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BD Announces Results For 2016 Fourth Fiscal Quarter And Full Year; Provides Fiscal 2017 Guidance
-- As reported, full fiscal year revenues of $12.483 billion increased 21.4 percent. On a comparable, currency-neutral basis, organic adjusted revenues grew 4.3 percent for the full year.
-- As reported, full fiscal year diluted earnings per share of $4.49 increased 34.0 percent.
-- As adjusted, full fiscal year diluted earnings per share of $8.59 increased 20.0 percent, or 29.1 percent on a currency-neutral basis.
-- As reported, the Company expects full fiscal year 2017 diluted earnings per share to be between $7.23 and $7.33, which represents growth of 61.0 to 63.0 percent.
-- As adjusted, the Company expects full fiscal year 2017 diluted earnings per share to be between $9.62 and $9.72 on a currency-neutral basis, which represents growth of 12.0 to 13.0 percent. Including the estimated unfavorable impact from foreign currency, the Company expects adjusted diluted earnings per share to be between $9.45 and $9.55, which represents growth of approximately 10.0 to 11.0 percent.

FRANKLIN LAKES, N.J., Nov. 3, 2016 /PRNewswire/ -- BD (Becton, Dickinson and Company) (NYSE: BDX), a leading global medical technology company, today announced quarterly revenues of $3.231 billion, as reported, for the fourth fiscal quarter ended September 30, 2016, an increase of 5.6 percent over the prior-year period revenues. On a comparable, currency-neutral basis, fourth quarter organic adjusted revenues grew 6.4 percent. For the full fiscal year ended September 30, 2016, as reported, revenues of $12.483 billion increased 21.4 percent over the prior-year as reported. On a comparable, currency-neutral basis, full fiscal year organic adjusted revenues grew 4.3 percent.

"We are extremely proud of our accomplishments during our first fiscal year as the 'new' BD," said Vincent A. Forlenza, Chairman, CEO and President. "Our solid revenue growth and continued margin expansion allow us to invest in innovation while delivering double-digit increases in earnings. We look forward to fiscal 2017 with confidence as we continue to focus on improving outcomes, expanding access to care, lowering costs and optimizing safety, which will ultimately enrich our purpose of advancing the world of health."

Fourth Quarter and Full Year Fiscal 2016 Operating Results
As reported, diluted earnings per share for the fourth quarter were $0.09, compared with $0.84 as reported in the prior-year period. This represents a decrease of 89.3 percent and is primarily due to charges related to the attainment of cost synergies. Adjusted diluted earnings per share were $2.12, compared with $1.94 in the prior-year period. This represents an increase in adjusted diluted earnings per share of 9.3 percent, or 16.5 percent on a currency-neutral basis.

For the full fiscal year ended September 30, 2016, as reported, diluted earnings per share were $4.49, compared with $3.35 as reported in the prior-year period. This represents an increase of 34.0 percent. Adjusted diluted earnings per share were $8.59, compared with $7.16 in the prior-year period. This represents an increase in adjusted diluted earnings per share of 20.0 percent, or 29.1 percent on a currency-neutral basis.

Segment Results
In the BD Medical segment, as reported, worldwide revenues for the quarter were $2.235 billion, an increase of 7.3 percent over the prior-year period revenues. As adjusted, BD Medical revenues of $2.237 billion grew 7.9 percent on a comparable, currency-neutral basis. The segment's revenue growth reflects strong performance in the Medication Management Solutions and Medication and Procedural Solutions units, and solid results in the Pharmaceutical Systems and Diabetes Care units. Strong performance in the Respiratory Solutions unit was aided, in part, by a favorable comparison to the prior year, as expected. 

For the twelve-month period ended September 30, 2016, BD Medical revenues were $8.654 billion as reported, an increase of 34.0 percent over the prior-year period revenues as reported. As adjusted, BD Medical revenues of $8.669 billion grew 4.7 percent on a comparable, currency-neutral basis.

