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Press release from PR Newswire

BD Announces Results for 2011 Second Fiscal Quarter

Tuesday, April 26, 2011

BD Announces Results for 2011 Second Fiscal Quarter16:01 EDT Tuesday, April 26, 2011FRANKLIN LAKES, N.J., April 26, 2011 /PRNewswire/ -- BD (Becton, Dickinson and Company) (NYSE: BDX), a leading global medical technology company, today reported quarterly revenues of $1.922 billion for the second fiscal quarter ended March 31, 2011, representing an increase of 6.8 percent from the prior-year period.  On a foreign currency-neutral basis, revenue increased 4.6 percent, despite an unfavorable comparison to the prior year of about 2.3 percentage points due to strong sales related to the H1N1 flu pandemic, supplemental spending in Japan and stimulus spending in the U.S. in fiscal year 2010.  ?We are pleased with our solid results this quarter, which were in line with our expectations,? said Edward J. Ludwig, Chairman and Chief Executive Officer.  ?We continued the increased pace of our R&D spending and made strategic investments, such as our acquisition of Accuri Cytometers, demonstrating our commitment to driving revenue growth through innovation.?Update on Impact of Japan Earthquake and Tsunami Order volumes for BD products in Japan have now returned to normal levels. The Company?s manufacturing plant in Fukushima sustained some earthquake-related damage, but the prepared plated media manufacturing lines were recently restarted, and manufacturing of BD Hypak? Prefillable Syringes is expected to resume during the third fiscal quarter 2011. BD?s Fukushima distribution center and an additional distribution center near Tokyo are in operation. The unfavorable impact of these events on the Company?s revenues in the second fiscal quarter was less than $10 million. For the full fiscal year 2011, the Company anticipates these events to have an aggregate unfavorable impact of $10 to $20 million on revenues, or about $0.05 per share, which has been incorporated into its fiscal year 2011 guidance.Update on the Acquisition of Accuri Cytometers, Inc.As announced in March 2011, the Company completed the acquisition of Accuri Cytometers, Inc., an Ann Arbor, Michigan-based company that develops and manufactures personal flow cytometers for researchers. The financial impact of the acquisition on fiscal year 2011 earnings has been incorporated into the Company?s previously disclosed guidance.Second Quarter and Six-Month Fiscal 2011 Operating ResultsReported diluted earnings per share for the second quarter were $1.38, compared with $1.18 in the prior-year period, representing a 16.9 percent increase. The prior-year period included a non-cash charge of $8.9 million, or $0.04 per share, related to healthcare reform impacting Medicare Part D reimbursements. Excluding that item, earnings per share from continuing operations increased by 13.1 percent, compared with adjusted diluted earnings per share from continuing operations of $1.22 in the prior-year period, or 7.4 percent on a currency-neutral basis. For the six-month period ending March 31, 2011, reported diluted earnings per share from continuing operations were $2.72, compared with $2.43 in the prior-year period. Excluding the aforementioned charge, diluted earnings per share from continuing operations increased by 10.1 percent, compared with adjusted diluted earnings per share of $2.47 in the prior-year period, or 5.3 percent on a currency-neutral basis.Segment ResultsIn the BD Medical segment, worldwide revenues for the quarter were $981 million, representing an increase of 6.5 percent compared with the prior-year period, or 4.9 percent on a foreign currency-neutral basis. Revenues reflected strong sales of Diabetes Care and Pharmaceutical Systems products. The segment?s revenues also reflected an unfavorable comparison to the prior year of about 1.6 percentage points due to strong sales related to the H1N1 flu pandemic in fiscal year 2010.  