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

Franklin Lakes, NJ (January 28, 2009) – BD (Becton, Dickinson and Company) (NYSE: BDX) today reported quarterly revenues of $1.734 billion for the first fiscal quarter ended December 31, 2008, representing an increase of 1.6 percent from the prior year period. This quarter’s growth rate reflects the unfavorable impact from foreign currency translation, which overall is estimated to account for nearly 3 percentage points.

“BD is off to a solid start to fiscal 2009. In particular, we continue to see strength in our Biosciences and Diagnostics segments and strong sales of insulin delivery products,” said Edward J. Ludwig, Chairman and Chief Executive Officer. “In addition, our strong earnings per share growth has given us the confidence to raise guidance for fiscal 2009.”

Diluted earnings per share from continuing operations of $1.26 for the first fiscal quarter of 2009 increased by 18 percent from diluted earnings per share from continuing operations of $1.07 for the first fiscal quarter of 2008. These earnings reflect underlying performance as well as the overall impact of foreign exchange fluctuations, including foreign exchange hedging gains.

Segment Results

In the BD Medical segment, worldwide revenues for the quarter were $891 million, representing a decrease of 2 percent from the prior year period after taking into account an estimated 4 percentage points of unfavorable impact from foreign currency translation. Strong sales of insulin delivery products were more than offset by a decline in the sales of Medical Surgical Systems products and the expected decline in sales of prefillable devices in the U.S.

In the BD Diagnostics segment, worldwide revenues for the quarter were $540 million, representing an increase of 3 percent from the prior year period after taking into account an estimated 3 percentage points of unfavorable impact from foreign currency translation. Sales of safety-engineered devices, cancer diagnostics products and infectious disease testing systems contributed to revenue growth.

 

In the BD Biosciences segment, worldwide revenues for the quarter were $303 million, representing an increase of 11 percent from the prior year period after taking into account an estimated 1 percentage point of favorable impact from foreign currency translation. Demand for clinical and research instruments were the primary growth drivers.

Geographic Results

First quarter revenues in the U.S. were $809 million, representing an increase of 2 percent from the prior year period. Revenues outside the U.S. were $925 million, representing an increase of 1 percent from the prior year period, and reflect an estimated 5 percentage points of unfavorable impact from foreign currency translation.

Fiscal 2009 Outlook for Full Year

The Company estimates that diluted earnings per share from continuing operations for the full fiscal year 2009 will increase approximately 9 to 11 percent over diluted earnings per share from continuing operations of $4.46 for the fiscal year 2008.

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) Wednesday, January 28, 2009. The conference call will be available for replay on BD’s website, www.bd.com/investors, or at 1-800-642-1687 (domestic) and 1-706-645-9291 (international) through the close of business on February 4, 2009, access code 81318661.

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 2009 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: adverse changes in regional, national or foreign economic conditions, including any impact that may result from the current global economic downturn on our ability to access credit markets and

 

finance our operations, the demand for our products and services, or our suppliers’ ability to provide products needed for our operations; changes in interest or foreign currency exchange rates, particularly in light of increased volatility in currency exchange rates; competitive factors; pricing and market share pressures; difficulties inherent in product development and delays in product introductions; 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, including changes in government pricing and reimbursement policies or other cost containment reforms; 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,  
    2008       2007     % Change  
 
REVENUES $ 1,733,505     $ 1,705,767     1.6  
 
Cost of products sold   804,298       829,846     (3.1 )
Selling and administrative   409,942       421,718     (2.8 )
Research and development   97,457       91,527     6.5  
TOTAL OPERATING COSTS                    
   AND EXPENSES   1,311,697       1,343,091     (2.3 )
 
OPERATING INCOME   421,808       362,676     16.3  
 
Interest income   1,651       13,528     (87.8 )
Interest expense   (7,824 )     (10,339 )   (24.3 )
Other income, net   9,411       707     NM  
 
INCOME FROM CONTINUING OPERATIONS BEFORE                    
     INCOME TAXES   425,046       366,572     16.0  
 
Income tax provision   112,978       95,676     18.1  
 
INCOME FROM CONTINUING OPERATIONS   312,068       270,896     15.2  
 
INCOME FROM DISCONTINUED OPERATIONS                    
     NET OF INCOME TAX PROVISION OF                    
     $8 AND $386, RESPECTIVELY   14       652     NM  
 
NET INCOME $ 312,082     $ 271,548     14.9  
 
EARNINGS PER SHARE                    
 
Basic:                    
Income from continuing operations $ 1.29     $ 1.11     16.2  
Income from discontinued operations $ -     $ -     -  
Net income $ 1.29     $ 1.11     16.2  
 
