Skip to content

BDX · BECTON DICKINSON & CO

33 filings

10-K

BDX 10-K Annual Reports

BECTON DICKINSON & CO - 33 annual reports

Filing record · 2016–202610-K1010-Q338-K175

2025
BECTON DICKINSON & CO Annual Report, Year Ended Sep 30, 2025
Becton, Dickinson and Company (BDX) reported revenues of $21.84 billion for the fiscal year ending September 30, 2025, an increase of 8.2% year-over-year. This growth was primarily driven by the acquisition of Edwards Lifesciences' Critical Care product group, now known as BD Advanced Patient Monitoring, which contributed 4.8% to the revenue increase. The company continues to navigate a dynamic market, focusing on its strategic objectives of growth, simplification, and empowerment. BD also announced its definitive agreement to combine its Biosciences and Diagnostic Solutions business with Waters Corporation in a Reverse Morris Trust transaction, expected to close by the end of the first quarter of calendar year 2026, which will result in BD shareholders owning approximately 39.2% of the combined entity. Key operational highlights include continued growth across its Medical and Interventional segments, although the Life Sciences segment experienced a slight revenue decline. The company faces ongoing challenges related to supply chain disruptions, inflation, and regulatory complexities, particularly concerning the FDA's consent decree for its Alaris infusion pump business and a recent warning letter for its dispensing quality management system. BD is actively managing these challenges and investing in innovation and operational efficiency to drive future growth and shareholder value.
Nov 25, 2025
2024
BECTON DICKINSON & CO Annual Report, Year Ended Sep 30, 2024
Becton, Dickinson and Company (BDX) reported revenues of $20.178 billion for the fiscal year ended September 29, 2024, representing a 4.2% increase year-over-year. This growth was driven by strong performance across its Medical, Life Sciences, and Interventional segments, notably boosted by the recent acquisition of Edwards Lifesciences' Critical Care product group. The company highlighted strategic objectives centered on growth, simplification, and empowerment, with a focus on innovation in smart devices, robotics, and AI. While facing some headwinds from market dynamics in China and inflationary pressures on labor and materials, BD demonstrated resilience with robust operating income and significant cash flow from continuing operations. The company continued to return value to shareholders through dividends and share repurchases. BD is actively managing various risks, including supply chain disruptions, regulatory scrutiny (particularly with its Alaris infusion pump business and a recent FDA warning letter for dispensing products), and cybersecurity threats. The company's proactive approach to risk management and commitment to innovation position it for continued development in the global medical technology market.
Nov 27, 2024
2023
BECTON DICKINSON & CO Annual Report, Year Ended Sep 30, 2023
Becton, Dickinson and Company (BDX) reported fiscal year 2023 revenues of $19.372 billion, a 2.7% increase over the prior year, driven by volume growth and pricing, although partially offset by a decline in COVID-19-related testing sales and foreign currency translation impacts. The company's strategic objectives for value creation are centered around growing its portfolio, simplifying operations, and empowering its workforce. Despite inflationary pressures on raw materials, labor, and energy, BD maintained strong operating cash flows and returned value to shareholders through dividends. Key areas of focus include innovation in smart devices, expanding global access to medical technologies, and enhancing operational efficiencies. However, the company continues to navigate challenges, including the ongoing remediation efforts related to its Alaris™ infusion pumps, which significantly impacted the Medical segment's operating income, and the broader impacts of global macroeconomic conditions and geopolitical factors. BDx operates across three main segments: Medical, Life Sciences, and Interventional, each contributing to its diverse product offerings. The company remains committed to investing in research and development to maintain its competitive edge in the dynamic medical technology landscape.
