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

 

 

News Release

(BD LOGO)

Contact:
Patricia A. Spinella, Investor Relations – 201-847-5453
Colleen T. White, Corporate Communications – 201-847-5369

BD ANNOUNCES RESULTS FOR THIRD FISCAL QUARTER
Reports record revenues; raises earnings guidance for full fiscal year

Franklin Lakes, NJ (July 28, 2006) – BD (Becton, Dickinson and Company) (NYSE: BDX) today reported record quarterly revenues of $1.484 billion for the third fiscal quarter ended June 30, 2006, representing an increase of 7 percent over the prior year period. This quarter’s growth rate reflects an overall estimated 1 percent unfavorable impact from foreign currency translation, which affected all segments.

“Our continued strong performance this quarter indicates that the strategy we are implementing is succeeding,” said Edward J. Ludwig, Chairman, President and Chief Executive Officer. “Strong operating performance is enabling us to make investments such as the acquisition of GeneOhm, which is performing as expected and is a key component of our strategy to reduce healthcare-associated infections. We’re also increasing the pace of our R&D spending to fuel growth through innovation. Additionally, I’m very pleased to announce that, once again, we’re raising earnings guidance for fiscal 2006.”

Analysis of Third Quarter and Nine-month Period of Fiscal Year 2006 and 2005 Earnings

The following analysis of diluted earnings per share from continuing operations for the third quarter and nine-month period of fiscal 2006 and 2005 identifies specified items that affect the comparability of results between periods.


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Table 1)

 

 

 


 

 

 

 

Three Months Ended
June 30,

 

Nine Months Ended
June 30,

 

 

 

 

 

 

 

FY2006

 

FY2005

 

% Incr.

 

FY2006

 

FY2005

 

% Incr.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS from Continuing Operations:(1)

 

$

0.81

 

$

0.73

 

 

11

%

$

2.26

 

$

2.18

 

 

4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Specified Items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Insurance Settlements(2)

 

 

—

 

 

—

 

 

 

 

 

(0.04

)

 

—

 

 

 

 

In-Process Research and Development Charge(3)

 

 

—

 

 

—

 

 

 

 

 

0.21

 

 

—

 

 

 

 

Tax Examinations(4)

 

 

—

 

 

—

 

 

 

 

 

—

 

 

(0.04

)

 

 

 

Tax Rate Impact(5)

 

 

—

 

 

0.01

 

 

 

 

 

—

 

 

(0.02

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—

 

 

0.01

 

 

 

 

 

0.17

 

 

(0.06

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS from Continuing Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Excluding Specified Items:(1)

 

$

0.81

 

$

0.74

 

 

9

%

$

2.43

 

$

2.12

 

 

15

%

 

 

 

 

 

 

 

 

 

 

(1)

Includes the effect on diluted earnings per share from continuing operations of a 2 cent reduction in the third quarter and a 3 cent reduction in the nine-month period ended June 30, 2006 relating to GeneOhm operations, which were acquired in February 2006.

 

 

(2)

Represents the effect on diluted earnings per share from continuing operations related to proceeds received from insurance settlements regarding the Company’s previously owned latex glove business.

 

 

(3)

Represents the effect on diluted earnings per share from continuing operations of the in-process research and development charge recorded in the second quarter of fiscal 2006 related to the GeneOhm acquisition.

 

 

(4)

Represents the effect on diluted earnings per share from continuing operations of the reversal of tax reserves in the first fiscal quarter of 2005 in connection with the conclusion of tax examinations in four non-U.S. jurisdictions.

 

 

(5)

Represents the effect on diluted earnings per share from continuing operations of tax-related events that caused the quarterly tax rate to vary from the then-expected effective tax rate for fiscal year 2005.

As illustrated in Table 1, diluted earnings per share from continuing operations of 81 cents for the third fiscal quarter of 2006 increased by 9 percent over diluted earnings per share from continuing operations, excluding specified items, of 74 cents for the third fiscal quarter of 2005. For the nine-month period, diluted earnings per share from continuing operations, excluding specified items, of $2.43 for fiscal 2006 increased by 15 percent over diluted earnings per share from continuing operations, excluding specified items, of $2.12 for fiscal 2005.

