BD Announces Results For 2014 First Fiscal Quarter
-- Raises the bottom end of full fiscal year 2014 revenue and earnings ranges for guidance.
-- Announces revenues of approximately $2.0 billion, an increase of 6.0 percent, or 6.7 percent on a foreign currency-neutral basis.
-- Reports diluted earnings per share from continuing operations of $1.37, an increase of 1.5 percent, or 8.1 percent on a foreign currency-neutral basis.
PR Newswire

FRANKLIN LAKES, N.J., Feb. 4, 2014 /PRNewswire/ -- BD (Becton, Dickinson and Company) (NYSE: BDX), a leading global medical technology company, today reported quarterly revenues of $2.0 billion for the first fiscal quarter ended December 31, 2013, representing an increase of 6.0 percent from the prior-year period, or 6.7 percent on a foreign currency-neutral basis. Revenue growth was aided, in part, by favorable timing of orders in the BD Medical and BD Diagnostics segments.

"Fiscal year 2014 is off to a strong start," said Vincent A. Forlenza, Chairman, CEO and President. "Our revenue and earnings growth exceeded our expectations and we have continuing confidence that we have built a solid foundation for future growth. Accordingly, we are raising the bottom end of our previous revenue and earnings ranges for our full fiscal year guidance."

First Quarter Earnings
Reported diluted earnings per share from continuing operations for the first quarter were $1.37 compared with $1.35 in the prior-year period, representing a 1.5 percent increase. On a foreign currency-neutral basis, diluted earnings per share from continuing operations for the first quarter increased by 8.1 percent. Adjusted diluted earnings per share from continuing operations excluding the medical device excise tax, which went into effect in January 2013 under the U.S. healthcare reform law, were $1.42, or an increase of 11.9 percent.

Segment Results
In the BD Medical segment, worldwide revenues for the quarter were $1.06 billion, representing an increase of 8.2 percent compared with the prior-year period, or an increase of 8.6 percent on a foreign currency-neutral basis. The segment's revenue growth reflects strong sales in the Medical Surgical Systems and Diabetes Care units and solid sales in the Pharmaceutical Systems unit. Both the Medical Surgical and Pharmaceutical Systems units also benefitted from favorable timing of orders.

In the BD Diagnostics segment, worldwide revenues for the quarter were $672 million, representing an increase of 3.1 percent compared with the prior-year period, or 4.2 percent on a foreign currency-neutral basis. The segment's growth was driven by international expansion in both the Preanalytical Systems and Diagnostic Systems business units. Diagnostic systems growth was also aided, in part, from a timing of flu orders.

In the BD Biosciences segment, worldwide revenues for the quarter were $279 million, representing an increase of 5.4 percent compared with the prior-year period, or an increase of 5.7 percent on a foreign currency-neutral basis. The segment's growth was driven by continued strength in emerging markets, clinical reagents sales and solid instrument placements in both the U.S. and Western Europe.

Geographic Results
First quarter revenues in the U.S. of $849 million represent an increase of 2.3 percent over the prior-year period. Revenues outside of the U.S. were $1.17 billion, representing an increase of 8.9 percent compared with the prior-year period, or an increase of 10.0 percent on a foreign currency-neutral basis. International revenues reflected continued strength in emerging markets and sales of safety-engineered products in addition to solid growth in Western Europe.

Fiscal 2014 Outlook for Full Year
The Company estimates that reported and currency-neutral revenues for the full fiscal year 2014 will increase 4.5 to 5.0 percent. The Company expects reported diluted earnings per share from continuing operations for the full fiscal year 2014 to be between $6.19 and $6.22, which represents growth of 6.5 to 7.0 percent over 2013 adjusted diluted earnings per share of $5.81. On a foreign currency-neutral basis, adjusted diluted earnings per share are expected to grow about 9.0 to 9.5 percent, or 9.5 to 10.0 percent excluding the incremental impact of the medical device tax. The Company plans to repurchase, subject to market conditions, about $450 million of its common stock in fiscal year 2014.

Conference Call Information
A conference call regarding BD's first quarter results will be broadcast live on BD's website, www.bd.com/investors, along with related slides, at 8:00 a.m. (ET) Tuesday, February 4th, 2014. The conference call will be available for replay on BD's website, www.bd.com/investors, or at 1-800-585-8367 (domestic) and 1-404-537-3406 (international) through the close of business on Tuesday, February 11, 2014, confirmation number 31318159.

Non-GAAP Financial Measures/Financial Tables
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. Within the attached financial tables presented, certain columns and rows may not add due to the use of rounded numbers. Percentages and earnings per share amounts presented are calculated from the underlying whole-dollar amounts.

