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BD Announces Results For 2011 First Fiscal Quarter


-- Reports diluted earnings per share from continuing operations of $1.35, including approximately $0.07 related to the timing of certain tax benefits. These benefits were included in the Company's full year guidance provided on its 2010 year-end earnings conference call.
-- Reports revenues of $1.842 billion, a decrease of 1.4 percent year-over-year.
-- Reaffirms full fiscal year 2011 guidance of reported revenues and EPS to increase about 4 percent and between 11 percent and 13 percent, respectively.

FRANKLIN LAKES, N.J., Feb. 7, 2011 /PRNewswire via COMTEX/ -- BD (Becton, Dickinson and Company) (NYSE: BDX), a leading global medical technology company, today reported quarterly revenues of $1.842 billion for the first fiscal quarter ended December 31, 2010, representing a decrease of 1.4 percent from the prior-year period. On a foreign currency-neutral basis, revenue decreased 1.5 percent. The revenue decline reflects an unfavorable comparison to the prior year of about 4 percentage points due to strong sales related to the pandemic flu and U.S. stimulus revenues in fiscal 2010.

The Company also repurchased $837 million of its common stock during the quarter. BD continues to plan aggregate share repurchases of $1.5 billion in fiscal 2011 and an additional $600 million in fiscal 2012.

"We are pleased with our performance in the first fiscal quarter given the challenging environment," said Edward J. Ludwig, Chairman and Chief Executive Officer. "While revenue came in slightly below our expectations, our discipline around operational excellence enabled us to deliver earnings per share in line with our previous guidance. We continued to return significant value to shareholders, while also investing in geographic expansion, new product platforms and operational excellence programs."

First Quarter Earnings

Reported diluted earnings per share for the first quarter were $1.35, compared with $1.25 in the prior-year period, representing an 8.0 percent increase. On a foreign currency-neutral basis, diluted earnings per share for the first quarter increased by 4.8 percent.

For the quarter, reported diluted earnings per share from continuing operations included an approximate $0.07 favorable impact due to the timing of certain tax benefits. These benefits, which were reflected in our previous full year guidance, resulted from certain first quarter events, including the retroactive extension of the U.S. research tax credit.

Segment Results

In the BD Medical segment, worldwide revenues for the quarter were $927 million, representing a decrease of 4.5 percent compared with the prior-year period, or a decrease of 4.3 percent on a foreign currency-neutral basis. The segment's revenue decline reflects an unfavorable comparison to the prior year of about 6 percentage points due to strong sales related to the H1N1 flu pandemic in fiscal year 2010, partially offset by solid growth in the Diabetes Care unit with particularly strong growth in pen needles.

In the BD Diagnostics segment, worldwide revenues for the quarter were $602 million, representing an increase of 1.0 percent compared with the prior-year period, or 0.6 percent on a foreign currency-neutral basis. Segment revenue growth was negatively impacted by about 2 percentage points due to strong sales related to the flu pandemic in fiscal year 2010. The segment growth was primarily driven by strong sales in Preanalytical Systems safety-engineered products, and Women's Health and Cancer in the Diagnostic Systems unit.

In the BD Biosciences segment, worldwide revenues for the quarter were $314 million, representing an increase of 3.7 percent compared with the prior-year period, or 3.5 percent on a foreign currency-neutral basis. Segment revenue growth was negatively impacted by about 2 percentage points due to strong sales related to stimulus spending in the U.S. in fiscal year 2010. Segment growth was primarily driven by instrument and reagent sales in the Cell Analysis unit.

Geographic Results

First quarter revenues in the U.S. were $829 million, representing a decrease of 2.9 percent compared with the prior-year period, including a negative impact of 6.0 percentage points due to flu pandemic-related sales in fiscal year 2010. Revenues outside of the U.S. were $1.013 billion, representing a decrease of 0.2 percent compared with the prior-year period, or a decrease of 0.3 percent on a foreign currency-neutral basis. International revenue growth was negatively impacted by about 3 percentage points related to the flu pandemic in fiscal year 2010. Revenues reflected continued strength in emerging markets, which was partially offset by a decline in sales in Europe.

