Outlook for Full Year

The Company raised its guidance for full fiscal year 2008 diluted earnings per share from continuing operations to approximately 16 percent from approximately 13 to 14 percent over adjusted diluted earnings per share from continuing operations of $3.84 for the full fiscal year 2007. Reported diluted earnings per share from continuing operations for the full fiscal year 2007 were $3.36, which included 48 cents for in-process research and development charges related to the TriPath and Plasso acquisitions. Excluding these charges, adjusted diluted earnings per share from continuing operations for the full fiscal year 2007 were $3.84.

Conference Call Information

A conference call regarding BDs third fiscal 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. (EDT) Thursday, July 24, 2008. The conference call will be available for replay on BDs website, www.bd.com/investors, or at 800-642-1687 (domestic) and 706-645-9291 (international), Conference ID: 52522900, through the close of business on Thursday, July 31, 2008.

This news release contains certain non-GAAP financial measures. A reconciliation of these and other measures to the comparable GAAP measures is included in this release and in the attached financial tables.

About BD

BD is a leading global medical technology company that develops, manufactures and sells medical devices, instrument systems and reagents. The Company is dedicated to improving people's health throughout the world. BD is focused on improving drug delivery, enhancing the quality and speed of diagnosing infectious diseases and cancers, and advancing research, discovery and production of new drugs and vaccines. BD's capabilities are instrumental in combating many of the world's most pressing diseases. Founded in 1897 and headquartered in Franklin Lakes, New Jersey, BD employs approximately 28,000 people in approximately 50 countries throughout the world. The Company serves healthcare institutions, life science researchers, clinical laboratories, the pharmaceutical industry and the general public. For more information, please visit www.bd.com.

***

This press release, including the section entitled Fiscal 2008 Outlook for Full Year, contains certain estimates and other forward-looking statements (as defined under Federal securities laws) regarding 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.

BECTON DICKINSON AND COMPANY
CONSOLIDATED INCOME STATEMENTS
(Unaudited; Amounts in thousands, except per share data)

	Three Months Ended June 30,
		2008			2007		% Change

REVENUES	$	1,867,587		$	1,631,159		14.5

Cost of products sold		917,362			791,071		16.0
Selling and administrative		440,588			412,164		6.9
Research and development		100,071			92,993		7.6
Acquired in-process research and development		-			7,394		NM
TOTAL OPERATING COSTS
AND EXPENSES		1,458,021			1,303,622		11.8

OPERATING INCOME		409,566			327,537		25.0

Interest income		10,956			11,938		(8.2	)
Interest expense		(9,017	)		(11,598	)	(22.3	)
Other income, net		(1,285	)		1,774		NM

INCOME FROM CONTINUING OPERATIONS BEFORE
INCOME TAXES		410,220			329,651		24.4

Income tax provision		112,811			89,182		26.5

INCOME FROM CONTINUING OPERATIONS		297,409			240,469		23.7

(LOSS)/INCOME FROM DISCONTINUED OPERATIONS
NET OF INCOME TAX (BENEFIT)/PROVISION OF
$(197) AND $2,704, RESPECTIVELY		(320	)		4,340		NM

NET INCOME	$	297,089		$	244,809		21.4

EARNINGS PER SHARE

Basic:
Income from continuing operations	$	1.22		$	0.98		24.5
Income from discontinued operations	$	-		$	0.02		NM
Net income	$	1.22		$	1.00		22.0

Diluted:
Income from continuing operations	$	1.18		$	0.95		24.2
Income from discontinued operations	$	-		$	0.02		NM
Net income ⁽¹⁾	$	1.18		$	0.96		22.9


AVERAGE SHARES OUTSTANDING

Basic		244,273			244,918
Diluted		251,648			254,128

NM - Not Meaningful

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

Page 1

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

		Three Months Ended June 30,
		2007
		As			Plasso		Excluding
		Reported			IPR&D (1)		Item

Operating Income	$	327,537		$	7,394	$	334,931
as a % of revenues		20.1	%				20.5	%

Income Taxes		89,182			-		89,182
effective tax rate		27.1	%				26.5	%

Income from continuing operations		240,469			7,394		247,863
as a % of revenues		14.7	%				15.2	%

Diluted earnings per share
Income from continuing operations	$	0.95		$	0.03	$	0.98

(1) Represents the acquired in-process research and development charge of $7,394 related to the Plasso acquisition.

