News & Events
BD Announces Fiscal Second Quarter Results
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Company Increases Earnings Guidance For Fiscal Year 2003
Contact: Patricia A. Spinella Investor Relations (201) 847-5453 Email: patricia_spinella@bd.com Charles A. Borgognoni Corporate Communications (201) 847-6651 Franklin Lakes, NJ (April 25, 2003) -- BD (Becton, Dickinson and Company) (NYSE: BDX) today reported record quarterly revenues of $1.134 billion for the fiscal second quarter ended March 31, 2003, an increase of 12 percent from the same period a year ago. At constant foreign exchange rates, revenues increased 7 percent. Revenue growth in all segments benefited from favorable foreign currency translation, particularly with respect to the Euro.
"We are pleased with our performance in the second quarter," said Edward J. Ludwig, Chairman, President and Chief Executive Officer. "Strong revenue growth was driven, in particular, by our broad line of safety-engineered devices. Also this quarter, the Company launched significant new products - the BD Logic™ Blood Glucose Monitor, the BD Latitude™ Diabetes Management System and the BD FACSAria™ cell sorter. These introductions underscore our strategy of pursuing sustainable revenue growth by focusing on products that have a higher benefit to patients, healthcare workers and researchers."
Diluted earnings per share and net income for the quarter were 54 cents and $142 million, respectively. For the same period in fiscal 2002, net income was $129 million and diluted earnings per share were 48 cents, or 50 cents excluding the impact of a special charge of 2 cents per share relating to the manufacturing restructuring in the BD Medical Systems segment.
Q2 Segment Results
In the BD Medical Systems segment, worldwide revenues of $602 million increased 13 percent. Included in BD Medical Systems revenues were U.S. safety-engineered product sales of $98 million, versus $85 million in the prior year's quarter. Also contributing to the growth of the segment were sales of prefillable drug delivery devices. The overall growth rate in the segment was partly offset by reduced sales of conventional devices in the U.S. due to the transition to safety-engineered devices.
In the BD Clinical Laboratory Solutions segment, worldwide revenues increased 12 percent to $357 million. Revenue growth of 15 percent in the Preanalytical Solutions portion of the segment included U.S. safety-engineered device sales of $68 million, versus $50 million in the prior year's quarter. These results were partly offset by reduced sales of conventional devices due to the transition to safety-engineered devices.
In the BD Biosciences segment, worldwide revenues grew 6 percent to $175 million. Revenue growth was driven primarily by favorable foreign exchange as well as immunology/cell biology (Pharmingen) reagents and Discovery Labware products. This growth was offset in part by continued weaker demand for certain molecular biology (Clontech) reagents. As expected, sales of current flow cytometry instruments were negatively impacted as some customers decided to wait for the new BD FACSAria™ cell sorter, which began initial shipments at the end of March.
Q2 Geographic Results
On a geographic basis, second quarter revenues in the U.S. increased 6 percent to $578 million. Revenues outside the U.S. of $556 million grew 19 percent, or 9 percent at constant foreign exchange rates. International revenues in the second quarter benefited from favorable foreign exchange as well as strong performance in Europe, Japan, and Asia Pacific, offset in part by the effects of continuing unfavorable economic conditions in Latin America.
Six-month Results
For the six-month period ended March 31, 2003, reported revenues were $2.186 billion, a 12 percent increase over a year ago, or 8 percent at constant foreign exchange rates. Diluted earnings per share for the six-month period were 97 cents. For the same period in fiscal 2002, diluted earnings per share were 85 cents, or 87 cents excluding the special charge relating to the manufacturing restructuring.
West Pharmaceutical Services Update
BD has completed its assessment of the impacts resulting from the explosion on January 29, 2003 of the West Pharmaceutical Services facility in Kinston, NC. West is a supplier of rubber, plastic and metal components used in the manufacture of various BD products. West and BD successfully worked together under difficult circumstances following the explosion to minimize the impact on product supply to customers. The cost to BD in the second quarter was negligible, and the Company expects the impact for the balance of fiscal 2003 also to be negligible.