Nov 21, 2023
2022
BECTON DICKINSON & CO Annual Report, Year Ended Sep 30, 2022
Becton, Dickinson and Company (BDX) reported revenues of $18.87 billion for the fiscal year ended September 30, 2022, a slight decrease of 1.4% compared to the prior year. This decline was primarily driven by a significant drop in COVID-19 related diagnostic test sales, which decreased from $1.956 billion in FY2021 to $511 million in FY2022. Excluding the impact of COVID-19 testing, the company experienced a volume increase of 6.2%, indicating growth in its core product lines across all three segments: Medical, Life Sciences, and Interventional. The company completed the acquisition of Parata Systems for $1.548 billion in July 2022, strengthening its presence in pharmacy automation. Concurrently, BD completed the spin-off of its Diabetes Care business, Embecta Corp., on April 1, 2022. The company continues to focus on strategic objectives of growth, simplification, and empowerment, including investments in R&D and portfolio expansion. Despite inflationary pressures and supply chain challenges, BD maintained a strong financial position, with $2.471 billion in cash flows from continuing operations and returning value to shareholders through dividends and share repurchases.
Nov 22, 2022
2021
BECTON DICKINSON & CO Annual Report, Year Ended Sep 30, 2021
Becton, Dickinson and Company (BDX) reported robust revenue growth of 18.3% in fiscal year 2021, reaching $20.25 billion, driven by a significant recovery in medical procedures and strong demand across its Medical, Life Sciences, and Interventional segments. The Life Sciences segment, in particular, saw a substantial boost from COVID-19 diagnostic testing solutions. Despite global economic uncertainties and supply chain challenges exacerbated by the pandemic, BD demonstrated strong operating performance and cash flow generation, with operating income reaching $2.8 billion. The company continues to invest in R&D and strategic initiatives aimed at innovation and efficiency, as outlined in its BD 2025 strategy. BD also reaffirmed its commitment to shareholder returns through dividends and share repurchases. Looking ahead, BD announced its intention to spin off its Diabetes Care business into a separate publicly traded company, a strategic move aimed at allowing both entities to focus on their respective growth strategies and capital allocation. The company also navigated various risk factors, including the ongoing impact of the COVID-19 pandemic, supply chain disruptions, and ongoing regulatory considerations, while maintaining effective internal controls. The company's financial position remains strong, supported by healthy cash flows and access to credit facilities.
Nov 24, 2021
2020
BECTON DICKINSON & CO Annual Report, Year Ended Sep 30, 2020
Becton, Dickinson and Company (BDX) reported revenues of $17.12 billion for the fiscal year ended September 29, 2020, a slight decrease of 1.0% from the prior year, primarily impacted by the COVID-19 pandemic, which reduced overall volume by an estimated 3.3%. Despite the pandemic's challenges, the Life Sciences segment saw growth driven by COVID-19 diagnostic testing. The company's financial position remained strong, with significant cash flows from operations, and it continued to return value to shareholders through dividends. However, BD faces ongoing risks including the unpredictable impact of the COVID-19 pandemic, competition, foreign currency fluctuations, and regulatory challenges, notably an amended consent decree with the FDA for its Alaris infusion pumps. The company's strategic objectives focus on growing its product portfolio, simplifying operations, and empowering its workforce. Significant investments in research and development are ongoing to drive innovation. BD also addressed its capital structure, managing debt and completing equity offerings to enhance financial flexibility. Investors should monitor the company's progress in navigating the pandemic's effects and its ongoing remediation efforts for the Alaris system.
Nov 25, 2020
2019
BECTON DICKINSON & CO Annual Report, Year Ended Sep 30, 2019
Becton, Dickinson and Company (BDX) reported fiscal year 2019 revenues of $17.29 billion, an increase of 8.2% over the prior year. This growth was primarily driven by the inclusion of results from the C.R. Bard acquisition, which closed in late 2017, and organic volume growth across its three key segments: Medical, Life Sciences, and Interventional. The company continues to focus on its core strategies of innovation, geographic expansion in emerging markets, and improving operational effectiveness. BDX is actively managing its balance sheet and debt obligations following the Bard acquisition, with total debt at $19.39 billion. The company generated strong operating cash flow of $3.33 billion, supporting its dividend payments and investments in research and development. Management highlighted continued investment in new products and platforms to drive future revenue and profit growth. Investors should note the ongoing management of regulatory matters, including a consent decree related to infusion pumps and a warning letter for a Preanalytical Systems facility, as well as significant legal reserves related to product liability claims, particularly for hernia and women's health products.
