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Press release from PR Newswire

BD Announces Results for 2011 Fourth Fiscal Quarter and Full Year

Wednesday, November 02, 2011

BD Announces Results for 2011 Fourth Fiscal Quarter and Full Year06:00 EDT Wednesday, November 02, 2011FRANKLIN LAKES, N.J., Nov. 2, 2011 /PRNewswire/ -- BD (Becton, Dickinson and Company) (NYSE: BDX), a leading global medical technology company, today reported quarterly revenues of $2.051 billion for the fourth fiscal quarter ended September 30, 2011, representing an increase of 9.5 percent from the prior-year period, or 4.0 percent on a foreign currency-neutral basis.  For the full fiscal year ended September 30, 2011, BD reported revenues of $7.829 billion, representing an increase of 6.2 percent over the prior year. On a foreign currency-neutral basis, revenues increased 2.9 percent, despite an unfavorable comparison to the prior year of about 2.0 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 finish to fiscal year 2011. Despite a challenging business environment, all segments contributed to our success and growth," said Vincent A. Forlenza, Chief Executive Officer and President. "We will continue to drive operational efficiencies and make capital and R&D investments to support our innovation strategy as we look to fiscal year 2012 and beyond." Update on the Acquisition of Carmel Pharma, ABAs announced in August 2011, the Company completed the acquisition of Carmel Pharma, AB, a Swedish company that manufactures the BD PhaSeal? System. This is the leading closed-system drug transfer device for the safe handling of hazardous drugs that are packaged in vials. The financial impact of the acquisition on our fourth quarter results was in line with our guidance. Fourth Quarter Earnings and Analysis of the Full Fiscal Year 2011 and 2010 EarningsReported diluted earnings per share from continuing operations for the fourth quarter were $1.36, compared with $1.24 in the prior-year period, representing a 9.7 percent increase. Current quarter results included a non-cash charge of $9 million, or $0.03 per share from continuing operations, resulting from the discontinuance of a research program within the Diagnostic Systems unit. Excluding this item, adjusted diluted earnings per share from continuing operations increased by 12.1 percent to $1.39, compared with $1.24 in the prior-year period.  On a foreign currency-neutral basis, adjusted diluted earnings per share from continuing operations for the fourth quarter increased by 8.1 percent.  For the full fiscal year ended September 30, 2011, reported diluted earnings per share from continuing operations were $5.59, compared with $4.90 in the prior fiscal year, representing an increase of 14.1 percent. Excluding the aforementioned charge of $9 million, or $0.03 per share from continuing operations, and the 2010 fiscal year charge of $0.04 per share from continuing operations related to healthcare reform impacting Medicare Part D reimbursements, adjusted diluted earnings per share from continuing operations increased by 13.8 percent to $5.62, compared with $4.94 in the prior-year period. On a foreign currency-neutral basis, adjusted diluted earnings per share from continuing operations for the fiscal year increased 8.1 percent.Segment ResultsIn the BD Medical segment, worldwide revenues for the quarter were $1.055 billion, representing an increase of 10.0 percent compared with the prior-year period. Revenues increased 3.8 percent on a foreign currency-neutral basis. Segment revenue growth reflected strong Diabetes Care and international safety sales, along with solid sales of Pharmaceutical Systems products. For the twelve-month period ended September 30, 2011, BD Medical revenues increased 5.6 percent, or 2.3 percent on a foreign currency-neutral basis.In the BD Diagnostics segment, worldwide revenues for the quarter were $642 million, representing an increase of 8.6 percent compared with the prior-year period, or 3.8 percent on a foreign currency-neutral basis.  