In the BD Life Sciences segment, as reported, worldwide revenues for the quarter were $996 million, an increase of 2.1 percent over the prior-year period revenues, or an increase of 2.7 percent on a currency-neutral basis. The segment's revenue growth reflects solid performance in the Preanalytical Systems and Biosciences units. Within the Biosciences unit, strong growth in the research platform in the U.S. was partially offset by continued declines in Africa, as previously communicated. Growth in the Diagnostic Systems unit was impacted, in part, by the timing of installations of the BD Kiestra™ lab automation system that benefited the third fiscal quarter of fiscal 2016, in conjunction with a tough comparison to the prior-year period. 

For the twelve-month period ended September 30, 2016, BD Life Sciences revenues were $3.829 billion as reported, an increase of 0.2 percent over the prior-year period revenues as reported, and an increase of 3.4 percent on a currency-neutral basis.

Geographic Results
As reported, fourth quarter revenues in the U.S. were $1.748 billion, an increase of 7.1 percent over the prior-year period revenues as reported. As adjusted, revenues in the U.S. of $1.751 billion increased 7.2 percent on a comparable basis. Within the BD Medical segment, growth was driven by strong performance across the Medication Management Solutions, Medication and Procedural Solutions, and Pharmaceutical Systems units. Growth in BD Life Sciences was driven by strong performance across the segment.

As reported, revenues outside of the U.S. were $1.483 billion, representing an increase of 3.9 percent over the prior-year period revenues as reported, or an increase of 5.2 percent on a currency-neutral basis. International revenue growth reflects strong growth in the BD Medical segment. Within the BD Medical segment, results were driven by double-digit growth in China, strength in dispensing and infusion, and sales of safety-engineered products. Growth in the BD Medical segment was aided, in part, by the aforementioned favorable comparison to the prior year period in the Respiratory Solutions unit. BD Life Sciences segment revenues were about flat when compared with the prior-year period revenues. Results in the BD Life Sciences segment were impacted by the aforementioned tough comparison to the prior-year period related to the timing of installations of the BD Kiestra™ lab automation system, and continued declines in Africa within the Biosciences unit.

For the twelve-month period ended September 30, 2016, U.S. revenues were $6.893 billion as reported, an increase of 36.0 percent over the prior-year period revenues as reported. As adjusted, revenues in the U.S. of $6.907 billion grew 4.4 percent on a comparable basis. As reported, revenues outside of the U.S. were $5.590 billion, an increase of 7.2 percent over the prior-year period revenues as reported. On a comparable, currency-neutral basis, revenues outside the U.S. grew 4.2 percent.  

Fiscal 2017 Outlook for Full Year  
As reported, the Company expects full fiscal year 2017 revenues to decrease 3.0 to 3.5 percent, primarily due to the divestiture of the Respiratory Solutions business that was completed in October 2016. The Company estimates full fiscal year 2017 revenues will increase 4.5 to 5.0 percent on a comparable, currency-neutral basis that excludes Respiratory Solutions and other closed divestitures in fiscal years 2016 and 2017.

As reported, the Company expects full fiscal year 2017 diluted earnings per share to be between $7.23 and $7.33, which represents growth of 61.0 to 63.0 percent. The Company expects adjusted diluted earnings per share to be between $9.62 and $9.72 on a currency-neutral basis, which represents growth of 12.0 to 13.0 percent including an estimated 1.5 percentage points of dilution related to the Respiratory Solutions divestiture. Including the estimated unfavorable impact from foreign currency, the Company expects adjusted diluted earnings per share to be between $9.45 and $9.55, which represents growth of approximately 10.0 to 11.0 percent over fiscal 2016 adjusted diluted earnings per share of $8.59. Adjusted diluted earnings per share excludes, among other specified items, the non-cash amortization of intangible assets. 

Conference Call Information
A conference call regarding BD's fourth quarter results will be broadcast live on BD's website, www.bd.com/investors, along with related slides, at 8:00 a.m. (ET) Thursday, November 3, 2016. 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 Thursday, November 10, 2016, confirmation number 94169710.