Nov 27, 2019
2018
BECTON DICKINSON & CO Annual Report, Year Ended Sep 30, 2018
Becton, Dickinson and Company (BDX) reported a significant increase in revenues for the fiscal year ended September 30, 2018, largely driven by the transformative acquisition of C.R. Bard, Inc. (Bard) completed in December 2017. This strategic move has positioned BD as a more comprehensive medical technology provider across its three key segments: Medical, Life Sciences, and Interventional. While the integration of Bard presents opportunities for growth and synergies, it also introduces integration costs and increased debt levels, which management is actively working to manage. Financially, the company experienced substantial revenue growth, fueled by the Bard acquisition and organic volume growth across its segments, particularly in Medication Delivery Solutions and Diagnostic Systems. However, diluted earnings per share were significantly impacted by "specified items," including substantial integration and acquisition-related costs, and a large one-time tax expense due to the U.S. Tax Cuts and Jobs Act. Investors should closely monitor the ongoing integration process, management's ability to realize cost savings, and the impact of regulatory matters, including FDA warning letters, on future performance.
Nov 21, 2018
2017
BECTON DICKINSON & CO Annual Report, Year Ended Sep 30, 2017
Becton, Dickinson and Company (BDX) filed its 2017 10-K, reporting on its fiscal year ending September 29, 2017. The company, a global medical technology firm, operates through two main segments: BD Medical and BD Life Sciences. A significant development during the year was the announcement of the definitive agreement to acquire C. R. Bard, Inc. for approximately $24 billion, a transaction expected to close in the fourth quarter of 2017. This acquisition aims to create a more differentiated medical technology company. Financially, revenues for fiscal year 2017 were $12.093 billion, a decrease of 3.1% from the prior year, primarily due to the divestiture of the Respiratory Solutions business. Despite the revenue dip, the company continued to invest in research and development ($774 million) and returned value to shareholders through dividends and share repurchases. The company's financial position remains strong, with significant cash on hand, bolstered by equity and debt issuances to support the upcoming Bard acquisition. Management expressed confidence in its ability to fund operations and strategic initiatives, while acknowledging risks related to the integration of acquisitions and global economic conditions.
Nov 22, 2017
2016
BECTON DICKINSON & CO Annual Report, Year Ended Sep 30, 2016
Becton, Dickinson and Company (BDX) reported robust revenue growth in fiscal year 2016, driven significantly by the full-year inclusion of its CareFusion acquisition. Total revenues reached $12.48 billion, a 21.4% increase over the prior year. The company operates through two main segments: BD Medical and BD Life Sciences, both contributing to the overall revenue growth, with Medical showing a substantial 34.0% increase year-over-year, largely due to the CareFusion integration. The company continued its strategic focus on increasing revenue growth through core products, R&D investment, emerging market expansion, and operational efficiency. Despite increased debt related to the CareFusion acquisition, BD maintained its investment-grade credit rating and generated strong operating cash flows, highlighting its financial stability and commitment to shareholder returns through dividends.
Nov 23, 2016
2015
BECTON DICKINSON & CO Annual Report, Year Ended Sep 30, 2015
Becton, Dickinson and Company (BDX) reported significant growth in fiscal year 2015, largely driven by the transformative acquisition of CareFusion in March 2015. This acquisition positioned BD as a leader in medication management and patient safety solutions. Despite a substantial increase in debt to fund the CareFusion deal, the company demonstrated revenue growth across both its Medical and Life Sciences segments, with the Medical segment showing particular strength due to the inclusion of CareFusion's operations. While the company faced increased interest expenses and integration costs related to the acquisition, its strategic focus on innovation, emerging markets, and operational efficiency remains. Investors should note the impact of acquisition-related costs and purchase accounting adjustments on the current year's profitability, which obscured the underlying operational performance. The company's commitment to returning shareholder value through dividends was maintained, though share repurchases were suspended to manage debt levels post-acquisition. Overall, the report signals a strategic shift with the CareFusion integration being the primary focus, aiming for long-term growth and market leadership.
