BD Announces Results for 2013 First Fiscal Quarter

Tue Feb 5, 2013 6:00am EST

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FRANKLIN LAKES, N.J.,  Feb. 5, 2013  /PRNewswire/ -- BD (Becton, Dickinson and
Company) (NYSE: BDX), a leading global medical technology company, today
reported quarterly revenues of  $1.90 billion  for the first fiscal quarter
ended  December 31, 2012, representing an increase of 3.7 percent from the
prior-year period, or 5.2 percent on a foreign currency-neutral basis.   

"We are very pleased with our start to fiscal year 2013," said  Vincent A.
Forlenza, Chairman, Chief Executive Officer and President.  "After two years of
significant investments in our business, we are starting to see notable results.
We are growing revenues across our three segments, driving margin expansion and
delivering a higher quality of earnings.  Our positive first quarter results
give us the confidence to raise the bottom end of our guidance range on revenues
and earnings per share."

Company Completes Acquisition of Safety Syringes, Inc.
On  December 24, 2012, the Company completed its acquisition of Safety Syringes,
Inc., or "SSI", a privately held  California-based company that specializes in
the development of anti-needlestick devices for prefilled syringes. SSI will be
reported in the BD Medical - Pharmaceutical Systems unit.

First Quarter Earnings
Reported diluted earnings per share from continuing operations for the first
quarter were  $1.35, compared with  $1.14  in the prior-year period,
representing an 18.4 percent increase. On a foreign currency-neutral basis,
diluted earnings per share from continuing operations for the first quarter
increased by 15.8 percent.  Reported diluted earnings per share from continuing
operations were aided in part by the benefit of an early flu season and
favorable comparisons to the prior-year period.  

Segment Results
In the BD Medical segment, worldwide revenues for the quarter were  $983
million, representing an increase of 3.5 percent compared with the prior-year
period, or an increase of 5.1 percent on a foreign currency-neutral basis. The
segment's revenue growth reflects strong sales in the Diabetes Care unit, which
partially benefitted from a favorable comparison due to lower international
sales in the prior-year period. Revenues also reflect strong international sales
of safety-engineered products, as well as solid sales in the Medical Surgical
Systems and Pharmaceutical Systems units.  

In the BD Diagnostics segment, worldwide revenues for the quarter were  $652
million, representing an increase of 5.0 percent compared with the prior-year
period, or 6.1 percent on a foreign currency-neutral basis. The segment's growth
was primarily driven by international expansion, a favorable comparison to the
prior-year period in the Preanalytical Systems unit and an early flu season.  

In the BD Biosciences segment, worldwide revenues for the quarter were  $265
million, representing an increase of 1.7 percent compared with the prior-year
period, or an increase of 3.3 percent on a foreign currency-neutral basis. 
Segment revenue growth was driven by solid instrument placements in the U.S., as
well as a benefit from a favorable comparison versus the prior-year period.
Prior-year  results reflected reduced U.S. research funding and lower demand for
high-end instruments.

Geographic Results
First quarter revenues in the U.S. of  $830 million  represent an increase of
3.0 percent over the prior-year period. Revenues outside of the U.S. were  $1.07
billion, representing an increase of 4.3 percent compared with the prior-year
period, or an increase of 7.0 percent on a foreign currency-neutral basis.
International revenues reflected continued strength in emerging markets and
strong sales of safety-engineered products.  

Fiscal 2013 Outlook for Full Year  
The Company is raising the bottom end of its previously communicated revenue
growth guidance for the year of 3.5 to 4.5 percent to 4.0 to 4.5 percent on a
foreign currency-neutral basis. Reported revenue growth for the full fiscal year
2013 is expected to be between 3.5 and 4.0 percent.  Reported diluted earnings
per share from continuing operations for fiscal year 2013 is expected to be
between  $5.69 and $5.72, representing growth of 6.0 to 6.5 percent over
adjusted 2012 diluted earnings per share of  $5.37  after excluding the pension
settlement charge in 2012. On a foreign currency-neutral basis, diluted earnings
per share from continuing operations are expected to grow 7.5 to 8.0 percent
over 2012 adjusted diluted earnings per share, or 10.5 to 11.0 percent,
excluding the estimated impact of the medical device tax that went into effect
last month under the U.S. healthcare reform law. In line with its previously
disclosed guidance, the Company plans to repurchase, subject to market
conditions,  $500 million  of its common stock in fiscal year 2013.

