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Press release from PR Newswire

BD Announces Results for 2012 Second Fiscal Quarter

Tuesday, May 01, 2012

BD Announces Results for 2012 Second Fiscal Quarter06:00 EDT Tuesday, May 01, 2012FRANKLIN LAKES, N.J., May 1, 2012 /PRNewswire/ -- BD (Becton, Dickinson and Company) (NYSE: BDX), a leading global medical technology company, today reported quarterly revenues of $1.991 billion for the second fiscal quarter ended March 31, 2012, representing an increase of 3.6 percent from the prior-year period, or 4.6 percent on a foreign currency-neutral basis.  "We are very pleased with our second quarter results. We posted solid revenue growth led by our BD Medical and BD Diagnostics segments, despite continuing challenges in the U.S. in our BD Biosciences segment," said Vincent A. Forlenza, Chief Executive Officer and President. "We remain committed to our strategy of investing and innovating for growth, both organically and through acquisitions such as KIESTRA Lab Automation." Agreement to Sell Discovery Labware Unit, Excluding Advanced BioprocessingIn April 2012, the Company signed a definitive agreement to sell its BD Biosciences - Discovery Labware unit, excluding its Advanced Bioprocessing platform. The transaction is expected to be completed by the end of calendar year 2012, subject to the satisfaction of customary closing conditions, including consultations and regulatory approvals. For the full fiscal year 2012, revenues and earnings per share associated with this asset group are estimated at $235 million and $0.23 to $0.27, respectively. The Company expects to record a gain on the sale at the time the transaction is completed.Second Quarter and Six-Month Fiscal 2012 Operating ResultsAs expected, reported diluted earnings per share from continuing operations for the second quarter were $1.38, or flat compared with the prior-year period. On a foreign currency-neutral basis, diluted earnings per share from continuing operations for the second quarter increased by 2.9 percent. For the six-month period ending March 31, 2012, reported diluted earnings per share from continuing operations were $2.59, compared with $2.72 in the prior-year period. This represents a decrease of 4.8 percent, or 3.3 percent on a currency-neutral basis. Segment ResultsIn the BD Medical segment, worldwide revenues for the quarter were $1.021 billion, representing an increase of 4.1 percent compared with the prior-year period, or 5.3 percent on a currency-neutral basis. The segment's revenue growth reflected strong sales in the Pharmaceutical Systems and Diabetes Care units and solid sales in the Medical Surgical Systems unit. For the six-month period ended March 31, 2012, BD Medical revenues increased 3.3 percent, or 4.0 percent on a currency-neutral basis. In the BD Diagnostics segment, worldwide revenues for the quarter were $630 million, representing an increase of 4.1 percent compared with the prior-year period, or 5.0 percent on a foreign currency-neutral basis. The segment's growth was primarily driven by strong sales in the Preanalytical Systems unit and solid growth in Women's Health and Cancer. For the six-month period ended March 31, 2012, BD Diagnostics revenues increased 3.6 percent, or 4.1 percent on a currency-neutral basis. In the BD Biosciences segment, worldwide revenues for the quarter were $340 million, representing an increase of 1.3 percent compared with the prior-year period, or 1.7 percent on a foreign currency-neutral basis.  