Non-GAAP Financial Measures/Financial Tables
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.  Within the attached financial tables presented, certain columns and rows may not add due to the use of rounded numbers. Percentages and earnings per share amounts presented are calculated from the underlying amounts.

All "comparable" basis revenue growth rates relating to fiscal year 2016 presented throughout this release include the results of CareFusion Corporation ("CareFusion") in the current and prior-year periods. Adjusted revenues for the current and prior-year periods for the Company and the Medical segment in the U.S. exclude the amortization of a write down of deferred revenue made in connection with our acquisition of CareFusion, which served to lower reported revenues for each period. Adjusted revenue growth rates presented on a comparable basis reflect the aforementioned adjustments and further exclude the impact of a distribution agreement change in the Respiratory Solutions unit. Adjusted revenue growth rates presented on an "organic" comparable basis reflect the aforementioned adjustments and are further adjusted for closed acquisitions and divestitures. Current and prior-year adjusted diluted earnings per share results exclude the impact of purchase accounting adjustments (including the non-cash amortization of acquisition-related intangible assets); and integration, restructuring and transaction costs. Prior-year adjusted diluted earnings per share results also excludes the impact of financing costs; a litigation-related charge and the dilutive impact of shares issued in the CareFusion acquisition prior to the consolidation of its operating results beginning on April 1, 2015. We also provide these measures on a currency-neutral basis after eliminating the effect of foreign currency translation, where applicable. Reconciliations of these amounts to the most directly comparable GAAP measures are included in the tables at the end of this release.

About BD
BD is a global medical technology company that is advancing the world of health by improving medical discovery, diagnostics and the delivery of care. BD leads in patient and health care worker safety and the technologies that enable medical research and clinical laboratories. The company provides innovative solutions that help advance medical research and genomics, enhance the diagnosis of infectious disease and cancer, improve medication management, promote infection prevention, equip surgical and interventional procedures, and support the management of diabetes. The company partners with organizations around the world to address some of the most challenging global health issues. BD has more than 40,000 associates across 50 countries who work in close collaboration with customers and partners to help enhance outcomes, lower health care delivery costs, increase efficiencies, improve health care safety and expand access to health. For more information on BD, please visit bd.com.

This press release, including the section entitled "Fiscal 2017 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. These factors include, but are not limited to: risks relating to the integration of CareFusion's operations, products and employees into BD and the possibility that the anticipated synergies and other benefits of the proposed acquisition will not be realized or will not be realized within the expected timeframe; potential cuts in governmental healthcare spending, which could result in reduced demand for our product or downward pricing pressure; measures to contain healthcare costs; adverse changes in regional, national or foreign economic conditions, including any impact 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; the adverse impact of cyber-attacks on our information systems or products; competitive factors including technological advances and new products introduced by competitors; interruptions in our supply chain or manufacturing processes; pricing and market pressures; difficulties inherent in product development, delays in product introductions and uncertainty of market acceptance of new products; adverse changes in geopolitical conditions; increases in energy costs and their effect on, among other things, the cost of producing BD's products; efficacy or safety concerns relating to product recalls; fluctuations in costs and availability of raw materials and in BD's ability to maintain favorable supplier arrangements and relationships; new or changing laws and regulations 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.

 

BECTON DICKINSON AND COMPANY












CONSOLIDATED INCOME STATEMENTS












(Unaudited; Amounts in millions, except share and per share data)


























Three Months Ended September 30,




2016



2015



% Change















REVENUES


$

3,231


$

3,059



5.6













Cost of products sold



1,679



1,630



3.0



Selling and administrative expense



796



756



5.3



Research and development expense



253



196



29.3



Acquisitions and other restructurings



407



182



        NM



TOTAL OPERATING COSTS












     AND EXPENSES



3,135



2,764



13.4















OPERATING INCOME



96



296



(67.5)















Interest expense



(95)



(99)



(3.9)



Interest income



7



(5)



        NM



Other income (expense), net



1



(2)



