BD Announces Results for 2012 Second Fiscal Quarter

News provided by

May 01, 2012, 06:00 ET

FRANKLIN 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 Bioprocessing

In 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 Results

As 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 Results

In 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 Results

Second 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 Information

A 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 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.

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 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 – 201-847-5378
Colleen T. White, Corporate Communications – 201-847-5369



BECTON DICKINSON AND COMPANY
CONSOLIDATED INCOME STATEMENTS
(Unaudited; Amounts in thousands, except per share data)

	Three Months Ended March 31,
		2012		2011		% Change

REVENUES	$	1,990,818	$	1,922,023		3.6

Cost of products sold		970,832		920,589		5.5
Selling and administrative		495,020		441,942		12.0
Research and development		118,528		119,152		(0.5)
TOTAL OPERATING COSTS
AND EXPENSES		1,584,380		1,481,683		6.9

OPERATING INCOME		406,438		440,340		(7.7)

Interest income		16,678		14,564		14.5
Interest expense		(35,140)		(23,921)		46.9
Other income (expense), net		4,657		(2,522)		NM

INCOME FROM CONTINUING OPERATIONS BEFORE
INCOME TAXES		392,633		428,461		(8.4)

Income tax provision		102,085		117,399		(13.0)

INCOME FROM CONTINUING OPERATIONS		290,548		311,062		(6.6)

INCOME FROM DISCONTINUED OPERATIONS
NET OF INCOME TAX (BENEFIT) PROVISION OF
$(140) AND $377, RESPECTIVELY		485		957		(49.3)

NET INCOME	$	291,033	$	312,019		(6.7)

EARNINGS PER SHARE

Basic:
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	$	1.38		0.7


AVERAGE SHARES OUTSTANDING

Basic		206,426		220,894
Diluted		209,803		225,467

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)

	Six Months Ended March 31,
		2012		2011		% Change

REVENUES	$	3,878,464	$	3,764,028		3.0

Cost of products sold		1,897,015		1,786,020		6.2
Selling and administrative		983,978		889,897		10.6
Research and development		232,464		234,693		(0.9)
TOTAL OPERATING COSTS
AND EXPENSES		3,113,457		2,910,610		7.0

OPERATING INCOME		765,007		853,418		(10.4)

Interest income		32,126		29,786		7.9
Interest expense		(64,518)		(39,474)		63.4
Other income (expense), net		4,272		(7,118)		NM

INCOME FROM CONTINUING OPERATIONS BEFORE
INCOME TAXES		736,887		836,612		(11.9)

Income tax provision		183,328		211,273		(13.2)

INCOME FROM CONTINUING OPERATIONS		553,559		625,339		(11.5)

INCOME FROM DISCONTINUED OPERATIONS
NET OF INCOME TAX (BENEFIT) PROVISION OF
$(159) AND $601, RESPECTIVELY		460		2,617		(82.4)

NET INCOME	$	554,019	$	627,956		(11.8)

EARNINGS PER SHARE

Basic:
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

Basic		210,385		224,528
Diluted		213,970		229,529

NM - Not Meaningful
(1) Total per share amounts may not add due to rounding.

										Page 2


BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY SEGMENT AND GEOGRAPHIC AREA
(Unaudited; Amounts in thousands)

	Three Months Ended March 31,
		2012		2011		% Change

BD MEDICAL
United States	$	418,521	$	398,487		5.0
International		602,666		582,845		3.4
TOTAL	$	1,021,187	$	981,332		4.1

BD DIAGNOSTICS
United States	$	318,597	$	310,617		2.6
International		311,422		294,730		5.7
TOTAL	$	630,019	$	605,347		4.1

BD BIOSCIENCES
United States	$	110,502	$	120,077		(8.0)
International		229,110		215,267		6.4
TOTAL	$	339,612	$	335,344		1.3

TOTAL REVENUES
United States	$	847,620	$	829,181		2.2
International		1,143,198		1,092,842		4.6
TOTAL	$	1,990,818	$	1,922,023		3.6




										Page 3


BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY SEGMENT AND GEOGRAPHIC AREA
(Unaudited; Amounts in thousands)

	Six Months Ended March 31,
		2012		2011		% Change

BD MEDICAL
United States	$	833,190	$	804,014		3.6
International		1,138,394		1,103,863		3.1
TOTAL	$	1,971,584	$	1,907,877		3.3

BD DIAGNOSTICS
United States	$	630,220	$	619,467		1.7
International		620,542		587,603		5.6
TOTAL	$	1,250,762	$	1,207,070		3.6

BD BIOSCIENCES
United States	$	213,003	$	234,302		(9.1)
International		443,115		414,779		6.8
TOTAL	$	656,118	$	649,081		1.1

