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Press release from PR Newswire

BD Announces Results For 2011 First Fiscal Quarter

Monday, February 07, 2011

BD Announces Results For 2011 First Fiscal Quarter16:04 EST Monday, February 07, 2011-- Reports diluted earnings per share from continuing operations of $1.35, including approximately $0.07 related to the timing of certain tax benefits. These benefits were included in the Company's full year guidance provided on its 2010 year-end earnings conference call. -- Reports revenues of $1.842 billion, a decrease of 1.4 percent year-over-year. -- Reaffirms full fiscal year 2011 guidance of reported revenues and EPS to increase about 4 percent and between 11 percent and 13 percent, respectively.FRANKLIN LAKES, N.J., Feb. 7, 2011 /PRNewswire/ -- BD (Becton, Dickinson and Company) (NYSE: BDX), a leading global medical technology company, today reported quarterly revenues of $1.842 billion for the first fiscal quarter ended December 31, 2010, representing a decrease of 1.4 percent from the prior-year period.  On a foreign currency-neutral basis, revenue decreased 1.5 percent.  The revenue decline reflects an unfavorable comparison to the prior year of about 4 percentage points due to strong sales related to the pandemic flu and U.S. stimulus revenues in fiscal 2010.  The Company also repurchased $837 million of its common stock during the quarter.   BD continues to plan aggregate share repurchases of $1.5 billion in fiscal 2011 and an additional $600 million in fiscal 2012.   "We are pleased with our performance in the first fiscal quarter given the challenging environment," said Edward J. Ludwig, Chairman and Chief Executive Officer.  "While revenue came in slightly below our expectations, our discipline around operational excellence enabled us to deliver earnings per share in line with our previous guidance.  We continued to return significant value to shareholders, while also investing in geographic expansion, new product platforms and operational excellence programs."  First Quarter EarningsReported diluted earnings per share for the first quarter were $1.35, compared with $1.25 in the prior-year period, representing an 8.0 percent increase. On a foreign currency-neutral basis, diluted earnings per share for the first quarter increased by 4.8 percent.  For the quarter, reported diluted earnings per share from continuing operations included an approximate $0.07 favorable impact due to the timing of certain tax benefits.  These benefits, which were reflected in our previous full year guidance, resulted from certain first quarter events, including the retroactive extension of the U.S. research tax credit. Segment ResultsIn the BD Medical segment, worldwide revenues for the quarter were $927 million, representing a decrease of 4.5 percent compared with the prior-year period, or a decrease of 4.3 percent on a foreign currency-neutral basis. The segment's revenue decline reflects an unfavorable comparison to the prior year of about 6 percentage points due to strong sales related to the H1N1 flu pandemic in fiscal year 2010, partially offset by solid growth in the Diabetes Care unit with particularly strong growth in pen needles.In the BD Diagnostics segment, worldwide revenues for the quarter were $602 million, representing an increase of 1.0 percent compared with the prior-year period, or 0.6 percent on a foreign currency-neutral basis.  Segment revenue growth was negatively impacted by about 2 percentage points due to strong sales related to the flu pandemic in fiscal year 2010.  The segment growth was primarily driven by strong sales in Preanalytical Systems safety-engineered products, and Women's Health and Cancer in the Diagnostic Systems unit. In the BD Biosciences segment, worldwide revenues for the quarter were $314 million, representing an increase of 3.7 percent compared with the prior-year period, or 3.5 percent on a foreign currency-neutral basis.  