Fiscal 2003 Outlook
The Company increased its earnings guidance for fiscal 2003 from $2.09 to $2.12. For the third and fourth quarters, the Company expects diluted earnings per share of 54 cents and 61 cents, respectively. These expectations assume that U.S. dollar exchange rates, in particular related to the Euro, remain approximately at current levels.
Conference Call Information
A conference call regarding BD's second quarter results and its expectations for the third and fourth quarters will be broadcast live on BD's website at www.bd.com at 8:30 a.m. (ET) Friday, April 25, 2003. The conference call will be available for replay on BD's website at www.bd.com/investors or at 1-800-945-6737 (domestic) and 1-402-220-3456 (international) through the close of business on May 2, 2003.
This news release contains certain non-GAAP financial measures. A reconciliation of these measures to the comparable GAAP measures is included in this release and in the attached financial tables.
BD is a medical technology company that serves healthcare institutions, life science researchers, clinical laboratories, industry and the general public. BD manufactures and sells a broad range of medical supplies, devices, laboratory equipment and diagnostic products. For the fiscal year ended September 30, 2002, BD reported total revenues of $4.033 billion.
This press release may contain certain forward-looking statements (as defined under Federal securities laws) regarding BD's performance, including future revenues, products 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. 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; uncertainties of litigation; BD's ability to achieve sales and earnings forecasts, which are based on sales volume and product mix assumptions, to achieve its cost savings objectives, and to achieve anticipated synergies and other cost savings in connection with acquisitions; changes in regional, national or foreign economic conditions; increases in energy costs; fluctuations in costs and availability of raw materials and in BD's ability to maintain favorable supplier arrangements and relationships; changes in interest or foreign currency exchange rates; delays in product introductions; and changes in health care or other governmental regulation, 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.
BECTON DICKINSON AND COMPANY
CONSOLIDATED INCOME STATEMENTS
(Unaudited; Amounts in thousands, except per-share data)
Three Months Ended March 31,
2003 2002 % Change
------------------------------------ ---------------------
REVENUES $ 1,134,041 $ 1,012,971 12.0
Cost of products sold 578,428 523,133 10.6
Selling and
administrative 298,798 247,660 20.6
Research and
development 60,034 56,314 6.6
Special charges - 9,937 NM
------------------------------------ ---------------------
TOTAL OPERATING COSTS
AND EXPENSES 937,260 837,044 12.0
------------------------------------ ---------------------
OPERATING INCOME 196,781 175,927 11.9
Interest expense, net (8,653) (8,839) (2.1)
Other (expense)
income, net (1,847) 492 NM
------------------------------------ ---------------------
INCOME BEFORE
INCOME TAXES 186,281 167,580 11.2
Income tax provision 44,241 38,392 15.2
------------------------------------ ---------------------
NET INCOME $ 142,040 $ 129,188 9.9
------------------------------------ ---------------------
EARNINGS PER SHARE
Basic $ 0.56 $ 0.50 12.0
Diluted $ 0.54 $ 0.48 12.5
------------------------------------ ---------------------
AVERAGE SHARES
OUTSTANDING
Basic 254,694 258,436
Diluted 263,369 269,709
------------------------------------ ---------------------
NM - Not Meaningful Page 1
BECTON DICKINSON AND COMPANY
CONSOLIDATED INCOME STATEMENTS