        NM















INCOME BEFORE INCOME TAXES



9



190



(95.2)















Income tax (benefit) provision



(10)



9



        NM















NET INCOME


$

19


$

181



(89.6)















EARNINGS PER SHARE
























Basic Earnings per Share


$

0.09


$

0.86



(89.5)



Diluted Earnings per Share


$

0.09


$

0.84



(89.3)















AVERAGE SHARES OUTSTANDING (in thousands)
























     Basic



213,571



210,985






     Diluted



217,916



215,719


















NM - Not Meaningful












 

BECTON DICKINSON AND COMPANY












CONSOLIDATED INCOME STATEMENTS












(Unaudited; Amounts in millions, except share and per share data)


























Twelve Months Ended September 30,




2016



2015



% Change















REVENUES


$

12,483


$

10,282



21.4













Cost of products sold



6,492



5,587



16.2



Selling and administrative expense



3,005



2,563



17.3



Research and development expense



828



632



31.2



Acquisitions and other restructurings



728



426



70.8



TOTAL OPERATING COSTS












     AND EXPENSES



11,053



9,207



20.0















OPERATING INCOME



1,430



1,074



33.1















Interest expense



(388)



(371)



4.5



Interest income



21



15



36.0



Other income, net



11



21



(44.5)















INCOME BEFORE INCOME TAXES



1,074



739



45.3















Income tax provision



97



44



        NM















NET INCOME


$

976


$

695



40.5















EARNINGS PER SHARE
























Basic Earnings per Share


$

4.59


$

3.43



33.8



Diluted Earnings per Share


$

4.49


$

3.35



34.0















AVERAGE SHARES OUTSTANDING (in thousands)
























     Basic



212,702



202,537






     Diluted



217,536



207,509






























NM - Not Meaningful












 

BECTON DICKINSON AND COMPANY






















SUPPLEMENTAL REVENUE INFORMATION






















REVENUES BY BUSINESS SEGMENTS AND UNITS - UNITED STATES






















Three Months Ended September 30,






















(Unaudited; Amounts in millions)
























































A


B


C


D



E=(A-B)/B



F=(C-D)/D







As Reported


Adjusted



 % Change






2016


2015


2016


2015



 Reported



Adjusted




BD MEDICAL






















   Medication and Procedural Solutions


$

511


$

481


$

511


$

481



6.2



6.2




   Medication Management Solutions



430



390



430



390



10.3



10.3




   Diabetes Care



135



130



135



130



3.8



3.8




   Pharmaceutical Systems



85



78



85



78



10.1



10.1




   Respiratory Solutions



136



133



136



133



2.1



2.1




   Deferred Revenue Adjustment *



(3)



(8)



-



-



(64.1)



-




TOTAL


$

1,294


$

1,203


$

1,297


$

1,211



7.6



7.1

























BD LIFE SCIENCES





















   Preanalytical Systems


$

182


$

173


$

182


$

173



5.0



5.0




   Diagnostic Systems



153



146



153



146



5.1



5.1




   Biosciences



119



110



119



110



8.0



8.0




TOTAL


$

454


$

429


$

454


$

429



5.8



5.8
















































TOTAL UNITED STATES


$

1,748


$

1,632


$

1,751


$

1,640



7.1



6.7




























































































* In accordance with U.S. GAAP business combination accounting rules, CareFusion's deferred revenue balance was written down to reflect a fair value measurement as of the acquisition date.  The deferred revenue adjustment represents the amortization of this write-down which primarily relates to software maintenance contracts in the United States. Revenues for these contracts is typically deferred and recognized over the term of the contracts.

