Form: 8-K

Current report filing

November 3, 2010

Exhibit 99.1
1 Becton Drive
Franklin Lakes, NJ 07417
www.bd.com
News Release
(BD LOGO)
Contact:
Zachary A. Nagle, Investor Relations — 201-847-5453
Colleen T. White, Corporate Communications — 201-847-5369
BD ANNOUNCES RESULTS FOR 2010 FOURTH FISCAL QUARTER AND FULL YEAR
  •   Reports diluted earnings per share from continuing operations of $1.24 for the fourth quarter and $4.90 for the full fiscal year, in line with the Company’s expectations.
 
  •   States that reported earnings reflect the reclassification of the operating results and gain on the sale of the Ophthalmic Systems unit and certain platforms of the Medical Surgical Systems unit as discontinued operations.
 
  •   Announces planned stock repurchases of $1.5 billion in 2011 funded by ongoing cash flow and the issuance of debt.
 
  •   Expects full fiscal year 2011 diluted earnings per share from continuing operations to be between $5.45 and $5.55, an increase of 11 to 13 percent on an as-reported basis.
Franklin Lakes, NJ (November 3, 2010) — BD (Becton, Dickinson and Company) (NYSE: BDX), a leading global medical technology company, today reported quarterly revenues of $1.873 billion for the fourth fiscal quarter ended September 30, 2010, representing an increase of 1.0 percent from the prior-year period, or 2.9 percent on a foreign currency-neutral basis.

 


 

For the full fiscal year ended September 30, 2010, BD reported revenues of $7.372 billion, representing an increase of 5.5 percent over the prior year, or 5.6 percent on a foreign currency-neutral basis.
The Company also plans to repurchase $1.5 billion of its common stock in 2011 and an additional $600 million in 2012. The Company plans to fund the repurchases through ongoing cash flow and the issuance of debt.
“We are proud of our accomplishments during 2010. We met our financial and operational goals despite the challenging macroeconomic climate facing our industry,” said Edward J. Ludwig, Chairman and Chief Executive Officer. “Our solid performance has enabled us to continue to return significant value to shareholders and also to invest in key geographic expansion, new product platforms and businesses and operational excellence programs. We have confidence in our outlook for fiscal year 2011 and remain committed to serving our customers with superior healthcare products.”
Update on the Sale of Certain Assets in the BD Medical Segment
In the fourth quarter of fiscal year 2010, the Company completed the sale of the Ophthalmic Systems unit as well as the surgical blades, critical care and extended dwell catheter product platforms. The results of operations associated with the Ophthalmic Systems unit, surgical blade platform and critical care platform have been reclassified as discontinued operations for all quarters and years referred to in this release.

 


 

As illustrated on page 3 of the attached financial tables, diluted earnings per share from discontinued operations for the fourth quarter of $0.44 consisted of $0.06 from operations and $0.39 from the gain on the sale. Diluted earnings per share for the fourth quarter of $1.68 less the $0.44 from discontinued operations resulted in diluted earnings per share from continuing operations of $1.24. Diluted earnings per share from discontinued operations for the year of $0.59 consisted of $0.21 from operations and $0.38 from the gain on the sale. Diluted earnings per share for the year of $5.49 less the $0.59 from discontinued operations resulted in diluted earnings per share from continuing operations of $4.90.
Also included in the attached financial tables are the Company’s Consolidated Income Statements for the first three quarters of fiscal year 2010 and for all periods in fiscal year 2009 for reference, which reflect the reclassification change for the Ophthalmic Systems unit, surgical blade platform and critical care platform. The results of operations associated with the extended dwell catheter product platform are reported within continuing operations, as this asset group did not meet the criteria for discontinued operations.
Fourth Quarter Earnings and Analysis of the Full Fiscal Year 2010 and 2009 Earnings
Reported diluted earnings per share from continuing operations for the fourth quarter were $1.24, compared with $1.20 in the prior-year period, representing a 3.3 percent increase. On a foreign currency-neutral basis, adjusted diluted earnings per share from continuing operations for the fourth quarter increased by 1.7 percent.

