BD Announces Results for First Fiscal Quarter

The Company raises guidance for full fiscal year

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Jan 28, 2010, 06:00 ET

FRANKLIN LAKES, N.J., Jan. 28 /PRNewswire-FirstCall/ -- BD (Becton, Dickinson and Company) (NYSE: BDX) today reported quarterly revenues of $1.917 billion for the first fiscal quarter ended December 31, 2009, representing an increase of 12 percent from the prior-year period, or 9 percent on a foreign currency-neutral basis.

"We are pleased with our solid start to fiscal 2010. Our BD Medical and BD Diagnostics segments led our revenue growth, aided by flu-related sales," said Edward J. Ludwig, Chairman and Chief Executive Officer. "Our revenue growth, good operating performance and a stabilizing Biosciences business this quarter give us the confidence to raise guidance for fiscal 2010."

Diluted earnings per share from continuing operations for the quarter were $1.30, an increase of 4 percent over diluted earnings per share from continuing operations of $1.25 for the first quarter of 2009. On a foreign currency-neutral basis, diluted earnings per share from continuing operations for the first quarter of fiscal 2010 increased 11 percent.

Segment Results

In the BD Medical segment, worldwide revenues for the quarter were $1.019 billion, representing an increase of 16 percent from the prior-year period, or 13 percent on a foreign currency-neutral basis. Strong sales of Medical Surgical Systems and Pharmaceutical Systems products, including about 7 percentage points from flu-related products, as well as Diabetes Care products contributed to revenue growth.

In the BD Diagnostics segment, worldwide revenues for the quarter were $595 million, representing an increase of 10 percent from the prior-year period, or 8 percent on a foreign currency-neutral basis. Sales of safety-engineered devices and infectious disease testing systems, including about 2 percentage points from flu-related products, contributed to revenue growth.

In the BD Biosciences segment, worldwide revenues of $303 million for the quarter were flat compared with the prior-year period. Revenues increased less than 1 percent on a foreign currency-neutral basis. Demand for clinical and research instruments, as expected, continues to be impacted by capital funding constraints.

Geographic Results

First quarter revenues in the U.S. were $873 million, representing an increase of 10 percent from the prior-year period. Revenues outside the U.S. were $1.044 billion, representing an increase of 13 percent from the prior-year period, or 8.5 percent on a foreign currency-neutral basis.

Fiscal 2010 Outlook

We expect reported revenues for the full fiscal year 2010 to increase approximately 7 percent, or 6 percent on a foreign currency-neutral basis, compared with our prior guidance of 6 percent, or 5 percent on a foreign currency-neutral basis.

We also expect diluted earnings per share from continuing operations for the full fiscal year 2010 to increase approximately 2 to 4 percent, to $5.05 to $5.15, over adjusted diluted earnings per share from continuing operations, excluding specified items, of $4.95 for the fiscal year 2009, or 8 to 10 percent on a foreign currency-neutral basis. Our prior guidance was an increase of 1 to 3 percent, or 7 to 9 percent on a foreign currency-neutral basis.

Conference Call Information

A conference call regarding BD's first quarter results and its expectations for the full fiscal year will be broadcast live on BD's website, www.bd.com/investors, along with related slides, at 10:00 a.m. (ET) Thursday, January 28, 2010. 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 February 4, 2010, access code 49382392.

Non-GAAP Financial Measures

This news release contains certain non-GAAP financial measures. A reconciliation of these to the comparable GAAP measures is 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 approximately 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 2010 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, earnings per share and income, or events or developments that BD expects to occur or anticipates occurring in the future. 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. For instance, various healthcare reform proposals, if enacted, would impose an excise tax applicable to medical device manufacturers, including BD. Other 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 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, particularly in light of increased volatility in currency exchange rates; changes in government pricing and reimbursement policies or other healthcare cost containment reforms; 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; uncertainties of litigation (as described in BD's filings with the Securities and Exchange Commission); 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:
Patricia A. Spinella, Investor Relations – 201-847-5453
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 December 31,
		2009		2008	% Change

REVENUES	$	1,916,774	$	1,717,919	11.6

Cost of products sold		919,542		796,274	15.5
Selling and administrative		450,928		406,019	11.1
Research and development		100,284		97,314	3.1
TOTAL OPERATING COSTS
AND EXPENSES		1,470,754		1,299,607	13.2

OPERATING INCOME		446,020		418,312	6.6

Interest income		8,789		1,651	NM
Interest expense		(12,987)		(7,824)	66.0
Other (expense) income, net		(2,354)		9,411	NM

INCOME FROM CONTINUING OPERATIONS BEFORE
INCOME TAXES		439,468		421,550	4.3

Income tax provision		123,490		112,131	10.1

INCOME FROM CONTINUING OPERATIONS		315,978		309,419	2.1

INCOME FROM DISCONTINUED OPERATIONS
NET OF INCOME TAX PROVISION OF
$152 AND $854, RESPECTIVELY		398		2,649	NM

NET INCOME	$	316,376	$	312,068	1.4

EARNINGS PER SHARE

Basic:
Income from continuing operations	$	1.33	$	1.28	3.9
Income from discontinued operations	$	-	$	0.01	NM
Net income	$	1.33	$	1.29	3.1