Company Reaffirms Previously Communicated Fiscal Year 2011 Guidance

The Company continues to estimate that reported revenues for the full fiscal year 2011 will increase about 4 percent compared to fiscal year 2010. The Company also continues to expect reported diluted earnings per share from continuing operations for fiscal year 2011 to be between $5.45 and $5.55, an increase of approximately 11 to 13 percent over fiscal year 2010. Diluted earnings per share from continuing operations for fiscal year 2011 are expected to increase 10 to 12 percent over adjusted diluted earnings per share from continuing operations, excluding specified item, of $4.94 for fiscal year 2010. The specified item represents a 2010 non-cash charge of $0.04 cents per share related to healthcare reform impacting Medicare Part D reimbursements.

Conference Call Information

A conference call regarding BD's first quarter results and its expectations for the full fiscal year 2011 will be broadcast live on BD's website, www.bd.com/investors, along with related slides, at 10:00 a.m. (ET) Tuesday, February 8, 2011. The related slides are available concurrent with 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 1-800-642-1687 (domestic) and 1-706-645-9291 (international) through the close of business on Tuesday, February 15, 2011, access code 37117544.

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 and the Form 8-K that BD filed today with the SEC.

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 http://www.bd.com/.

This press release 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. Forward-looking statements may be identified by the use of words such as "expect", "estimate" or words of similar meaning in conjunction with statements of our future performance. 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 the recently-enacted 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, 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.

BECTON DICKINSON AND COMPANY

CONSOLIDATED INCOME STATEMENTS

(Unaudited; Amounts in thousands, except per share data)



Three Months Ended December 31,



2010


2009


% Change








REVENUES

$

1,842,005

$

1,868,818


(1.4)








Cost of products sold


865,431


894,324


(3.2)

Selling and administrative


447,954


445,673


0.5

Research and development


115,542


99,151


16.5

TOTAL OPERATING COSTS







AND EXPENSES


1,428,927


1,439,148


(0.7)








OPERATING INCOME


413,078


429,670


(3.9)








Interest income


15,222


8,789


73.2

Interest expense


(15,553)


(12,987)


19.8

Other expense, net


(4,596)


(2,354)


95.2








INCOME FROM CONTINUING OPERATIONS BEFORE







INCOME TAXES


408,151


423,118


(3.5)








Income tax provision


93,875


119,025


(21.1)








INCOME FROM CONTINUING OPERATIONS


314,276


304,093


3.3








INCOME FROM DISCONTINUED OPERATIONS







NET OF INCOME TAX PROVISION OF







$223 AND $4,617, RESPECTIVELY


1,661


12,283


NM








NET INCOME

$

315,937

$

316,376


(0.1)








EARNINGS PER SHARE














Basic:







Income from continuing operations

$

1.38

$

1.28


7.8

Income from discontinued operations

$

0.01

$

0.05


(80.0)

Net income

$

1.39

$

1.33


4.5








Diluted:







Income from continuing operations

$

1.35

$

1.25


8.0

Income from discontinued operations

$

0.01

$

0.05


(80.0)

Net income

$

1.36

$

1.30


4.6















AVERAGE SHARES OUTSTANDING














Basic


228,083


237,360



Diluted


232,915


242,965










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,



2010


2009


% Change








BD MEDICAL







United States

$

405,527

$

432,576


(6.3)

International


521,020


538,096


(3.2)

TOTAL

$

926,547

$

970,672


(4.5)








BD DIAGNOSTICS







United States

$

308,851

$

310,205


(0.4)

International


292,871


285,269


2.7

TOTAL

$

601,722

$

595,474


1.0








BD BIOSCIENCES







United States

$

114,224

$

110,636


3.2

International


199,512


192,036


3.9

TOTAL

$

313,736

$

302,672


3.7








TOTAL REVENUES







United States

$

828,602

$

853,417


(2.9)