Segment Results

In the BD Medical segment, worldwide revenues for the quarter were $828 million, representing an increase of 8 percent from the prior year period. Strong sales in the Diabetes Care unit contributed to growth. U.S. sales of safety-engineered products totaled $132 million compared with $119 million in the prior year’s quarter. For the nine-month period ended June 30, 2006, U.S. sales of safety-engineered products totaled $387 million compared with $360 million in the prior year’s period. Included in BD Medical revenues were international sales of safety-engineered products of $24 million compared with $22 million in the prior year’s quarter. For the nine-month period ended June 30, 2006, international sales of safety-engineered products totaled $68 million compared with $60 million in the prior year’s period. For the nine-month period ended June 30, 2006, the BD Medical segment reported 9 percent revenue growth over the prior year period.

In the BD Diagnostics segment, worldwide revenues for the quarter were $436 million, representing an increase of 6 percent from the prior year period. The Diagnostic Systems unit of the segment reported revenue growth of 5 percent. The Preanalytical Systems unit of the segment reported revenue growth of 7 percent. U.S. sales of safety-engineered products totaled $102 million compared with $92 million in the prior year’s quarter. For the nine-month period ended June 30, 2006, U.S. sales of safety-engineered products totaled $295 million compared with $258 million in the prior year’s period. Included in Preanalytical Systems revenues were international sales of safety-engineered products of

$60 million, compared with $52 million in the prior year’s quarter. For the nine-month period ended June 30, 2005, international sales of safety-engineered products totaled $167 million compared with $143 million in the prior year’s period. For the nine-month period ended June 30, 2006, the BD Diagnostics segment reported 5 percent revenue growth over the prior year period.

In the BD Biosciences segment, worldwide revenues from continuing operations for the quarter were $219 million, representing an increase of 9 percent from the prior year period. Sales of flow cytometry instruments and reagents as well as cell imaging products contributed to sales growth. For the nine-month period ended June 30, 2006, the BD Biosciences segment reported 9 percent revenue growth over the prior year period.

Geographic Results

Third quarter revenues in the U.S. were $719 million, representing an increase of 11 percent over the prior year period. Revenues outside the U.S. were $765 million, representing an increase of 5 percent over the prior year period, and reflected an estimated 1 percent unfavorable impact from foreign currency translation.

For the nine-month period ended June 30, 2006, revenues in the U.S. were $2.102 billion, representing an increase of 10 percent over the prior year period. Revenues outside of the U.S. were $2.246 billion, representing an increase of 5 percent over the prior year period, and reflected an estimated 3 percent unfavorable impact from foreign currency translation.

Fiscal 2006 Outlook for Fourth Quarter and Full Year

The following analysis of estimated diluted earnings per share from continuing operations for the fourth fiscal quarter and full fiscal year identifies specified items that affect the comparability of results between periods.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Table 2)

 

 

 

 

 

 

 

 

 

Three Months Ended
September 30,

 

Twelve Months Ended
September 30,

 

 

 

 

 

 

 

 

FY2006

 

FY2005

 

% Incr.

 

 

FY2006

 

FY2005

 

% Incr.

 

 

 

 

 

 

 

 

 

 

 

 

(Estimated)

 

 

 

 

 

(Estimated)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS from Continuing Operations:(1)

 

$

0.83-$0.84

 

$

0.47

 

77-79

%

 

$

3.09-$3.10

 

$

2.66

 

16-17

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Specified Items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Insurance Settlements(2)

 

 

—

 

 

—

 

 

 

 

 

(0.04

)

 

—

 

 

 

 

In-Process Research and Development Charge(3)

 

 

—

 

 

—

 

 

 

 

 

0.21

 

 

—

 

 

 

 

Tax Examinations(4)

 

 

—

 

 

—

 

 

 

 

 

—

 

 

(0.04

)

 

 

 

Tax Rate Impact(5)

 

 

—

 

 

0.02

 

 

 

 

 

—

 

 

—

 

 

 

 

Repatriation Tax Charge(6)

 

 

—

 

 

0.27

 

 

 

 

 

—

 

 

0.27

 

 

 

 

Rounding

 

 

—

 

 

—

 

 

 

 

 

—

 

 

(0.01

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—

 

 

0.29

 

 

 

 

 

0.17

 

 

0.22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS from Continuing Operations Excluding Specified Items:(1)

 

$

0.83-$0.84

 

$

0.76

 

9-11

%

 

$

3.26-$3.27

 

$

2.88

 

13-14

%

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Includes the effect on estimated diluted earnings per share from continuing operations of a 3 cent reduction in the fourth quarter and a 6 cent reduction in the twelve-month period ended September 30, 2006 relating to GeneOhm operations, which were acquired in February 2006.