For the six-month period ended March 31, 2011, BD Medical revenues increased 0.8 percent, or 0.1 percent on a foreign currency-neutral basis. In the BD Diagnostics segment, worldwide revenues for the quarter were $605 million, representing an increase of 8.9 percent compared with the prior-year period, or 6.5 percent on a foreign currency-neutral basis. Revenues reflected solid growth in Preanalytical Systems safety-engineered products and strong growth in Diagnostic Systems infectious disease platforms. For the six-month period ended March 31, 2011, BD Diagnostics revenues increased 4.9 percent, or 3.6 percent on a foreign currency-neutral basis. In the BD Biosciences segment, worldwide revenues for the quarter were $335 million, representing an increase of 4.1 percent compared with the prior-year period, or 0.4 percent on a foreign currency-neutral basis. Segment revenue growth was negatively impacted by about 12 percentage points due to certain factors. About 8 percentage points of the impact was due to an unfavorable comparison resulting from strong sales related to supplemental spending in Japan and stimulus spending in the U.S. in fiscal year 2010, and about 3 percentage points resulted from the effects of the earthquake and tsunami in Japan.  Segment growth was driven primarily by instrument and reagent sales in the Cell Analysis unit. Discovery Labware revenues in the U.S. were negatively impacted by weakness in core consumables due to lower pharmaceutical spending and academic sector sales. For the six-month period ended March 31, 2011, BD Biosciences revenues increased by 3.9 percent, or 1.9 percent on a foreign currency-neutral basis.Geographic ResultsSecond quarter revenues in the U.S. were $829 million, representing an increase of 4.7 percent compared with the prior-year period.  Revenues outside of the U.S. were $1.093 billion, representing an increase of 8.5 percent compared with the prior-year period, or 4.6 percent on a foreign currency-neutral basis. Revenues reflected continued strength in emerging markets, which was partially offset by weakened demand in Western Europe due to challenging macroeconomic conditions.  For the six-month period ended March 31, 2011, revenues in the U.S. were $1.658 billion, representing an increase of 0.8 percent compared with the prior-year period. Revenues outside of the U.S. were $2.106 billion, representing an increase of 4.1 percent compared with the prior-year period, or 2.1 percent on a foreign currency-neutral basis.Fiscal Year 2011 OutlookThe Company is raising its reported revenue guidance for the full fiscal year 2011 to an increase of approximately 5 to 6 percent compared with fiscal year 2010, due to an expected favorable currency impact. On a foreign currency-neutral basis, the Company is lowering its revenue guidance to an increase of about 3.5 percent versus its previous guidance of about 4 percent, mainly due to lower than expected sales in Western Europe. The Company is raising its previous guidance for reported diluted earnings per share from continuing operations for fiscal year 2011 by about $0.10 per share to a range of $5.55 to $5.65, an increase of approximately 13 to 15 percent over fiscal year 2010. This revised guidance reflects the anticipated effects of favorable currency and operating efficiencies, partially offset by higher resin costs and the negative impact of the Japan earthquake and tsunami. Diluted earnings per share from continuing operations for fiscal year 2011 are expected to increase 12 to 14 percent over adjusted diluted earnings per share from continuing operations of $4.94, excluding the specified item, for fiscal year 2010.  The specified item represents the aforementioned 2010 non-cash charge of $0.04 per share related to healthcare reform. On a currency-neutral basis, the Company expects diluted earnings per share from continuing operations to increase about 10 percent over adjusted diluted earnings per share in the prior-year period.Conference Call InformationA conference call regarding BD?s second 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) Wednesday, April 27, 2011. The slides are available concurrent with the issuance of 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 Wednesday, May 4, 2011, access code 59468691. 