 


 

For the full fiscal year ended September 30, 2010, reported diluted earnings per share from continuing operations were $4.90, compared with $4.73 in the prior fiscal year, representing an increase of 3.6 percent. Current full fiscal year results include a previously disclosed non-cash charge of $8.9 million, or $0.04 per share from continuing operations, related to healthcare reform impacting Medicare Part D reimbursements. The prior fiscal year included a $20 million, or $0.08 per share, tax benefit related to various tax settlements in multiple jurisdictions and a litigation charge of $45 million, or $0.11 per share, which were also previously disclosed. Excluding these items, adjusted diluted earnings per share from continuing operations increased by 3.8 percent to $4.94, compared with $4.76 adjusted diluted earnings per share in the prior-year period. On a foreign currency-neutral basis, adjusted diluted earnings per share from continuing operations for the fiscal year increased 9.2 percent.
Segment Results
In the BD Medical segment, worldwide revenues for the quarter were $959 million, representing a decrease of 0.3 percent compared with the prior-year period. Revenues increased 2.1 percent on a foreign currency-neutral basis. Segment revenue growth reflected an unfavorable comparison to the prior year of 4.3 percentage points due to the sales related to the H1N1 flu pandemic in fiscal year 2009, partially offset by strong growth in the Diabetes Care business. For the twelve-month period ended September 30, 2010, BD Medical revenues increased 6.7 percent, or 6.2 percent on a foreign currency-neutral basis.
In the BD Diagnostics segment, worldwide revenues for the quarter were $591 million, representing an increase of 2.0 percent compared with the prior-year period, or 3.1 percent on a foreign currency-neutral basis. Segment revenue growth was negatively impacted by 2.4 percentage points due to sales

 


 

related to the flu pandemic in fiscal year 2009 in addition to lower lab testing and reduced physician office visits. For the twelve-month period ended September 30, 2010, BD Diagnostics revenues increased 4.2 percent, or 4.0 percent on a foreign currency-neutral basis.
In the BD Biosciences segment, worldwide revenues for the quarter were $323 million, representing an increase of 3.5 percent compared with the prior-year period. Revenues increased 5.3 percent on a foreign currency-neutral basis, primarily driven by instrument and reagent sales in the Cell Analysis business unit. For the twelve-month period ended September 30, 2010, BD Biosciences revenues increased 4.4 percent, or 6.8 percent on a foreign currency-neutral basis.
Geographic Results
Fourth quarter revenues in the U.S. were $832 million, representing an increase of 1.4 percent compared with the prior-year period, including a negative impact of 1.8 percentage points related to the flu pandemic. Revenues outside of the U.S. were $1.041 billion, representing an increase of 0.8 percent compared with the prior-year period, or 4.2 percent on a foreign currency-neutral basis. International revenue growth was negatively impacted by 4 percentage points due to the H1N1 flu pandemic-related sales in fiscal year 2009. Revenues reflected continuing strength in emerging markets, which was partially offset by slower growth in Europe. For the twelve-month period ended September 30, 2010, revenues in the U.S. were $3.287 billion, representing an increase of 5.0 percent compared with the prior-year period. Revenues outside of the U.S. were $4.086 billion, representing an increase of 5.9 percent compared with the prior-year period, or 6.0 percent on a foreign currency-neutral basis.

 


 

Fiscal 2011 Outlook for Full Year
The Company estimates that reported revenues for the full fiscal year 2011 will increase about 4 percent. The Company also expects reported diluted earnings per share from continuing operations for fiscal year 2011 to be between $5.45 and $5.55, an increase of approximately 11 to 13 percent over fiscal year 2010. Diluted earnings per share from continuing operations for fiscal year 2011 are expected to increase 10 to 12 percent over adjusted diluted earnings per share from continuing operations, excluding specified item, of $4.94 for the fiscal year 2010.
Conference Call Information
A conference call regarding BD’s fourth quarter results and its expectations for the full fiscal year 2011 will be broadcast live on BD’s website, www.bd.com/investors, along with related slides, at 10:00 a.m. (ET) Thursday, November 4, 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 Thursday, November 11, 2010, access code 15660232.
Non-GAAP Financial Measures
This news release contains certain non-GAAP financial measures. Reconciliations of these and other non-GAAP measures to the comparable GAAP measures are included in the attached financial tables and the Form 8-K that BD filed today with the SEC.
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 more than 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 2011 Outlook”, contains certain estimates and other forward-looking statements (as defined under Federal securities laws) regarding BD’s performance, including future revenues and earnings per share. 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. These factors include, but are not limited to: the unknown consequences of the recently-enacted healthcare reform in the United States, including the impact of the reduction in Medicare and Medicaid payments to hospitals, pharmaceutical companies and other customers, which could reduce demand for our products and increase downward pricing pressure; 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; 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; new or changing laws impacting our business or changes in enforcement practices with respect to such laws; uncertainties of litigation (as described in BD’s filings with the Securities and Exchange Commission); future healthcare reform, including changes in government pricing and reimbursement policies or other cost containment reforms; 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 September 30,
    2010   2009   % Change
 