 

BECTON DICKINSON AND COMPANY






















SUPPLEMENTAL REVENUE INFORMATION






















REVENUES BY BUSINESS SEGMENTS AND UNITS - INTERNATIONAL






















Three Months Ended September 30, (continued)






















(Unaudited; Amounts in millions)































A


B


C



D=(A-B)/B



E=(A-B-C)/B









As Reported


FX



 % Change









2016


2015


Impact



 Reported



 FXN







BD MEDICAL






















   Medication and Procedural Solutions


$

372


$

356


$

(9)



4.5



7.1







   Medication Management Solutions



107



89



(3)



19.8



23.4







   Diabetes Care



131



127



-



3.1



3.3







   Pharmaceutical Systems



265



254



1



4.1



3.6







   Respiratory Solutions



67



54



-



23.7



24.3







TOTAL


$

941


$

880


$

(12)



6.9



8.2





























BD LIFE SCIENCES






















   Preanalytical Systems


$

177


$

175


$

(4)



0.7



2.9







   Diagnostic Systems



189



196



(1)



(3.8)



(3.1)







   Biosciences



177



176



(1)



0.8



1.5







TOTAL


$

542


$

547


$

(6)



(0.9)



0.3



















































TOTAL INTERNATIONAL


$

1,483


$

1,427


$

(18)



3.9



5.2





























 

BECTON DICKINSON AND COMPANY




























SUPPLEMENTAL REVENUE INFORMATION




























REVENUES BY BUSINESS SEGMENTS AND UNITS - TOTAL




























Three Months Ended September 30, (continued)




























(Unaudited; Amounts in millions)











































A


B


C


D


E



F=(A-B)/B



G=(A-B-E)/B



H=(C-D)/D



I=(C-D-E)/D



















 % Change



As Reported


Adjusted


FX












Adjusted



2016


2015


2016


2015


Impact



 Reported



 FXN



 Adjusted



 FXN

BD MEDICAL




























   Medication and Procedural Solutions


$

882


$

836


$

882


$

836


$

(9)



5.5



6.6



5.5



6.6

   Medication Management Solutions



537



479



537



479



(3)



12.1



12.8



12.1



12.8

   Diabetes Care



266



257



266



257



-



3.5



3.6



3.5



3.6

   Pharmaceutical Systems



350



332



350



332



1



5.5



5.1



5.5



5.1

   Respiratory Solutions



203



187



203



187



-



8.3



8.5



8.3



8.5

   Deferred Revenue Adjustment *



(3)



(8)



-



-



-



(64.1)



(64.1)



-



-

TOTAL


$

2,235


$

2,083


$

2,237


$

2,091


$

(12)



7.3



7.8



7.0



7.6





























BD LIFE SCIENCES




























   Preanalytical Systems


$

359


$

349


$

359


$

349


$

(4)



2.8



4.0



2.8



4.0

   Diagnostic Systems



342



342



342



342



(1)



-



0.4



-



0.4

   Biosciences



296



286



296



286



(1)



3.6



4.0



3.6



4.0

TOTAL


$

996


$

976


$

996


$

976


$

(6)



2.1



2.7



2.1



2.7

























































TOTAL REVENUES


$

3,231


$

3,059


$

3,234


$

3,067


$

(18)



5.6



6.2



5.4



6.0

















































































































* In accordance with U.S. GAAP business combination accounting rules, CareFusion's deferred revenue balance was written down to reflect a fair value measurement as of the acquisition date.  The deferred revenue adjustment represents the amortization of this write-down which primarily relates to software maintenance contracts in the United States. Revenues for these contracts is typically deferred and recognized over the term of the contracts.



































 

BECTON DICKINSON AND COMPANY






















SUPPLEMENTAL REVENUE INFORMATION






















REVENUES BY BUSINESS SEGMENTS AND UNITS - UNITED STATES






















Twelve Months Ended September 30,






















(Unaudited; Amounts in millions)




































































A


B


C


D



E=(A-B)/B



F=(C-D)/D







As Reported


Adjusted



 % Change






2016


2015


2016


2015



 Reported



Adjusted




BD MEDICAL






















   Medication and Procedural Solutions


$

1,959


$

1,483


$

1,959


$

1,483



32.1



32.1




   Medication Management Solutions



1,791



832



1,791



832



 NM



 NM




   Diabetes Care



521



491



521



491



6.0



6.0




   Pharmaceutical Systems



328



304



328



304



7.8



7.8




   Respiratory Solutions



560



297



560



297



88.6



88.6




   Deferred Revenue Adjustment *



(14)