Segment growth was primarily driven by clinical reagent sales in the Cell Analysis unit and strong emerging market sales as overall segment growth continues to be negatively affected by weakness in the U.S. research market. For the six-month period ended March 31, 2012, BD Biosciences revenues increased 1.1 percent, or 1.0 percent on a currency-neutral basis. Geographic ResultsSecond quarter revenues in the U.S. were $848 million, representing an increase of 2.2 percent compared with the prior-year period. Revenues outside of the U.S. were $1.143 billion, representing an increase of 4.6 percent compared with the prior-year period, or an increase of 6.3 percent on a foreign currency-neutral basis. International revenues reflected continued strength in emerging markets and strong sales of safety-engineered products. For the six-month period ended March 31, 2012, revenues in the U.S. were $1.676 billion, representing an increase of 1.1 percent compared with the prior-year period. Revenues outside of the U.S. were $2.202 billion, representing an increase of 4.5 percent when compared with the prior-year period, or 5.4 percent on a foreign currency-neutral basis. Fiscal 2012 Outlook for Full Year The Company is raising its previous guidance for reported revenue growth for the full fiscal year 2012 from about flat to be between 1 to 2 percent. This reflects the anticipated effects of favorable currency translation. On a currency-neutral basis, the Company is raising the lower end of its previous revenue growth guidance of 2 to 4 percent, to 3 to 4 percent. The Company is raising reported diluted earnings per share from continuing operations for fiscal year 2012 from $5.60 to $5.70 to be between $5.68 and $5.73, and plans to repurchase, subject to market conditions, $1.5 billion of its common stock in fiscal year 2012.Conference Call InformationA conference call regarding BD's second 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) Tuesday, May 1, 2012.  The conference call will be available for replay on BD's website, www.bd.com/investors, or at 1-800-585-8367 (domestic) and 1-404-537-3406 (international) through the close of business on Tuesday, May 8, 2012, access code 68128968. 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 for Full Year", 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: adverse changes in regional, national or foreign economic conditions, including any impact that may result from the current global economic conditions 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; 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; changes in interest or foreign currency exchange rates; competitive factors; pricing and other market pressures; our ability to successfully integrate any businesses we acquire; 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; 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 ? 201-847-5378Colleen T. White, Corporate Communications ? 201-847-5369BECTON DICKINSON AND COMPANYCONSOLIDATED INCOME STATEMENTS(Unaudited; Amounts in thousands, except per share data)Three Months Ended March 31,20122011% ChangeREVENUES$1,990,818$1,922,0233.6Cost of products sold970,832920,5895.5Selling and administrative 495,020441,94212.0Research and development118,528119,152(0.5)TOTAL OPERATING COSTS     AND EXPENSES1,584,3801,481,6836.9OPERATING INCOME406,438440,340(7.7)Interest income16,67814,56414.5Interest expense(35,140)(23,921)46.9Other income (expense), net4,657(2,522)        NM   INCOME FROM CONTINUING OPERATIONS BEFORE     INCOME TAXES392,633428,461(8.4)Income tax provision102,085117,399(13.0)INCOME FROM CONTINUING OPERATIONS290,548311,062(6.6)INCOME FROM DISCONTINUED OPERATIONS   NET OF INCOME TAX (BENEFIT) PROVISION OF$(140) AND $377, RESPECTIVELY485957(49.3)NET INCOME$291,033$312,019(6.7)EARNINGS PER SHAREBasic:Income from continuing operations$1.41$1.41-Income from discontinued operations$-$--Net income $1.41$1.41-Diluted:Income from continuing operations$1.38$1.38-Income from discontinued operations$-$--Net income (1)$1.39$1.380.7AVERAGE SHARES OUTSTANDING     Basic206,426220,894     Diluted209,803225,467NM - Not Meaningful(1) Total per share amounts may not add due to rounding.Page 1BECTON DICKINSON AND COMPANYCONSOLIDATED INCOME STATEMENTS(Unaudited; Amounts in thousands, except per share data)Six Months Ended March 31,20122011% ChangeREVENUES$3,878,464$3,764,0283.0Cost of products sold1,897,0151,786,0206.2Selling and administrative 983,978889,89710.6Research and development232,464234,693(0.9)TOTAL OPERATING COSTS     AND EXPENSES3,113,4572,910,6107.0OPERATING INCOME765,007853,418(10.4)Interest