 
                       
REVENUES
  $ 1,873,195     $ 1,854,023       1.0  
 
                       
Cost of products sold
    900,933       890,197       1.2  
Selling and administrative
    438,139       427,008       2.6  
Research and development
    123,606       112,890       9.5  
 
TOTAL OPERATING COSTS AND EXPENSES
    1,462,678       1,430,095       2.3  
 
 
                       
OPERATING INCOME
    410,517       423,928       (3.2 )
 
                       
Interest income
    14,594       14,418       1.2  
Interest expense
    (12,278 )     (13,782 )     (10.9 )
Other income (expense), net
    1,285       (3,312 )   NM
 
 
                       
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
    414,118       421,252       (1.7 )
 
                       
Income tax provision
    121,065       126,824       (4.5 )
 
 
                       
INCOME FROM CONTINUING OPERATIONS
    293,053       294,428       (0.5 )
 
                       
INCOME FROM DISCONTINUED OPERATIONS NET OF INCOME TAX PROVISION OF $27,645 AND $7,684, RESPECTIVELY
    103,642       22,792     NM
 
 
                       
NET INCOME
  $ 396,695     $ 317,220       25.1  
 
 
                       
EARNINGS PER SHARE
                       
 
                       
Basic:
                       
Income from continuing operations
  $ 1.27     $ 1.23       3.3  
Income from discontinued operations
  $ 0.45     $ 0.10     NM
Net income (1)
  $ 1.71     $ 1.33       28.6  
 
                       
Diluted:
                       
Income from continuing operations
  $ 1.24     $ 1.20       3.3  
Income from discontinued operations
  $ 0.44     $ 0.09     NM
Net income
  $ 1.68     $ 1.29       30.2  
 
                       
AVERAGE SHARES OUTSTANDING
                       
 
                       
Basic
    231,396       239,162          
Diluted
    236,316       245,056          
 
NM — Not Meaningful
 
(1)   Total per share amounts may not add due to rounding

Page 1


 

BECTON DICKINSON AND COMPANY
CONSOLIDATED INCOME STATEMENTS
(Unaudited; Amounts in thousands, except per share data)
                         
    Twelve Months Ended September 30,
    2010   2009   % Change
 
 
                       
REVENUES
  $ 7,372,333     $ 6,986,722       5.5  
 
                       
Cost of products sold
    3,543,183       3,311,676       7.0  
Selling and administrative
    1,721,356       1,680,797       2.4  
Research and development
    430,997       404,567       6.5  
 
TOTAL OPERATING COSTS AND EXPENSES
    5,695,536       5,397,040       5.5  
 
 
                       
OPERATING INCOME
    1,676,797       1,589,682       5.5  
 
                       
Interest income
    35,129       33,148       6.0  
Interest expense
    (51,263 )     (40,389 )     26.9  
Other income (expense), net
    497       (3,850 )   NM
 
 
                       
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
    1,661,160       1,578,591       5.2  
 
                       
Income tax provision
    484,820       411,246       17.9  
 
 
                       
INCOME FROM CONTINUING OPERATIONS
    1,176,340       1,167,345       0.8  
 
                       
INCOME FROM DISCONTINUED OPERATIONS NET OF INCOME TAX PROVISION OF $40,703 AND $19,975, RESPECTIVELY
    141,270       64,258     NM
 
 
                       
NET INCOME
  $ 1,317,610     $ 1,231,603       7.0  
 
 
                       
EARNINGS PER SHARE
                       
 
                       
Basic:
                       
Income from continuing operations
  $ 5.02     $ 4.85       3.5  
Income from discontinued operations
  $ 0.60     $ 0.27     NM
Net income
  $ 5.62     $ 5.12       9.8  
 
                       
Diluted:
                       
Income from continuing operations
  $ 4.90     $ 4.73       3.6  
Income from discontinued operations
  $ 0.59     $ 0.26     NM
Net income
  $ 5.49     $ 4.99       10.0  
 
                       
AVERAGE SHARES OUTSTANDING
                       
 
                       
Basic
    234,328       240,479          
Diluted
    240,136       246,798          
 
NM — Not Meaningful

Page 2


 

Becton Dickinson and Company
Supplemental Income Statement Information — Fiscal 2010
Revised for discontinued operations of certain Medical segment divestitures
(Unaudited: Amounts in thousands, except per-share data)
                         
            Amounts    
            Reclassified    
    Previously   to Discontinued   As
    Reported   Operations   Revised
     