 

 

(2)

Represents the effect on estimated diluted earnings per share from continuing operations related to proceeds received from insurance settlements regarding the Company’s previously owned latex glove business.

 

 

(3)

Represents the effect on estimated diluted earnings per share from continuing operations of the in-process research and development charge recorded in the second quarter of fiscal 2006 related to the GeneOhm acquisition.


 

 

(4)

Represents the effect on diluted earnings per share from continuing operations of the reversal of tax reserves in the first fiscal quarter of 2005 in connection with the conclusion of tax examinations in four non-U.S. jurisdictions.

 

 

(5)

Represents the effect on diluted earnings per share from continuing operations of tax-related events that caused the quarterly tax rate to vary from the then-expected effective tax rate for fiscal year 2005.

 

 

(6)

Included in diluted earnings per share from continuing operations for the fourth quarter of fiscal 2005 is 27 cents per diluted share substantially related to the impact on taxes of the planned repatriation of $1.3 billion of foreign earnings under the provisions of the American Jobs Creation Act.

As illustrated in Table 2, the Company estimates that diluted earnings per share from continuing operations will increase approximately 9 to 11 percent for the fourth fiscal quarter of 2006 over diluted earnings per share from continuing operations, excluding specified items, of 76 cents for the fourth fiscal quarter of 2005.

For the full fiscal year 2006, the Company estimates that diluted earnings per share from continuing operations, excluding specified items, are expected to be in the $3.26 to $3.27 range, representing an increase of approximately 13 to 14 percent over diluted earnings per share from continuing operations, excluding specified items, of $2.88 for the fiscal year 2005.

Conference Call Information

A conference call regarding BD’s third fiscal quarter results and its expectations for the fourth fiscal quarter and full fiscal year will be broadcast live on BD’s website, www.bd.com/investors, at 10:00 a.m. (ET) Friday, July 28, 2006. The conference call will be available for replay through the close of business on August 4, 2006 on BD’s website, www.bd.com/investors, or at 1-888-203-1112 (domestic) and 1-719-457-0820 (international), pass code 4856925.

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 makes and sells medical devices, instrumented 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 more than 25,000 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 2006 Outlook for Fourth Quarter and 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 June 30,

 

 

 

2006

 

2005

 

%Change

 

 

 

 

 

 

 

 

 

 

 

 

REVENUES

 

$

1,483,698

 

$

1,381,306

 

 

7.4

 

 

 

 

 

 

 

 

 

 

 

 

Cost of products sold

 

 

732,943

 

 

686,764

 

 

6.7

 

Selling and administrative

 

 

393,782

 

 

365,919

 

 

7.6

 

Research and development

 

 

77,967

 

 

67,003

 

 

16.4

 

TOTAL OPERATING COSTS AND EXPENSES

 

 

1,204,692

 

 

1,119,686

 

 

7.6

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

 

279,006

 

 

261,620

 

 

6.6

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(15,425

)

 

(13,695

)

 

12.6

 

Interest income

 

 

12,146

 

 

10,134

 

 

19.9

 

Other expense, net

 

 

(2,386

)

 

(984

)

 

NM

 

 

 

 

 

 

 

 

 

 

 

 

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

 

 

273,341

 

 

257,075

 

 

6.3

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision

 

 

66,968

 

 

67,274

 

 

(0.5

)

 

 

 

 

 

 

 

 

 

 

 

INCOME FROM CONTINUING OPERATIONS

 

 

206,373

 

 

189,801

 

 