Nov 25, 2015
2014
BECTON DICKINSON & CO Annual Report, Year Ended Sep 30, 2014
Becton Dickinson & Co. (BDX) reported strong financial performance in its fiscal year 2014, with total revenues reaching $8.446 billion, a 4.9% increase over the prior year, driven by growth across its Medical and Biosciences segments, particularly in emerging markets and sales of safety-engineered products. The company's operational efficiency improved, with a gross profit margin of 50.9%. A significant development during the year was the announcement of a definitive agreement to acquire CareFusion Corporation for approximately $12.2 billion, a strategic move expected to create a leader in medication management and patient safety solutions, anticipated to close in the first half of calendar year 2015. BD demonstrated solid cash flow from operations, totaling $1.75 billion, which supported its dividend payments and share repurchases, though the latter was suspended in light of the CareFusion acquisition. The company navigated a complex regulatory and economic landscape, including the impact of the Patient Protection and Affordable Care Act's medical device excise tax. Key risks identified include global economic conditions, foreign currency fluctuations, and competitive pressures within the medical technology market. Management expressed confidence in the company's financial position and ability to access capital to fund its strategic objectives, including the significant CareFusion acquisition.
Nov 26, 2014
2013
BECTON DICKINSON & CO Annual Report, Year Ended Sep 30, 2013
Becton Dickinson & Co. (BDX) reported a solid fiscal year 2013, with revenues reaching $8.1 billion, a 4.5% increase driven by volume growth and strategic acquisitions. The company operates across three key segments: Medical, Diagnostics, and Biosciences, all contributing to revenue growth, albeit with some regional variations and challenges, particularly in the U.S. Diagnostics segment due to weaker demand in its Women's Health and Cancer platform. BD continued its commitment to innovation and growth through targeted acquisitions like Safety Syringes, Inc. and Cato Software Solutions, and strategic divestitures such as the sale of its Discovery Labware unit. The company also maintained a strong focus on returning value to shareholders through dividends and share repurchases, alongside strategic investments in emerging markets and R&D. Despite facing headwinds from global economic conditions, healthcare reform, and a significant legal settlement charge in the fourth quarter, BD demonstrated resilience and a commitment to its strategic objectives.
Nov 27, 2013
2012
BECTON DICKINSON & CO Annual Report, Year Ended Sep 30, 2012
Becton, Dickinson and Company (BDX) reported its 2012 fiscal year-end results, showcasing a global medical technology company with diversified operations across BD Medical, BD Diagnostics, and BD Biosciences segments. Despite a challenging global economic environment impacting healthcare utilization and pricing pressures, especially in its Biosciences segment, BD demonstrated revenue growth driven by new product launches and strategic acquisitions, including KIESTRA Lab Automation and Sirigen Group. The company continues to invest in research and development and emerging markets, aligning with its strategy to enhance shareholder value through innovation and operational efficiency. Financially, BD reported revenues of $7.7 billion, a 1.6% increase year-over-year, with solid growth in its Medical and Diagnostics segments. The company maintained a strong financial position with $2.2 billion in cash and equivalents. BD also actively returned capital to shareholders through share repurchases and dividends. Key risks identified include global economic conditions, foreign currency fluctuations, changes in healthcare reimbursement, and the impact of U.S. healthcare reform, notably the impending medical device excise tax. The company is also navigating several significant legal proceedings, including antitrust litigation, which could materially affect its financial results.