International


1,013,403


1,015,401


(0.2)

TOTAL

$

1,842,005

$

1,868,818


(1.4)








BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

REVENUES BY BUSINESS SEGMENTS AND UNITS

Three Months Ended December 31,

(Unaudited; Amounts in thousands)









United States



2010


2009


% Change








BD MEDICAL







Medical Surgical Systems

$

254,254

$

273,991


(7.2)

Diabetes Care


99,585


96,564


3.1

Pharmaceutical Systems


51,688


62,021


(16.7)

TOTAL

$

405,527

$

432,576


(6.3)








BD DIAGNOSTICS







Preanalytical Systems

$

162,059

$

156,236


3.7

Diagnostic Systems


146,792


153,969


(4.7)

TOTAL

$

308,851

$

310,205


(0.4)








BD BIOSCIENCES







Cell Analysis

$

80,255

$

77,604


3.4

Discovery Labware


33,969


33,032


2.8

TOTAL

$

114,224

$

110,636


3.2








TOTAL UNITED STATES

$

828,602

$

853,417


(2.9)

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



2010


2009


Reported


FXN


FX Impact












BD MEDICAL











Medical Surgical Systems

$

258,474

$

259,186


(0.3)


(2.2)


1.9

Diabetes Care


114,297

$

104,957


8.9


8.8


0.1

Pharmaceutical Systems


148,249

$

173,953


(14.8)


(10.9)


(3.9)

TOTAL

$

521,020

$

538,096


(3.2)


(2.8)


(0.4)












BD DIAGNOSTICS











Preanalytical Systems

$

150,569

$

143,930


4.6


4.0


0.6

Diagnostic Systems


142,302


141,339


0.7


(0.3)


1.0

TOTAL

$

292,871

$

285,269


2.7


1.9


0.8












BD BIOSCIENCES











Cell Analysis

$

160,487

$

153,731


4.4


4.6


(0.2)

Discovery Labware


39,025


38,305


1.9


(0.1)


2.0

TOTAL

$

199,512

$

192,036


3.9


3.6


0.3












TOTAL INTERNATIONAL

$

1,013,403

$

1,015,401


(0.2)


(0.3)


0.1

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



2010


2009


Reported


FXN


FX Impact












BD MEDICAL











Medical Surgical Systems

$

512,728

$

533,177


(3.8)


(4.7)


0.9

Diabetes Care


213,882


201,521


6.1


6.1


-

Pharmaceutical Systems


199,937


235,974


(15.3)


(12.4)


(2.9)

TOTAL

$

926,547

$

970,672


(4.5)


(4.3)


(0.2)












BD DIAGNOSTICS











Preanalytical Systems

$

312,628

$

300,166


4.2


3.9


0.3

Diagnostic Systems


289,094


295,308


(2.1)


(2.6)


0.5

TOTAL

$

601,722

$

595,474


1.0


0.6


0.4












BD BIOSCIENCES











Cell Analysis

$

240,742

$

231,335


4.1


4.2


(0.1)

Discovery Labware


72,994


71,337


2.3


1.2


1.1

TOTAL

$

313,736

$

302,672


3.7


3.5


0.2












TOTAL REVENUES

$

1,842,005

$

1,868,818


(1.4)


(1.5)


0.1

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

SAFETY REVENUES

(Unaudited; Amounts in thousands)
























Three Months Ended December 31,







% Change



2010


2009


Reported


FXN


FX Impact












TOTAL SAFETY REVENUES











United States

$

283,782

$

291,815


(2.8)


(2.8)


-

International


169,254


155,129


9.1


7.5


1.6

TOTAL

$

453,036

$

446,944


1.4


0.9


0.5












BY SEGMENT











BD Medical

$

213,309

$

221,174


(3.6)


(4.3)