Segment revenue growth was negatively impacted by about 2 percentage points due to strong sales related to stimulus spending in the U.S. in fiscal year 2010.  Segment growth was primarily driven by instrument and reagent sales in the Cell Analysis unit. Geographic ResultsFirst quarter revenues in the U.S. were $829 million, representing a decrease of 2.9 percent compared with the prior-year period, including a negative impact of 6.0 percentage points due to flu pandemic-related sales in fiscal year 2010.  Revenues outside of the U.S. were $1.013 billion, representing a decrease of 0.2 percent compared with the prior-year period, or a decrease of 0.3 percent on a foreign currency-neutral basis. International revenue growth was negatively impacted by about 3 percentage points related to the flu pandemic in fiscal year 2010. Revenues reflected continued strength in emerging markets, which was partially offset by a decline in sales in Europe. Company Reaffirms Previously Communicated Fiscal Year 2011 Guidance The Company continues to estimate that reported revenues for the full fiscal year 2011 will increase about 4 percent compared to fiscal year 2010.  The Company also continues to expect 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 fiscal year 2010.  The specified item represents a 2010 non-cash charge of $0.04 cents per share related to healthcare reform impacting Medicare Part D reimbursements. Conference Call InformationA conference call regarding BD's first 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) Tuesday, February 8, 2011.  The related slides are available concurrent with this press release at www.bd.com/investors.  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 Tuesday, February 15, 2011, access code 37117544. Non-GAAP Financial MeasuresThis 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 BDBD 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 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.  Forward-looking statements may be identified by the use of words such as "expect", "estimate" or words of similar meaning in conjunction with statements of our future performance.  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 COMPANYCONSOLIDATED INCOME STATEMENTS(Unaudited; Amounts in thousands, except per share data)Three Months Ended December 31,20102009% ChangeREVENUES$1,842,005$1,868,818(1.4)Cost of products sold865,431894,324(3.2)Selling and administrative 447,954445,6730.5Research and development115,54299,15116.5TOTAL OPERATING COSTS     AND EXPENSES1,428,9271,439,148(0.7)OPERATING INCOME413,078429,670(3.9)Interest income15,2228,78973.2Interest expense(15,553)(12,987)19.8Other expense, net(4,596)(2,354)95.2INCOME FROM CONTINUING OPERATIONS BEFORE     INCOME TAXES408,151423,118(3.5)Income tax provision93,875119,025(21.1)INCOME FROM CONTINUING OPERATIONS314,276304,0933.3INCOME FROM DISCONTINUED OPERATIONS   NET OF INCOME TAX PROVISION OF$223 AND $4,617, RESPECTIVELY1,66112,283        NM NET INCOME$315,937$316,376(0.1)EARNINGS PER SHAREBasic:Income from continuing operations$1.38$1.287.8Income from discontinued operations$0.01$0.05(80.0)Net income $1.39$1.334.5Diluted:Income from continuing operations$1.35$1.258.0Income from discontinued operations$0.01$0.05(80.0)Net income$1.36$1.304.6AVERAGE SHARES OUTSTANDING     Basic228,083237,360     Diluted232,915242,965NM - Not MeaningfulBECTON DICKINSON AND COMPANYSUPPLEMENTAL REVENUE INFORMATIONREVENUES BY SEGMENT AND GEOGRAPHIC AREA(Unaudited; Amounts in thousands)Three Months Ended December 31,20102009% ChangeBD MEDICAL   United States$405,527$432,576(6.3)   International521,020538,096(3.2)TOTAL$926,547$970,672(4.5)BD DIAGNOSTICS   United States$308,851$310,205(0.4)   International292,871285,2692.7TOTAL$601,722$595,4741.0BD BIOSCIENCES   United