Nov 21, 2012
2011
BECTON DICKINSON & CO Annual Report, Year Ended Sep 30, 2011
Becton Dickinson & Co. (BDX) reported strong financial performance for the fiscal year ending September 30, 2011. The company's revenues increased by 6% to $7.8 billion, driven by volume growth and favorable foreign currency translation, despite challenging economic conditions and a slight decrease in pricing. BD successfully integrated two key acquisitions: Accuri Cytometers, Inc. and Carmel Pharma Inc., strengthening its offerings in the life sciences and medical devices sectors, respectively. The company also continued its commitment to shareholder returns through significant share repurchases and dividend payments, while maintaining a strong balance sheet and cash flow from operations.
Nov 23, 2011
2010
BECTON DICKINSON & CO Annual Report, Year Ended Sep 30, 2010
Becton, Dickinson and Company (BDX) reported revenues of $7.37 billion for the fiscal year ended September 29, 2010, marking a 5.5% increase from the prior year, driven primarily by solid revenue growth in the Medical Segment. The company's strategic focus remains on increasing revenue growth through core product enhancement, investing in research and development for innovative products, expanding presence in emerging markets, improving operational efficiency, and driving shareholder returns. BD reported operating income of $1.7 billion, with a strong cash flow from operations totaling $1.7 billion, demonstrating financial health. The company also returned value to shareholders through share repurchases and dividends, while maintaining a solid investment-grade credit rating. Key areas of focus for BD include enabling safer drug delivery, improving clinical outcomes through advanced diagnostics, providing research tools, and enhancing disease management in areas like diabetes and infection control. The company is navigating a complex market with evolving regulatory environments and increased competition, but remains committed to its growth strategies. Despite some legal proceedings and the impact of healthcare reform legislation, BDX's financial position appears robust, supported by diversified revenue streams and a strong operational foundation.
Nov 24, 2010
2009-A2
BECTON DICKINSON & CO Annual Report (Amendment), Year Ended Sep 30, 2009
This amended 10-K filing for Becton Dickinson & Co. (BDX) as of September 29, 2009, primarily serves to provide accompanying certifications and exhibits related to the company's financial reporting. While it doesn't contain the full financial statements or management's discussion and analysis, the inclusion of CEO and CFO certifications under Rule 13a-14(a) and Section 1350 of U.S. Code signals the company's adherence to Sarbanes-Oxley Act requirements for the period. Investors should look to the original 10-K filing for detailed financial performance, operational strategies, and risk factors. For investors, the key takeaway from this amendment is the confirmation of compliance with internal control and disclosure procedures. The certifications attest to the accuracy and fairness of the financial reporting and the effectiveness of disclosure controls and procedures. The signature by the Vice President, Corporate Secretary and Public Policy indicates the formal submission and certification of the report on behalf of the company.
Feb 9, 2010
2009-A
BECTON DICKINSON & CO Annual Report (Amendment), Year Ended Sep 30, 2009
This filing is an amendment to Becton, Dickinson and Company's (BDX) Form 10-K for the fiscal year ended September 30, 2009. The amendment's sole purpose is to provide the "Valuation and Qualifying Accounts" (Schedule II) in interactive data format, which was inadvertently omitted from the original filing. For investors, this means the core financial performance and strategic information remain as detailed in the original 10-K. The company, a large accelerated filer, had a significant market capitalization of approximately $16 billion as of March 31, 2009, indicating its substantial size and established market presence. This amendment does not introduce new financial data or strategic changes but rather addresses a technical filing requirement.
