FRANKLIN LAKES, N.J., Feb. 7, 2012 /PRNewswire/ -- BD (Becton, Dickinson and Company) (NYSE: BDX), a leading global medical technology company, today reported quarterly revenues of $1.888 billion for the first fiscal quarter ended December 31, 2011, representing an increase of 2.5 percent from the prior-year period, or 2.4 percent on a foreign currency-neutral basis.
“We are pleased with our solid start to fiscal year 2012 given the challenging macroeconomic climate,” said Vincent A. Forlenza, Chief Executive Officer and President. “Our operating results reflect our increased investments in high-growth areas. We will continue to drive efficiency throughout the Company and we remain committed to delivering value to our customers and shareholders.”
First Quarter Earnings
As expected, reported diluted earnings per share for the first quarter were $1.21, compared with $1.35 in the prior-year period, representing a 10.4 percent decrease. This decline was due to difficult pricing comparisons, higher raw material costs and higher expenses from recent acquisitions. On a foreign currency-neutral basis, diluted earnings per share for the first quarter decreased by 9.6 percent. For the quarter, reported diluted earnings per share from continuing operations included an approximate $0.04 tax benefit primarily relating to various tax settlements in multiple jurisdictions. This benefit was reflected in our previous full fiscal year 2012 guidance.
Segment Results
In the BD Medical segment, worldwide revenues for the quarter were $950 million, representing an increase of 2.6 percent compared with the prior-year period, on both a reported and a currency-neutral basis. The segment’s revenue growth reflects solid sales in the Diabetes Care unit and international safety-engineered products.
In the BD Diagnostics segment, worldwide revenues for the quarter were $621 million, representing an increase of 3.2 percent compared with the prior-year period, or an increase of 3.3 percent on a foreign currency-neutral basis. The segment’s growth was primarily driven by Preanalytical Systems safety-engineered products, and solid sales in Women’s Health and Cancer.
In the BD Biosciences segment, worldwide revenues for the quarter were $317 million, representing an increase of 0.9 percent compared with the prior-year period, or an increase of 0.3 percent on a foreign currency-neutral basis. Segment growth was primarily driven by clinical reagent sales in the Cell Analysis unit.
Geographic Results
First quarter revenues in the U.S. of $829 million were flat when compared with the prior-year period, due to a challenging research spending environment and difficult pricing comparisons. Revenues outside of the U.S. were $1.059 billion, representing an increase of 4.5 percent compared with the prior-year period, or an increase of 4.4 percent on a foreign currency-neutral basis. International revenues reflected continued strength in emerging markets and strong sales of safety-engineered products.
Fiscal 2012 Outlook for Full Year
We are reaffirming our previously communicated revenue growth guidance of 2 to 4 percent on a foreign currency-neutral basis. The Company estimates reported revenue growth for the full fiscal year 2012 to be about flat versus our previously disclosed revenue growth guidance of 1 to 3 percent. The Company expects reported diluted earnings per share from continuing operations for fiscal year 2012 to be between $5.60 and $5.70 which reflects the impact of the strengthening U.S. dollar versus our previously disclosed guidance of $5.75 to $5.85. The Company uses recent spot rates for all foreign currencies when projecting reported growth rates and earnings per share. In line with our previously disclosed guidance, the Company plans to repurchase, subject to market conditions, $1.5 billion of its common stock in fiscal year 2012.
Conference Call Information
A conference call regarding BD’s first quarter results and its expectations for the full fiscal year 2012 will be broadcast live on BD’s website, www.bd.com/investors, along with related slides, at 8:00 a.m. (ET) Tuesday, February 7, 2012. The conference call will be available for replay on BD’s website, www.bd.com/investors, or at 1-855-859-2056 (domestic) and 1-404-537-3406 (international) through the close of business on Tuesday, February 14, 2012, access code 42951440.
Non-GAAP Financial Measures
This news release contains certain non-GAAP financial measures. Reconciliations of these and other non-GAAP measures to the comparable GAAP measures are included in the attached financial tables.
About BD
BD is a leading global medical technology company that develops, manufactures and sells medical devices, instrument systems and reagents. The Company is dedicated to improving people’s health throughout the world. BD is focused on improving drug delivery, enhancing the quality and speed of diagnosing infectious diseases and cancers, and advancing research, discovery and production of new drugs and vaccines. BD’s capabilities are instrumental in combating many of the world’s most pressing diseases. Founded in 1897 and headquartered in Franklin Lakes, New Jersey, BD employs approximately 29,000 associates in more than 50 countries throughout the world. The Company serves healthcare institutions, life science researchers, clinical laboratories, the pharmaceutical industry and the general public. For more information, please visit www.bd.com.