Page 2

BECTON DICKINSON AND COMPANY
CONSOLIDATED INCOME STATEMENTS
(Unaudited; Amounts in thousands, except per share data)

		Nine Months Ended June 30,
		2008			2007		% Change

REVENUES	$	5,320,279		$	4,708,607		13.0

Cost of products sold		2,601,016			2,264,544		14.9
Selling and administrative		1,277,828			1,202,879		6.2
Research and development		287,633			259,620		10.8
Acquired in-process research and development		-			122,133		NM
TOTAL OPERATING COSTS
AND EXPENSES		4,166,477			3,849,176		8.2

OPERATING INCOME		1,153,802			859,431		34.3

Interest income		32,489			37,138		(12.5	)
Interest expense		(27,455	)		(36,152	)	(24.1	)
Other income, net		252			5,278		NM

INCOME FROM CONTINUING OPERATIONS BEFORE
INCOME TAXES		1,159,088			865,695		33.9

Income tax provision		315,147			258,636		21.8

INCOME FROM CONTINUING OPERATIONS		843,941			607,059		39.0

INCOME FROM DISCONTINUED OPERATIONS
NET OF INCOME TAX PROVISION OF
$538 AND $14,066, RESPECTIVELY		880			23,162		NM

NET INCOME	$	844,821		$	630,221		34.1

EARNINGS PER SHARE

Basic:
Income from continuing operations	$	3.45		$	2.47		39.7
Income from discontinued operations	$	-		$	0.09		NM
Net income (1)	$	3.46		$	2.57		34.6

Diluted:
Income from continuing operations	$	3.34		$	2.38		40.3
Income from discontinued operations	$	-		$	0.09		NM
Net income	$	3.34		$	2.47		35.2

AVERAGE SHARES OUTSTANDING

Basic		244,478			245,296
Diluted		252,944			255,129

NM - Not Meaningful

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

Page 3

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

		Nine Months Ended June 30, 2007
		As			TriPath		Plasso		Excluding
		Reported			IPR&D (1)		IPR&D (1)		Items

Operating Income	$	859,431		$	114,739	$	7,394		981,564
as a % of revenues		18.3	%						20.8	%

Income taxes		258,636			-		-		258,636
effective tax rate		29.9	%						26.2	%

Income from continuing operations		607,059			114,739		7,394		729,192
as a % of revenues		12.9	%						15.5	%

Diluted earnings per share
Income from continuing operations	$	2.38		$	0.45	$	0.03	$	2.86

(1) Represents the acquired in-process research and development charges of $114,739 and $7,394 related to the TriPath and Plasso acquisitions, respectively

		Fiscal Year 2007
		As				Excluding
		Reported		IPR&D (2)		Items

Diluted earnings per share
Income from continuing operations	$	3.36	$	0.48	$	3.84

(2) Represents the acquired in-process research and development charges related to the TriPath and Plasso acquisitions.

Page 4

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

		Three Months Ended June 30,
		2008		2007	% Change

BD MEDICAL
United States	$	401,918	$	385,546	4.2
International		614,478		496,440	23.8
TOTAL	$	1,016,396	$	881,986	15.2

BD DIAGNOSTICS
United States	$	280,118	$	272,946	2.6
International		273,304		218,579	25.0
TOTAL	$	553,422	$	491,525	12.6

BD BIOSCIENCES
United States	$	116,239	$	109,593	6.1
International		181,530		148,055	22.6
TOTAL	$	297,769	$	257,648	15.6

