Form: 8-K

Current report filing

January 28, 2010

Exhibit 99.1
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 FIRST FISCAL QUARTER
The Company raises guidance for full fiscal year
Franklin Lakes, NJ (January 28, 2010) — BD (Becton, Dickinson and Company) (NYSE: BDX) today reported quarterly revenues of $1.917 billion for the first fiscal quarter ended December 31, 2009, representing an increase of 12 percent from the prior-year period, or 9 percent on a foreign currency-neutral basis.
“We are pleased with our solid start to fiscal 2010. Our BD Medical and BD Diagnostics segments led our revenue growth, aided by flu-related sales,” said Edward J. Ludwig, Chairman and Chief Executive Officer. “Our revenue growth, good operating performance and a stabilizing Biosciences business this quarter give us the confidence to raise guidance for fiscal 2010.”
Diluted earnings per share from continuing operations for the quarter were $1.30, an increase of 4 percent over diluted earnings per share from continuing operations of $1.25 for the first quarter of

 


 

2009. On a foreign currency-neutral basis, diluted earnings per share from continuing operations for the first quarter of fiscal 2010 increased 11 percent.
Segment Results
In the BD Medical segment, worldwide revenues for the quarter were $1.019 billion, representing an increase of 16 percent from the prior-year period, or 13 percent on a foreign currency-neutral basis. Strong sales of Medical Surgical Systems and Pharmaceutical Systems products, including about 7 percentage points from flu-related products, as well as Diabetes Care products contributed to revenue growth.
In the BD Diagnostics segment, worldwide revenues for the quarter were $595 million, representing an increase of 10 percent from the prior-year period, or 8 percent on a foreign currency-neutral basis. Sales of safety-engineered devices and infectious disease testing systems, including about 2 percentage points from flu-related products, contributed to revenue growth.
In the BD Biosciences segment, worldwide revenues of $303 million for the quarter were flat compared with the prior-year period. Revenues increased less than 1 percent on a foreign currency-neutral basis. Demand for clinical and research instruments, as expected, continues to be impacted by capital funding constraints.
Geographic Results
First quarter revenues in the U.S. were $873 million, representing an increase of 10 percent from the prior-year period. Revenues outside the U.S. were $1.044 billion, representing an increase of 13 percent from the prior-year period, or 8.5 percent on a foreign currency-neutral basis.

 


 

Fiscal 2010 Outlook
We expect reported revenues for the full fiscal year 2010 to increase approximately 7 percent, or 6 percent on a foreign currency-neutral basis, compared with our prior guidance of 6 percent, or 5 percent on a foreign currency-neutral basis.
We also expect diluted earnings per share from continuing operations for the full fiscal year 2010 to increase approximately 2 to 4 percent, to $5.05 to $5.15, over adjusted diluted earnings per share from continuing operations, excluding specified items, of $4.95 for the fiscal year 2009, or 8 to 10 percent on a foreign currency-neutral basis. Our prior guidance was an increase of 1 to 3 percent, or 7 to 9 percent on a foreign currency-neutral basis.
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, along with related slides, at 10:00 a.m. (ET) Thursday, January 28, 2010. 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, 2010, access code 49382392.
Non-GAAP Financial Measures
This news release contains certain non-GAAP financial measures. A reconciliation of these to the comparable GAAP measures is included 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 29,000 associates 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 2010 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, a number of factors could cause actual results to vary materially from any forward-looking statement. For instance, various healthcare reform proposals, if enacted, would impose an excise tax applicable to medical device manufacturers, including BD. Other factors 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; changes in government pricing and reimbursement policies or other healthcare cost containment reforms; 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; our ability to successfully integrate any businesses we acquire; and issuance of new or revised accounting standards, as well as other factors discussed 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,
    2009   2008   % Change
 
 
                       
REVENUES
  $ 1,916,774     $ 1,717,919       11.6  
 
                       
Cost of products sold
    919,542       796,274       15.5  
Selling and administrative
    450,928       406,019       11.1  
Research and development
    100,284       97,314       3.1  
 
TOTAL OPERATING COSTS AND EXPENSES
    1,470,754       1,299,607       13.2  
 
 
                       
OPERATING INCOME
    446,020       418,312       6.6  
 
                       
Interest income
    8,789       1,651     NM
Interest expense
    (12,987 )     (7,824 )     66.0  
Other (expense) income, net
    (2,354 )     9,411     NM
 
 
                       
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
    439,468       421,550       4.3  
Income tax provision
    123,490       112,131       10.1  
 
 
                       
INCOME FROM CONTINUING OPERATIONS
    315,978       309,419       2.1  
 
                       
INCOME FROM DISCONTINUED OPERATIONS NET OF INCOME TAX PROVISION OF $152 AND $854, RESPECTIVELY
    398       2,649     NM
 
 
                       
NET INCOME
  $ 316,376     $ 312,068       1.4  
 
 
                       
EARNINGS PER SHARE
                       
 
                       
Basic:
                       
Income from continuing operations
  $ 1.33     $ 1.28       3.9  
Income from discontinued operations
  $ —     $ 0.01     NM
Net income
  $ 1.33     $ 1.29       3.1  
 
                       
Diluted:
                       
Income from continuing operations
  $ 1.30     $ 1.25       4.0  
Income from discontinued operations
  $ —     $ 0.01     NM
Net income
  $ 1.30     $ 1.26       3.2  
 
 
                       
AVERAGE SHARES OUTSTANDING
                       
 
                       