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. 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, including the section entitled ?Fiscal Year 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.  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 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 potential adverse effects that the earthquake and tsunami in Japan and the situation regarding the Fukushima, Japan nuclear power plant may have on BD?s future operations in Japan; 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 BD?s 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 situation on BD?s ability to access credit markets and finance its operations, the demand for BD?s products and services, or its suppliers? ability to provide products needed for BD?s 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 BD?s 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; BD?s ability to successfully integrate any businesses it acquires; and issuance of new or revised accounting standards, as well as other factors discussed in BD?s filings with the Securities and Exchange Commission.  BD does 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. Contact:Monique N. Dolecki, Investor Relations ? 201-847-5453Colleen T. White, Corporate Communications ? 201-847-5369BECTON DICKINSON AND COMPANYCONSOLIDATED INCOME STATEMENTS(Unaudited; Amounts in thousands, except per share data)Three Months Ended March 31,20112010% ChangeREVENUES$1,922,023$1,799,4096.8Cost of products sold920,589864,4926.5Selling and administrative 441,942421,0765.0Research and development119,152100,19318.9TOTAL OPERATING COSTS     AND EXPENSES1,481,6831,385,7616.9OPERATING INCOME440,340413,6486.5Interest income14,5649,65250.9Interest expense(23,921)(12,913)85.2Other (expense) income, net(2,522)164        NM INCOME FROM CONTINUING OPERATIONS BEFORE     INCOME TAXES428,461410,5514.4Income tax provision117,399125,517(6.5)INCOME FROM CONTINUING OPERATIONS311,062285,0349.1INCOME FROM DISCONTINUED OPERATIONS   NET OF INCOME TAX PROVISION OF   $377 AND $4,101, RESPECTIVELY95712,597(92.4)NET INCOME$312,019$297,6314.8EARNINGS PER SHAREBasic:Income from continuing operations$1.41$1.2116.5Income from discontinued operations$-$0.05        NM Net income $1.41$1.2611.9Diluted:Income from continuing operations$1.38$1.1816.9Income from discontinued operations$-$0.05        NM Net income (1)$1.38$1.2411.3AVERAGE SHARES OUTSTANDING     Basic220,894235,325     Diluted225,467240,863NM - Not Meaningful (1) Total per share amounts may not add due to roundingBECTON DICKINSON AND COMPANYCONSOLIDATED INCOME STATEMENTS(Unaudited; Amounts in thousands, except per share data)Six Months Ended March 31,20112010% ChangeREVENUES$3,764,028$3,668,2272.6Cost of products sold1,786,0201,758,8161.5Selling and administrative 889,897866,7492.7Research and development234,693199,34417.7TOTAL OPERATING COSTS     AND EXPENSES2,910,6102,824,9093.0OPERATING INCOME853,418843,3181.2Interest income29,78618,44161.5Interest expense(39,474)(25,900)52.4Other expense, net(7,118)(2,190)        NM INCOME FROM CONTINUING OPERATIONS BEFORE     INCOME TAXES836,612833,6690.4Income tax provision211,273244,542(13.6)INCOME FROM CONTINUING OPERATIONS625,339589,1276.1INCOME FROM DISCONTINUED OPERATIONS   NET OF INCOME TAX PROVISION OF   $601 AND $8,718, RESPECTIVELY2,61724,880(89.5)NET INCOME$627,956$614,0072.3EARNINGS PER SHAREBasic:Income from continuing operations$2.79$2.4912.0Income from discontinued operations$0.01$0.11(90.9)Net income$2.80$2.607.7Diluted:Income from continuing operations$2.72$2.4311.9Income from discontinued operations$0.01$0.10(90.0)Net income (1)$2.74$2.538.3AVERAGE SHARES OUTSTANDING     Basic224,528236,353     Diluted229,529242,327NM - Not Meaningful(1) Total per share amounts may not add due to roundingBECTON DICKINSON AND COMPANYSUPPLEMENTAL REVENUE INFORMATIONREVENUES BY SEGMENT AND GEOGRAPHIC AREA(Unaudited; Amounts