Revenues reflected solid growth in both the Women's Health and Cancer and the Infectious Disease product offerings within the Diagnostic Systems unit. For the twelve-month period ended September 30, 2011, BD Diagnostics revenues increased 7.0 percent, or 3.9 percent on a foreign currency-neutral basis.In the BD Biosciences segment, worldwide revenues for the quarter were $354 million, representing an increase of 9.6 percent compared with the prior-year period. Revenues increased 4.7 percent on a foreign currency-neutral basis, primarily driven by instrument and reagent sales in the Cell Analysis unit. For the twelve-month period ended September 30, 2011, BD Biosciences revenues increased 6.7 percent, or 3.2 percent on a foreign currency-neutral basis.Geographic ResultsFourth quarter revenues in the U.S. were $843 million, representing an increase of 1.3 percent compared with the prior-year period. Revenues outside of the U.S. were $1.208 billion, representing an increase of 16.0 percent compared with the prior-year period, or 6.1 percent on a foreign currency-neutral basis. International revenue growth was driven by continued strength in safety sales and strong growth in emerging markets. For the twelve-month period ended September 30, 2011, revenues in the U.S. were $3.356 billion, representing an increase of 2.1 percent compared with the prior-year period.  Revenues outside of the U.S. were $4.473 billion, representing an increase of 9.5 percent compared with the prior-year period, or 3.6 percent on a foreign currency-neutral basis.Fiscal 2012 Outlook for Full Year The Company estimates that reported revenues for the full fiscal year 2012 will increase about 1 to 3 percent, or 2 to 4 percent on a foreign currency-neutral basis.  Our guidance reflects the anticipated effects of lower healthcare utilization, reduced research funding and global macroeconomic conditions. The Company expects reported diluted earnings per share from continuing operations for fiscal year 2012 to be between $5.75 and $5.85. The Company also plans to repurchase, subject to market conditions, $1.5 billion of its common stock in fiscal year 2012, and fund the repurchases through ongoing cash flow and the issuance of debt.Conference Call Information A conference call regarding BD?s fourth quarter results and its expectations for the full fiscal year 2012 will be broadcast live on BD?s website, www.bd.com/investors, along with related slides, at 8:00 a.m. (ET) Wednesday, November 2, 2011. The slides will be 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 855-859-2056 (domestic) and 404-537-3406 (international) through the close of business on Wednesday, November 9, 2011, access code 16826583.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 2012 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 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 as a result of reduced government funding, lower utilization rates or otherwise, 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.Contact: Monique N. Dolecki, Investor Relations ? 201-847-5453 Colleen T. White, Corporate Communications ? 