About BD
BD is a leading medical technology company that partners with customers and stakeholders to address many of the world's most pressing and evolving health needs. Our innovative solutions are focused on improving drug delivery, enhancing the diagnosis of infectious diseases and cancers, supporting the management of diabetes and advancing cellular research. We are nearly 30,000 associates in 50 countries who strive to fulfill our purpose of "Helping all people live healthy lives" by advancing the quality, accessibility, safety and affordability of healthcare around the world. For more information, please visit www.bd.com .

This press release, including the section entitled "Fiscal 2014 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 and earnings per share. 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, a number of factors could cause actual results to vary materially from any forward-looking statement. These factors include, but are not limited to: potential cuts in healthcare spending by the U.S. government as part of deficit reduction measures which could result in reduced demand for our product or downward pricing pressure; the unknown consequences of healthcare reform in the United States, including the impact of the reduction in Medicare and Medicaid payments to hospitals, pharmaceutical companies and other customers, which could reduce demand for our products and increase downward pricing pressure; adverse changes in regional, national or foreign economic conditions, including any impact that may result from the current global economic conditions on our ability to access credit markets and finance our operations, the demand for our products and services as a result of reduced government funding, lower utilization rates or otherwise, or our suppliers' ability to provide products needed for our operations; changes in interest or foreign currency exchange rates; our ability to successfully integrate any businesses we acquire; the adverse impact of cyber-attacks on our information systems; competitive factors; pricing and market 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; new or changing laws impacting our business or changes in enforcement practices with respect to such laws; uncertainties of litigation (as described in BD's filings with the Securities and Exchange Commission); future healthcare reform, including changes in government pricing and reimbursement policies or other cost containment reforms; the effects of potential pandemic diseases; and issuance of new or revised accounting standards, as well as other factors discussed 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:
Monique N. Dolecki, Investor Relations - 201-847-5453
Alyssa J. Zeff, Corporate Communications - 201-847-4358

    BECTON DICKINSON AND COMPANY

    CONSOLIDATED INCOME STATEMENTS

    (Unaudited; Amounts in millions, except share and per share data)


                                               Three Months Ended
                                                  December 31,

                                              2013           2012         % Change
                                              ----           ----         --------


    REVENUES                                $2,015         $1,900               6.0


    Cost of products sold                      980            894               9.6

    Selling and
     administrative                            531            496               7.1

    Research and
     development                               126            118               6.4
    ------------                               ---            ---               ---

    TOTAL OPERATING COSTS

         AND EXPENSES                        1,637          1,508               8.5
         ------------                        -----          -----               ---


    OPERATING INCOME                           378            392              (3.6)


    Interest income                             14              8              75.7

    Interest expense                           (34)           (35)             (4.3)

    Other income, net                            1              1             (14.0)
    -----------------                          ---            ---             -----


    INCOME FROM CONTINUING
     OPERATIONS BEFORE

         INCOME TAXES                          359            366              (1.9)


    Income tax provision                        88             95              (8.3)
    --------------------                       ---            ---              ----


    INCOME FROM CONTINUING
     OPERATIONS                                271            270               0.4


    INCOME FROM
     DISCONTINUED
     OPERATIONS

       NET OF INCOME TAX
        PROVISION OF

          $0 AND $216, RESPECTIVELY    -            355                NM
          -------------------------  ---            ---               ---


    NET INCOME                                $271           $625             (56.6)
    ----------                                ----           ----             -----


    EARNINGS PER SHARE


    Basic:

    Income from
     continuing
     operations                              $1.40          $1.38               1.4

    Income from
     discontinued
     operations                        $         -          $1.81                NM

    Net income                               $1.40          $3.18             (56.0)


    Diluted:

    Income from
     continuing
     operations                              $1.37          $1.35               1.5

    Income from
     discontinued
     operations                        $         -          $1.78                NM

    Net income                               $1.37          $3.13             (56.2)



    AVERAGE SHARES
     OUTSTANDING (in
     thousands)


         Basic                             194,203        196,427

         Diluted                           198,110        199,570
         -------                           -------        -------


    NM - Not Meaningful

    BECTON DICKINSON AND COMPANY

    SUPPLEMENTAL REVENUE INFORMATION

    REVENUES BY SEGMENT AND GEOGRAPHIC AREA

    (Unaudited; Amounts in millions)


                                        Three Months
                                      Ended December
                                                31,

                                        2013        2012     % Change
                                        ----        ----     --------


    BD MEDICAL
    ----------

       United States                    $441        $425          3.8

       International                     622         558         11.5
       -------------                     ---         ---

    TOTAL                             $1,064        $983          8.2
    -----                               ----        ----          ---


    BD DIAGNOSTICS
    --------------

       United States                    $321        $321          0.1

       International                     351         331          6.0
       -------------                     ---         ---