0.7

BD Diagnostics


239,727


225,770


6.2


5.8


0.4

TOTAL

$

453,036

$

446,944


1.4


0.9


0.5

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

REVENUES BY BUSINESS SEGMENTS AND UNITS FISCAL 2010

Revised for discontinued operations of certain Medical segment divestitures

(Unaudited; Amounts in thousands)














United States



Quarter 1


Quarter 2


Quarter 3


Quarter 4


Year

BD MEDICAL











Medical Surgical Systems

$

273,991

$

237,174

$

239,866

$

256,290

$

1,007,322

Diabetes Care


96,564


92,515


96,071


98,633


383,783

Pharmaceutical Systems


62,021


52,078


45,824


45,308


205,231

TOTAL

$

432,576

$

381,767

$

381,761

$

400,231

$

1,596,336












BD DIAGNOSTICS











Preanalytical Systems

$

156,236

$

149,932

$

159,228

$

162,024

$

627,421

Diagnostic Systems


153,969


142,909


144,293


145,697


586,867

TOTAL

$

310,205

$

292,841

$

303,521

$

307,721

$

1,214,288












BD BIOSCIENCES











Cell Analysis

$

77,604

$

78,183

$

84,365

$

86,765

$

326,916

Discovery Labware


33,032


38,968


39,781


37,244


149,025

TOTAL

$

110,636

$

117,151

$

124,146

$

124,009

$

475,941












TOTAL UNITED STATES

$

853,417

$

791,759

$

809,428

$

831,961

$

3,286,565

























International



Quarter 1


Quarter 2


Quarter 3


Quarter 4


Year

BD MEDICAL











Medical Surgical Systems

$

259,186

$

244,090

$

253,687

$

245,724

$

1,002,687

Diabetes Care


104,957


95,471


101,081


100,468


401,976

Pharmaceutical Systems


173,953


200,305


208,993


212,182


795,433

TOTAL

$

538,096

$

539,866

$

563,761

$

558,374

$

2,200,096












BD DIAGNOSTICS











Preanalytical Systems

$

143,930

$

137,738

$

144,298

$

144,421

$

570,386

Diagnostic Systems


141,339


125,093


128,450


139,322


534,205

TOTAL

$

285,269

$

262,831

$

272,748

$

283,743

$

1,104,591












BD BIOSCIENCES











Cell Analysis

$

153,731

$

164,292

$

146,068

$

160,230

$

624,322

Discovery Labware


38,305


40,661


38,906


38,887


156,759

TOTAL

$

192,036

$

204,953

$

184,974

$

199,117

$

781,081












TOTAL INTERNATIONAL

$

1,015,401

$

1,007,650

$

1,021,483

$

1,041,234

$

4,085,768

























Total



Quarter 1


Quarter 2


Quarter 3


Quarter 4


Year

BD MEDICAL











Medical Surgical Systems

$

533,177

$

481,264

$

493,553

$

502,014

$

2,010,009

Diabetes Care


201,521


187,986


197,152


199,101


785,759

Pharmaceutical Systems


235,974


252,383


254,817


257,490


1,000,664

TOTAL

$

970,672

$

921,633

$

945,522

$

958,605

$

3,796,432












BD DIAGNOSTICS











Preanalytical Systems

$

300,166

$

287,670

$

303,526

$

306,445

$

1,197,807

Diagnostic Systems


295,308


268,002


272,743


285,019


1,121,072

TOTAL

$

595,474

$

555,672

$

576,269

$

591,464

$

2,318,879












BD BIOSCIENCES











Cell Analysis

$

231,335

$

242,475

$

230,433

$

246,995

$

951,238

Discovery Labware


71,337


79,629


78,687


76,131


305,784

TOTAL

$

302,672

$

322,104

$

309,120

$

323,126

$

1,257,022












TOTAL REVENUES

$

1,868,818

$

1,799,409

$

1,830,911

$

1,873,195

$

7,372,333























Certain quarterly amounts may not add to the year-to-date totals due to rounding.