income32,12629,7867.9Interest expense(64,518)(39,474)63.4Other income (expense), net4,272(7,118)        NM   INCOME FROM CONTINUING OPERATIONS BEFORE     INCOME TAXES736,887836,612(11.9)Income tax provision183,328211,273(13.2)INCOME FROM CONTINUING OPERATIONS553,559625,339(11.5)INCOME FROM DISCONTINUED OPERATIONS   NET OF INCOME TAX (BENEFIT) PROVISION OF$(159) AND $601, RESPECTIVELY4602,617(82.4)NET INCOME$554,019$627,956(11.8)EARNINGS PER SHAREBasic:Income from continuing operations$2.63$2.79(5.7)Income from discontinued operations$-$0.01        NM   Net income$2.63$2.80(6.1)Diluted:Income from continuing operations$2.59$2.72(4.8)Income from discontinued operations$-$0.01        NM   Net income (1)$2.59$2.74(5.5)AVERAGE SHARES OUTSTANDING     Basic210,385224,528     Diluted213,970229,529NM - Not Meaningful(1) Total per share amounts may not add due to rounding.Page 2BECTON DICKINSON AND COMPANYSUPPLEMENTAL REVENUE INFORMATIONREVENUES BY SEGMENT AND GEOGRAPHIC AREA(Unaudited; Amounts in thousands)Three Months Ended March 31,20122011% ChangeBD MEDICAL   United States$418,521$398,4875.0   International602,666582,8453.4TOTAL$1,021,187$981,3324.1BD DIAGNOSTICS   United States$318,597$310,6172.6   International311,422294,7305.7TOTAL$630,019$605,3474.1BD BIOSCIENCES   United States$110,502$120,077(8.0)   International229,110215,2676.4TOTAL$339,612$335,3441.3TOTAL REVENUES   United States$847,620$829,1812.2   International1,143,1981,092,8424.6TOTAL$1,990,818$1,922,0233.6Page 3BECTON DICKINSON AND COMPANYSUPPLEMENTAL REVENUE INFORMATIONREVENUES BY SEGMENT AND GEOGRAPHIC AREA(Unaudited; Amounts in thousands)Six Months Ended March 31,20122011% ChangeBD MEDICAL   United States$833,190$804,0143.6   International1,138,3941,103,8633.1TOTAL$1,971,584$1,907,8773.3BD DIAGNOSTICS   United States$630,220$619,4671.7   International620,542587,6035.6TOTAL$1,250,762$1,207,0703.6BD BIOSCIENCES   United States$213,003$234,302(9.1)   International443,115414,7796.8TOTAL$656,118$649,0811.1TOTAL REVENUES   United States$1,676,413$1,657,7831.1   International2,202,0512,106,2454.5TOTAL$3,878,464$3,764,0283.0Page 4BECTON DICKINSON AND COMPANYSUPPLEMENTAL REVENUE INFORMATIONREVENUES BY BUSINESS SEGMENTS AND UNITSThree Months Ended March 31,(Unaudited; Amounts in thousands)United States20122011 % Change BD MEDICAL   Medical Surgical Systems$237,599$234,5711.3   Diabetes Care105,72595,93910.2   Pharmaceutical Systems75,19767,97710.6TOTAL$418,521$398,4875.0BD DIAGNOSTICS   Preanalytical Systems$163,455$156,9784.1   Diagnostic Systems155,142153,6391.0TOTAL$318,597$310,6172.6BD BIOSCIENCES   Cell Analysis $78,841$83,006(5.0)   Discovery Labware31,66137,071(14.6)TOTAL$110,502$120,077(8.0)TOTAL UNITED STATES$847,620$829,1812.2 Page 5 BECTON DICKINSON AND COMPANYSUPPLEMENTAL REVENUE INFORMATIONREVENUES BY BUSINESS SEGMENTS AND UNITSThree Months Ended March 31, (continued)(Unaudited; Amounts in thousands)International % Change 20122011 Reported FXNFX ImpactBD MEDICAL   Medical Surgical Systems$281,340$270,0204.26.0(1.8)   Diabetes Care113,520111,8201.53.3(1.8)   Pharmaceutical Systems207,806201,0053.45.9(2.5)TOTAL$602,666$582,8453.45.4(2.0)BD DIAGNOSTICS   Preanalytical Systems$159,858$149,2617.19.6(2.5)   Diagnostic Systems151,564145,4694.25.5(1.3)TOTAL$311,422$294,7305.77.6(1.9)BD BIOSCIENCES   Cell Analysis $182,702$172,5105.96.6(0.7)   Discovery Labware46,40842,7578.58.7(0.2)TOTAL$229,110$215,2676.47.0(0.6)TOTAL INTERNATIONAL$1,143,198$1,092,8424.66.3(1.7)Page 6BECTON DICKINSON AND COMPANYSUPPLEMENTAL REVENUE INFORMATIONREVENUES BY BUSINESS SEGMENTS AND UNITSThree Months Ended March 31, (continued)(Unaudited; Amounts in thousands)Total % Change 20122011 Reported FXNFX ImpactBD MEDICAL    Medical Surgical Systems$518,939$504,5912.83.8(1.0)   Diabetes Care219,245207,7595.56.5(1.0)   Pharmaceutical Systems283,003268,9825.27.1(1.9)TOTAL$1,021,187$981,3324.15.3(1.2)BD DIAGNOSTICS   Preanalytical Systems$323,313$306,2395.66.8(1.2)   Diagnostic Systems306,706299,1082.53.2(0.7)TOTAL$630,019$605,3474.15.0(0.9)BD BIOSCIENCES   Cell