    TOTAL                               $672        $652          3.1
    -----                               ----        ----          ---


    BD BIOSCIENCES
    --------------

       United States                     $87         $84          3.3

       International                     192         181          6.3
       -------------                     ---         ---

    TOTAL                               $279        $265          5.4
    -----                               ----        ----          ---


    TOTAL REVENUES
    --------------

       United States                    $849        $830          2.3

       International                   1,166       1,070          8.9
       -------------                   -----       -----

    TOTAL                             $2,015      $1,900          6.0
    -----                               ----        ----          ---

    BECTON DICKINSON AND COMPANY

    SUPPLEMENTAL REVENUE INFORMATION

    REVENUES BY BUSINESS SEGMENTS AND UNITS

    Three Months Ended December 31,

    (Unaudited; Amounts in millions)


                                      United States
                                      -------------

                                        2013      2012      % Change
                                        ----      ----     --------


    BD MEDICAL
    ----------

       Medical Surgical Systems         $262      $249           5.3

       Diabetes Care                     122       112           8.4

       Pharmaceutical Systems             57        64         (10.4)

    TOTAL                               $441      $425           3.8
    -----                               ----      ----           ---


    BD DIAGNOSTICS
    --------------

       Preanalytical Systems            $171      $167           2.7

       Diagnostic Systems                149       154          (2.7)
       ------------------                ---       ---

    TOTAL                               $321      $321           0.1
    -----                               ----      ----           ---


    BD BIOSCIENCES                       $87       $84           3.3
    --------------                       ---       ---           ---


    TOTAL UNITED STATES                 $849      $830           2.3
    -------------------                 ----      ----           ---

    BECTON DICKINSON AND COMPANY

    SUPPLEMENTAL REVENUE INFORMATION

    REVENUES BY BUSINESS SEGMENTS AND UNITS

    Three Months Ended December 31, (continued)

    (Unaudited; Amounts in millions)


                                                             International
                                                             -------------

                                                                                        % Change
                                                                                       --------

                                       2013         2012          Reported      FXN       FX Impact
                                       ----         ----         --------       ---       ---------


    BD
     MEDICAL
    --------

        Medical
        Surgical
        Systems                                $317        $287            10.4     12.4            (2.0)

        Diabetes
        Care                                    142         130             8.7     11.5            (2.8)

        Pharmaceutical
        Systems                                 164         141            16.4     12.6              3.8
                                                                                                      ---

    TOTAL                                      $622        $558            11.5     12.2            (0.7)
    -----                                      ----        ----            ----      ---             ----


    BD
     DIAGNOSTICS
    ------------

        Preanalytical
        Systems                                $176        $168             4.8      6.1            (1.3)

        Diagnostic
        Systems                                 175         164             7.2     10.2            (3.0)
        ----------

    TOTAL                                      $351        $331             6.0      8.1            (2.1)
    -----                                      ----        ----             ---      ---             ----


     BD
     BIOSCIENCES                               $192        $181             6.3      6.8            (0.5)
     -----------                               ----        ----             ---      ---             ----


     TOTAL
     INTERNATIONAL                           $1,166      $1,070             8.9     10.0            (1.1)
     -------------                             ----        ----             ---      ---             ----

    BECTON DICKINSON AND COMPANY

    SUPPLEMENTAL REVENUE INFORMATION

    REVENUES BY BUSINESS SEGMENTS AND UNITS

    Three Months Ended December 31, (continued)

    (Unaudited; Amounts in millions)


                                                             Total
                                                             -----

                                                                                   % Change
                                                                                  --------

                                    2013         2012         Reported     FXN       FX Impact
                                    ----         ----        --------      ---       ---------


    BD
     MEDICAL
    --------

        Medical
        Surgical
        Systems                             $579        $536           8.0      9.1            (1.1)

        Diabetes
        Care                                 264         243           8.6     10.1            (1.5)

        Pharmaceutical
        Systems                              221         205           8.0      5.5              2.5

    TOTAL                                 $1,064        $983           8.2      8.6            (0.4)
    -----                                   ----        ----           ---      ---             ----


    BD
     DIAGNOSTICS
    ------------

        Preanalytical
        Systems                             $347        $335           3.7      4.4            (0.7)

        Diagnostic
        Systems                              325         317           2.4      3.9            (1.5)
        ----------

    TOTAL                                   $672        $652           3.1      4.2            (1.1)
    -----                                   ----        ----           ---      ---             ----


    BD
     BIOSCIENCES                            $279        $265           5.4      5.7            (0.3)
    ------------                            ----        ----           ---      ---             ----


