BD reports 5.1% increase in third fiscal quarter revenues

BD (Becton, Dickinson and Company) (NYSE: BDX), a leading global medical technology company, today reported quarterly revenues of $2.157 billion for the third fiscal quarter ended June 30, 2014, representing an increase of 5.1 percent from the prior-year period, or 4.6 percent on a foreign currency-neutral basis.

"We are pleased with our solid third quarter results, with each of our segments contributing to growth," said Vincent A. Forlenza, Chairman, CEO and President. "Our consistent performance demonstrates that our strategy remains sound in this dynamic healthcare environment."

Third Quarter and Nine-Month Fiscal 2014 Operating Results
Reported diluted earnings per share from continuing operations for the third quarter were $1.65 compared with $1.47 in the prior-year period, representing a 12.2 percent increase. On a foreign currency-neutral basis, diluted earnings per share from continuing operations for the third quarter increased by 10.9 percent. Current quarter results include a pre-tax charge within R&D of $9 million, or $0.03 diluted earnings per share from continuing operations, relating to program asset write-offs and obligations. Results from the prior-year period included a charge of $22 million, or $0.07 per share from continuing operations, associated with an antitrust class action settlement. Excluding the impact of these items, adjusted diluted earnings per share from continuing operations were $1.68 compared with $1.54 in the prior-year period. This represents an increase of 9.1 percent, or 7.8 percent on a currency-neutral basis.

For the nine-month period ending June 30, 2014, diluted earnings per share from continuing operations were $4.47, compared with $4.21 in the prior-year period. This represents growth of 6.2 percent, or 10.0 percent on a currency-neutral basis. Excluding the current quarter charge associated with the R&D program termination and the antitrust class action settlement charge in the prior year's quarter, as well as other items detailed in the accompanying reconciliation of non-GAAP financial measures, adjusted diluted earnings per share from continuing operations for the nine-month period ending June 30, 2014 were $4.57 compared with $4.28 in the prior-year period. This represents an increase of 6.8 percent, or 10.5 percent on a currency-neutral basis. Excluding the first quarter incremental impact of the medical device excise tax, which went into effect in January 2013 under the U.S. Patient Protection and Affordable Care Act, adjusted diluted earnings per share from continuing operations were $4.62 compared with $4.28 in the prior-year period. This represents growth of 7.9 percent, or 11.7 percent on a currency-neutral basis.

Segment Results
In the BD Medical segment, worldwide revenues for the quarter were $1.201 billion, representing an increase of 5.3 percent compared with the prior-year period, or an increase of 4.7 percent on a foreign currency-neutral basis. The segment's revenue growth was primarily driven by strong sales in Medical Surgical Systems. For the nine-month period ended June 30, 2014, BD Medical revenues increased 6.1 percent, or 6.4 percent on a currency-neutral basis.

In the BD Diagnostics segment, worldwide revenues for the quarter were $679 million, representing an increase of 3.7 percent on both a reported and foreign currency-neutral basis compared with the prior-year period. Strong growth in the Preanalytical Systems unit were partially offset by ongoing softness in Women's Health and Cancer in the U.S. For the nine-month period ended June 30, 2014, BD Diagnostics revenues increased 2.0 percent, or 3.0 percent on a currency-neutral basis.

In the BD Biosciences segment, worldwide revenues for the quarter were $277 million, representing an increase of 7.7 percent compared with the prior-year period, or an increase of 6.6 percent on a foreign currency-neutral basis. The segment's growth was driven by solid instrument placements and a favorable comparison to the prior year. For the nine-month period ended June 30, 2014, BD Biosciences revenues increased 7.1 percent, or 7.6 percent on a currency-neutral basis.

Geographic Results
Third quarter revenues in the U.S. of $871 million represent an increase of 2.8 percent over the prior-year period. Revenues outside of the U.S. were $1.286 billion, representing an increase of 6.7 percent compared with the prior-year period, or an increase of 6.0 percent on a foreign currency-neutral basis. International revenues reflected continued strength in emerging markets and sales of safety-engineered products.

For the nine-month period ended June 30, 2014, revenues in the U.S. were $2.546 billion, representing an increase of 1.8 percent compared with the prior-year period. Revenues outside of the U.S. were $3.698 billion, representing an increase of 7.1 percent when compared with the prior-year period, or 8.1 percent on a foreign currency-neutral basis.

Fiscal 2014 Outlook for Full Year 
The Company reaffirms its previously communicated currency-neutral revenue guidance range of 4.5 to 5.0 percent. On a reported basis, the Company expects revenue growth of 4.0 to 4.5 percent. The Company is also reaffirming its previous guidance for diluted earnings per share from continuing operations for the full fiscal year to be between $6.22 and $6.25 excluding the impact of the previously aforementioned adjustments. On a reported basis, earnings per share for the full fiscal year 2014 are expected to be between $6.12 and $6.15. This represents growth of 7.0 to 7.5 percent over 2013 adjusted diluted earnings per share of $5.81. On a foreign currency-neutral basis, adjusted diluted earnings per share growth is expected to be between 10.0 to 10.5 percent, or 11.0 to 11.5 percent excluding the incremental impact of the medical device tax. The Company plans to complete the repurchase, subject to market conditions, of $450 million of its common stock for fiscal year 2014.