States$114,224$110,6363.2   International199,512192,0363.9TOTAL$313,736$302,6723.7TOTAL REVENUES   United States$828,602$853,417(2.9)   International1,013,4031,015,401(0.2)TOTAL$1,842,005$1,868,818(1.4)BECTON DICKINSON AND COMPANYSUPPLEMENTAL REVENUE INFORMATIONREVENUES BY BUSINESS SEGMENTS AND UNITSThree Months Ended December 31,(Unaudited; Amounts in thousands)United States20102009 % Change BD MEDICAL   Medical Surgical Systems$254,254$273,991(7.2)   Diabetes Care99,58596,5643.1   Pharmaceutical Systems51,68862,021(16.7)TOTAL$405,527$432,576(6.3)BD DIAGNOSTICS   Preanalytical Systems$162,059$156,2363.7   Diagnostic Systems146,792153,969(4.7)TOTAL$308,851$310,205(0.4)BD BIOSCIENCES   Cell Analysis $80,255$77,6043.4   Discovery Labware33,96933,0322.8TOTAL$114,224$110,6363.2TOTAL UNITED STATES$828,602$853,417(2.9)BECTON DICKINSON AND COMPANYSUPPLEMENTAL REVENUE INFORMATIONREVENUES BY BUSINESS SEGMENTS AND UNITSThree Months Ended December 31, (continued)(Unaudited; Amounts in thousands)International % Change 20102009 Reported FXNFX ImpactBD MEDICAL   Medical Surgical Systems$258,474$259,186(0.3)(2.2)1.9   Diabetes Care114,297$104,9578.98.80.1   Pharmaceutical Systems148,249$173,953(14.8)(10.9)(3.9)TOTAL$521,020$538,096(3.2)(2.8)(0.4)BD DIAGNOSTICS   Preanalytical Systems$150,569$143,9304.64.00.6   Diagnostic Systems142,302141,3390.7(0.3)1.0TOTAL$292,871$285,2692.71.90.8BD BIOSCIENCES   Cell Analysis $160,487$153,7314.44.6(0.2)   Discovery Labware39,02538,3051.9(0.1)2.0TOTAL$199,512$192,0363.93.60.3TOTAL INTERNATIONAL$1,013,403$1,015,401(0.2)(0.3)0.1BECTON DICKINSON AND COMPANYSUPPLEMENTAL REVENUE INFORMATIONREVENUES BY BUSINESS SEGMENTS AND UNITSThree Months Ended December 31, (continued)(Unaudited; Amounts in thousands)Total % Change 20102009 Reported FXNFX ImpactBD MEDICAL   Medical Surgical Systems$512,728$533,177(3.8)(4.7)0.9   Diabetes Care213,882201,5216.16.1-   Pharmaceutical Systems199,937235,974(15.3)(12.4)(2.9)TOTAL$926,547$970,672(4.5)(4.3)(0.2)BD DIAGNOSTICS   Preanalytical Systems$312,628$300,1664.23.90.3   Diagnostic Systems289,094295,308(2.1)(2.6)0.5TOTAL$601,722$595,4741.00.60.4BD BIOSCIENCES   Cell Analysis $240,742$231,3354.14.2(0.1)   Discovery Labware72,99471,3372.31.21.1TOTAL$313,736$302,6723.73.50.2TOTAL REVENUES$1,842,005$1,868,818(1.4)(1.5)0.1BECTON DICKINSON AND COMPANYSUPPLEMENTAL REVENUE INFORMATIONSAFETY REVENUES(Unaudited; Amounts in thousands)Three Months Ended December 31, % Change 20102009 Reported FXNFX ImpactTOTAL SAFETY REVENUES   United States$283,782$291,815(2.8)(2.8)-   International169,254155,1299.17.51.6TOTAL$453,036$446,9441.40.90.5BY SEGMENT   BD Medical$213,309$221,174(3.6)(4.3)0.7   BD Diagnostics239,727225,7706.25.80.4TOTAL$453,036$446,9441.40.90.5BECTON DICKINSON AND COMPANYSUPPLEMENTAL REVENUE INFORMATIONREVENUES BY BUSINESS SEGMENTS AND UNITS FISCAL 2010Revised for discontinued operations of certain Medical segment divestitures(Unaudited; Amounts in thousands)United StatesQuarter 1Quarter 2Quarter 3Quarter 4YearBD MEDICAL   Medical Surgical Systems$273,991$237,174$239,866$256,290$1,007,322   Diabetes Care96,56492,51596,07198,633383,783   Pharmaceutical Systems62,02152,07845,82445,308205,231TOTAL$432,576$381,767$381,761$400,231$1,596,336BD DIAGNOSTICS   Preanalytical Systems$156,236$149,932$159,228$162,024$627,421   Diagnostic Systems153,969142,909144,293145,697586,867TOTAL$310,205$292,841$303,521$307,721$1,214,288BD BIOSCIENCES   Cell Analysis $77,604$78,183$84,365$86,765$326,916   Discovery Labware33,03238,96839,78137,244149,025TOTAL$110,636$117,151$124,146$124,009$475,941TOTAL UNITED STATES$853,417$791,759$809,428$831,961$3,286,565InternationalQuarter 1Quarter 2Quarter 3Quarter 4YearBD MEDICAL   Medical Surgical Systems$259,186$244,090$253,687$245,724$1,002,687   Diabetes Care104,95795,471101,081100,468401,976   Pharmaceutical Systems173,953200,305208,993212,182795,433TOTAL$538,096$539,866$563,761$558,374$2,200,096BD