Quarter 1
                       
Revenues
  $ 1,916,774     $ 47,956     $ 1,868,818  
Income from Continuing Operations
  $ 315,978     $ 11,885     $ 304,093  
Diluted Earnings Per Share from Continuing Operations
  $ 1.30     $ 0.05     $ 1.25  
 
                       
Quarter 2
                       
Revenues
  $ 1,844,854     $ 45,445     $ 1,799,409  
Income from Continuing Operations
  $ 297,725     $ 12,691     $ 285,034  
Diluted Earnings Per Share from Continuing Operations (2)
  $ 1.24     $ 0.05     $ 1.18  
 
                       
Quarter 3
                       
Revenues
  $ 1,878,229     $ 47,318     $ 1,830,911  
Income from Continuing Operations
  $ 306,283     $ 12,123     $ 294,160  
Diluted Earnings Per Share from Continuing Operations (2)
  $ 1.29     $ 0.05     $ 1.23  
     
                                         
            Amounts Reclassified to    
            Discontinued Operations   From
            Operations   Gain           Continuing
    Total   Excluding Gain   on Sale   Total   Operations
     
Quarter 4 (1)
                                       
Revenues
  $ 1,899,548     $ 26,353     $ —     $ 26,353     $ 1,873,195  
Income
  $ 397,445     $ 13,258     $ 91,134     $ 104,392     $ 293,053  
Diluted Earnings Per Share (2)
  $ 1.68     $ 0.06     $ 0.39     $ 0.44     $ 1.24  
 
                                       
Year (1)
                                       
Revenues
  $ 7,539,405     $ 167,072     $ —     $ 167,072     $ 7,372,333  
Income
  $ 1,317,431     $ 49,957     $ 91,134     $ 141,091     $ 1,176,340  
Diluted Earnings Per Share
  $ 5.49     $ 0.21     $ 0.38     $ 0.59     $ 4.90  
 
Certain quarterly amounts may not add to the year-to-date totals due to rounding.
 
(1)   The sale of Ophthalmic Systems unit and the surgical blades product platforms was completed on July 30, 2010 and the sale of the critical care product platform was completed on September 30, 2010.
 
(2)   Diluted Earnings Per Share may not add due to rounding.

Page 3


 

Becton Dickinson and Company
Supplemental Income Statement Information — Fiscal 2009 and 2008
Revised for discontinued operations of certain Medical segment divestitures
(Unaudited: Amounts in thousands, except per-share data)
                         
            Amounts    
            Reclassified    
    Previously   to Discontinued   As
    Reported   Operations   Revised
Fiscal 2009
                       
Revenues
  $ 7,160,874     $ 174,152     $ 6,986,722  
Income from Continuing Operations
  $ 1,213,054     $ 45,709     $ 1,167,345  
Diluted Earnings Per Share from Continuing Operations
  $ 4.92     $ 0.19     $ 4.73  
 
                       
Fiscal 2008
                       
Revenues
  $ 7,074,942     $ 177,323     $ 6,897,619  
Income from Continuing Operations
  $ 1,115,867     $ 38,113     $ 1,077,754  
Diluted Earnings Per Share from Continuing Operations
  $ 4.42     $ 0.15     $ 4.27  

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BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY SEGMENT AND GEOGRAPHIC AREA
(Unaudited; Amounts in thousands)
                         
    Three Months Ended September 30,
    2010   2009   % Change
 
                       
BD MEDICAL
                       
United States
  $ 400,231     $ 392,111       2.1  
International
    558,374       569,677       (2.0 )
 
TOTAL
  $ 958,605     $ 961,788       (0.3 )
 
 
                       
BD DIAGNOSTICS
                       
United States
  $ 307,721     $ 305,488       0.7  
International
    283,743       274,521       3.4  
 
TOTAL
  $ 591,464     $ 580,009       2.0  
 
 
                       
BD BIOSCIENCES
                       
United States
  $ 124,009     $ 123,225       0.6  
International
    199,117       189,001       5.4  
 
TOTAL
  $ 323,126     $ 312,226       3.5  
 
 
                       
TOTAL REVENUES
                       
United States
  $ 831,961     $ 820,824       1.4  
International
    1,041,234       1,033,199       0.8  
 
TOTAL
  $ 1,873,195     $ 1,854,023       1.0  
 

Page 5


 

BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY SEGMENT AND GEOGRAPHIC AREA
(Unaudited; Amounts in thousands)
                         
    Twelve Months Ended September 30,
    2010   2009   % Change
 
                       
BD MEDICAL
                       
United States
  $ 1,596,336     $ 1,503,471       6.2  
International
    2,200,096       2,053,223       7.2  
 
TOTAL
  $ 3,796,432     $ 3,556,694       6.7  
 
 
                       