8.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LOSS FROM DISCONTINUED OPERATIONS NET OF INCOME TAX BENEFIT OF $91 IN 2005

 

 

—

 

 

(133

)

 

NM

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME

 

$

206,373

 

$

189,668

 

 

8.8

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS PER SHARE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic:

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.84

 

$

0.75

 

 

12.0

 

Loss from discontinued operations

 

$

—

 

$

—

 

 

—

 

Net income

 

$

0.84

 

$

0.75

 

 

12.0

 

 

 

 

 

 

 

 

 

 

 

 

Diluted:

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.81

 

$

0.73

 

 

11.0

 

Loss from discontinued operations

 

$

—

 

$

—

 

 

—

 

Net income

 

$

0.81

 

$

0.73

 

 

11.0

 

 

 

 

 

 

 

 

 

 

 

 

 

AVERAGE SHARES OUTSTANDING

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

246,633

 

 

251,866

 

 

 

 

Diluted

 

 

255,070

 

 

260,099

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NM - Not Meaningful

 

 

 

 

 

 

 

 

 

 

Page 1

BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
Three Months Ended June 30,
(Unaudited; Amounts in thousands, except per-share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

2005

 

 

 

 

 

 

As
Reported

 

Tax
Rate Impact (1)

 

 

Excluding
Items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

 

67,274

 

 

(2,059

)

 

65,215

 

effective tax rate

 

 

26.2

%

 

 

 

 

25.4

%

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

 

189,801

 

 

2,059

 

 

191,860

 

as a % of revenues

 

 

13.7

%

 

 

 

 

13.9

%

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.73

 

$

0.01

 

$

0.74

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Represents the effect on diluted earnings per share from continuing operations of tax-related events that caused the quarterly tax rate to vary from the then expected effective tax rate for fiscal year 2005.

Page 2

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

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended June 30,

 

 

 

2006

 

2005

 

%Change

 

 

 

 

 

 

 

 

 

 

 

 

REVENUES

 

$

4,347,076

 

$

4,035,205

 

 

7.7

 

 

 

 

 

 

 

 

 

 

 

 

Cost of products sold

 

 

2,119,320

 

 

1,999,283

 

 

6.0

 

Selling and administrative

 

 

1,131,434

 

 

1,073,346

 

 

5.4

 

Research and development

 

 

276,391

(1)

 

195,074

 

 

41.7

 

TOTAL OPERATING COSTS AND EXPENSES

 

 

3,527,145

 

 

3,267,703

 

 

7.9

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

 

819,931

 

 

767,502

 

 

6.8

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(51,990

)

 

(41,066

)

 

26.6

 

Interest income

 

 

43,808

 

 

23,827

 

 

83.9

 

Other expense, net

 

 

(3,999

)

 

(6,087

)

 

(34.3

)

 

 

 

 

 

 

 

 

 

 

 

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

 

 

807,750

 

 

744,176

 

 

8.5

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision

 

 

227,279

 

 

173,468

 

 

31.0

 

 

 

 

 

 

 

 

 

 

 

 

INCOME FROM CONTINUING OPERATIONS

 

 

580,471

 

 

570,708

 

 

1.7

 

 

 

 

 

 

 

 

 

 

 

 

(LOSS) INCOME FROM DISCONTINUED OPERATIONS NET OF INCOME TAX (BENEFIT) PROVISION OF $(1,330) AND $1,547, RESPECTIVELY

 

 

(2,170

) (2)

 

2,461

 

 

NM

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME

 

$

578,301

 

$

573,169

 

 

0.9

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS PER SHARE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic:

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

2.34

 

$

2.26

 

 

3.5

 

(Loss) income from discontinued operations

 

$

(0.01

)

$

0.01

 

 

NM

 

Net income (3)

 

$

2.34

 

$

2.27

 

 

3.1

 

 

 

 

 

 

 

 

 

 

 

 

Diluted:

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

2.26

 

$

2.18

 

 

3.7

 

(Loss) income from discontinued operations

 

$

(0.01

)

$

0.01

 

 

NM

 

Net income

 

$

2.25

 

$

2.19

 

 

2.7

 

 

 

 

 

 

 

 

 

 

 

 

AVERAGE SHARES OUTSTANDING

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

247,588

 

 

252,167

 

 

 

 

Diluted

 

 

256,500

 

 

261,897

 

 

 

 

NM - Not Meaningful

 

 

(1)

Includes the in-process research and development (“IPR&D”) charge related to the GeneOhm acquisition.