     TOTAL
     REVENUES                             $2,015      $1,900           6.0      6.7            (0.7)
     --------                               ----        ----           ---      ---             ----

    BECTON DICKINSON AND COMPANY

    SUPPLEMENTAL REVENUE INFORMATION

    SAFETY REVENUES

    (Unaudited; Amounts in millions)


                                              Three Months Ended December
                                                                  31,
                                                     ---------------------------

                                                                                    % Change
                                                                                   --------

                               2013       2012         Reported            FXN        FX Impact
                               ----       ----        --------             ---        ---------


    TOTAL SAFETY REVENUES
    ---------------------

        United
        States                       $315       $291                  8.1        8.1               -

       International                  242        220                 10.1       12.0            (1.9)
       -------------                  ---        ---                 ----                       ----

    TOTAL                            $557       $511                  9.0        9.8            (0.8)
    -----                            ----       ----                  ---        ---            ----


    BY SEGMENT
    ----------

        BD
        Medical                      $285       $252                 13.0       14.0            (1.0)

       BD Diagnostics                 272        259                  5.0        5.7            (0.7)
       --------------                 ---        ---                  ---                       ----

    TOTAL                            $557       $511                  9.0        9.8            (0.8)
    -----                            ----       ----                  ---        ---            ----

    BECTON DICKINSON AND COMPANY

    SUPPLEMENTAL INFORMATION

    FY2014 Quarter-to-Date Reconciliation of Non-GAAP Financial Measures

    (Unaudited)


                                                                                                                                                   Three Months Ended December 31,
                                                                                                                                                   -------------------------------

                                                                                                                      2013       2012       Growth          Foreign Currency             Foreign Currency       Growth %      Foreign Currency
                                                                                                                                                               Translation                Neutral Change                       Neutral Growth %
                                                                                                                      ----       ----       ------         -----------------            -----------------        -------      -----------------


    Reported Diluted Earnings per Share from Continuing Operations                                                         $1.37      $1.35         $0.02                       $(0.09)                   $0.11          1.5%                    8.1%



    Medical device excise tax which went into effect in January 2013 under the U.S. Patient Protection and Affordable
     Care Act                                                                                                         0.05       0.00
    ($14 million or $9 million after-tax)


    Adjusted Diluted Earnings per Share from Continuing Operations without Medical Device Excise Tax                       $1.42      $1.35         $0.07                       $(0.09)                   $0.16          5.2%                   11.9%

    BECTON DICKINSON AND COMPANY

    SUPPLEMENTAL INFORMATION

    FY2014 Outlook Reconciliation


                              Reported

                               Basis                       FX Impact         FXN Basis
                               -----                       ---------         ---------


    Revenues
     -Full
     Year
     2014
     estimated
     growth                                    4.5% - 5.0%            0.0%                      4.5% - 5.0%







                             Full Year                     Full Year

                                                      2014            2013               % Increase
                                                      ----            ----               ----------

                            (estimated)

    Reported
     Fully
     Diluted
     Earnings
     per
     Share

    from
     Continuing
     Operations                       $ 6.19 - 6.22                  $4.67                   NM


    Pending
     Litigation
     Settlement
     (1)                                                              0.07


    Verdict
     Charge
     (2)                                                              1.06


    Pension
     Settlement
     Charge
     (3)                                                              0.02


    Adjusted
     Fully
     Diluted
     Earnings
     per
     Share

    from
     Continuing
     Operations                       $ 6.19 - 6.22                  $5.81                       6.5% - 7.0%
                                            ===


    FX Impact                                                                     (2.5%)


    Adjusted
     FXN
     Growth                                                                 9.0% - 9.5%


    Medical
     Device
     Excise
     Tax
     Impact
     (4)                                                                          (0.5%)


    Adjusted
     FXN
     Growth
     (excluding
     the
     medical
     device
     excise
     tax)                                                                  9.5% - 10.0%

    (1) Charge associated with
     the pending litigation
     settlement related to
     indirect purchaser
     antitrust class action
     cases.


    (2) Charge associated with
     the unfavorable verdict
     returned in the antitrust
     and false advertising
     lawsuit filed against the
     Company by RTI.


    (3) Represents a non-cash
     pension settlement charge
     associated with lump sum
     benefit payments made from
     the Company's U.S.
     supplemental pension plan,
     as such payments exceeded
     the service and interest
     components of the plan's
     pension cost for the year.
     The charge also included


    (4) Represents the
     incremental impact of the
     medical device excise tax
     in first quarter fiscal
     year 2014 (tax went into
     effect in January 2013
     under the U.S. Patient
     Protection and Affordable
     Care Act).



    NM - Not Meaningful

    FXN = Foreign Currency
     Neutral

SOURCE BD (Becton, Dickinson and Company)