Conference Call Information
A conference call regarding BD's first quarter results and its expectations for
the full fiscal year 2013 will be broadcast live on BD's website, 
www.bd.com/investors, along with related slides, at  8:00 a.m. (ET) Tuesday,
February 5, 2013.  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,
February 12, 2013, access code 87420149.  

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 nearly 30,000
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 2013 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: potential cuts in healthcare spending
by the U.S. government as part of deficit reduction measures, including
"sequestration", which could result in reduced demand for our product or
downward pricing pressure; 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 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; changes in interest or foreign currency exchange
rates; our ability to successfully integrate any businesses we acquire;
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; 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 - 201-847-5369

                                                                                                                            
 BECTON DICKINSON AND COMPANY                                                                                               
 CONSOLIDATED INCOME STATEMENTS                                                                                             
 (Unaudited; Amounts in thousands, except per share data)                                                                    
                                                                                                                            
                                                                          Three Months Ended December 31,                       
                                                                          2012                2011                % Change  
                                                                                                                            
 REVENUES                                  $                              1,900,192  $        1,831,720           3.7       
                                                                                                                            
 Cost of products sold                                                    894,063             900,465             (0.7)     
 Selling and administrative                                               495,878             482,271             2.8       
 Research and development                                                 118,162             112,227             5.3       
 TOTAL OPERATING COSTS                                                                                                      
 AND EXPENSES                                                             1,508,103           1,494,963           0.9       
                                                                                                                            
 OPERATING INCOME                                                         392,089             336,757             16.4      
                                                                                                                            
 Interest income                                                          7,922               15,448              (48.7)    
 Interest expense                                                         (35,029)            (29,378)            19.2      
 Other income (expense), net                                              714                 (385)               NM        
                                                                                                                            
 INCOME FROM CONTINUING OPERATIONS BEFORE                                                                                   
 INCOME TAXES                                                             365,696             322,442             13.4      
                                                                                                                            
 Income tax provision                                                     95,447              73,898              29.2      
                                                                                                                            
 INCOME FROM CONTINUING OPERATIONS                                        270,249             248,544             8.7       
                                                                                                                            
 INCOME FROM DISCONTINUED OPERATIONS                                                                                        
 NET OF INCOME TAX PROVISION OF                                                                                             
 $216,336 AND $7,327, RESPECTIVELY                                        355,187             14,441              NM        
                                                                                                                            
 NET INCOME                                $                              625,436    $        262,985             NM        
                                                                                                                            
 EARNINGS PER SHARE                                                                                                         
                                                                                                                            
 Basic:                                                                                                                     
 Income from continuing operations         $                              1.38       $        1.16                19.0      
 Income from discontinued operations       $                              1.81       $        0.07                NM        
 Net income  (1)                           $                              3.18       $        1.23                NM        
                                                                                                                            
 Diluted:                                                                                                                   
 Income from continuing operations         $                              1.35       $        1.14                18.4      
 Income from discontinued operations       $                              1.78       $        0.07                NM        
 Net income                                $                              3.13       $        1.21                NM        
                                                                                                                            
                                                                                                                            
 AVERAGE SHARES OUTSTANDING                                                                                                 
                                                                                                                            
 Basic                                                                    196,427             214,300                       
 Diluted                                                                  199,570             217,634                       
                                                                                                                            
 NM - Not Meaningful                                                                                                        
 (1) Total per share amounts may not add due to rounding.                                                                    
                                                                                                                            


                                                                                                          
 BECTON DICKINSON AND COMPANY                                                                             
 SUPPLEMENTAL REVENUE INFORMATION                                                                         
 REVENUES BY SEGMENT AND GEOGRAPHIC AREA                                                                   
 (Unaudited; Amounts in thousands)                                                                        
                                                                                                          
                                    Three Months Ended December 31,                                            
                                                          2012               2011               % Change  
                                                                                                          