 

 

(2)

Represents certain adjustments relating to the divestiture of Clontech.

 

 

(3)

Total per share amounts may not add due to rounding.

Page 3

BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
Nine Months Ended June 30,
(Unaudited; Amounts in thousands, except per-share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2006

 

 

 

 

 

As
Reported

 

Insurance
Settlement (1)

 

GeneOhm
R&D (2)

 

Excluding
Items

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling and administrative

 

 

1,131,434

 

 

17,000

 

 

—

 

 

1,148,434

 

as a % of revenues

 

 

26.0

%

 

 

 

 

 

 

 

26.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

276,391

 

 

—

 

 

(53,300

)

 

223,091

 

as a % of revenues

 

 

6.4

%

 

 

 

 

 

 

 

5.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income

 

 

819,931

 

 

(17,000

)

 

53,300

 

 

856,231

 

as a % of revenues

 

 

18.9

%

 

 

 

 

 

 

 

19.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

 

227,279

 

 

(6,460

)

 

—

 

 

220,819

 

effective tax rate

 

 

28.1

%

 

 

 

 

 

 

 

26.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

 

580,471

 

 

(10,540

)

 

53,300

 

 

623,231

 

as a % of revenues

 

 

13.4

%

 

 

 

 

 

 

 

14.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

2.26

 

$

(0.04

)

 

0.21

 

$

2.43

 

 

 

(1)

Represents the effect in 2006 related to proceeds received from insurance settlements in connection with the Company’s previously owned latex glove business.

 

 

(2)

Represents the in-process research and development (“IPR&D”) charge related to the GeneOhm acquisiton.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2005

 

 

 

 

 

As
Reported

 

Tax
Examinations (3)

 

Tax
Rate Impact (4)

 

Excluding
Charges

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

 

173,468

 

 

11,265

 

 

4,181

 

 

188,914

 

effective tax rate

 

 

23.3

%

 

 

 

 

 

 

 

25.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

 

570,708

 

 

(11,265

)

 

(4,181

)

 

555,262

 

as a % of revenues

 

 

14.1

%

 

 

 

 

 

 

 

13.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

2.18

 

$

(0.04

)

$

(0.02

)

$

2.12

 

 

 

(3)

Relates to the reversal of tax reserves in the first quarter 2005 in connection with the conclusion of tax examinations in four non-U.S. jurisdictions.

 

 

(4)

Represents the effect on diluted earnings per share from continuing operations of tax-related events that caused the quarterly tax rate to vary from the then expected effective tax rate for fiscal year 2005.

 

 

Page 4

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

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

 

 

2006

 

2005

 

% Change

 

 

 

 

 

 

 

 

 

 

 

BD MEDICAL

 

 

 

 

 

 

 

 

 

 

United States

 

$

383,030

 

$

338,238

 

 

13.2

 

International

 

 

445,439

 

 

431,980

 

 

3.1

 

TOTAL

 

$

828,469

 

$

770,218

 

 

7.6

 

 

 

 

 

 

 

 

 

 

 

 

BD DIAGNOSTICS

 

 

 

 

 

 

 

 

 

 

United States

 

$

237,817

 

$

218,536

 

 

8.8

 

International

 

 

198,596

 

 

192,207

 

 

3.3

 

TOTAL

 

$

436,413

 

$

410,743

 

 

6.2

 

 

 

 

 

 

 

 

 

 

 

 

BD BIOSCIENCES

 

 

 

 

 

 

 

 

 

 

United States

 

$

98,158

 

$

92,809

 

 

5.8

 

International

 

 

120,658

 

 

107,536

 

 

12.2

 

TOTAL

 

$

218,816

 

$

200,345

 

 

9.2

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL REVENUES

 

 

 

 

 

 

 

 

 

 

United States

 

$

719,005

 

$

649,583

 

 

10.7

 

International

 

 

764,693

 

 