TOTAL REVENUES
United States	$	798,275	$	768,085	3.9
International		1,069,312		863,074	23.9
TOTAL	$	1,867,587	$	1,631,159	14.5

Page 5

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

		Nine Months Ended June 30,
		2008		2007	% Change

BD MEDICAL
United States	$	1,197,689	$	1,146,143	4.5
International		1,650,243		1,406,233	17.4
TOTAL	$	2,847,932	$	2,552,376	11.6

BD DIAGNOSTICS
United States	$	840,695	$	781,644	7.6
International		766,050		625,512	22.5
TOTAL	$	1,606,745	$	1,407,156	14.2

BD BIOSCIENCES
United States	$	333,891	$	314,942	6.0
International		531,711		434,133	22.5
TOTAL	$	865,602	$	749,075	15.6

TOTAL REVENUES
United States	$	2,372,275	$	2,242,729	5.8
International		2,948,004		2,465,878	19.6
TOTAL	$	5,320,279	$	4,708,607	13.0

Page 6

BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS
Three Months Ended June 30,
(Unaudited; Amounts in thousands)

		United States
		2008		2007	% Change

BD MEDICAL
Medical Surgical Systems	$	243,960	$	238,360	2.3
Diabetes Care		102,663		92,116	11.4
Pharmaceutical Systems		49,125		48,692	0.9
Ophthalmic Systems		6,170		6,378	(3.3	)
TOTAL	$	401,918	$	385,546	4.2

BD DIAGNOSTICS
Preanalytical Systems	$	144,416	$	139,572	3.5
Diagnostic Systems		135,702		133,374	1.7
TOTAL	$	280,118	$	272,946	2.6

BD BIOSCIENCES
Cell Analysis (1)	$	80,186	$	71,686	11.9
Discovery Labware		36,053		37,907	(4.9	)
TOTAL	$	116,239	$	109,593	6.1

TOTAL UNITED STATES	$	798,275	$	768,085	3.9

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

Page 7

BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS
Three Months Ended June 30, (continued)
(Unaudited; Amounts in thousands)

		International
						% Change
		2008		2007	Reported	FX Neutral	FX Impact

BD MEDICAL
Medical Surgical Systems	$	272,064	$	233,835	16.3	6.1	10.2
Diabetes Care		97,298		82,754	17.6	4.8	12.8
Pharmaceutical Systems		230,346		168,057	37.1	19.6	17.5
Ophthalmic Systems		14,770		11,794	25.2	12.6	12.6
TOTAL	$	614,478	$	496,440	23.8	10.6	13.2

BD DIAGNOSTICS
Preanalytical Systems	$	146,345	$	121,761	20.2	7.5	12.7
Diagnostic Systems		126,959		96,818	31.1	18.4	12.7
TOTAL	$	273,304	$	218,579	25.0	12.3	12.7

BD BIOSCIENCES
Cell Analysis (1)	$	141,889	$	115,494	22.9	10.4	12.5
Discovery Labware		39,641		32,561	21.7	8.7	13.0
TOTAL	$	181,530	$	148,055	22.6	10.0	12.6

TOTAL INTERNATIONAL	$	1,069,312	$	863,074	23.9	10.9	13.0

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

Page 8

BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS
Three Months Ended June 30, (continued)
(Unaudited; Amounts in thousands)

		Total
						% Change
		2008		2007	Reported	FX Neutral	FX Impact

BD MEDICAL
Medical Surgical Systems	$	516,024	$	472,195	9.3	4.2	5.1
Diabetes Care		199,961		174,870	14.3	8.3	6.0
Pharmaceutical Systems		279,471		216,749	28.9	15.4	13.5
Ophthalmic Systems		20,940		18,172	15.2	7.0	8.2
TOTAL	$	1,016,396	$	881,986	15.2	7.8	7.4

BD DIAGNOSTICS
Preanalytical Systems	$	290,761	$	261,333	11.3	5.3	6.0
Diagnostic Systems		262,661		230,192	14.1	8.7	5.4
TOTAL	$	553,422	$	491,525	12.6	6.9	5.7