Analysis $261,543$255,5162.42.8(0.4)   Discovery Labware78,06979,828(2.2)(2.1)(0.1)TOTAL$339,612$335,3441.31.7(0.4)TOTAL REVENUES$1,990,818$1,922,0233.64.6(1.0)Page 7BECTON DICKINSON AND COMPANYSUPPLEMENTAL REVENUE INFORMATIONREVENUES BY BUSINESS SEGMENTS AND UNITSSix Months Ended March 31,(Unaudited; Amounts in thousands)United States20122011 % Change BD MEDICAL   Medical Surgical Systems$486,015$488,825(0.6)   Diabetes Care211,251195,5248.0   Pharmaceutical Systems135,924119,66513.6TOTAL$833,190$804,0143.6BD DIAGNOSTICS   Preanalytical Systems$325,570$319,0362.0   Diagnostic Systems304,650300,4311.4TOTAL$630,220$619,4671.7BD BIOSCIENCES   Cell Analysis $152,634$163,262(6.5)   Discovery Labware60,36971,040(15.0)TOTAL$213,003$234,302(9.1)TOTAL UNITED STATES$1,676,413$1,657,7831.1 Page 8 BECTON DICKINSON AND COMPANYSUPPLEMENTAL REVENUE INFORMATIONREVENUES BY BUSINESS SEGMENTS AND UNITSSix Months Ended March 31, (continued)(Unaudited; Amounts in thousands)International % Change 20122011 Reported FXNFX ImpactBD MEDICAL   Medical Surgical Systems$555,234$528,4915.16.3(1.2)   Diabetes Care233,913226,1183.44.2(0.8)   Pharmaceutical Systems349,247349,254-1.1(1.1)TOTAL$1,138,394$1,103,8633.14.2(1.1)BD DIAGNOSTICS   Preanalytical Systems$314,365$299,8324.86.5(1.7)   Diagnostic Systems306,177287,7716.46.8(0.4)TOTAL$620,542$587,6035.66.7(1.1)BD BIOSCIENCES   Cell Analysis $352,510$332,9975.95.9-   Discovery Labware90,60581,78210.89.90.9TOTAL$443,115$414,7796.86.70.1TOTAL INTERNATIONAL$2,202,051$2,106,2454.55.4(0.9)Page 9BECTON DICKINSON AND COMPANYSUPPLEMENTAL REVENUE INFORMATIONREVENUES BY BUSINESS SEGMENTS AND UNITSSix Months Ended March 31, (continued)(Unaudited; Amounts in thousands)Total % Change 20122011 Reported FXNFX ImpactBD MEDICAL    Medical Surgical Systems$1,041,249$1,017,3162.43.0(0.6)   Diabetes Care445,164421,6425.66.0(0.4)   Pharmaceutical Systems485,171468,9193.54.3(0.8)TOTAL$1,971,584$1,907,8773.34.0(0.7)BD DIAGNOSTICS   Preanalytical Systems$639,935$618,8683.44.2(0.8)   Diagnostic Systems610,827588,2023.84.1(0.3)TOTAL$1,250,762$1,207,0703.64.1(0.5)BD BIOSCIENCES   Cell Analysis $505,144$496,2591.81.8-   Discovery Labware150,974152,822(1.2)(1.7)0.5TOTAL$656,118$649,0811.11.00.1TOTAL REVENUES$3,878,464$3,764,0283.03.5(0.5)Page 10BECTON DICKINSON AND COMPANYSUPPLEMENTAL REVENUE INFORMATIONSAFETY REVENUES(Unaudited; Amounts in thousands)Three Months Ended March 31, % Change 20122011 Reported FXNFX ImpactTOTAL SAFETY REVENUES   United States$282,733$263,5247.37.3-   International205,369177,85915.517.7(2.2)TOTAL$488,102$441,38310.611.5(0.9)BY SEGMENT   BD Medical$235,928$204,86615.215.6(0.4)   BD Diagnostics252,174236,5176.67.9(1.3)TOTAL$488,102$441,38310.611.5(0.9)Six Months Ended March 31, % Change 20122011 Reported FXNFX ImpactTOTAL SAFETY REVENUES   United States$573,345$547,3064.84.8-   International402,326347,11315.917.2(1.3)TOTAL$975,671$894,4199.19.6(0.5)BY SEGMENT   BD Medical$475,711$418,17513.813.9(0.1)   BD Diagnostics499,960476,2445.05.9(0.9)TOTAL$975,671$894,4199.19.6(0.5)Page 11BECTON DICKINSON AND COMPANYSUPPLEMENTAL INFORMATIONQuarter-to-Date Fiscal 2012 Reconciliation - FX Impact(Unaudited; Amounts in millions, except per share data)Three Months Ended March 31,ReportedReportedReported Growth Foreign CurrencyFXNFXN FY2012FY2011$Translation Change GrowthREVENUES$1,991$1,922$69$(19)$884.6%Diluted Earnings per Sharefrom Continuing Operations$1.38$1.38$0.00$(0.04)$0.042.9%All figures rounded. Totals may not add due to rounding.FXN = Foreign Currency NeutralPage 12BECTON DICKINSON AND COMPANYSUPPLEMENTAL INFORMATIONYear-to-Date Fiscal 2012 Reconciliation - FX Impact(Unaudited; Amounts in millions, except per share data)Six Months Ended March 31,ReportedReportedReported Growth Foreign CurrencyFXNFXN FY2012FY2011$Translation Change GrowthREVENUES$3,878$3,764$114$(18)$1323.5%Diluted Earnings per Sharefrom Continuing Operations$2.59$2.72$(0.13)$(0.04)$(0.09)-3.3%All figures rounded. Totals may not add due to rounding.FXN = Foreign Currency NeutralPage 13  SOURCE BD (Becton, Dickinson and Company)