in thousands)Three Months Ended March 31,20112010% ChangeBD MEDICAL   United States$398,487$381,7674.4   International582,845539,8668.0TOTAL$981,332$921,6336.5BD DIAGNOSTICS   United States$310,617$292,8416.1   International294,730262,83112.1TOTAL$605,347$555,6728.9BD BIOSCIENCES   United States$120,077$117,1512.5   International215,267204,9535.0TOTAL$335,344$322,1044.1TOTAL REVENUES   United States$829,181$791,7594.7   International1,092,8421,007,6508.5TOTAL$1,922,023$1,799,4096.8BECTON DICKINSON AND COMPANYSUPPLEMENTAL REVENUE INFORMATIONREVENUES BY SEGMENT AND GEOGRAPHIC AREA(Unaudited; Amounts in thousands)Six Months Ended March 31,20112010% ChangeBD MEDICAL   United States$804,014$814,344(1.3)   International1,103,8631,077,9592.4TOTAL$1,907,877$1,892,3030.8BD DIAGNOSTICS   United States$619,467$603,0452.7   International587,603548,1027.2TOTAL$1,207,070$1,151,1474.9BD BIOSCIENCES   United States$234,302$227,7872.9   International414,779396,9904.5TOTAL$649,081$624,7773.9TOTAL REVENUES   United States$1,657,783$1,645,1760.8   International2,106,2452,023,0514.1TOTAL$3,764,028$3,668,2272.6BECTON DICKINSON AND COMPANYSUPPLEMENTAL REVENUE INFORMATIONREVENUES BY BUSINESS SEGMENTS AND UNITSThree Months Ended March 31,(Unaudited; Amounts in thousands)United States20112010 % Change BD MEDICAL   Medical Surgical Systems$234,571$237,174(1.1)   Diabetes Care95,93992,5153.7   Pharmaceutical Systems67,97752,07830.5TOTAL$398,487$381,7674.4BD DIAGNOSTICS   Preanalytical Systems$156,978$149,9324.7   Diagnostic Systems153,639142,9097.5TOTAL$310,617$292,8416.1BD BIOSCIENCES   Cell Analysis $83,006$78,1836.2   Discovery Labware37,07138,968(4.9)TOTAL$120,077$117,1512.5TOTAL UNITED STATES$829,181$791,7594.7BECTON DICKINSON AND COMPANYSUPPLEMENTAL REVENUE INFORMATIONREVENUES BY BUSINESS SEGMENTS AND UNITSThree Months Ended March 31, (continued)(Unaudited; Amounts in thousands)International % Change 20112010 Reported FXNFX ImpactBD MEDICAL   Medical Surgical Systems$270,020$244,09010.65.74.9   Diabetes Care111,820$95,47117.112.44.7   Pharmaceutical Systems201,005$200,3050.31.2(0.9)TOTAL$582,845$539,8668.05.32.7BD DIAGNOSTICS   Preanalytical Systems$149,261$137,7388.43.94.5   Diagnostic Systems145,469125,09316.310.75.6TOTAL$294,730$262,83112.17.15.0BD BIOSCIENCES   Cell Analysis $172,510$164,2925.0(0.5)5.5   Discovery Labware42,75740,6615.2(1.6)6.8TOTAL$215,267$204,9535.0(0.8)5.8TOTAL INTERNATIONAL$1,092,842$1,007,6508.54.63.9BECTON DICKINSON AND COMPANYSUPPLEMENTAL REVENUE INFORMATIONREVENUES BY BUSINESS SEGMENTS AND UNITSThree Months Ended March 31, (continued)(Unaudited; Amounts in thousands)Total % Change 20112010 Reported FXNFX ImpactBD MEDICAL   Medical Surgical Systems$504,591$481,2644.82.32.5   Diabetes Care207,759187,98610.58.12.4   Pharmaceutical Systems268,982252,3836.67.3(0.7)TOTAL$981,332$921,6336.54.91.6BD DIAGNOSTICS   Preanalytical Systems$306,239$287,6706.54.42.1   Diagnostic Systems299,108268,00211.69.02.6TOTAL$605,347$555,6728.96.52.4BD BIOSCIENCES   Cell Analysis $255,516$242,4755.41.73.7   Discovery Labware79,82879,6290.2(3.3)3.5TOTAL$335,344$322,1044.10.43.7TOTAL REVENUES$1,922,023$1,799,4096.84.62.2BECTON DICKINSON AND COMPANYSUPPLEMENTAL REVENUE INFORMATIONREVENUES BY BUSINESS SEGMENTS AND UNITSSix Months Ended March 31,(Unaudited; Amounts in thousands)United States20112010 % Change BD MEDICAL   Medical Surgical Systems$488,825$511,166(4.4)   Diabetes Care195,524189,0793.4   Pharmaceutical Systems119,665114,0994.9TOTAL$804,014$814,344(1.3)BD DIAGNOSTICS   Preanalytical Systems$319,036$306,1674.2   Diagnostic Systems300,431296,8781.2TOTAL$619,467$603,0452.7BD BIOSCIENCES   Cell Analysis $163,262$155,7874.8   Discovery Labware71,04072,000(1.3)TOTAL$234,302$227,7872.9TOTAL UNITED STATES$1,657,783$1,645,1760.8BECTON DICKINSON AND COMPANYSUPPLEMENTAL REVENUE INFORMATIONREVENUES BY BUSINESS SEGMENTS AND UNITSSix Months Ended March 31, (continued)(Unaudited; Amounts in thousands)International % Change 20112010 Reported FXNFX ImpactBD MEDICAL   Medical Surgical Systems$528,491$503,2735.01.73.3   Diabetes