(Unaudited; Amounts in thousands, except per-share data)
Six Months Ended March 31,
2003 2002 % Change
------------------------------------ ---------------------
REVENUES $ 2,185,689 $ 1,957,917 11.6
Cost of products sold 1,128,467 1,022,895 10.3
Selling and
administrative 582,979 495,954 17.5
Research and
development 119,879 111,551 7.5
Special charges - 9,937 NM
------------------------------------ ---------------------
TOTAL OPERATING COSTS
AND EXPENSES 1,831,325 1,640,337 11.6
------------------------------------ ---------------------
OPERATING INCOME 354,364 317,580 11.6
Interest expense, net (17,286) (18,410) (6.1)
Other expense, net (1,763) (1,124) NM
------------------------------------ ---------------------
INCOME BEFORE
INCOME TAXES 335,315 298,046 12.5
Income tax provision 79,637 69,185 15.1
------------------------------------ ---------------------
NET INCOME $ 255,678 $ 228,861 11.7
------------------------------------ ---------------------
EARNINGS PER SHARE
Basic $ 1.00 $ 0.88 13.6
Diluted $ 0.97 $ 0.85 14.1
------------------------------------ ---------------------
AVERAGE SHARES
OUTSTANDING
Basic 254,994 258,819
Diluted 263,328 270,030
------------------------------------ ---------------------
NM - Not Meaningful Page 2
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY SEGMENT AND GEOGRAPHIC AREA
(Unaudited; Amounts in thousands)
Three Months Ended March 31,
2003 2002 % Change
--------------- ---------------------
BD MEDICAL SYSTEMS
------------------
United States $ 292,794 $ 269,073 8.8
International 309,025 261,311 18.3
------------------------------------ ---------------------
TOTAL $ 601,819 $ 530,384 13.5
------------------------------------ ---------------------
BD CLINICAL LABORATORY SOLUTIONS
--------------------------------
United States $ 206,206 $ 193,402 6.6
International 150,594 124,255 21.2
------------------------------------ ---------------------
TOTAL $ 356,800 $ 317,657 12.3
------------------------------------ ---------------------
BD BIOSCIENCES
--------------
United States $ 78,545 $ 84,192* (6.7)
International 96,877 80,738* 20.0
------------------------------------ ---------------------
TOTAL $ 175,422 $ 164,930 6.4
------------------------------------ ---------------------
TOTAL REVENUES
--------------
United States $ 577,545 $ 546,667* 5.6
International 556,496 466,304* 19.3
------------------------------------ ---------------------
TOTAL $ 1,134,041 $ 1,012,971 12.0
------------------------------------ ---------------------
* Prior year data reclassified to conform to current year presentation
Page 3
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY SEGMENT AND GEOGRAPHIC AREA
(Unaudited; Amounts in thousands)
Six Months Ended March 31,
2003 2002 % Change
--------------- ---------------------
BD MEDICAL SYSTEMS
------------------
United States $ 589,220 $ 519,975 13.3
International 584,236 513,439 13.8
------------------------------------ ---------------------
TOTAL $ 1,173,456 $ 1,033,414 13.6
------------------------------------ ---------------------
BD CLINICAL LABORATORY SOLUTIONS
--------------------------------
United States $ 397,738 $ 365,890 8.7
International 290,716 246,516 17.9
------------------------------------ ---------------------
TOTAL $ 688,454 $ 612,406 12.4
------------------------------------ ---------------------
BD BIOSCIENCES
--------------
United States $ 147,882 $ 158,051* (6.4)
International 175,897 154,046* 14.2
------------------------------------ ---------------------
TOTAL $ 323,779 $ 312,097 3.7
------------------------------------ ---------------------
TOTAL REVENUES
--------------
United States $ 1,134,840 $ 1,043,916* 8.7
International 1,050,849 914,001* 15.0
