FRANKLIN LAKES, N.J., Nov. 5 /PRNewswire-FirstCall/ -- BD (Becton, Dickinson and Company) today reported quarterly revenues of $1.836 billion for the fourth fiscal quarter ended September 30, 2008, representing an increase of 11 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 5 percentage points of the increase in quarterly revenues.
For the full fiscal year ended September 30, 2008, BD reported record revenues of $7.156 billion, representing an increase of 13 percent over the prior year, which reflects an overall estimated 6 percent favorable impact from foreign currency translation that affected all segments.
“We are pleased to report another strong year for BD, one in which we exceeded our strategic and financial goals despite a challenging business environment,” said Edward J. Ludwig, Chairman, President and Chief Executive Officer. “All segments contributed to our success and growth. Implementation of disciplined spending controls enabled us to expand our operating margins as we continued to make significant capital and R&D investments to support our innovation strategy.”
Fourth Quarter Earnings and Analysis of Full Fiscal Year 2008 and 2007 Earnings
Reported diluted earnings per share from continuing operations of $1.13 for the fourth quarter increased by 15 percent over reported diluted earnings per share from continuing operations of 98 cents for the fourth fiscal quarter of 2007.
For the twelve-month period ending September 30, 2008, reported diluted earnings per share from continuing operations were $4.46. The following analysis (Table 1) of diluted earnings per share from continuing operations for the twelve-month periods ended September 30, 2008 and 2007 identifies specified items that affect the comparability of results between periods. As illustrated, reported diluted earnings per share from continuing operations of $4.46 for fiscal 2008 increased by 16 percent over diluted earnings per share from continuing operations, excluding specified items, of $3.84 for fiscal 2007.
Segment Results
In the BD Medical segment, worldwide revenues for the quarter were $953 million, representing an increase of 10 percent from the prior year period. Pharmaceutical Systems and Diabetes Care products led revenue growth in the segment. For the full fiscal year ended September 30, 2008, the BD Medical segment reported 11 percent revenue growth to $3.801 billion.
In the BD Diagnostics segment, worldwide revenues for the quarter were $553 million, representing an increase of 11 percent from the prior year’s quarter. Sales of safety-engineered devices, cancer diagnostics products and infectious disease testing systems contributed to revenue growth. For the full fiscal year ended September 30, 2008, the BD Diagnostics segment reported revenue growth of 13 percent to $2.160 billion.
In the BD Biosciences segment, worldwide revenues for the quarter were $329 million, representing an increase of 16 percent from the prior year’s quarter. Demand for clinical and research instruments and reagents were the primary growth drivers. For the full fiscal year ended September 30, 2008, the BD Biosciences segment reported 16 percent revenue growth to $1.195 billion.
Geographic Results
Fourth quarter revenues in the U.S. were $813 million, representing an increase of 3 percent over the prior year period. Revenues outside the U.S. were $1.023 billion, representing an increase of 19 percent over the prior year period, with approximately 9 percentage points of the increase resulting from the favorable impact from foreign currency translation.
For the full fiscal year ended September 30, 2008, revenues in the U.S. were $3.185 billion, representing an increase of 5 percent over the prior year period. Revenues outside of the U.S. were $3.971 billion, representing an increase of 19 percent over the prior year period, with approximately 11 percentage points of the increase resulting from the favorable impact from foreign currency translation.
Fiscal 2009 Outlook for Full Year
The Company estimates that reported revenues for the full fiscal year 2009 will increase approximately 1 to 2 percent. This performance reflects unfavorable foreign currency translation, based on current exchange rates, of an estimated 5 to 6 percentage points. The Company expects diluted earnings per share from continuing operations for the full fiscal year 2009 to increase approximately 8 to 10 percent over reported diluted earnings per share from continuing operations of $4.46 for the fiscal year 2008. This earnings estimate reflects anticipated operating margin improvement, which more than offsets the unfavorable impact from foreign currency translation.
Conference Call Information
A conference call regarding BD’s fourth fiscal quarter and full year results and its expectations for fiscal year 2009 will be broadcast live on BD’s website, www.bd.com/investors, at 10:00 a.m. (ET) Wednesday, November 5, 2008. The conference call will be available for replay through the close of business on November 12, 2008 on BD’s website, www.bd.com/investors, or at 1-800-642-1687 (domestic) and 1-706-645-9291 (international), access code 67742305.
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 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 28,000 people in approximately 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 2009 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: adverse changes in regional, national or foreign economic conditions, including any impact that may result from the current downturn in the world financial markets and major economies on our ability to access credit markets and finance our operations or the demand for our products and services; changes in interest or foreign currency exchange rates, particularly in light of increased volatility in 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; 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, including changes in government pricing and reimbursement policies or other cost containment reforms; 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.
(1) Represents the acquired in-process research and development charges of $114,739 and $7,394 related to the TriPath and Plasso acquisitions, respectively.
(1) Cell Analysis consists of the Immunocytometry Systems and the Pharmingen units that were previously reported separately.
(1) Cell Analysis consists of the Immunocytometry Systems and the Pharmingen units that were previously reported separately.
(1) Cell Analysis consists of the Immunocytometry Systems and the Pharmingen units that were previously reported separately.
(1) Cell Analysis consists of the Immunocytometry Systems and the Pharmingen units that were previously reported separately.
(1) Cell Analysis consists of the Immunocytometry Systems and the Pharmingen units that were previously reported separately.
(1) Cell Analysis consists of the Immunocytometry Systems and the Pharmingen units that were previously reported separately.
CONTACT: Patricia A. Spinella, Investor Relations, +1-201-847-5453, or
Colleen T. White, Corporate Communications, +1-201-847-5369, both of BD
Web site: http://www.bd.com/
http://www.bd.com/investors/
