BD first quarter revenues increase 3.7% to $1.90 billion

BD (Becton, Dickinson and Company) (NYSE: BDX), a leading global medical technology company, today reported quarterly revenues of $1.90 billion for the first fiscal quarter ended December 31, 2012, representing an increase of 3.7 percent from the prior-year period, or 5.2 percent on a foreign currency-neutral basis. 

"We are very pleased with our start to fiscal year 2013," said Vincent A. Forlenza, Chairman, Chief Executive Officer and President.  "After two years of significant investments in our business, we are starting to see notable results. We are growing revenues across our three segments, driving margin expansion and delivering a higher quality of earnings.  Our positive first quarter results give us the confidence to raise the bottom end of our guidance range on revenues and earnings per share."

Company Completes Acquisition of Safety Syringes, Inc.
On December 24, 2012, the Company completed its acquisition of Safety Syringes, Inc., or "SSI", a privately held California-based company that specializes in the development of anti-needlestick devices for prefilled syringes. SSI will be reported in the BD Medical - Pharmaceutical Systems unit.

First Quarter Earnings
Reported diluted earnings per share from continuing operations for the first quarter were $1.35, compared with $1.14 in the prior-year period, representing an 18.4 percent increase. On a foreign currency-neutral basis, diluted earnings per share from continuing operations for the first quarter increased by 15.8 percent.  Reported diluted earnings per share from continuing operations were aided in part by the benefit of an early flu season and favorable comparisons to the prior-year period.

Segment Results
In the BD Medical segment, worldwide revenues for the quarter were $983 million, representing an increase of 3.5 percent compared with the prior-year period, or an increase of 5.1 percent on a foreign currency-neutral basis. The segment's revenue growth reflects strong sales in the Diabetes Care unit, which partially benefitted from a favorable comparison due to lower international sales in the prior-year period. Revenues also reflect strong international sales of safety-engineered products, as well as solid sales in the Medical Surgical Systems and Pharmaceutical Systems units.  

In the BD Diagnostics segment, worldwide revenues for the quarter were $652 million, representing an increase of 5.0 percent compared with the prior-year period, or 6.1 percent on a foreign currency-neutral basis. The segment's growth was primarily driven by international expansion, a favorable comparison to the prior-year period in the Preanalytical Systems unit and an early flu season.

In the BD Biosciences segment, worldwide revenues for the quarter were $265 million, representing an increase of 1.7 percent compared with the prior-year period, or an increase of 3.3 percent on a foreign currency-neutral basis.  Segment revenue growth was driven by solid instrument placements in the U.S., as well as a benefit from a favorable comparison versus the prior-year period. Prior-year  results reflected reduced U.S. research funding and lower demand for high-end instruments.

Geographic Results
First quarter revenues in the U.S. of $830 million represent an increase of 3.0 percent over the prior-year period. Revenues outside of the U.S. were $1.07 billion, representing an increase of 4.3 percent compared with the prior-year period, or an increase of 7.0 percent on a foreign currency-neutral basis. International revenues reflected continued strength in emerging markets and strong sales of safety-engineered products.

Fiscal 2013 Outlook for Full Year
The Company is raising the bottom end of its previously communicated revenue growth guidance for the year of 3.5 to 4.5 percent to 4.0 to 4.5 percent on a foreign currency-neutral basis. Reported revenue growth for the full fiscal year 2013 is expected to be between 3.5 and 4.0 percent.  Reported diluted earnings per share from continuing operations for fiscal year 2013 is expected to be between $5.69 and $5.72, representing growth of 6.0 to 6.5 percent over adjusted 2012 diluted earnings per share of $5.37 after excluding the pension settlement charge in 2012. On a foreign currency-neutral basis, diluted earnings per share from continuing operations are expected to grow 7.5 to 8.0 percent over 2012 adjusted diluted earnings per share, or 10.5 to 11.0 percent, excluding the estimated impact of the medical device tax that went into effect last month under the U.S. healthcare reform law. In line with its previously disclosed guidance, the Company plans to repurchase, subject to market conditions, $500 million of its common stock in fiscal year 2013.

SOURCE BD (Becton, Dickinson and Company)