DIAGNOSTICS   Preanalytical Systems$143,930$137,738$144,298$144,421$570,386   Diagnostic Systems141,339125,093128,450139,322534,205TOTAL$285,269$262,831$272,748$283,743$1,104,591BD BIOSCIENCES   Cell Analysis $153,731$164,292$146,068$160,230$624,322   Discovery Labware38,30540,66138,90638,887156,759TOTAL$192,036$204,953$184,974$199,117$781,081TOTAL INTERNATIONAL$1,015,401$1,007,650$1,021,483$1,041,234$4,085,768TotalQuarter 1Quarter 2Quarter 3Quarter 4YearBD MEDICAL   Medical Surgical Systems$533,177$481,264$493,553$502,014$2,010,009   Diabetes Care201,521187,986197,152199,101785,759   Pharmaceutical Systems235,974252,383254,817257,4901,000,664TOTAL$970,672$921,633$945,522$958,605$3,796,432BD DIAGNOSTICS   Preanalytical Systems$300,166$287,670$303,526$306,445$1,197,807   Diagnostic Systems295,308268,002272,743285,0191,121,072TOTAL$595,474$555,672$576,269$591,464$2,318,879BD BIOSCIENCES   Cell Analysis $231,335$242,475$230,433$246,995$951,238   Discovery Labware71,33779,62978,68776,131305,784TOTAL$302,672$322,104$309,120$323,126$1,257,022TOTAL REVENUES$1,868,818$1,799,409$1,830,911$1,873,195$7,372,333Certain quarterly amounts may not add to the year-to-date totals due to rounding.BECTON DICKINSON AND COMPANYSUPPLEMENTAL REVENUE INFORMATIONREVENUES BY BUSINESS SEGMENTS AND UNITS FISCAL 2009Revised for discontinued operations of certain Medical segment divestitures(Unaudited; Amounts in thousands)United StatesQuarter 1Quarter 2Quarter 3Quarter 4YearBD MEDICAL   Medical Surgical Systems$244,037$231,041$244,077$255,168$974,324   Diabetes Care88,46583,23391,33088,590351,618   Pharmaceutical Systems42,65243,06543,46048,353177,529TOTAL$375,154$357,339$378,867$392,111$1,503,471BD DIAGNOSTICS   Preanalytical Systems$149,230$147,436$155,760$156,328$608,754   Diagnostic Systems138,338137,677143,614149,160568,789TOTAL$287,568$285,113$299,374$305,488$1,177,543BD BIOSCIENCES   Cell Analysis $77,379$71,770$70,518$84,179$303,846   Discovery Labware36,37232,26937,61839,046145,305TOTAL$113,751$104,039$108,136$123,225$449,151TOTAL UNITED STATES$776,473$746,491$786,377$820,824$3,130,165InternationalQuarter 1Quarter 2Quarter 3Quarter 4YearBD MEDICAL   Medical Surgical Systems$211,595$219,079$230,934$253,384$914,990   Diabetes Care91,54185,15994,52192,098363,319   Pharmaceutical Systems152,129178,085220,503224,195774,914TOTAL$455,265$482,323$545,958$569,677$2,053,223BD DIAGNOSTICS   Preanalytical Systems$128,924$131,029$136,427$138,297$534,677   Diagnostic Systems123,699123,498130,578136,224513,999TOTAL$252,623$254,527$267,005$274,521$1,048,676BD BIOSCIENCES   Cell Analysis $152,142$159,223$139,251$150,055$600,671   Discovery Labware36,64540,57837,81838,946153,987TOTAL$188,787$199,801$177,069$189,001$754,658TOTAL INTERNATIONAL$896,675$936,651$990,032$1,033,199$3,856,557TotalQuarter 1Quarter 2Quarter 3Quarter 4YearBD MEDICAL   Medical Surgical Systems$455,632$450,120$475,011$508,552$1,889,314   Diabetes Care180,006168,392185,851180,688714,937   Pharmaceutical Systems194,781221,150263,963272,548952,443TOTAL$830,419$839,662$924,825$961,788$3,556,694BD DIAGNOSTICS   Preanalytical Systems$278,154$278,465$292,187$294,625$1,143,431   Diagnostic Systems262,037261,175274,192285,3841,082,788TOTAL$540,191$539,640$566,379$580,009$2,226,219BD BIOSCIENCES   Cell Analysis $229,521$230,993$209,769$234,234$904,517   Discovery Labware73,01772,84775,43677,992299,292TOTAL$302,538$303,840$285,205$312,226$1,203,809TOTAL REVENUES$1,673,148$1,683,142$1,776,409$1,854,023$6,986,722Certain quarterly amounts may not add to the year-to-date totals due to rounding.Contact:Zachary A. Nagle, Investor Relations ? 201-847-5453Colleen T. White, Corporate Communications ? 201-847-5369SOURCE BD (Becton, Dickinson and Company)For further information: Zachary A. Nagle, Investor Relations - 201-847-5453, Colleen T. White, Corporate Communications - 201-847-5369