------------------------------------ ---------------------
TOTAL $ 2,185,689 $ 1,957,917 11.6
------------------------------------ ---------------------
* Prior year data reclassified to conform to current year presentation
Page 4
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND MAJOR PRODUCT GROUPS
Three Months Ended March 31,
(Unaudited; Amounts in thousands)
United States
-------------------------------------
2003 2002 % Change
--------------- ---------------------
BD MEDICAL SYSTEMS
------------------
Medical Surgical $ 180,731 $ 170,048 * 6.3
Consumer Health
Care 83,658 77,923 * 7.4
Pharmaceutical
Systems 22,795 14,635 55.8
Ophthalmic Systems 5,610 6,467 (13.3)
------------------------------------ ---------------------
TOTAL $ 292,794 $ 269,073 8.8
------------------------------------ ---------------------
BD CLINICAL LABORATORY SOLUTIONS
--------------------------------
Preanalytical
Solutions $ 102,958 $ 92,497 11.3
Diagnostic Systems 103,248 100,905 2.3
------------------------------------ ---------------------
TOTAL $ 206,206 $ 193,402 6.6
------------------------------------ ---------------------
BD BIOSCIENCES
--------------
Discovery Labware 23,226 23,637 (1.7)
Immunocytometry &
Reagents:
Flow Cytometry
Instruments
& Reagents 29,141 33,029 (11.8)
Molecular
Biology
Reagents 8,399 10,747 * (21.8)
Immunology/Cell
Biology
Reagents 17,779 16,779 6.0
------------------------------------ ---------------------
Total
Immunocytometry &
Reagents 55,319 60,555 * (8.6)
------------------------------------ ---------------------
TOTAL $ 78,545 $ 84,192 * (6.7)
------------------------------------ ---------------------
TOTAL UNITED STATES $ 577,545 $ 546,667 * 5.6
------------------------------------ ---------------------
* Prior year data reclassified to conform to current year presentation
Page 5
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND MAJOR PRODUCT GROUPS
Three Months Ended March 31, (continued)
(Unaudited; Amounts in thousands)
International
-------------------------------------------------
% Change
----------------------
Reported FX FX
2003 2002 Neutral Impact
-------------------------------------------------
BD MEDICAL SYSTEMS
---------------------
Medical Surgical $ 160,667 $ 144,177 11.4 6.4 5.0
Consumer Health
Care 50,174 46,465 8.0 (1.0) 9.0
Pharmaceutical
Systems 91,011 64,301 41.5 21.8 19.7
Ophthalmic Systems 7,173 6,368 12.6 (0.3) 12.9
------------------------------------ ---------------------------------
TOTAL $ 309,025 $ 261,311 18.3 8.7 9.6
------------------------------------ ---------------------------------
BD CLINICAL LABORATORY SOLUTIONS
----------------------------------
Preanalytical
Solutions $ 73,099 $ 61,183 19.5 8.1 11.4
Diagnostic Systems 77,495 63,072 22.9 12.5 10.4
------------------------------------ ---------------------------------
TOTAL $ 150,594 $ 124,255 21.2 10.3 10.9
------------------------------------ ---------------------------------
BD BIOSCIENCES
---------------------
Discovery Labware 20,160 16,797 20.0 7.3 12.7
Immunocytometry &
Reagents:
Flow Cytometry
Instruments
& Reagents 54,339 44,440 22.3 7.9 14.4
Molecular
Biology
Reagents 8,889 8,732 * 1.8 (9.4) 11.2
Immunology/Cell
Biology
Reagents 13,489 10,769 25.3 10.2 15.1
------------------------------------ ---------------------------------
Total
Immunocytometry &
Reagents 76,717 63,941 * 20.0 5.9 14.1
------------------------------------ ---------------------------------
TOTAL $ 96,877 $ 80,738 * 20.0 6.2 13.8
------------------------------------ ---------------------------------
TOTAL INTERNATIONAL $ 556,496 $ 466,304 * 19.3 8.7 10.6
------------------------------------ ---------------------------------
* Prior year data reclassified to conform to current year presentation