BD DIAGNOSTICS
                       
United States
  $ 1,214,288     $ 1,177,543       3.1  
International
    1,104,591       1,048,676       5.3  
 
TOTAL
  $ 2,318,879     $ 2,226,219       4.2  
 
 
                       
BD BIOSCIENCES
                       
United States
  $ 475,941     $ 449,151       6.0  
International
    781,081       754,658       3.5  
 
TOTAL
  $ 1,257,022     $ 1,203,809       4.4  
 
 
                       
TOTAL REVENUES
                       
United States
  $ 3,286,565     $ 3,130,165       5.0  
International
    4,085,768       3,856,557       5.9  
 
TOTAL
  $ 7,372,333     $ 6,986,722       5.5  
 

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BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS
Three Months Ended September 30,
(Unaudited; Amounts in thousands)
                         
    United States
    2010   2009   % Change
 
                       
BD MEDICAL
                       
Medical Surgical Systems
  $ 256,290     $ 255,168       0.4  
Diabetes Care
    98,633       88,590       11.3  
Pharmaceutical Systems
    45,308       48,353       (6.3 )
 
TOTAL
  $ 400,231     $ 392,111       2.1  
 
 
                       
BD DIAGNOSTICS
                       
Preanalytical Systems
  $ 162,024     $ 156,328       3.6  
Diagnostic Systems
    145,697       149,160       (2.3 )
 
TOTAL
  $ 307,721     $ 305,488       0.7  
 
 
                       
BD BIOSCIENCES
                       
Cell Analysis
  $ 86,765     $ 84,179       3.1  
Discovery Labware
    37,244       39,046       (4.6 )
 
TOTAL
  $ 124,009     $ 123,225       0.6  
 
 
                       
TOTAL UNITED STATES
  $ 831,961     $ 820,824       1.4  
 

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BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS
Three Months Ended September 30, (continued)
(Unaudited; Amounts in thousands)
                                         
    International
                    % Change
    2010   2009   Reported   FXN   FX Impact
     
 
                                       
BD MEDICAL
                                       
Medical Surgical Systems
  $ 245,724     $ 253,384       (3.0 )     (2.2 )     (0.8 )
Diabetes Care
    100,468       92,098       9.1       12.0       (2.9 )
Pharmaceutical Systems
    212,182       224,195       (5.4 )     2.8       (8.2 )
 
TOTAL
  $ 558,374     $ 569,677       (2.0 )     2.1       (4.1 )
 
 
                                       
BD DIAGNOSTICS
                                       
Preanalytical Systems
  $ 144,421     $ 138,297       4.4       7.4       (3.0 )
Diagnostic Systems
    139,322       136,224       2.3       4.1       (1.8 )
 
TOTAL
  $ 283,743     $ 274,521       3.4       5.7       (2.3 )
 
 
                                       
BD BIOSCIENCES
                                       
Cell Analysis
  $ 160,230     $ 150,055       6.8       10.4       (3.6 )
Discovery Labware
    38,887       38,946       (0.2 )     0.8       (1.0 )
 
TOTAL
  $ 199,117     $ 189,001       5.4       8.4       (3.0 )
 
 
                                       
TOTAL INTERNATIONAL
  $ 1,041,234     $ 1,033,199       0.8       4.2       (3.4 )
 

Page 8


 

BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS
Three Months Ended September 30, (continued)
(Unaudited; Amounts in thousands)
                                         
    Total
                    % Change
    2010   2009   Reported   FXN   FX Impact
     
 
                                       
BD MEDICAL
                                       
Medical Surgical Systems
  $ 502,014     $ 508,552       (1.3 )     (0.9 )     (0.4 )
Diabetes Care
    199,101       180,688       10.2       11.7       (1.5 )
Pharmaceutical Systems
    257,490       272,548       (5.5 )     1.2       (6.7 )
 
TOTAL
  $ 958,605     $ 961,788       (0.3 )     2.1       (2.4 )
 
 
                                       
BD DIAGNOSTICS
                                       
Preanalytical Systems
  $ 306,445     $ 294,625       4.0       5.4       (1.4 )
Diagnostic Systems
    285,019       285,384       (0.1 )     0.7       (0.8 )
 
TOTAL
  $ 591,464     $ 580,009       2.0       3.1       (1.1 )
 
 
                                       
BD BIOSCIENCES
                                       
Cell Analysis
  $ 246,995     $ 234,234       5.4       7.8       (2.4 )
Discovery Labware
    76,131       77,992       (2.4 )     (1.9 )     (0.5 )
 
