FRANKLIN LAKES, N.J., Nov. 1 /PRNewswire-FirstCall/ -- BD (Becton, Dickinson and Company) today reported record quarterly revenues of $1.651 billion for the fourth fiscal quarter ended September 30, 2007, representing an increase of 13 percent over the prior year period. This quarter’s growth rate reflects the favorable impact on all segments from foreign currency translation, which overall is estimated to account for 3 percentage points of the increase in quarterly revenues.
For the full fiscal year ended September 30, 2007, BD reported record revenues of $6.360 billion, representing an increase of 11 percent over the prior year, which reflects an overall estimated 3 percent favorable impact from foreign currency translation that affected all segments.
“We are pleased with our solid finish to another successful year during which BD exceeded its financial and operating goals,” said Edward J. Ludwig, Chairman, President and Chief Executive Officer. “Our performance was strong across all three segments. We continue to invest in innovation while delivering double-digit earnings growth. Strong cash flow driven by operating margin expansion enables us to return value to shareholders through dividend increases and share repurchases. We are enthusiastic about our outlook for fiscal 2008.”
Fourth Quarter Earnings and Analysis of Full Fiscal Year 2007 and 2006 Earnings
Reported diluted earnings per share from continuing operations of 98 cents for the fourth quarter increased by 15 percent over diluted earnings per share from continuing operations of 85 cents for the fourth fiscal quarter of 2006.
For the twelve-month period ending September 30, 2007, reported diluted earnings per share were $3.36. The following analysis (Table 1) of diluted earnings per share from continuing operations for the twelve-month periods ended September 30, 2007 and 2006 identifies specified items that affect the comparability of results between periods. As illustrated, diluted earnings per share from continuing operations, excluding specified items, of $3.84 for fiscal 2007 increased by 15 percent over diluted earnings per share from continuing operations, excluding specified items, of $3.34 for fiscal 2006.
Segment Results
In the BD Medical segment, worldwide revenues for the quarter were $868 million, representing an increase of 11 percent from the prior year period. For the full fiscal year ended September 30, 2007, the BD Medical segment reported 10 percent revenue growth to $3.421 billion. Strong sales in the Pharmaceutical Systems unit continued to significantly contribute to the growth of the segment.
In the BD Diagnostics segment, worldwide revenues for the quarter were $498 million, representing an increase of 16 percent from the prior year’s quarter. This growth includes $29 million of revenues from TriPath, a maker of innovative solutions to improve the clinical management of cancer, which was acquired at the end of the first quarter of fiscal 2007. For the full fiscal year ended September 30, 2007, the BD Diagnostics segment reported revenue growth of 11 percent to $1.905 billion, which includes $88 million of revenues from TriPath.
In the BD Biosciences segment, worldwide revenues for the quarter were $285 million, representing an increase of 14 percent from the prior year period. Sales of flow cytometry and bioimaging instruments, flow cytometry reagents, and advanced bioprocessing products contributed to growth. For the full fiscal year ended September 30, 2007, the BD Biosciences segment reported 13 percent revenue growth to $1.034 billion, resulting from continued strong sales of those same products.
Geographic Results
Fourth quarter revenues in the U.S. were $790 million, representing an increase of 12 percent over the prior year period. Revenues outside the U.S. were $861 million, representing an increase of 13 percent over the prior year period, and reflected an estimated 5 percent favorable impact from foreign currency translation.
For the full fiscal year ended September 30, 2007, revenues in the U.S. were $3.033 billion, representing an increase of 11 percent over the prior year period. Revenues outside of the U.S. were $3.327 billion, representing an increase of 11 percent over the prior year period, and reflected an estimated 5 percent favorable impact from foreign currency translation.
Fiscal 2008 Outlook for Full Year
The Company estimates that diluted earnings per share from continuing operations for the full fiscal year 2008 will increase approximately 10 to 12 percent over diluted earnings per share from continuing operations, excluding specified items, of $3.84 for the fiscal year 2007.
Conference Call Information
A conference call regarding BD’s fourth fiscal quarter and full year results and its expectations for fiscal year 2008 will be broadcast live on BD’s website, www.bd.com/investors, at 10:00 a.m. (ET) Thursday, November 1, 2007. The conference call will be available for replay through the close of business on November 8, 2007 on BD’s website, www.bd.com/investors, or at 1- 800-475-6701 (domestic) and 1-320-365-3844 (international), access code 889224.
This news release contains certain non-GAAP financial measures. A reconciliation of these and other measures to the comparable GAAP measures is included in this release and in the attached financial tables.
About BD
BD, a leading global medical technology company that manufactures and sells medical devices, instrument systems and reagents, is dedicated to improving people’s health throughout the world. BD is focused on improving drug therapy, enhancing the quality and speed of diagnosing infectious diseases, and advancing research and discovery of new drugs and vaccines. The Company’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 28,000 people in approximately 50 countries throughout the world. The Company serves healthcare institutions, life science researchers, clinical laboratories, industry and the general public. For more information, please visit www.bd.com.
This press release, including the section entitled “Fiscal 2008 Outlook for Full Year,” contains certain estimates and other forward-looking statements (as defined under Federal securities laws) regarding BD’s performance, including future revenues, earnings per share and income, or events or developments that BD expects to occur or anticipates occurring in the future. All such statements are based upon current expectations of BD and involve a number of business risks and uncertainties. Actual results could vary materially from anticipated results described, implied or projected in any forward-looking statement. With respect to forward-looking statements contained herein, factors that could cause actual results to vary materially from any forward-looking statement include, but are not limited to: competitive factors; pricing and market share pressures; changes in interest or foreign currency exchange rates; difficulties inherent in product development and delays in product introductions; changes in regional, national or foreign economic conditions; further increases in energy costs and their effect on, among other things, the cost of producing BD’s products; fluctuations in costs and availability of raw materials and in BD’s ability to maintain favorable supplier arrangements and relationships; uncertainties of litigation (as described in BD’s filings with the Securities and Exchange Commission); the effects of potential pandemic diseases; changes in healthcare or other governmental regulation; and issuance of new or revised accounting standards, as well as other factors discussed in this press release and in BD’s filings with the Securities and Exchange Commission. We do not intend to update any forward-looking statements to reflect events or circumstances after the date hereof except as required by applicable laws or regulations.
CONTACT: Patricia A. Spinella, Investor Relations, +1-201-847-5453, or
Colleen T. White, Corporate Communications, +1-201-847-5369, both for
Becton Dickinson and Company
Web site: http://www.bd.com/