Page 6
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND MAJOR PRODUCT GROUPS
Three Months Ended March 31, (continued)
(Unaudited; Amounts in thousands)
Total
-------------------------------------------------
% Change
----------------------
Reported FX FX
2003 2002 Neutral Impact
--------------- ---------------------------------
BD MEDICAL SYSTEMS
---------------------
Medical Surgical $ 341,398 $ 314,225 * 8.6 6.3 2.3
Consumer Health
Care 133,832 124,388 * 7.6 4.2 3.4
Pharmaceutical
Systems 113,806 78,936 44.2 28.1 16.1
Ophthalmic Systems 12,783 12,835 (0.4) (6.8) 6.4
------------------------------------ ---------------------------------
TOTAL $ 601,819 $ 530,384 13.5 8.8 4.7
------------------------------------ ---------------------------------
BD CLINICAL LABORATORY SOLUTIONS
--------------------------------
Preanalytical
Solutions $ 176,057 $ 153,680 14.6 10.0 4.6
Diagnostic Systems 180,743 163,977 10.2 6.2 4.0
------------------------------------ ---------------------------------
TOTAL $ 356,800 $ 317,657 12.3 8.1 4.2
------------------------------------ ---------------------------------
BD BIOSCIENCES
--------------
Discovery Labware 43,386 40,434 7.3 2.0 5.3
Immunocytometry &
Reagents:
Flow Cytometry
Instruments
& Reagents 83,480 77,469 7.8 (0.5) 8.3
Molecular
Biology
Reagents 17,288 19,479 (11.2) (16.3) 5.1
Immunology/Cell
Biology
Reagents 31,268 27,548 13.5 7.6 5.9
------------------------------------ ---------------------------------
Total
Immunocytometry &
Reagents 132,036 124,496 6.1 (1.2) 7.3
------------------------------------ ---------------------------------
TOTAL $ 175,422 $ 164,930 6.4 (0.4) 6.8
------------------------------------ ---------------------------------
TOTAL REVENUES $ 1,134,041 $ 1,012,971 12.0 7.1 4.9
------------------------------------ ---------------------------------
* Prior year data reclassified to conform to current year presentation
Page 7
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND MAJOR PRODUCT GROUPS
Six Months Ended March 31,
(Unaudited; Amounts in thousands)
United States
-------------------------------------
2003 2002 % Change
--------------- ---------------------
BD MEDICAL SYSTEMS
---------------------
Medical Surgical $ 373,482 $ 337,079 * 10.8
Consumer Health
Care 159,154 139,215 * 14.3
Pharmaceutical
Systems 44,322 30,918 43.4
Ophthalmic Systems 12,262 12,763 (3.9)
------------------------------------ ---------------------
TOTAL $ 589,220 $ 519,975 13.3
------------------------------------ ---------------------
BD CLINICAL LABORATORY SOLUTIONS
--------------------------------
Preanalytical
Solutions $ 203,981 $ 179,812 13.4
Diagnostic Systems 193,757 186,078 4.1
------------------------------------ ---------------------
TOTAL $ 397,738 $ 365,890 8.7
------------------------------------ ---------------------
BD BIOSCIENCES
---------------------
Discovery Labware 46,346 45,902 1.0
Immunocytometry &
Reagents:
Flow Cytometry
Instruments
& Reagents 52,340 60,410 (13.4)
Molecular
Biology
Reagents 16,262 20,481 * (20.6)
Immunology/Cell
Biology
Reagents 32,934 31,258 5.4
------------------------------------ ---------------------
Total
Immunocytometry &
Reagents 101,536 112,149 * (9.5)
------------------------------------ ---------------------
TOTAL $ 147,882 $ 158,051 * (6.4)
------------------------------------ ---------------------
TOTAL UNITED STATES $ 1,134,840 $ 1,043,916 * 8.7
------------------------------------ ---------------------
* Prior year data reclassified to conform to current year presentation
Page 8
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND MAJOR PRODUCT GROUPS
Six Months Ended March 31, (continued)
(Unaudited; Amounts in thousands)