TOTAL
  $ 323,126     $ 312,226       3.5       5.3       (1.8 )
 
 
                                       
TOTAL REVENUES
  $ 1,873,195     $ 1,854,023       1.0       2.9       (1.9 )
 

Page 9


 

BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS
Twelve Months Ended September 30,
(Unaudited; Amounts in thousands)
                         
    United States
    2010   2009   % Change
     
 
                       
BD MEDICAL
                       
Medical Surgical Systems
  $ 1,007,322     $ 974,324       3.4  
Diabetes Care
    383,783       351,618       9.1  
Pharmaceutical Systems
    205,231       177,529       15.6  
 
TOTAL
  $ 1,596,336     $ 1,503,471       6.2  
 
 
                       
BD DIAGNOSTICS
                       
Preanalytical Systems
  $ 627,421     $ 608,754       3.1  
Diagnostic Systems
    586,867       568,789       3.2  
 
TOTAL
  $ 1,214,288     $ 1,177,543       3.1  
 
 
                       
BD BIOSCIENCES
                       
Cell Analysis
  $ 326,916     $ 303,846       7.6  
Discovery Labware
    149,025       145,305       2.6  
 
TOTAL
  $ 475,941     $ 449,151       6.0  
 
 
                       
TOTAL UNITED STATES
  $ 3,286,565     $ 3,130,165       5.0  
 

Page 10


 

BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS
Twelve Months Ended September 30, (continued)
(Unaudited; Amounts in thousands)
                                         
    International
                    % Change
    2010   2009   Reported   FXN   FX Impact
     
 
                                       
BD MEDICAL
                                       
Medical Surgical Systems
  $ 1,002,687     $ 914,990       9.6       6.6       3.0  
Diabetes Care
    401,976       363,319       10.6       9.1       1.5  
Pharmaceutical Systems
    795,433       774,914       2.6       4.3       (1.7 )
 
TOTAL
  $ 2,200,096     $ 2,053,223       7.2       6.2       1.0  
 
 
                                       
BD DIAGNOSTICS
                                       
Preanalytical Systems
  $ 570,386     $ 534,677       6.7       5.8       0.9  
Diagnostic Systems
    534,205       513,999       3.9       3.9       —  
 
TOTAL
  $ 1,104,591     $ 1,048,676       5.3       4.9       0.4  
 
 
                                       
BD BIOSCIENCES
                                       
Cell Analysis
  $ 624,322     $ 600,671       3.9       7.9       (4.0 )
Discovery Labware
    156,759       153,987       1.8       4.5       (2.7 )
 
TOTAL
  $ 781,081     $ 754,658       3.5       7.2       (3.7 )
 
 
                                       
TOTAL INTERNATIONAL
  $ 4,085,768     $ 3,856,557       5.9       6.0       (0.1 )
 

Page 11


 

BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS
Twelve Months Ended September 30, (continued)
(Unaudited; Amounts in thousands)
                                         
    Total
                    % Change
    2010   2009   Reported   FXN   FX Impact
     
 
                                       
BD MEDICAL
                                       
Medical Surgical Systems
  $ 2,010,009     $ 1,889,314       6.4       4.9       1.5  
Diabetes Care
    785,759       714,937       9.9       9.1       0.8  
Pharmaceutical Systems
    1,000,664       952,443       5.1       6.4       (1.3 )
 
TOTAL
  $ 3,796,432     $ 3,556,694       6.7       6.2       0.5  
 
 
                                       
BD DIAGNOSTICS
                                       
Preanalytical Systems
  $ 1,197,807     $ 1,143,431       4.8       4.4       0.4  
Diagnostic Systems
    1,121,072       1,082,788       3.5       3.5       —  
 
TOTAL
  $ 2,318,879     $ 2,226,219       4.2       4.0       0.2  
 
 
                                       
BD BIOSCIENCES
                                       
Cell Analysis
  $ 951,238     $ 904,517       5.2       7.8       (2.6 )
Discovery Labware
    305,784       299,292       2.2       3.6       (1.4 )
 
TOTAL
  $ 1,257,022     $ 1,203,809       4.4       6.8       (2.4 )
 
 
                                       
TOTAL REVENUES
  $ 7,372,333     $ 6,986,722       5.5       5.6       (0.1 )
 

Page 12


 

BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
SAFETY REVENUES
(Unaudited; Amounts in thousands)
                                         
    Three Months Ended September 30,
                    % Change
    2010   2009   Reported   FXN   FX Impact
     
 
                                       