Diluted:                    
Income from continuing operations $ 1.26     $ 1.07     17.8  
Income from discontinued operations $ -     $ -     -  
Net income $ 1.26     $ 1.07     17.8  
 
AVERAGE SHARES OUTSTANDING                    
 
     Basic   242,397       244,292        
     Diluted   248,311       253,116        

NM - Not Meaningful

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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,  
    2008     2007   % Change  
 
BD MEDICAL                
     United States $ 407,508   $ 407,491   -  
     International   483,268     501,793   (3.7 )
TOTAL $ 890,776   $ 909,284   (2.0 )
 
BD DIAGNOSTICS                
     United States $ 287,568   $ 279,488   2.9  
     International   252,623     243,263   3.8  
TOTAL $ 540,191   $ 522,751   3.3  
 
BD BIOSCIENCES                
     United States $ 113,751   $ 103,071   10.4  
     International   188,787     170,661   10.6  
TOTAL $ 302,538   $ 273,732   10.5  
 
TOTAL REVENUES                
     United States $ 808,827   $ 790,050   2.4  
     International   924,678     915,717   1.0  
TOTAL $ 1,733,505   $ 1,705,767   1.6  

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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  
    2008     2007   % Change  
 
BD MEDICAL                
     Medical Surgical Systems $ 256,255   $ 252,745   1.4  
     Diabetes Care   101,812     98,526   3.3  
     Pharmaceutical Systems   42,652     49,978   (14.7 )
     Ophthalmic Systems   6,789     6,242   8.8  
TOTAL $ 407,508   $ 407,491              -  
 
BD DIAGNOSTICS                
     Preanalytical Systems $ 149,230   $ 143,300   4.1  
     Diagnostic Systems   138,338     136,188   1.6  
TOTAL $ 287,568   $ 279,488   2.9  
 
BD BIOSCIENCES                
     Cell Analysis $ 77,379   $ 67,358   14.9  
     Discovery Labware   36,372     35,713   1.8  
TOTAL $ 113,751   $ 103,071   10.4  
 
TOTAL UNITED STATES $ 808,827   $ 790,050   2.4  

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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
    2008     2007   Reported   FX Neutral   FX Impact
 
BD MEDICAL                          
     Medical Surgical Systems $ 224,246   $ 246,066   (8.9 )   -   (8.9 )
     Diabetes Care   93,780     90,861   3.2     9.3   (6.1 )
     Pharmaceutical Systems   152,129     151,963   0.1     4.2   (4.1 )
     Ophthalmic Systems   13,113     12,903   1.6     7.8   (6.2 )
TOTAL $ 483,268   $ 501,793   (3.7 )   3.2   (6.9 )
 
BD DIAGNOSTICS                          
     Preanalytical Systems $ 128,924   $ 128,169   0.6     8.3   (7.7 )
     Diagnostic Systems   123,699     115,094   7.5     12.0   (4.5 )
TOTAL $ 252,623   $ 243,263   3.8     10.1   (6.3 )
 
BD BIOSCIENCES                          
     Cell Analysis $ 152,142   $ 137,755   10.4     9.8   0.6  
     Discovery Labware   36,645     32,906   11.4     8.5   2.9  
TOTAL $ 188,787   $ 170,661   10.6     9.6   1.0  
 
TOTAL INTERNATIONAL $ 924,678   $ 915,717   1.0     6.2   (5.2 )

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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
    2008     2007   Reported   FX Neutral   FX Impact
 
BD MEDICAL                            
     Medical Surgical Systems $ 480,501   $ 498,811   (3.7 )   0.7     (4.4 )
     Diabetes Care   195,592     189,387   3.3     6.2     (2.9 )
     Pharmaceutical Systems   194,781     201,941   (3.5 )   (0.4 )   (3.1 )
     Ophthalmic Systems   19,902     19,145   4.0     8.1     (4.1 )
TOTAL $ 890,776   $ 909,284   (2.0 )   1.8     (3.8 )
 
BD DIAGNOSTICS                            
     Preanalytical Systems $ 278,154   $ 271,469   2.5     6.1     (3.6 )
     Diagnostic Systems   262,037     251,282   4.3     6.4     (2.1 )
TOTAL $ 540,191   $ 522,751   3.3     6.2     (2.9 )
 
BD BIOSCIENCES                            
     Cell Analysis $ 229,521   $ 205,113   11.9     11.5     0.4  
     Discovery Labware   73,017     68,619   6.4     5.0     1.4  
TOTAL $ 302,538   $ 273,732   10.5     9.9     0.6  
 
TOTAL REVENUES $ 1,733,505   $ 1,705,767   1.6     4.4     (2.8 )

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