BD BIOSCIENCES
Cell Analysis (1)	$	222,075	$	187,180	18.6	10.9	7.7
Discovery Labware		75,694		70,468	7.4	1.4	6.0
TOTAL	$	297,769	$	257,648	15.6	8.3	7.3

TOTAL REVENUES	$	1,867,587	$	1,631,159	14.5	7.6	6.9

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

Page 9

BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS
Nine Months Ended June 30,
(Unaudited; Amounts in thousands)

		United States
		2008		2007	% Change

BD MEDICAL
Medical Surgical Systems	$	729,152	$	711,545	2.5
Diabetes Care		298,071		280,255	6.4
Pharmaceutical Systems		151,882		135,961	11.7
Ophthalmic Systems		18,584		18,382	1.1
TOTAL	$	1,197,689	$	1,146,143	4.5

BD DIAGNOSTICS
Preanalytical Systems	$	428,391	$	403,211	6.2
Diagnostic Systems		412,304		378,433	9.0
TOTAL	$	840,695	$	781,644	7.6

BD BIOSCIENCES
Cell Analysis (1)	$	225,814	$	205,237	10.0
Discovery Labware		108,077		109,705	(1.5	)
TOTAL	$	333,891	$	314,942	6.0

TOTAL UNITED STATES	$	2,372,275	$	2,242,729	5.8

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

Page 10

BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS
Nine Months Ended June 30, (continued)
(Unaudited; Amounts in thousands)

		International
						% Change
		2008		2007	Reported	FX Neutral	FX Impact

BD MEDICAL
Medical Surgical Systems	$	766,401	$	675,741	13.4	3.7	9.7
Diabetes Care		278,736		234,491	18.9	7.1	11.8
Pharmaceutical Systems		563,969		462,540	21.9	8.3	13.6
Ophthalmic Systems		41,137		33,461	22.9	11.6	11.3
TOTAL	$	1,650,243	$	1,406,233	17.4	6.0	11.4

BD DIAGNOSTICS
Preanalytical Systems	$	408,031	$	342,941	19.0	7.5	11.5
Diagnostic Systems		358,019		282,571	26.7	15.8	10.9
TOTAL	$	766,050	$	625,512	22.5	11.3	11.2

BD BIOSCIENCES
Cell Analysis (1)	$	421,095	$	339,146	24.2	13.0	11.2
Discovery Labware		110,616		94,987	16.5	5.4	11.1
TOTAL	$	531,711	$	434,133	22.5	11.4	11.1

TOTAL INTERNATIONAL	$	2,948,004	$	2,465,878	19.6	8.3	11.3

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

Page 11

BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS
Nine Months Ended June 30, (continued)
(Unaudited; Amounts in thousands)

		Total
						% Change
		2008		2007	Reported	FX Neutral	FX Impact

BD MEDICAL
Medical Surgical Systems	$	1,495,553	$	1,387,286	7.8	3.1	4.7
Diabetes Care		576,807		514,746	12.1	6.7	5.4
Pharmaceutical Systems		715,851		598,501	19.6	9.0	10.6
Ophthalmic Systems		59,721		51,843	15.2	7.9	7.3
TOTAL	$	2,847,932	$	2,552,376	11.6	5.3	6.3

BD DIAGNOSTICS
Preanalytical Systems	$	836,422	$	746,152	12.1	6.8	5.3
Diagnostic Systems		770,323		661,004	16.5	11.9	4.6
TOTAL	$	1,606,745	$	1,407,156	14.2	9.2	5.0

BD BIOSCIENCES
Cell Analysis (1)	$	646,909	$	544,383	18.8	11.9	6.9
Discovery Labware		218,693		204,692	6.8	1.7	5.1
TOTAL	$	865,602	$	749,075	15.6	9.1	6.5

TOTAL REVENUES	$	5,320,279	$	4,708,607	13.0	7.1	5.9

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

Page 12

Form: 8-K

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