Jan 21, 2010
2009
BECTON DICKINSON & CO Annual Report, Year Ended Sep 30, 2009
Becton, Dickinson and Company (BD) reported fiscal 2009 (year ended September 30, 2009) revenues of $7.16 billion, up 1% from $7.07 billion in 2008. Volume growth of roughly 5% and price gains of less than 1% were largely offset by about 4 points of unfavorable foreign currency translation, net of hedge gains. Operating income rose 7% to $1.65 billion, and operating margin expanded to 23.0% from 21.7%, helped by favorable currency effects, hedge gains, and tight spending controls. Diluted EPS from continuing operations was $4.92 (total diluted EPS $4.99, up from $4.46), though results absorbed a $45 million antitrust settlement charge and benefited from a $20 million tax benefit. Net income reached $1.23 billion. Balance sheet and cash flow remained solid. Operating cash flow was $1.7 billion, flat year over year. BD issued $750 million of new notes in May 2009 to refinance a maturing 7.15% note and to fund a $175 million discretionary pension contribution, which pushed total debt to $1.9 billion and debt-to-capitalization to 26.8% from 18.8%. BD repurchased $550 million of stock and paid $317 million in dividends, and it ended the year with $1.8 billion in cash and short-term investments. Subsequent to year end, BD acquired HandyLab for $275 million to expand its molecular diagnostics offerings in healthcare-associated infections. Investors should weigh several risks. Pending U.S. healthcare reform could impose an excise tax on medical device makers as early as 2010 and could pressure reimbursement. Currency volatility, pricing pressure from low-cost Chinese competitors, and weakness in U.S. academic and government research funding affecting BD Biosciences are ongoing concerns. Litigation is also significant, including antitrust class actions with a $45 million direct-purchaser settlement still subject to indirect-purchaser challenges, a $5 million RTI patent verdict that BD plans to appeal, and a Gen-Probe patent suit filed in October 2009.
Nov 25, 2009
2008
BECTON DICKINSON & CO Annual Report, Year Ended Sep 30, 2008
Becton, Dickinson and Company (BD) closed fiscal 2008 (year ended September 30, 2008) with revenue of $7.16 billion, up 13% from $6.36 billion in fiscal 2007, driven by roughly 7% volume growth and an estimated 6-point favorable currency translation effect. Diluted EPS from continuing operations rose to $4.46 from $3.36, though the prior year absorbed a $122 million acquired in-process R&D charge. Operating margin expanded to 21.7% from 18.9%, and net income reached $1.13 billion, a 27% increase. Cash generation was strong, with operating cash flow of $1.69 billion, and BD ended the year with $1.2 billion of total debt, a debt-to-capitalization ratio of 18.8%, and a $1 billion undrawn credit facility. Management also upgraded its outlook for 2009, guiding to operating margin expansion of about 100 basis points and EPS growth supported by gross margin gains and cost controls. The filing also highlights several risks. Gross margin slipped to 51.2% from 51.7% because of rising resin and raw material costs. International revenue (about 56% of the total) carries currency exposure, and the 10% dollar appreciation sensitivity on derivatives is $91 million of pre-tax earnings. BD faces a broad set of litigation, including multi-district hypodermic products antitrust class actions, a Retractable Technologies patent and antitrust suit, a False Claims Act qui tam case, and product liability suits tied to needlesticks and latex gloves. Management states that an unfavorable outcome could have a material adverse effect, although it characterizes the Therasense patent litigation as largely favorable to BD. An ERP system upgrade also poses execution risk. Finally, the company faces a French investigation tied to the UN Oil-for-Food matter and a UN vendor suspension, both of which management believes are not material.
Nov 26, 2008
2007-A
BECTON DICKINSON & CO Annual Report (Amendment), Year Ended Sep 30, 2007
This filing is an amendment (10-K/A) to Becton Dickinson and Company's (BDX) Annual Report on Form 10-K for the fiscal year ended September 30, 2007. The primary purpose of this amendment is to provide corrected certifications from the Chief Executive Officer and Chief Financial Officer, as required by SEC Rule 13a-14(a), which were inadvertently omitted in the original filing. Additionally, certifications required by Section 1350 of Chapter 63 of Title 18 of the U.S. Code are also included. Investors should note that this filing does not contain new financial performance data or business updates, but rather addresses procedural compliance with SEC regulations regarding executive certifications.