(20)



-



-



(29.3)



-




TOTAL


$

5,144


$

3,386


$

5,159


$

3,407



51.9



51.4


























BD LIFE SCIENCES






















   Preanalytical Systems


$

715


$

689


$

715


$

689



3.7



3.7




   Diagnostic Systems



600



592



600



592



1.4



1.4




   Biosciences



433



402



433



402



7.9



7.9




TOTAL


$

1,748


$

1,683


$

1,748


$

1,683



3.9



3.9
















































TOTAL UNITED STATES


$

6,893


$

5,069


$

6,907


$

5,090



36.0



35.7




























































































* In accordance with U.S. GAAP business combination accounting rules, CareFusion's deferred revenue balance was written down to reflect a fair value measurement as of the acquisition date.  The deferred revenue adjustment represents the amortization of this write-down which primarily relates to software maintenance contracts in the United States. Revenues for these contracts is typically deferred and recognized over the term of the contracts.























NM - Not Meaningful






















 

BECTON DICKINSON AND COMPANY

















SUPPLEMENTAL REVENUE INFORMATION

















REVENUES BY BUSINESS SEGMENTS AND UNITS - INTERNATIONAL

















Twelve Months Ended September 30, (continued)

















(Unaudited; Amounts in millions)


























A


B


C



D=(A-B)/B



E=(A-B-C)/B




As Reported


FX



 % Change




2016


2015


Impact



 Reported



 FXN


BD MEDICAL

















   Medication and Procedural Solutions


$

1,454


$

1,367


$

(104)



6.4



14.0


   Medication Management Solutions



419



201



(24)



 NM



 NM


   Diabetes Care



502



521



(34)



(3.6)



2.9


   Pharmaceutical Systems



872



863



(28)



0.9



4.2


   Respiratory Solutions



263



122



(10)



 NM



 NM


TOTAL


$

3,510


$

3,074


$

(199)



14.2



20.7



















BD LIFE SCIENCES

















   Preanalytical Systems


$

694


$

701


$

(53)



(1.0)



6.6


   Diagnostic Systems



701



708



(41)



(1.0)



4.8


   Biosciences



685



730



(30)



(6.1)



(2.1)


TOTAL


$

2,080


$

2,139


$

(123)



(2.7)



3.0




































TOTAL INTERNATIONAL


$

5,590


$

5,213


$

(322)



7.2



13.4























































































NM - Not Meaningful

















 

BECTON DICKINSON AND COMPANY




























SUPPLEMENTAL REVENUE INFORMATION




























REVENUES BY BUSINESS SEGMENTS AND UNITS - TOTAL




























Twelve Months Ended September 30, (continued)




























(Unaudited; Amounts in millions)











































A


B


C


D


E



F=(A-B)/B



G=(A-B-E)/B



H=(C-D)/D



I=(C-D-E)/D



















 % Change



As Reported


Adjusted


FX












Adjusted



2016


2015


2016


2015


Impact



 Reported



 FXN



 Adjusted



 FXN

BD MEDICAL




























   Medication and Procedural Solutions


$

3,413


$

2,850


$

3,413


$

2,850


$

(104)



19.8



23.4



19.8



23.4

   Medication Management Solutions



2,210



1,033



2,210



1,033



(24)



 NM



 NM



 NM



 NM

   Diabetes Care



1,023



1,012



1,023



1,012



(34)



1.1



4.4



1.1



4.4

   Pharmaceutical Systems



1,199



1,167



1,199



1,167



(28)



2.7



5.1



2.7



5.1

   Respiratory Solutions



824



419



824



419



(10)



96.8



99.1



96.8



99.1

   Deferred Revenue Adjustment *



(14)



(20)



-



-



-



(29.3)



(29.3)



-



-

TOTAL


$

8,654


$

6,460


$

8,669


$

6,480


$

(199)



34.0