BECTON DICKINSON AND COMPANY

SUPPLEMENTAL REVENUE INFORMATION

REVENUES BY BUSINESS SEGMENTS AND UNITS FISCAL 2009

Revised for discontinued operations of certain Medical segment divestitures

(Unaudited; Amounts in thousands)














United States



Quarter 1


Quarter 2


Quarter 3


Quarter 4


Year

BD MEDICAL











Medical Surgical Systems

$

244,037

$

231,041

$

244,077

$

255,168

$

974,324

Diabetes Care


88,465


83,233


91,330


88,590


351,618

Pharmaceutical Systems


42,652


43,065


43,460


48,353


177,529

TOTAL

$

375,154

$

357,339

$

378,867

$

392,111

$

1,503,471












BD DIAGNOSTICS











Preanalytical Systems

$

149,230

$

147,436

$

155,760

$

156,328

$

608,754

Diagnostic Systems


138,338


137,677


143,614


149,160


568,789

TOTAL

$

287,568

$

285,113

$

299,374

$

305,488

$

1,177,543












BD BIOSCIENCES











Cell Analysis

$

77,379

$

71,770

$

70,518

$

84,179

$

303,846

Discovery Labware


36,372


32,269


37,618


39,046


145,305

TOTAL

$

113,751

$

104,039

$

108,136

$

123,225

$

449,151












TOTAL UNITED STATES

$

776,473

$

746,491

$

786,377

$

820,824

$

3,130,165

























International



Quarter 1


Quarter 2


Quarter 3


Quarter 4


Year

BD MEDICAL











Medical Surgical Systems

$

211,595

$

219,079

$

230,934

$

253,384

$

914,990

Diabetes Care


91,541


85,159


94,521


92,098


363,319

Pharmaceutical Systems


152,129


178,085


220,503


224,195


774,914

TOTAL

$

455,265

$

482,323

$

545,958

$

569,677

$

2,053,223












BD DIAGNOSTICS











Preanalytical Systems

$

128,924

$

131,029

$

136,427

$

138,297

$

534,677

Diagnostic Systems


123,699


123,498


130,578


136,224


513,999

TOTAL

$

252,623

$

254,527

$

267,005

$

274,521

$

1,048,676












BD BIOSCIENCES











Cell Analysis

$

152,142

$

159,223

$

139,251

$

150,055

$

600,671

Discovery Labware


36,645


40,578


37,818


38,946


153,987

TOTAL

$

188,787

$

199,801

$

177,069

$

189,001

$

754,658












TOTAL INTERNATIONAL

$

896,675

$

936,651

$

990,032

$

1,033,199

$

3,856,557

























Total



Quarter 1


Quarter 2


Quarter 3


Quarter 4


Year

BD MEDICAL











Medical Surgical Systems

$

455,632

$

450,120

$

475,011

$

508,552

$

1,889,314

Diabetes Care


180,006


168,392


185,851


180,688


714,937

Pharmaceutical Systems


194,781


221,150


263,963


272,548


952,443

TOTAL

$

830,419

$

839,662

$

924,825

$

961,788

$

3,556,694












BD DIAGNOSTICS











Preanalytical Systems

$

278,154

$

278,465

$

292,187

$

294,625

$

1,143,431

Diagnostic Systems


262,037


261,175


274,192


285,384


1,082,788

TOTAL

$

540,191

$

539,640

$

566,379

$

580,009

$

2,226,219












BD BIOSCIENCES











Cell Analysis

$

229,521

$

230,993

$

209,769

$

234,234

$

904,517

Discovery Labware


73,017


72,847


75,436


77,992


299,292

TOTAL

$

302,538

$

303,840

$

285,205

$

312,226

$

1,203,809












TOTAL REVENUES

$

1,673,148

$

1,683,142

$

1,776,409

$

1,854,023

$

6,986,722























Certain quarterly amounts may not add to the year-to-date totals due to rounding.

Contact:

Zachary A. Nagle, Investor Relations - 201-847-5453

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

SOURCE BD (Becton, Dickinson and Company)