Jan 30, 2008
2007
BECTON DICKINSON & CO Annual Report, Year Ended Sep 30, 2007
Becton, Dickinson and Company (BD) closed fiscal 2007 (year ended September 30, 2007) with worldwide revenues of $6.36 billion, up 11% from $5.74 billion, driven by roughly 8 points of volume growth, 3 points of favorable currency translation and under 1% of price. Net income rose to $890.0 million, or $3.49 per diluted share, from $752.3 million ($2.93). Income from continuing operations was $856 million ($3.36 per diluted share), up from $815 million ($3.18). Results absorbed a $122 million acquired in-process R&D charge tied to the TriPath and Plasso acquisitions (about $0.48 per diluted share). Excluding that charge and the prior-year insurance settlement, management reports adjusted operating income of $1.325 billion, up 13%, or 20.8% of revenues. All three segments grew. BD Medical revenue rose 10% to $3.42 billion, helped by Pharmaceutical Systems (up 24%) and safety-engineered products, which grew 6% in the U.S. and 30% internationally. BD Diagnostics rose 11% to $1.91 billion, aided by TriPath and GeneOhm, though its segment margin fell to 18.0% because of acquisition charges. BD Biosciences rose 13% to $1.03 billion. Gross margin improved to 51.7% from 51.3%. Management guides fiscal 2008 to roughly flat gross margin, about 8% Medical growth, 9% Diagnostics growth, 8-9% Biosciences growth, R&D up about 11%, capital spending of $600-650 million, and an effective tax rate near 27%. Balance sheet and cash flow remain strong. Operating cash flow from continuing operations was $1.24 billion, funding $556 million of capital expenditures and about $450 million of share repurchases, with $240 million of dividends paid. Total debt fell to about $1.2 billion, debt-to-capitalization improved to 20.9% from 25.8%, and the company carries A2/A+ credit ratings. Risk factors center on the medical device industry's competitive pressures, consolidation among GPOs and IDNs, reimbursement changes, product liability and antitrust litigation (including the Hypodermic Products MDL and the Retractable Technologies suit), the FDA warning letter at San Lorenzo (now largely resolved), and foreign currency exposure, since over half of revenue is international.
Nov 23, 2007
2006
BECTON DICKINSON & CO Annual Report, Year Ended Sep 30, 2006
Becton, Dickinson and Company (BD) closed fiscal 2006 (ended September 30, 2006) with revenue of $5.83 billion, up 8% year over year, driven by estimated volume growth of 8%. Net income was $752 million, or $2.93 diluted EPS, versus $2.77 in 2005. Income from continuing operations was $756 million, or $2.95 per diluted share. Those results include two significant charges: a $63 million pre-tax charge to exit the blood glucose monitoring (BGM) market and a $53 million in-process R&D charge tied to the GeneOhm acquisition. Excluding these items and a $17 million insurance settlement gain, management's adjusted operating income rose about 12% to $1.15 billion, with adjusted operating margin of 19.7%. BD's balance sheet and cash generation remain solid. Operating cash flow from continuing operations was $1.08 billion, capital expenditures rose to $459 million, and the company repurchased $449 million of stock. The debt-to-capitalization ratio improved to 25.8% from 27.1%, and the company holds A2/A+ credit ratings. Management guided to roughly 140 basis points of reported gross margin expansion and 80 to 100 basis points of selling and administrative leverage in 2007, and expects revenue growth of roughly 4% to 5% in Medical and about 8% in both Diagnostics and Biosciences. The main risks flagged in the filing are the pending antitrust class actions (including the MDL over hypodermic products and new suits over sharps collection and insulin syringes), product liability suits, a November 2006 FDA warning letter for the San Lorenzo, Puerto Rico blood collection facility, and foreign currency exposure, since over half of revenue comes from international operations. The planned $350 million acquisition of TriPath Imaging, expected to close by the end of fiscal Q1 2007 with an in-process R&D charge of up to $120 million, is also a near-term item for investors.