201-847-5369BECTON DICKINSON AND COMPANY  CONSOLIDATED INCOME STATEMENTS(Unaudited; Amounts in thousands, except per share data)Three Months Ended September 30,20112010% ChangeREVENUES$2,050,795$1,873,1959.5Cost of products sold999,352900,93310.9Selling and administrative 487,232438,13911.2Research and development126,054123,6062.0TOTAL OPERATING COSTS     AND EXPENSES1,612,6381,462,67810.3OPERATING INCOME438,157410,5176.7Interest income1,91514,594(86.9)Interest expense(22,334)(12,278)81.9Other income, net1,2721,285(1.0)INCOME FROM CONTINUING OPERATIONS BEFORE     INCOME TAXES419,010414,1181.2Income tax provision117,606121,065(2.9)INCOME FROM CONTINUING OPERATIONS301,404293,0532.8(LOSS) INCOME FROM DISCONTINUED OPERATIONS   NET OF INCOME TAX PROVISION OF$81 AND $27,645, RESPECTIVELY(1,424)103,642        NM NET INCOME$299,980$396,695(24.4)EARNINGS PER SHAREBasic:Income from continuing operations$1.39$1.279.4(Loss) Income from discontinued operations$(0.01)$0.45        NM Net income (1)$1.38$1.71(19.3)Diluted:Income from continuing operations$1.36$1.249.7(Loss) Income from discontinued operations$(0.01)$0.44        NM Net income (1)$1.36$1.68(19.0)AVERAGE SHARES OUTSTANDING     Basic216,726231,396     Diluted220,859236,316NM - Not Meaningful(1) Total per share amounts may not add due to rounding. Page 1BECTON DICKINSON AND COMPANY CONSOLIDATED INCOME STATEMENTS(Unaudited; Amounts in thousands, except per share data)Twelve Months Ended September 30,20112010% ChangeREVENUES$7,828,904$7,372,3336.2Cost of products sold3,737,3523,543,1835.5Selling and administrative 1,851,7741,721,3567.6Research and development476,496430,99710.6TOTAL OPERATING COSTS     AND EXPENSES6,065,6225,695,5366.5OPERATING INCOME1,763,2821,676,7975.2Interest income43,20935,12923.0Interest expense(84,019)(51,263)63.9Other (expense) income, net(6,209)497        NM INCOME FROM CONTINUING OPERATIONS BEFORE     INCOME TAXES1,716,2631,661,1603.3Income tax provision451,411484,820(6.9)INCOME FROM CONTINUING OPERATIONS1,264,8521,176,3407.5INCOME FROM DISCONTINUED OPERATIONS   NET OF INCOME TAX PROVISION OF$792 AND $40,703, RESPECTIVELY6,142141,270        NM NET INCOME$1,270,994$1,317,610(3.5)EARNINGS PER SHAREBasic:Income from continuing operations$5.72$5.0213.9Income from discontinued operations$0.03$0.60(95.0)Net income$5.75$5.622.3Diluted:Income from continuing operations$5.59$4.9014.1Income from discontinued operations$0.03$0.59(94.9)Net income$5.62$5.492.4AVERAGE SHARES OUTSTANDING     Basic221,175234,328     Diluted226,280240,136NM - Not MeaningfulPage 2BECTON DICKINSON AND COMPANY SUPPLEMENTAL REVENUE INFORMATIONREVENUES BY SEGMENT AND GEOGRAPHIC AREA(Unaudited; Amounts in thousands)Three Months Ended September 30,20112010% ChangeBD MEDICAL   United States$404,301$400,2311.0   International650,290558,37416.5TOTAL$1,054,591$958,60510.0BD DIAGNOSTICS   United States$313,603$307,7211.9   International328,445283,74315.8TOTAL$642,048$591,4648.6BD BIOSCIENCES   United States$124,619$124,0090.5   International229,537199,11715.3TOTAL$354,156$323,1269.6TOTAL REVENUES   United States$842,523$831,9611.3   International1,208,2721,041,23416.0TOTAL$2,050,795$1,873,1959.5Page 3BECTON DICKINSON AND COMPANY SUPPLEMENTAL REVENUE INFORMATIONREVENUES BY SEGMENT AND GEOGRAPHIC AREA(Unaudited; Amounts in thousands)Twelve Months Ended September 30,20112010% ChangeBD MEDICAL   United States$1,625,044$1,596,3361.8   International2,382,2602,200,0968.3TOTAL$4,007,304$3,796,4325.6BD DIAGNOSTICS   United States$1,245,872$1,214,2882.6   International1,234,6051,104,59111.8TOTAL$2,480,477$2,318,8797.0BD BIOSCIENCES   United States$484,853$475,9411.9   International856,270781,0819.6TOTAL$1,341,123$1,257,0226.7TOTAL REVENUES   United States$3,355,769$3,286,5652.1   International4,473,1354,085,7689.5TOTAL$7,828,904$7,372,3336.2Page 