TOTAL REVENUES
United States	$	1,676,413	$	1,657,783		1.1
International		2,202,051		2,106,245		4.5
TOTAL	$	3,878,464	$	3,764,028		3.0




										Page 4


BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS
Three Months Ended March 31,
(Unaudited; Amounts in thousands)

	United States
		2012		2011		% Change

BD MEDICAL
Medical Surgical Systems	$	237,599	$	234,571		1.3
Diabetes Care		105,725		95,939		10.2
Pharmaceutical Systems		75,197		67,977		10.6
TOTAL	$	418,521	$	398,487		5.0

BD DIAGNOSTICS
Preanalytical Systems	$	163,455	$	156,978		4.1
Diagnostic Systems		155,142		153,639		1.0
TOTAL	$	318,597	$	310,617		2.6

BD BIOSCIENCES
Cell Analysis	$	78,841	$	83,006		(5.0)
Discovery Labware		31,661		37,071		(14.6)
TOTAL	$	110,502	$	120,077		(8.0)

TOTAL UNITED STATES	$	847,620	$	829,181		2.2




										Page 5


BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS
Three Months Ended March 31, (continued)
(Unaudited; Amounts in thousands)

	International
						% Change
		2012		2011		Reported		FXN		FX Impact

BD MEDICAL
Medical Surgical Systems	$	281,340	$	270,020		4.2		6.0		(1.8)
Diabetes Care		113,520		111,820		1.5		3.3		(1.8)
Pharmaceutical Systems		207,806		201,005		3.4		5.9		(2.5)
TOTAL	$	602,666	$	582,845		3.4		5.4		(2.0)

BD DIAGNOSTICS
Preanalytical Systems	$	159,858	$	149,261		7.1		9.6		(2.5)
Diagnostic Systems		151,564		145,469		4.2		5.5		(1.3)
TOTAL	$	311,422	$	294,730		5.7		7.6		(1.9)

BD BIOSCIENCES
Cell Analysis	$	182,702	$	172,510		5.9		6.6		(0.7)
Discovery Labware		46,408		42,757		8.5		8.7		(0.2)
TOTAL	$	229,110	$	215,267		6.4		7.0		(0.6)

TOTAL INTERNATIONAL	$	1,143,198	$	1,092,842		4.6		6.3		(1.7)




										Page 6


BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS
Three Months Ended March 31, (continued)
(Unaudited; Amounts in thousands)

	Total
						% Change
		2012		2011		Reported		FXN		FX Impact

BD MEDICAL
Medical Surgical Systems	$	518,939	$	504,591		2.8		3.8		(1.0)
Diabetes Care		219,245		207,759		5.5		6.5		(1.0)
Pharmaceutical Systems		283,003		268,982		5.2		7.1		(1.9)
TOTAL	$	1,021,187	$	981,332		4.1		5.3		(1.2)

BD DIAGNOSTICS
Preanalytical Systems	$	323,313	$	306,239		5.6		6.8		(1.2)
Diagnostic Systems		306,706		299,108		2.5		3.2		(0.7)
TOTAL	$	630,019	$	605,347		4.1		5.0		(0.9)

BD BIOSCIENCES
Cell Analysis	$	261,543	$	255,516		2.4		2.8		(0.4)
Discovery Labware		78,069		79,828		(2.2)		(2.1)		(0.1)
TOTAL	$	339,612	$	335,344		1.3		1.7		(0.4)

TOTAL REVENUES	$	1,990,818	$	1,922,023		3.6		4.6		(1.0)




										Page 7


BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS
Six Months Ended March 31,
(Unaudited; Amounts in thousands)

	United States
		2012		2011		% Change

BD MEDICAL
Medical Surgical Systems	$	486,015	$	488,825		(0.6)
Diabetes Care		211,251		195,524		8.0
Pharmaceutical Systems		135,924		119,665		13.6
TOTAL	$	833,190	$	804,014		3.6

BD DIAGNOSTICS
Preanalytical Systems	$	325,570	$	319,036		2.0
Diagnostic Systems		304,650		300,431		1.4
TOTAL	$	630,220	$	619,467		1.7

BD BIOSCIENCES
Cell Analysis	$	152,634	$	163,262		(6.5)
Discovery Labware		60,369		71,040		(15.0)
TOTAL	$	213,003	$	234,302		(9.1)

TOTAL UNITED STATES	$	1,676,413	$	1,657,783		1.1




										Page 8


BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS
Six Months Ended March 31, (continued)
(Unaudited; Amounts in thousands)