Care226,118200,42812.810.52.3   Pharmaceutical Systems349,254374,258(6.7)(4.4)(2.3)TOTAL$1,103,863$1,077,9592.41.21.2BD DIAGNOSTICS   Preanalytical Systems$299,832$281,6706.43.92.5   Diagnostic Systems287,771266,4328.04.83.2TOTAL$587,603$548,1027.24.42.8BD BIOSCIENCES   Cell Analysis $332,997$318,0254.71.92.8   Discovery Labware81,78278,9653.6(0.9)4.5TOTAL$414,779$396,9904.51.43.1TOTAL INTERNATIONAL$2,106,245$2,023,0514.12.12.0BECTON DICKINSON AND COMPANYSUPPLEMENTAL REVENUE INFORMATIONREVENUES BY BUSINESS SEGMENTS AND UNITSSix Months Ended March 31, (continued)(Unaudited; Amounts in thousands)Total % Change 20112010 Reported FXNFX ImpactBD MEDICAL   Medical Surgical Systems$1,017,316$1,014,4390.3(1.4)1.7   Diabetes Care421,642389,5078.37.11.2   Pharmaceutical Systems468,919488,357(4.0)(2.2)(1.8)TOTAL$1,907,877$1,892,3030.80.10.7BD DIAGNOSTICS   Preanalytical Systems$618,868$587,8375.34.11.2   Diagnostic Systems588,202563,3104.42.91.5TOTAL$1,207,070$1,151,1474.93.61.3BD BIOSCIENCES   Cell Analysis $496,259$473,8124.72.81.9   Discovery Labware152,822150,9651.2(1.1)2.3TOTAL$649,081$624,7773.91.92.0TOTAL REVENUES$3,764,028$3,668,2272.61.51.1BECTON DICKINSON AND COMPANYSUPPLEMENTAL REVENUE INFORMATIONSAFETY REVENUES(Unaudited; Amounts in thousands)Three Months Ended March 31, % Change 20112010 Reported FXNFX ImpactTOTAL SAFETY REVENUES   United States$263,524$263,0440.20.2-   International177,859148,53719.714.15.6TOTAL$441,383$411,5817.25.22.0BY SEGMENT   BD Medical$204,866$193,6885.83.91.9   BD Diagnostics236,517217,8938.56.32.2TOTAL$441,383$411,5817.25.22.0Six Months Ended March 31, % Change 20112010 Reported FXNFX ImpactTOTAL SAFETY REVENUES   United States$547,306$554,859(1.4)(1.4)-   International347,113303,66614.310.83.5TOTAL$894,419$858,5254.22.91.3BY SEGMENT   BD Medical$418,175$414,8620.8(0.4)1.2   BD Diagnostics476,244443,6637.36.01.3TOTAL$894,419$858,5254.22.91.3BECTON DICKINSON AND COMPANYSUPPLEMENTAL INFORMATIONFY2011 Quarter-to-Date Reconciliation(Unaudited; Amounts in millions, except per share data)Three Months Ended March 31,ReportedReportedAdjustedAdjustedFY 2011FY 2010Tax (1)FY 2010% GrowthDiluted Earnings per Sharefrom Continuing Operations$1.38$1.18$.04$1.2213.1%(1) Represents a non-cash charge related to healthcare reform    impacting Medicare Part D reimbursements.  BECTON DICKINSON AND COMPANYSUPPLEMENTAL INFORMATIONFY2011 Year-to-Date Reconciliation(Unaudited; Amounts in millions, except per share data)Six Months Ended March 31,ReportedReportedAdjustedAdjustedFY 2011FY 2010Tax (1)FY 2010% GrowthDiluted Earnings per Sharefrom Continuing Operations$2.72$2.43$.04$2.4710.1%(1) Represents a non-cash charge related to healthcare reform    impacting Medicare Part D reimbursements.  BECTON DICKINSON AND COMPANYSUPPLEMENTAL INFORMATIONQuarter-to-Date Fiscal 2011 Reconciliation - FX Impact(Unaudited; Amounts in millions, except per share data)Three Months Ended March 31,ReportedAdjustedAdjusted Growth Foreign CurrencyFY10 HedgeTotalAdjusted FXNFXN FY 2011FY 2010$TranslationLossFX Change GrowthREVENUES$1,9221,799123132740834.6%Diluted Earnings per Sharefrom Continuing Operations$1.381.220.16(0.00)0.070.070.097.4%All figures rounded. Totals may not add due to rounding.BECTON DICKINSON AND COMPANYSUPPLEMENTAL INFORMATIONYear-to-Date Fiscal 2011 Reconciliation - FX Impact(Unaudited; Amounts in millions, except per share data)Six Months Ended March 31,ReportedAdjustedAdjusted Growth Foreign CurrencyFY10 HedgeTotalAdjusted FXNFXN FY 2011FY 2010$TranslationLossFX Change GrowthREVENUES$3,7643,66896(1)4141551.5%Diluted Earnings per Sharefrom Continuing Operations$2.722.470.250.010.110.120.135.3%All figures rounded. Totals may not add due to rounding.BECTON DICKINSON AND COMPANYSUPPLEMENTAL INFORMATIONFY2010 Year-to-Date ReconciliationReported Diluted Earnings per Share from Continuing Operations$4.90Tax (1)0.04Adjusted Diluted Earnings per Share from Continuing Operations$4.94(1) Represents a non-cash charge related to healthcare reform    impacting Medicare Part D reimbursements.  SOURCE BD (Becton, Dickinson and Company)