 BD MEDICAL                                                                                               
 United States                      $                     425,366    $       414,669            2.6       
 International                                            558,007            535,728            4.2       
 TOTAL                              $                     983,373    $       950,397            3.5       
                                                                                                          
 BD DIAGNOSTICS                                                                                           
 United States                      $                     320,540    $       311,623            2.9       
 International                                            331,385            309,120            7.2       
 TOTAL                              $                     651,925    $       620,743            5.0       
                                                                                                          
 BD BIOSCIENCES                                                                                           
 United States                      $                     84,195     $       79,926             5.3       
 International                                            180,699            180,654            0.0       
 TOTAL                              $                     264,894    $       260,580            1.7       
                                                                                                          
 TOTAL REVENUES                                                                                           
 United States                      $                     830,101    $       806,218            3.0       
 International                                            1,070,091          1,025,502          4.3       
 TOTAL                              $                     1,900,192  $       1,831,720          3.7       
                                                                                                          


                                                                                                
 BECTON DICKINSON AND COMPANY                                                                   
 SUPPLEMENTAL REVENUE INFORMATION                                                               
 REVENUES BY BUSINESS SEGMENTS AND UNITS                                                         
 Three Months Ended December 31,                                                                
 (Unaudited; Amounts in thousands)                                                              
                                                                                                
                                    United States                                                    
                                                          2012          2011          % Change  
                                                                                                
 BD MEDICAL                                                                                     
 Medical Surgical Systems           $                     249,192  $    248,415       0.3       
 Diabetes Care                                            112,404       105,526       6.5       
 Pharmaceutical Systems                                   63,770        60,728        5.0       
 TOTAL                              $                     425,366  $    414,669       2.6       
                                                                                                
 BD DIAGNOSTICS                                                                                 
 Preanalytical Systems              $                     166,949  $    162,115       3.0       
 Diagnostic Systems                                       153,591       149,508       2.7       
 TOTAL                              $                     320,540  $    311,623       2.9       
                                                                                                
 BD BIOSCIENCES                     $                     84,195   $    79,926        5.3       
                                                                                                
 TOTAL UNITED STATES                $                     830,101  $    806,218       3.0       
                                                                                                


                                                                                                                    
 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                               
                                        2012                      2011           Reported      FXN       FX Impact  
                                                                                                                    
 BD MEDICAL                                                                                                         
 Medical Surgical Systems  $            286,746      $            273,893        4.7           7.1       (2.4)      
 Diabetes Care                          130,398                   120,394        8.3           11.4      (3.1)      
 Pharmaceutical Systems                 140,863                   141,441        (0.4)         3.5       (3.9)      
 TOTAL                     $            558,007      $            535,728        4.2           7.1       (2.9)      
                                                                                                                    
 BD DIAGNOSTICS                                                                                                     
 Preanalytical Systems     $            167,818      $            154,507        8.6           11.0      (2.4)      
 Diagnostic Systems                     163,567                   154,613        5.8           7.9       (2.1)      
 TOTAL                     $            331,385      $            309,120        7.2           9.4       (2.2)      
                                                                                                                    
 BD BIOSCIENCES            $            180,699      $            180,654        0.0           2.4       (2.4)      
                                                                                                                    
 TOTAL INTERNATIONAL       $            1,070,091    $            1,025,502      4.3           7.0       (2.7)      
                                                                                                                    


                                                                                                                  
 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                              
                                        2012                      2011          Reported      FXN      FX Impact  
                                                                                                                  
 BD MEDICAL                                                                                                       
 Medical Surgical Systems  $            535,938      $            522,308       2.6           3.9      (1.3)      
 Diabetes Care                          242,802                   225,920       7.5           9.1      (1.6)      
 Pharmaceutical Systems                 204,633                   202,169       1.2           4.0      (2.8)      
 TOTAL                     $            983,373      $            950,397       3.5           5.1      (1.6)      
                                                                                                                  
 BD DIAGNOSTICS                                                                                                   
 Preanalytical Systems     $            334,767      $            316,622       5.7           6.9      (1.2)      
 Diagnostic Systems                     317,158                   304,121       4.3           5.3      (1.0)      
 TOTAL                     $            651,925      $            620,743       5.0           6.1      (1.1)      
                                                                                                                  
