FRANKLIN LAKES, N.J., April 23 /PRNewswire-FirstCall/ -- BD (Becton, Dickinson and Company) today reported record quarterly revenues of $1.747 billion for the second fiscal quarter ended March 31, 2008, representing an increase of 11 percent over the prior year period. This quarter’s revenue 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.
“We are pleased with our strong results, which were once again driven by solid company-wide revenue growth and disciplined spending controls that more than offset the headwind we have been facing as a result of increasing raw material costs,” said Edward J. Ludwig, Chairman, President and Chief Executive Officer. “Accordingly, we are increasing our earnings guidance for the full year.”
Second Quarter and Six-Month Period of Fiscal Year 2008 and 2007 Earnings
Reported diluted earnings per share from continuing operations of $1.09 for the second quarter increased by 18 percent over diluted earnings per share from continuing operations of 92 cents for the second fiscal quarter of 2007. For the six-month period ending March 31, 2008, reported diluted earnings per share from continuing operations were $2.16. For the six-month period ending March 31, 2007, reported diluted earnings per share from continuing operations were $1.44. The following analysis (Table 1) of diluted earnings per share from continuing operations for the six-month periods ended March 31, 2008 and 2007 identifies the specified item that affects comparability of results between periods. As illustrated, diluted earnings per share from continuing operations of $2.16 for fiscal 2008 increased by 14 percent over comparable fiscal 2007 diluted earnings per share from continuing operations of $1.89, which exclude the specified item.
Segment Results
In the BD Medical segment, worldwide revenues for the quarter were $922 million, representing an increase of 9 percent from the prior year period. For the six-month period ended March 31, 2008, the BD Medical segment reported 10 percent revenue growth. Pharmaceutical Systems and Diabetes Care products led revenue growth in the segment.
In the BD Diagnostics segment, worldwide revenues for the quarter were $531 million, representing an increase of 12 percent from the prior year’s quarter. For the six-month period ended March 31, 2008, the BD Diagnostics segment reported 15 percent revenue growth. Sales of safety-engineered devices, TriPath products, and molecular testing systems, including GeneOhm, contributed to revenue growth.
In the BD Biosciences segment, worldwide revenues for the quarter were $294 million, representing an increase of 14 percent from the prior year’s quarter. For the six-month period ended March 31, 2008, the BD Biosciences segment reported 16 percent revenue growth. Demand for research instruments as well as clinical and research reagents continued to be the primary growth drivers.
Geographic Results
Second quarter revenues in the U.S. were $784 million, representing an increase of 4 percent over the prior year period. Revenues outside the U.S. were $963 million, representing an increase of 17 percent over the prior year period, with approximately 10 percentage points of the increase resulting from the favorable impact of foreign currency translation.
For the six-month period ended March 31, 2008, revenues in the U.S. were $1.574 billion, representing an increase of 7 percent over the prior year period. Revenues outside of the U.S. were $1.879 billion, representing an increase of 17 percent over the prior year period, with approximately 10 percentage points of the increase resulting from the favorable impact from foreign currency translation.
Fiscal 2008 Outlook for Full Year
The Company raised its guidance for full fiscal year 2008 diluted earnings per share from continuing operations to approximately 13 to 14 percent from approximately 11 to 13 percent over adjusted diluted earnings per share from continuing operations of $3.84 for the full fiscal year 2007. Reported diluted earnings per share from continuing operations for the full fiscal year 2007 were $3.36, which included 48 cents for in-process research and development charges related to the TriPath and Plasso acquisitions. Excluding these charges, adjusted diluted earnings per share from continuing operations for the full fiscal year 2007 were $3.84.
Conference Call Information
A conference call regarding BD’s second fiscal quarter results and its expectations for the full fiscal year will be broadcast live on BD’s website, www.bd.com/investors, at 10:00 a.m. (ET) Wednesday, April 23, 2008. The conference call will be available for replay on BD’s website, www.bd.com/investors, or at 800-388-6197 (domestic) and 402-220-1115 (international), Conference ID: 7BDX, through the close of business on Wednesday, April 30, 2008.
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 of BD -
BECTON DICKINSON
Web site: http://www.bd.com/
http://www.bd.com/investors/