TOTAL SAFETY REVENUES
                                       
United States
  $ 282,968     $ 276,409       2.4       2.4       —  
International
    160,396       150,270       6.7       9.2       (2.5 )
 
TOTAL
  $ 443,364     $ 426,679       3.9       4.8       (0.9 )
 
 
                                       
BY SEGMENT
                                       
BD Medical
  $ 208,822     $ 204,536       2.1       2.7       (0.6 )
BD Diagnostics
    234,542       222,143       5.6       6.7       (1.1 )
 
TOTAL
  $ 443,364     $ 426,679       3.9       4.8       (0.9 )
 
                                         
    Twelve Months Ended September 30,
                    % Change
    2010   2009   Reported   FXN   FX Impact
     
 
                                       
TOTAL SAFETY REVENUES
                                       
United States
  $ 1,108,431     $ 1,056,797       4.9       4.9       —  
International
    621,913       568,106       9.5       8.1       1.4  
 
TOTAL
  $ 1,730,344     $ 1,624,903       6.5       6.0       0.5  
 
 
                                       
BY SEGMENT
                                       
BD Medical
  $ 819,084     $ 761,262       7.6       6.9       0.7  
BD Diagnostics
    911,260       863,641       5.5       5.2       0.3  
 
TOTAL
  $ 1,730,344     $ 1,624,903       6.5       6.0       0.5  
 

Page 13


 

BECTON DICKINSON AND COMPANY
CONSOLIDATED INCOME STATEMENTS FISCAL 2010
Revised for discontinued operations of certain Medical segment divestitures
(Unaudited; Amounts in thousands, except per-share data)
                                 
 
  Quarter 1   Quarter 2   Quarter 3   Quarter 3 YTD
     
 
                               
REVENUES
  $ 1,868,818     $ 1,799,409     $ 1,830,911     $ 5,499,138  
 
                               
Cost of products sold
    894,324       864,492       883,434       2,642,250  
Selling and administrative
    445,673       421,076       416,468       1,283,217  
Research and development
    99,151       100,193       108,047       307,391  
 
TOTAL OPERATING COSTS AND EXPENSES
    1,439,148       1,385,761       1,407,949       4,232,858  
 
 
                               
OPERATING INCOME
    429,670       413,648       422,962       1,266,280  
 
                               
Interest income
    8,789       9,652       2,094       20,535  
Interest expense
    (12,987 )     (12,913 )     (13,085 )     (38,985 )
Other (expense) income, net
    (2,354 )     164       1,402       (788 )
 
 
                               
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
    423,118       410,551       413,373       1,247,042  
 
                               
Income tax provision
    119,025       125,517       119,213       363,755  
 
INCOME FROM CONTINUING OPERATIONS
    304,093       285,034       294,160       883,287  
 
                               
Income from Discontinued Operations before Income Tax
    16,900       16,698       17,088       50,686  
 
                               
Income Tax provision
    4,617       4,101       4,340       13,058  
 
 
                               
INCOME FROM DISCONTINUED OPERATIONS
    12,283       12,597       12,748       37,628  
 
 
                               
NET INCOME
  $ 316,376     $ 297,631     $ 306,908       920,915  
 
 
                               
EARNINGS PER SHARE
                               
 
                               
Basic:
                               
Income from continuing operations
  $ 1.28     $ 1.21     $ 1.26     $ 3.75  
Income from discontinued operations
  $ 0.05     $ 0.05     $ 0.05     $ 0.16  
Net income (1)
  $ 1.33     $ 1.26     $ 1.32     $ 3.91  
 
                               
Diluted:
                               
Income from continuing operations
  $ 1.25     $ 1.18     $ 1.23     $ 3.66  
Income from discontinued operations
  $ 0.05     $ 0.05     $ 0.05     $ 0.16  
Net income (1)
  $ 1.30     $ 1.24     $ 1.29     $ 3.82  
 
                               
AVERAGE SHARES OUTSTANDING
                               
 
                               
Basic
    237,360       235,325       233,242       235,316  
Diluted
    242,965       240,863       238,319       241,151  
 
Certain quarterly amounts may not add to the year-to-date totals due to rounding.
 
(1)   Total per share amounts may not add due to rounding.