731,723

 

 

4.5

 

TOTAL

 

$

1,483,698

 

$

1,381,306

 

 

7.4

 

Page 5

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

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended June 30,

 

 

 

2006

 

2005

 

% Change

 

 

 

 

 

 

 

 

 

 

 

BD MEDICAL

 

 

 

 

 

 

 

 

 

 

United States

 

$

1,122,928

 

$

997,936

 

 

12.5

 

International

 

 

1,271,578

 

 

1,197,769

 

 

6.2

 

TOTAL

 

$

2,394,506

 

$

2,195,705

 

 

9.1

 

 

 

 

 

 

 

 

 

 

 

 

BD DIAGNOSTICS

 

 

 

 

 

 

 

 

 

 

United States

 

$

699,818

 

$

650,419

 

 

7.6

 

International

 

 

614,529

 

 

603,876

 

 

1.8

 

TOTAL

 

$

1,314,347

 

$

1,254,295

 

 

4.8

 

 

 

 

 

 

 

 

 

 

 

 

BD BIOSCIENCES

 

 

 

 

 

 

 

 

 

 

United States

 

$

278,788

 

$

255,453

 

 

9.1

 

International

 

 

359,435

 

 

329,752

 

 

9.0

 

TOTAL

 

$

638,223

 

$

585,205

 

 

9.1

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL REVENUES

 

 

 

 

 

 

 

 

 

 

United States

 

$

2,101,534

 

$

1,903,808

 

 

10.4

 

International

 

 

2,245,542

 

 

2,131,397

 

 

5.4

 

TOTAL

 

$

4,347,076

 

$

4,035,205

 

 

7.7

 

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

 

 

 

 

 

 

2006

 

2005

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BD MEDICAL

 

 

 

 

 

 

 

 

 

 

Medical Surgical Systems

 

$

230,123

 

$

208,818

 

 

10.2

 

Diabetes Care

 

 

112,432

 

 

97,006

 

 

15.9

 

Pharmaceutical Systems

 

 

34,612

 

 

27,034

 

 

28.0

 

Ophthalmic Systems

 

 

5,863

 

 

5,380

 

 

9.0

 

TOTAL

 

$

383,030

 

$

338,238

 

 

13.2

 

 

 

 

 

 

 

 

 

 

 

 

BD DIAGNOSTICS

 

 

 

 

 

 

 

 

 

 

Preanalytical Systems

 

$

131,909

 

$

120,283

 

 

9.7

 

Diagnostic Systems

 

 

105,908

 

 

98,253

 

 

7.8

 

TOTAL

 

$

237,817

 

$

218,536

 

 

8.8

 

 

 

 

 

 

 

 

 

 

 

 

BD BIOSCIENCES

 

 

 

 

 

 

 

 

 

 

Discovery Labware

 

$

31,276

 

$

29,374

 

 

6.5

 

Immunocytometry Systems

 

 

47,027

 

 

43,908

 

 

7.1

 

Pharmingen

 

 

19,855

 

 

19,527

 

 

1.7

 

TOTAL

 

$

98,158

 

$

92,809

 

 

5.8

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL UNITED STATES

 

$

719,005

 

$

649,583

 

 

10.7

 

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

 

 

 

 

 

 

 

 

 

 

2006

 

2005

 

Reported

 

FX Neutral

 

FX Impact

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BD MEDICAL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Medical Surgical Systems

 

$

217,993

 

$

211,676

 

 

3.0

 

 

2.5

 

 

0.5

 

Diabetes Care

 

 

77,660

 

 

74,309

 

 

4.5

 

 

5.3

 

 

(0.8

)

Pharmaceutical Systems

 

 

139,468

 

 

136,003

 

 

2.5

 

 

5.8

 

 

(3.3

)

Ophthalmic Systems

 

 

10,318

 

 

9,992

 

 

3.3

 

 

6.0

 

 

(2.7

)

TOTAL

 

$

445,439

 

$

431,980

 

 

3.1

 

 

4.1

 

 

(1.0

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BD DIAGNOSTICS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preanalytical Systems

 

$

107,589

 

$

102,543

 

 

4.9

 

 

5.7

 

 