Basic
    237,360       242,397          
Diluted
    242,965       248,311          
 
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,
    2009   2008   % Change
     
 
                       
BD MEDICAL
                       
United States
  $ 452,385     $ 394,161       14.8  
International
    566,243       481,029       17.7  
 
TOTAL
  $ 1,018,628     $ 875,190       16.4  
 
 
                       
BD DIAGNOSTICS
                       
United States
  $ 310,205     $ 287,568       7.9  
International
    285,269       252,623       12.9  
 
TOTAL
  $ 595,474     $ 540,191       10.2  
 
 
                       
BD BIOSCIENCES
                       
United States
  $ 110,636     $ 113,751       (2.7 )
International
    192,036       188,787       1.7  
 
TOTAL
  $ 302,672     $ 302,538       —  
 
 
                       
TOTAL REVENUES
                       
United States
  $ 873,226     $ 795,480       9.8  
International
    1,043,548       922,439       13.1  
 
TOTAL
  $ 1,916,774     $ 1,717,919       11.6  
 
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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
    2009   2008   %Change
 
                       
BD MEDICAL
                       
Medical Surgical Systems
  $ 286,535     $ 256,255       11.8  
Diabetes Care
    96,564       88,465       9.2  
Pharmaceutical Systems
    62,021       42,652       45.4  
Ophthalmic Systems
    7,265       6,789       7.0  
 
TOTAL
  $ 452,385     $ 394,161       14.8  
 
 
                       
BD DIAGNOSTICS
                       
Preanalytical Systems
  $ 156,236     $ 149,230       4.7  
Diagnostic Systems
    153,969       138,338       11.3  
 
TOTAL
  $ 310,205     $ 287,568       7.9  
 
 
                       
BD BIOSCIENCES
                       
Cell Analysis
  $ 77,604     $ 77,379       0.3  
Discovery Labware
    33,032       36,372       (9.2 )
 
TOTAL
  $ 110,636     $ 113,751       (2.7 )
 
 
                       
TOTAL UNITED STATES
  $ 873,226     $ 795,480       9.8  
 

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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
    2009   2008   Reported   FXN   FX Impact
 
                                       
BD MEDICAL
                                       
Medical Surgical Systems
  $ 273,491     $ 224,246       22.0       15.3       6.7  
Diabetes Care
    104,957       91,541       14.7       7.7       7.0  
Pharmaceutical Systems
    173,953       152,129       14.3       7.3       7.0  
Ophthalmic Systems
    13,842       13,113       5.6       2.8       2.8  
 
TOTAL
  $ 566,243     $ 481,029       17.7       11.0       6.7  
 
 
                                       
BD DIAGNOSTICS
                                       
Preanalytical Systems
  $ 143,930     $ 128,924       11.6       6.8       4.8  
Diagnostic Systems
    141,339       123,699       14.3       10.0       4.3  
 
TOTAL
  $ 285,269     $ 252,623       12.9       8.3       4.6  
 
 
                                       
BD BIOSCIENCES
                                       
Cell Analysis
  $ 153,731     $ 152,142       1.0       1.9       (0.9 )
Discovery Labware
    38,305       36,645       4.5       4.9       (0.4 )
 
TOTAL
  $ 192,036     $ 188,787       1.7       2.5       (0.8 )
 
 
                                       
TOTAL INTERNATIONAL
  $ 1,043,548     $ 922,439       13.1       8.5       4.6  
 

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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
    2009   2008   Reported   FXN   FX Impact
 
                                       
BD MEDICAL
                                       
Medical Surgical Systems
  $ 560,026     $ 480,501       16.6       13.4       3.2  
Diabetes Care
    201,521       180,006       12.0       8.4       3.6  
Pharmaceutical Systems
    235,974       194,781       21.1       15.6       5.5  
Ophthalmic Systems
    21,107       19,902       6.1       4.3       1.8  
 
TOTAL
  $ 1,018,628     $ 875,190       16.4       12.7       3.7  
 
 
                                       
BD DIAGNOSTICS
                                       
Preanalytical Systems
  $ 300,166     $ 278,154       7.9       5.7       2.2  
Diagnostic Systems
    295,308       262,037       12.7       10.7       2.0  
 
TOTAL
  $ 595,474     $ 540,191       10.2       8.1       2.1  
 
 
                                       
BD BIOSCIENCES
                                       
Cell Analysis
  $ 231,335     $ 229,521       0.8       1.3       (0.5 )
Discovery Labware
    71,337       73,017       (2.3 )     (2.1 )     (0.2 )
 
TOTAL
  $ 302,672     $ 302,538       —       0.5       (0.5 )
 
 
                                       
TOTAL REVENUES
  $ 1,916,774     $ 1,717,919       11.6       9.1       2.5  
 

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BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
SAFETY REVENUES
(Unaudited; Amounts in thousands)
                                         
    Three Months Ended December 31,
                    % Change
    2009   2008   Reported   FXN   FX Impact
 
                                       
TOTAL SAFETY REVENUES
                                       
United States
  $ 298,258     $ 268,969       10.9       10.9       —  
International
    156,015       134,080       16.4       10.5       5.9  
 
TOTAL
  $ 454,273     $ 403,049       12.7       10.8       1.9  
 
 
                                       
BY SEGMENT
                                       
BD Medical
  $ 228,503     $ 192,751       18.5       16.4       2.1  
BD Diagnostics
    225,770       210,298       7.4       5.5       1.9  
 
TOTAL
  $ 454,273     $ 403,049       12.7       10.8       1.9  
 

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