Page 14


 

BECTON DICKINSON AND COMPANY
CONSOLIDATED INCOME STATEMENTS FISCAL 2009
Revised for discontinued operations of certain Medical segment divestitures
(Unaudited; Amounts in thousands, except per-share data)
                                         
 
  Quarter 1   Quarter 2   Quarter 3   Quarter 4   Year
     
 
                                       
REVENUES
  $ 1,673,148     $ 1,683,142     $ 1,776,409     $ 1,854,023     $ 6,986,722  
 
                                       
Cost of products sold
    775,542       807,382       838,555       890,197       3,311,676  
Selling and administrative
    399,668       430,608       423,513       427,008       1,680,797  
Research and development
    96,356       97,700       97,621       112,890       404,567  
 
TOTAL OPERATING COSTS AND EXPENSES
    1,271,566       1,335,690       1,359,689       1,430,095       5,397,040  
 
 
                                       
OPERATING INCOME
    401,582       347,452       416,720       423,928       1,589,682  
 
                                       
Interest income
    1,651       4,312       12,767       14,418       33,148  
Interest expense
    (7,824 )     (7,495 )     (11,288 )     (13,782 )     (40,389 )
Other income (expense), net
    9,411       (5,701 )     (4,246 )     (3,312 )     (3,850 )
 
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
    404,820       338,568       413,953       421,252       1,578,591  
 
                                       
Income tax provision
    108,213       89,702       86,508       126,824       411,246  
 
INCOME FROM CONTINUING OPERATIONS
    296,607       248,866       327,445       294,428       1,167,345  
 
                                       
Income from Discontinued Operations before Income Tax
    20,234       15,944       17,579       30,476       84,233  
 
                                       
Income Tax provision
    4,773       3,521       3,997       7,684       19,975  
 
 
                                       
INCOME FROM DISCONTINUED OPERATIONS
    15,461       12,423       13,582       22,792       64,258  
 
NET INCOME
  $ 312,068     $ 261,289     $ 341,027     $ 317,220     $ 1,231,603  
 
 
                                       
EARNINGS PER SHARE
                                       
 
                                       
Basic:
                                       
Income from continuing operations
  $ 1.22     $ 1.04     $ 1.36     $ 1.23     $ 4.85  
Income from discontinued operations
  $ 0.06     $ 0.05     $ 0.06     $ 0.10     $ 0.27  
Net income (1)
  $ 1.29     $ 1.09     $ 1.42     $ 1.33     $ 5.12  
 
                                       
Diluted:
                                       
Income from continuing operations
  $ 1.19     $ 1.01     $ 1.33     $ 1.20     $ 4.73  
Income from discontinued operations
  $ 0.06     $ 0.05     $ 0.06     $ 0.09     $ 0.26  
Net income (1)
  $ 1.26     $ 1.06     $ 1.39     $ 1.29     $ 4.99  
 
                                       
AVERAGE SHARES OUTSTANDING
                                       
 
                                       
Basic
    242,397       240,239       240,109       239,162       240,479  
Diluted
    248,311       245,890       245,696       245,056       246,798  
 
Certain quarterly amounts may not add to the year-to-date totals due to rounding.
 
(1)   Total per share amounts may not add due to rounding.

Page 15


 

BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
SAFETY REVENUES FISCAL 2010
Revised for discontinued operations of certain Medical segment divestitures
(Unaudited; Amounts in thousands)
                                 
 
  Quarter 1   Quarter 2   Quarter 3   Quarter 3 YTD
     
TOTAL SAFETY REVENUES
                               
United States
  $ 291,815     $ 263,044     $ 270,604     $ 825,463  
International
    155,129       148,537       157,851       461,517  
 
TOTAL
  $ 446,944     $ 411,581     $ 428,455     $ 1,286,980  
 
 
                               
BY SEGMENT
                               
BD Medical
  $ 221,174     $ 193,688     $ 195,400     $ 610,262  
BD Diagnostics
    225,770       217,893       233,055       676,718  
 
TOTAL
  $ 446,944     $ 411,581     $ 428,455     $ 1,286,980  
 

Page 16


 

BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
SAFETY REVENUES FISCAL 2009
Revised for discontinued operations of certain Medical segment divestitures
(Unaudited; Amounts in thousands)
                                         
 
  Quarter 1   Quarter 2   Quarter 3   Quarter 4   Year
     
 
                                       
TOTAL SAFETY REVENUES
                                       
United States
  $ 263,865     $ 249,820     $ 266,703     $ 276,409     $ 1,056,797  
International
    133,499       136,054       148,283       150,270       568,106  
 
TOTAL
  $ 397,364     $ 385,874     $ 414,986     $ 426,679     $ 1,624,903  
 
BY SEGMENT
                                       
BD Medical
  $ 187,066     $ 177,721     $ 191,939     $ 204,536     $ 761,262  
BD Diagnostics
    210,298       208,153       223,047       222,143       863,641  
 
TOTAL
  $ 397,364     $ 385,874     $ 414,986     $ 426,679     $ 1,624,903  
 

Page 17