(0.8

)

Diagnostic Systems

 

 

91,007

 

 

89,664

 

 

1.5

 

 

3.1

 

 

(1.6

)

TOTAL

 

$

198,596

 

$

192,207

 

 

3.3

 

 

4.5

 

 

(1.2

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BD BIOSCIENCES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discovery Labware

 

$

24,271

 

$

23,716

 

 

2.3

 

 

4.6

 

 

(2.3

)

Immunocytometry Systems

 

 

76,947

 

 

66,945

 

 

14.9

 

 

16.6

 

 

(1.7

)

Pharmingen

 

 

19,440

 

 

16,875

 

 

15.2

 

 

17.7

 

 

(2.5

)

TOTAL

 

$

120,658

 

$

107,536

 

 

12.2

 

 

14.1

 

 

(1.9

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL INTERNATIONAL

 

$

764,693

 

$

731,723

 

 

4.5

 

 

5.7

 

 

(1.2

)

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

 

 

 

 

 

 

 

 

 

 

2006

 

2005

 

Reported

 

FX Neutral

 

FX Impact

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BD MEDICAL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Medical Surgical Systems

 

$

448,116

 

$

420,494

 

 

6.6

 

 

6.3

 

 

0.3

 

Diabetes Care

 

 

190,092

 

 

171,315

 

 

11.0

 

 

11.3

 

 

(0.3

)

Pharmaceutical Systems

 

 

174,080

 

 

163,037

 

 

6.8

 

 

9.5

 

 

(2.7

)

Ophthalmic Systems

 

 

16,181

 

 

15,372

 

 

5.3

 

 

7.1

 

 

(1.8

)

TOTAL

 

$

828,469

 

$

770,218

 

 

7.6

 

 

8.1

 

 

(0.5

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BD DIAGNOSTICS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preanalytical Systems

 

$

239,498

 

$

222,826

 

 

7.5

 

 

7.8

 

 

(0.3

)

Diagnostic Systems

 

 

196,915

 

 

187,917

 

 

4.8

 

 

5.5

 

 

(0.7

)

TOTAL

 

$

436,413

 

$

410,743

 

 

6.2

 

 

6.8

 

 

(0.6

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BD BIOSCIENCES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discovery Labware

 

$

55,547

 

$

53,090

 

 

4.6

 

 

5.6

 

 

(1.0

)

Immunocytometry Systems

 

 

123,974

 

 

110,853

 

 

11.8

 

 

12.8

 

 

(1.0

)

Pharmingen

 

 

39,295

 

 

36,402

 

 

7.9

 

 

9.1

 

 

(1.2

)

TOTAL

 

$

218,816

 

$

200,345

 

 

9.2

 

 

10.3

 

 

(1.1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL REVENUES

 

$

1,483,698

 

$

1,381,306

 

 

7.4

 

 

8.0

 

 

(0.6

)

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

 

 

 

 

 

2006

 

2005

 

% Change

 

 

 

 

BD MEDICAL

 

 

 

 

 

 

 

 

 

 

Medical Surgical Systems

 

$

672,438

 

$

627,995

 

 

7.1

 

Diabetes Care

 

 

338,558

 

 

279,949

 

 

20.9

 

Pharmaceutical Systems

 

 

95,040

 

 

73,855

 

 

28.7

 

Ophthalmic Systems

 

 

16,892

 

 

16,137

 

 

4.7

 

TOTAL

 

$

1,122,928

 

$

997,936

 

 

12.5

 

 

 

 

 

 

 

 

 

 

 

 

BD DIAGNOSTICS

 

 

 

 

 

 

 

 

 

 

Preanalytical Systems

 

$

380,110

 

$

342,096

 

 

11.1

 

Diagnostic Systems

 

 

319,708

 

 

308,323

 

 

3.7

 

TOTAL

 

$

699,818

 

$

650,419

 

 

7.6

 

 

 

 

 

 

 

 

 

 

 

 

BD BIOSCIENCES

 

 

 

 

 

 

 

 

 

 

Discovery Labware

 

$

87,738

 

$

80,157

 

 

9.5

 

Immunocytometry Systems

 

 

133,691

 

 