4BECTON DICKINSON AND COMPANYSUPPLEMENTAL REVENUE INFORMATIONREVENUES BY BUSINESS SEGMENTS AND UNITSThree Months Ended September 30,(Unaudited; Amounts in thousands)United States20112010 % Change BD MEDICAL   Medical Surgical Systems$246,746$256,290(3.7)   Diabetes Care104,81998,6336.3   Pharmaceutical Systems52,73645,30816.4TOTAL$404,301$400,2311.0BD DIAGNOSTICS   Preanalytical Systems$161,556$162,024(0.3)   Diagnostic Systems152,047145,6974.4TOTAL$313,603$307,7211.9BD BIOSCIENCES   Cell Analysis $89,899$86,7653.6   Discovery Labware34,72037,244(6.8)TOTAL$124,619$124,0090.5TOTAL UNITED STATES$842,523$831,9611.3Page 5 BECTON DICKINSON AND COMPANYSUPPLEMENTAL REVENUE INFORMATIONREVENUES BY BUSINESS SEGMENTS AND UNITSThree Months Ended September 30, (continued)(Unaudited; Amounts in thousands)International % Change 20112010 Reported FXNFX ImpactBD MEDICAL   Medical Surgical Systems$288,653$245,72417.57.89.7   Diabetes Care119,832100,46819.37.611.7   Pharmaceutical Systems241,805212,18214.02.511.5TOTAL$650,290$558,37416.55.810.7BD DIAGNOSTICS   Preanalytical Systems$167,044$144,42115.75.710.0   Diagnostic Systems161,401139,32215.86.29.6TOTAL$328,445$283,74315.85.99.9BD BIOSCIENCES   Cell Analysis $183,259$160,23014.46.87.6   Discovery Labware46,27838,88719.09.59.5TOTAL$229,537$199,11715.37.38.0TOTAL INTERNATIONAL$1,208,272$1,041,23416.06.19.9Page 6BECTON DICKINSON AND COMPANYSUPPLEMENTAL REVENUE INFORMATIONREVENUES BY BUSINESS SEGMENTS AND UNITSThree Months Ended September 30, (continued)(Unaudited; Amounts in thousands)Total % Change 20112010 Reported FXNFX ImpactBD MEDICAL   Medical Surgical Systems$535,399$502,0146.71.94.8   Diabetes Care224,651199,10112.87.05.8   Pharmaceutical Systems294,541257,49014.44.99.5TOTAL$1,054,591$958,60510.03.86.2BD DIAGNOSTICS   Preanalytical Systems$328,600$306,4457.22.54.7   Diagnostic Systems313,448285,01910.05.24.8TOTAL$642,048$591,4648.63.84.8BD BIOSCIENCES   Cell Analysis $273,158$246,99510.65.74.9   Discovery Labware80,99876,1316.41.64.8TOTAL$354,156$323,1269.64.74.9TOTAL REVENUES$2,050,795$1,873,1959.54.05.5Page 7BECTON DICKINSON AND COMPANY SUPPLEMENTAL REVENUE INFORMATIONREVENUES BY BUSINESS SEGMENTS AND UNITSTwelve Months Ended September 30,(Unaudited; Amounts in thousands)United States20112010 % Change BD MEDICAL   Medical Surgical Systems$980,326$1,007,322(2.7)   Diabetes Care400,809383,7834.4   Pharmaceutical Systems243,909205,23118.8TOTAL$1,625,044$1,596,3361.8BD DIAGNOSTICS   Preanalytical Systems$643,180$627,4212.5   Diagnostic Systems602,692586,8672.7TOTAL$1,245,872$1,214,2882.6BD BIOSCIENCES   Cell Analysis $342,322$326,9164.7   Discovery Labware142,531149,025(4.4)TOTAL$484,853$475,9411.9TOTAL UNITED STATES$3,355,769$3,286,5652.1 Page 8 BECTON DICKINSON AND COMPANYSUPPLEMENTAL REVENUE INFORMATIONREVENUES BY BUSINESS SEGMENTS AND UNITSTwelve Months Ended September 30, (continued)(Unaudited; Amounts in thousands)International % Change 20112010 Reported FXNFX ImpactBD MEDICAL   Medical Surgical Systems$1,101,407$1,002,6879.83.56.3   Diabetes Care465,668401,97615.89.16.7   Pharmaceutical Systems815,185795,4332.5(1.9)4.4TOTAL$2,382,260$2,200,0968.32.65.7BD DIAGNOSTICS   Preanalytical Systems$634,613$570,38611.34.96.4   Diagnostic Systems599,992534,20512.35.86.5TOTAL$1,234,605$1,104,59111.85.46.4BD BIOSCIENCES   Cell Analysis $682,123$624,3229.34.05.3   Discovery Labware174,147156,75911.14.17.0TOTAL$856,270$781,0819.64.05.6TOTAL INTERNATIONAL$4,473,135$4,085,7689.53.65.9Page 9BECTON DICKINSON AND COMPANYSUPPLEMENTAL REVENUE INFORMATIONREVENUES BY BUSINESS SEGMENTS AND UNITSTwelve Months Ended September 30, (continued)(Unaudited; Amounts in thousands)Total % Change 20112010 Reported FXNFX ImpactBD MEDICAL   Medical Surgical Systems$2,081,733$2,010,0093.60.43.2   Diabetes Care866,477785,75910.36.83.5   Pharmaceutical Systems1,059,0941,000,6645.82.43.4TOTAL$4,007,304$3,796,4325.62.33.3BD DIAGNOSTICS   Preanalytical Systems$1,277,793$1,197,8076.73.73.0   Diagnostic Systems1,202,6841,121,0727.34.23.1TOTAL$2,480,477$2,318,8797.03.93.1BD BIOSCIENCES   Cell Analysis $1,024,445$951,2387.74.33.4   Discovery Labware316,678305,7843.6-3.6TOTAL$1,341,123$1,257,0226.73.23.5TOTAL REVENUES$7,828,904$7,372,3336.22.93.3Page 10BECTON DICKINSON AND COMPANYSUPPLEMENTAL REVENUE INFORMATIONSAFETY REVENUES(Unaudited; Amounts in thousands)Three Months Ended September 30, % Change 20112010 Reported FXNFX ImpactTOTAL SAFETY REVENUES   United States$288,541$282,9682.02.0-   International209,209160,39630.418.511.9TOTAL$497,750$443,36412.37.94.4BY SEGMENT   BD Medical$243,521$208,82216.612.44.2   BD Diagnostics254,229234,5428.44.04.4TOTAL$497,750$443,36412.37.94.4Twelve Months Ended September 30, % Change 20112010 Reported FXNFX ImpactTOTAL SAFETY REVENUES   United States$1,116,543$1,108,4310.70.7-   International754,739621,91321.413.67.8TOTAL$1,871,282$1,730,3448.15.42.7BY SEGMENT   BD Medical$885,156$819,0848.15.42.7   BD Diagnostics986,126911,2608.25.32.9TOTAL$1,871,282$1,730,3448.15.42.7Page 11BECTON DICKINSON AND COMPANYSUPPLEMENTAL INFORMATIONFY2011 Quarter-to-Date Reconciliation(Unaudited; Amounts in millions, except per share data)Three Months Ended September 30,ReportedImpairmentAdjustedReportedAdjustedFY 2011Charge (1)FY 2011FY 2010% GrowthDiluted Earnings per Sharefrom Continuing Operations$1.36$0.03$1.39$1.2412.1%(1) Represents a non-cash impairment charge resulting from the    discontinuance of a research program within the Diagnostic Systems unit.All figures rounded. Totals may not add due to rounding.Page 12BECTON DICKINSON AND COMPANYSUPPLEMENTAL INFORMATIONFY2011 Year-to-Date Reconciliation(Unaudited; Amounts in millions, except per share data)Twelve Months Ended September 30,ReportedImpairmentAdjustedReportedAdjustedAdjustedFY 2011Charge (1)FY 2011FY 2010Tax (2)FY 2010% GrowthDiluted Earnings per Sharefrom Continuing Operations$5.59$0.03$5.62$4.90$0.04$4.9413.8%(1) Represents a non-cash impairment charge resulting from the    discontinuance of a research program within the Diagnostic Systems unit.(2) Represents a non-cash charge related to healthcare reform    impacting Medicare Part D reimbursements.  All figures rounded. Totals may not add due to rounding.Page 13BECTON DICKINSON AND COMPANYSUPPLEMENTAL INFORMATIONQuarter-to-Date Fiscal 2011 Reconciliation - FX Impact(Unaudited; Amounts in millions, except per share data)Three Months Ended September 30,AdjustedReportedAdjustedGrowth ForeignCurrencyFY10 HedgeTotalAdjusted FXNFXN FY 2011FY 2010$TranslationGainFX Change GrowthREVENUES$2,051$1,873$178$115$(11)$103$744.0%Diluted Earnings per Sharefrom Continuing Operations$1.39$1.24$0.15$0.08$(0.03)$0.05$0.108.1%All figures rounded. Totals may not add due to rounding.FXN = Foreign Currency NeutralPage 14BECTON DICKINSON AND COMPANYSUPPLEMENTAL INFORMATIONYear-to-Date Fiscal 2011 Reconciliation - FX Impact(Unaudited; Amounts in millions, except per share data)Twelve Months Ended September 30,AdjustedAdjustedAdjustedGrowth ForeignCurrencyFY10 HedgeTotalAdjusted FXNFXN FY 2011FY 2010$TranslationLossFX Change GrowthREVENUES$7,829$7,372$457$208$31$240$2172.9%Diluted Earnings per Sharefrom Continuing Operations$5.62$4.94$0.68$0.20$0.08$0.28$0.408.1%All figures rounded. Totals may not add due to rounding.FXN = Foreign Currency Neutral Page 15SOURCE BD (Becton, Dickinson and Company)