 BD BIOSCIENCES            $            264,894      $            260,580       1.7           3.3      (1.6)      
                                                                                                                  
 TOTAL REVENUES            $            1,900,192    $            1,831,720     3.7           5.2      (1.5)      
                                                                                                                  


                                                                                                               
 BECTON DICKINSON AND COMPANY                                                                                     
 SUPPLEMENTAL REVENUE INFORMATION                                                                                 
 SAFETY REVENUES                                                                                                  
 (Unaudited; Amounts in thousands)                                                                                
                                                                                                               
                        Three Months Ended December 31,                                                                 
                                                                        % Change                                   
                                   2012                  2011           Reported        FXN         FX Impact  
                                                                                                               
 TOTAL SAFETY REVENUES                                                                                         
 United States          $          290,943    $          290,612        0.1             0.1         -          
 International                     220,233               196,957        11.8            14.3        (2.5)      
 TOTAL                  $          511,176    $          487,569        4.8             5.9         (1.1)      
                                                                                                               
 BY SEGMENT                                                                                                    
 BD Medical             $          251,857    $          239,783        5.0             6.0         (1.0)      
 BD Diagnostics                    259,319               247,786        4.7             5.7         (1.0)      
 TOTAL                  $          511,176    $          487,569        4.8             5.9         (1.1)      
                                                                                                               


                                                                                                                                                 
 BECTON DICKINSON AND COMPANY                                                                                                                         
 SUPPLEMENTAL INFORMATION                                                                                                                             
 Quarter-to-Date Fiscal 2013 Reconciliation - FX Impact                                                                                               
 (Unaudited; Amounts in millions, except per share data)                                                                                              
                                                                                                                                                 
                             Three Months Ended December 31,                                                                                                
                                         Reported                Reported                Reported         Foreign           FXN          FXN     
                                                                                         
Growth          
Currency                              
                                         FY2013                  FY2012                  $                Translation       Change       Growth  
                                                                                                                                                 
 REVENUES                    $           1,900       $           1,832       $           68          $    (27)         $    96           5.2%    
                                                                                                                                                 
 Diluted Earnings per Share                                                                                                                      
 from Continuing Operations  $           1.35        $           1.14        $           0.21        $    0.03         $    0.18         15.8%   
                                                                                                                                                 
                                                                                                                                                 
                                                                                                                                                 
 FXN = Foreign Currency Neutral                                                                                                                        
 All figures rounded. Totals may not add due to rounding.                                                                                              
                                                                                                                                                 


                                                                                     
 BECTON DICKINSON AND COMPANY                                                          
 SUPPLEMENTAL INFORMATION                                                              
 FY2012 Total Year Reconciliation                                                      
                                                                                       
 Reported Diluted Earnings per Share                                                   
 from Continuing Operations                                       $  5.30              
                                                                                       
 Pension Settlement Charge(1)                                        0.06              
                                                                                       
 Adjusted Diluted Earnings per Share                                                   
 from Continuing Operations                                       $  5.37              
                                                                                       
 (1) Primarily represents a non-cash pension settlement charge associated with lump sum benefit payments made   
 
     from the Company's U.S. supplemental pension plan, as such payments exceeded the service and interest   
 
     components of the plan's pension cost for the year. The charge also included settlement losses associated with   
 
     certain foreign pension plans.                                                          
                                                                                       
 All figures rounded. Totals may not add due to rounding.                              
                                                                                       


                                                                                           
 BECTON DICKINSON AND COMPANY                                                              
 SUPPLEMENTAL INFORMATION                                                                  
 FY2013 Outlook Reconciliation                                                             
                                                                 Revenues     Diluted      
                                                                              EPS          
 Adjusted Growth                                                 3.5%-4.0%    6.0%-6.5%    
 FX impact                                                       (0.5%)       (1.5%)       
 Adjusted FX neutral growth                                      4.0%-4.5%    7.5%-8.0%    
 Medical device tax impact                                                    (3.0%)       
 Adjusted FX neutral growth, excluding the medical device tax                 10.5%-11.0%  
                                                                                           


SOURCE  BD (Becton, Dickinson and Company)

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