119,653

 

 

11.7

 

Pharmingen

 

 

57,359

 

 

55,643

 

 

3.1

 

TOTAL

 

$

278,788

 

$

255,453

 

 

9.1

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL UNITED STATES

 

$

2,101,534

 

$

1,903,808

 

 

10.4

 

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

 

 

 

 

 

 

 

 

2006

 

2005

 

Reported

 

FX Neutral

 

FX Impact

 

 

 

 

BD MEDICAL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Medical Surgical Systems

 

$

628,421

 

$

604,355

 

 

4.0

 

 

4.1

 

 

(0.1

)

Diabetes Care

 

 

223,524

 

 

212,240

 

 

5.3

 

 

7.6

 

 

(2.3

)

Pharmaceutical Systems

 

 

389,912

 

 

352,638

 

 

10.6

 

 

16.9

 

 

(6.3

)

Ophthalmic Systems

 

 

29,721

 

 

28,536

 

 

4.2

 

 

9.0

 

 

(4.8

)

TOTAL

 

$

1,271,578

 

$

1,197,769

 

 

6.2

 

 

8.6

 

 

(2.4

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BD DIAGNOSTICS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preanalytical Systems

 

$

308,413

 

$

294,086

 

 

4.9

 

 

7.1

 

 

(2.2

)

Diagnostic Systems

 

 

306,116

 

 

309,790

 

 

(1.2

)

 

2.4

 

 

(3.6

)

TOTAL

 

$

614,529

 

$

603,876

 

 

1.8

 

 

4.7

 

 

(2.9

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BD BIOSCIENCES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discovery Labware

 

$

72,247

 

$

72,307

 

 

(0.1

)

 

4.0

 

 

(4.1

)

Immunocytometry Systems

 

 

226,709

 

 

205,060

 

 

10.6

 

 

14.4

 

 

(3.8

)

Pharmingen

 

 

60,479

 

 

52,385

 

 

15.5

 

 

20.3

 

 

(4.8

)

TOTAL

 

$

359,435

 

$

329,752

 

 

9.0

 

 

13.1

 

 

(4.1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL INTERNATIONAL

 

$

2,245,542

 

$

2,131,397

 

 

5.4

 

 

8.2

 

 

(2.8

)

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

 

 

 

 

 

 

2006

 

2005

 

Reported

 

FX Neutral

 

FX Impact

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BD MEDICAL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Medical Surgical Systems

 

$

1,300,859

 

$

1,232,350

 

 

5.6

 

 

5.6

 

 

—

 

Diabetes Care

 

 

562,082

 

 

492,189

 

 

14.2

 

 

15.2

 

 

(1.0

)

Pharmaceutical Systems

 

 

484,952

 

 

426,493

 

 

13.7

 

 

18.9

 

 

(5.2

)

Ophthalmic Systems

 

 

46,613

 

 

44,673

 

 

4.3

 

 

7.4

 

 

(3.1

)

TOTAL

 

$

2,394,506

 

$

2,195,705

 

 

9.1

 

 

10.4

 

 

(1.3

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BD DIAGNOSTICS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preanalytical Systems

 

$

688,523

 

$

636,182

 

 

8.2

 

 

9.3

 

 

(1.1

)

Diagnostic Systems

 

 

625,824

 

 

618,113

 

 

1.2

 

 

3.0

 

 

(1.8

)

TOTAL

 

$

1,314,347

 

$

1,254,295

 

 

4.8

 

 

6.2

 

 

(1.4

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BD BIOSCIENCES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discovery Labware

 

$

159,985

 

$

152,464

 

 

4.9

 

 

6.9

 

 

(2.0

)

Immunocytometry Systems

 

 

360,400

 

 

324,713

 

 

11.0

 

 

13.4

 

 

(2.4

)

Pharmingen

 

 

117,838

 

 

108,028

 

 

9.1

 

 

11.4

 

 

(2.3

)

TOTAL

 

$

638,223

 

$

585,205

 

 

9.1

 

 

11.3

 

 

(2.2

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL REVENUES

 

$

4,347,076

 

$

4,035,205

 

 

7.7

 

 

9.2

 

 

(1.5

)

 

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