	International
						% Change
		2012		2011		Reported		FXN		FX Impact

BD MEDICAL
Medical Surgical Systems	$	555,234	$	528,491		5.1		6.3		(1.2)
Diabetes Care		233,913		226,118		3.4		4.2		(0.8)
Pharmaceutical Systems		349,247		349,254		-		1.1		(1.1)
TOTAL	$	1,138,394	$	1,103,863		3.1		4.2		(1.1)

BD DIAGNOSTICS
Preanalytical Systems	$	314,365	$	299,832		4.8		6.5		(1.7)
Diagnostic Systems		306,177		287,771		6.4		6.8		(0.4)
TOTAL	$	620,542	$	587,603		5.6		6.7		(1.1)

BD BIOSCIENCES
Cell Analysis	$	352,510	$	332,997		5.9		5.9		-
Discovery Labware		90,605		81,782		10.8		9.9		0.9
TOTAL	$	443,115	$	414,779		6.8		6.7		0.1

TOTAL INTERNATIONAL	$	2,202,051	$	2,106,245		4.5		5.4		(0.9)




										Page 9


BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS
Six Months Ended March 31, (continued)
(Unaudited; Amounts in thousands)

	Total
						% Change
		2012		2011		Reported		FXN		FX Impact

BD MEDICAL
Medical Surgical Systems	$	1,041,249	$	1,017,316		2.4		3.0		(0.6)
Diabetes Care		445,164		421,642		5.6		6.0		(0.4)
Pharmaceutical Systems		485,171		468,919		3.5		4.3		(0.8)
TOTAL	$	1,971,584	$	1,907,877		3.3		4.0		(0.7)

BD DIAGNOSTICS
Preanalytical Systems	$	639,935	$	618,868		3.4		4.2		(0.8)
Diagnostic Systems		610,827		588,202		3.8		4.1		(0.3)
TOTAL	$	1,250,762	$	1,207,070		3.6		4.1		(0.5)

BD BIOSCIENCES
Cell Analysis	$	505,144	$	496,259		1.8		1.8		-
Discovery Labware		150,974		152,822		(1.2)		(1.7)		0.5
TOTAL	$	656,118	$	649,081		1.1		1.0		0.1

TOTAL REVENUES	$	3,878,464	$	3,764,028		3.0		3.5		(0.5)




										Page 10


BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
SAFETY REVENUES
(Unaudited; Amounts in thousands)

	Three Months Ended March 31,
						% Change
		2012		2011		Reported		FXN		FX Impact

TOTAL SAFETY REVENUES
United States	$	282,733	$	263,524		7.3		7.3		-
International		205,369		177,859		15.5		17.7		(2.2)
TOTAL	$	488,102	$	441,383		10.6		11.5		(0.9)

BY SEGMENT
BD Medical	$	235,928	$	204,866		15.2		15.6		(0.4)
BD Diagnostics		252,174		236,517		6.6		7.9		(1.3)
TOTAL	$	488,102	$	441,383		10.6		11.5		(0.9)





	Six Months Ended March 31,
						% Change
		2012		2011		Reported		FXN		FX Impact

TOTAL SAFETY REVENUES
United States	$	573,345	$	547,306		4.8		4.8		-
International		402,326		347,113		15.9		17.2		(1.3)
TOTAL	$	975,671	$	894,419		9.1		9.6		(0.5)

BY SEGMENT
BD Medical	$	475,711	$	418,175		13.8		13.9		(0.1)
BD Diagnostics		499,960		476,244		5.0		5.9		(0.9)
TOTAL	$	975,671	$	894,419		9.1		9.6		(0.5)







										Page 11


BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
Quarter-to-Date Fiscal 2012 Reconciliation - FX Impact
(Unaudited; Amounts in millions, except per share data)

	Three Months Ended March 31,
		Reported		Reported		Reported Growth		Foreign Currency		FXN	FXN
		FY2012		FY2011		$		Translation		Change	Growth

REVENUES	$	1,991	$	1,922	$	69	$	(19)	$	88	4.6%

Diluted Earnings per Share
from Continuing Operations	$	1.38	$	1.38	$	0.00	$	(0.04)	$	0.04	2.9%



All figures rounded. Totals may not add due to rounding.
FXN = Foreign Currency Neutral

										Page 12


BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
Year-to-Date Fiscal 2012 Reconciliation - FX Impact
(Unaudited; Amounts in millions, except per share data)

	Six Months Ended March 31,
		Reported		Reported		Reported Growth		Foreign Currency		FXN	FXN
		FY2012		FY2011		$		Translation		Change	Growth

REVENUES	$	3,878	$	3,764	$	114	$	(18)	$	132	3.5%

Diluted Earnings per Share
from 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 Neutral


										Page 13