Diluted:
Income from continuing operations	$	1.30	$	1.25	4.0
Income from discontinued operations	$	-	$	0.01	NM
Net income	$	1.30	$	1.26	3.2


AVERAGE SHARES OUTSTANDING

Basic		237,360		242,397
Diluted		242,965		248,311

NM - Not Meaningful


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

	Three Months Ended December 31,
		2009		2008	% Change

BD MEDICAL
United States	$	452,385	$	394,161	14.8
International		566,243		481,029	17.7
TOTAL	$	1,018,628	$	875,190	16.4

BD DIAGNOSTICS
United States	$	310,205	$	287,568	7.9
International		285,269		252,623	12.9
TOTAL	$	595,474	$	540,191	10.2

BD BIOSCIENCES
United States	$	110,636	$	113,751	(2.7)
International		192,036		188,787	1.7
TOTAL	$	302,672	$	302,538	-

TOTAL REVENUES
United States	$	873,226	$	795,480	9.8
International		1,043,548		922,439	13.1
TOTAL	$	1,916,774	$	1,717,919	11.6


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

	United States
		2009		2008	% Change

BD MEDICAL
Medical Surgical Systems	$	286,535	$	256,255	11.8
Diabetes Care		96,564		88,465	9.2
Pharmaceutical Systems		62,021		42,652	45.4
Ophthalmic Systems		7,265		6,789	7.0
TOTAL	$	452,385	$	394,161	14.8

BD DIAGNOSTICS
Preanalytical Systems	$	156,236	$	149,230	4.7
Diagnostic Systems		153,969		138,338	11.3
TOTAL	$	310,205	$	287,568	7.9

BD BIOSCIENCES
Cell Analysis	$	77,604	$	77,379	0.3
Discovery Labware		33,032		36,372	(9.2)
TOTAL	$	110,636	$	113,751	(2.7)

TOTAL UNITED STATES	$	873,226	$	795,480	9.8


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

	International
					% Change
		2009		2008	Reported	FXN	FX Impact

BD MEDICAL
Medical Surgical Systems	$	273,491	$	224,246	22.0	15.3	6.7
Diabetes Care		104,957		91,541	14.7	7.7	7.0
Pharmaceutical Systems		173,953		152,129	14.3	7.3	7.0
Ophthalmic Systems		13,842		13,113	5.6	2.8	2.8
TOTAL	$	566,243	$	481,029	17.7	11.0	6.7

BD DIAGNOSTICS
Preanalytical Systems	$	143,930	$	128,924	11.6	6.8	4.8
Diagnostic Systems		141,339		123,699	14.3	10.0	4.3
TOTAL	$	285,269	$	252,623	12.9	8.3	4.6

BD BIOSCIENCES
Cell Analysis	$	153,731	$	152,142	1.0	1.9	(0.9)
Discovery Labware		38,305		36,645	4.5	4.9	(0.4)
TOTAL	$	192,036	$	188,787	1.7	2.5	(0.8)

TOTAL INTERNATIONAL	$	1,043,548	$	922,439	13.1	8.5	4.6


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

	Total
					% Change
		2009		2008	Reported	FXN	FX Impact

BD MEDICAL
Medical Surgical Systems	$	560,026	$	480,501	16.6	13.4	3.2
Diabetes Care		201,521		180,006	12.0	8.4	3.6
Pharmaceutical Systems		235,974		194,781	21.1	15.6	5.5
Ophthalmic Systems		21,107		19,902	6.1	4.3	1.8
TOTAL	$	1,018,628	$	875,190	16.4	12.7	3.7

BD DIAGNOSTICS
Preanalytical Systems	$	300,166	$	278,154	7.9	5.7	2.2
Diagnostic Systems		295,308		262,037	12.7	10.7	2.0
TOTAL	$	595,474	$	540,191	10.2	8.1	2.1

BD BIOSCIENCES
Cell Analysis	$	231,335	$	229,521	0.8	1.3	(0.5)
Discovery Labware		71,337		73,017	(2.3)	(2.1)	(0.2)
TOTAL	$	302,672	$	302,538	-	0.5	(0.5)

TOTAL REVENUES	$	1,916,774	$	1,717,919	11.6	9.1	2.5


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

	Three Months Ended December 31,
					% Change
		2009		2008	Reported	FXN	FX Impact

TOTAL SAFETY REVENUES
United States	$	298,258	$	268,969	10.9	10.9	-
International		156,015		134,080	16.4	10.5	5.9
TOTAL	$	454,273	$	403,049	12.7	10.8	1.9

BY SEGMENT
BD Medical	$	228,503	$	192,751	18.5	16.4	2.1
BD Diagnostics		225,770		210,298	7.4	5.5	1.9
TOTAL	$	454,273	$	403,049	12.7	10.8	1.9