International
-------------------------------------------------
% Change
-----------------
Reported FX FX
2003 2002 Neutral Impact
--------------- ---------------------------------
BD MEDICAL SYSTEMS
------------------
Medical Surgical $ 313,435 $ 290,141 8.0 3.7 4.3
Consumer Health
Care 94,223 91,439 3.0 (3.4) 6.4
Pharmaceutical
Systems 162,729 119,566 36.1 21.2 14.9
Ophthalmic Systems 13,849 12,293 12.7 2.4 10.3
------------------------------------ ---------------------------------
TOTAL $ 584,236 $ 513,439 13.8 6.5 7.3
------------------------------------ ---------------------------------
BD CLINICAL LABORATORY SOLUTIONS
--------------------------------
Preanalytical
Solutions $ 139,279 $ 123,251 13.0 4.5 8.5
Diagnostic Systems 151,437 123,265 22.9 15.4 7.5
------------------------------------ ---------------------------------
TOTAL $ 290,716 $ 246,516 17.9 10.0 7.9
------------------------------------ ---------------------------------
BD BIOSCIENCES
--------------
Discovery Labware 38,915 32,573 19.5 10.4 9.1
Immunocytometry &
Reagents:
Flow Cytometry
Instruments
& Reagents 95,192 84,945 12.1 1.6 10.5
Molecular
Biology
Reagents 16,781 15,978 * 5.0 (3.2) 8.2
Immunology/Cell
Biology
Reagents 25,009 20,550 21.7 10.3 11.4
------------------------------------ ---------------------------------
Total
Immunocytometry &
Reagents 136,982 121,473 * 12.8 2.5 10.3
------------------------------------ ---------------------------------
TOTAL $ 175,897 $ 154,046 * 14.2 4.2 10.0
------------------------------------ ---------------------------------
TOTAL INTERNATIONAL $ 1,050,849 $ 914,001 * 15.0 7.0 8.0
------------------------------------ ---------------------------------
* Prior year data reclassified to conform to current year presentation
Page 9
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND MAJOR PRODUCT GROUPS
Six Months Ended March 31, (continued)
(Unaudited; Amounts in thousands)
Total
-------------------------------------------------
% Change
-----------------------
Reported FX FX
2003 2002 Neutral Impact
--------------- ---------------------------------
BD MEDICAL SYSTEMS
------------------
Medical Surgical $ 686,917 $ 627,220 * 9.5 7.5 2.0
Consumer Health
Care 253,377 230,654 * 9.9 7.3 2.6
Pharmaceutical
Systems 207,051 150,484 37.6 25.7 11.9
Ophthalmic Systems 26,111 25,056 4.2 (0.8) 5.0
------------------------------------ ---------------------------------
TOTAL $ 1,173,456 $ 1,033,414 13.6 9.9 3.7
------------------------------------ ---------------------------------
BD CLINICAL LABORATORY SOLUTIONS
--------------------------------
Preanalytical
Solutions $ 343,260 $ 303,063 13.3 9.8 3.5
Diagnostic Systems 345,194 309,343 11.6 8.6 3.0
------------------------------------ ---------------------------------
TOTAL $ 688,454 $ 612,406 12.4 9.2 3.2
------------------------------------ ---------------------------------
BD BIOSCIENCES
--------------
Discovery Labware 85,261 78,475 8.6 4.9 3.7
Immunocytometry &
Reagents:
Flow Cytometry
Instruments
& Reagents 147,532 145,355 1.5 (4.6) 6.1
Molecular
Biology
Reagents 33,043 36,459 (9.4) (13.0) 3.6
Immunology/Cell
Biology
Reagents 57,943 51,808 11.8 7.3 4.5
------------------------------------ ---------------------------------
Total
Immunocytometry &
Reagents 238,518 233,622 2.1 (3.3) 5.4
------------------------------------ ---------------------------------
TOTAL $ 323,779 $ 312,097 3.7 (1.2) 4.9
------------------------------------ ---------------------------------
TOTAL REVENUES $ 2,185,689 $ 1,957,917 11.6 7.9 3.7
------------------------------------ ---------------------------------
* Prior year data reclassified to conform to current year presentation
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