Nov 30, 2006
2005
BECTON DICKINSON & CO Annual Report, Year Ended Sep 30, 2005
Becton, Dickinson and Company (BD) closed fiscal 2005 (year ended September 30, 2005) with revenues of $5.41 billion, up 10% from $4.93 billion in fiscal 2004. Roughly 6 percentage points of growth came from volume, 3 points from favorable foreign currency translation, and less than 1 point from price. Reported net income rose to $722.3 million ($2.77 diluted EPS) from $467.4 million ($1.77) in 2004, but the comparison is distorted by prior-year charges (a $100 million litigation settlement and $45 million of blood glucose monitoring charges) and by fiscal 2005 items (a $70 million share-based compensation expense under SFAS 123(R) and a $77 million one-time tax charge tied to repatriating about $1.3 billion of foreign earnings). Income from continuing operations was $692 million, or $2.66 per diluted share, versus $2.21 in 2004. Operating margin expanded to 19.0% from 16.0%, and gross margin improved to 50.8% from 49.3%, driven by the mix shift toward safety-engineered devices and higher-margin products. Balance sheet and cash generation remain strong. Operating cash flow from continuing operations was $1.22 billion, capital expenditures were $318 million, and cash on hand rose to $1.04 billion. Debt-to-capitalization improved to 27.3% from 28.1%. BD returned about $550 million through share repurchases and paid $182 million in dividends, and the board authorized a new 10 million-share buyback in November 2005. Management guides to 2006 gross margin improvement of 30 to 40 basis points, a 5% to 6% growth outlook for the Medical and Diagnostics segments, 8% to 9% for Biosciences, and a tax rate of about 26%. Key risks in the filing include pricing pressure from hospital group purchasing organizations, antitrust suits by direct and indirect purchasers of hypodermic products, a Connecticut antitrust subpoena related to HRDI, a potential competitive threat from an inhaled insulin product, latex glove and needlestick product liability litigation, and a UN Oil-for-Food inquiry involving a French subsidiary. Management believes the litigation has meritorious defenses but acknowledges that outcomes could be material.
Dec 9, 2005
2004
BECTON DICKINSON & CO Annual Report, Year Ended Sep 30, 2004
Becton, Dickinson and Company (BD) reported fiscal 2004 (year ended September 30, 2004) revenues of $4.93 billion, up 11% from $4.46 billion in fiscal 2003. Underlying growth at constant currency was 6%, with favorable foreign exchange contributing about 5 points. Diluted EPS from net income was $1.77, down from $2.07, mainly due to a $115 million after-tax loss from discontinued operations tied to the planned sale of the Clontech unit, a $100 million Retractable Technologies antitrust settlement, and a $45 million charge related to blood glucose monitoring (BGM) products. Excluding these items, income from continuing operations rose to $2.21 diluted EPS from $2.10 in 2003, and operating income increased to $787 million from $761 million. The balance sheet and cash flow profile remain strong. Cash from continuing operations rose to $1.1 billion from $903 million, and BD repurchased about $450 million of stock while paying $152 million in dividends. The debt-to-capitalization ratio improved to 28.1% from 30.4%, and the company's long-term debt is rated A2/A+. Management guides to about 7% underlying revenue growth in fiscal 2005, a tax rate near 26% (which could rise if foreign earnings are repatriated under the American Jobs Creation Act), and a $0.15 to $0.17 EPS headwind from expensing stock compensation and the new long-term incentive plan. Investors should weigh several legal and regulatory exposures. These include roughly 523 latex glove product liability suits, class actions over needlestick injuries, a British Columbia class action tied to the ProbeTec ET instrument, an unserved qui tam False Claims Act complaint under seal, a U.S. Attorney subpoena, and patent suits from Therasense and Greiner. Management says it cannot estimate potential losses and that charges above current accruals could be material. Separately, Ernst & Young disclosed non-audit services in China and Japan that conflicted with auditor independence rules, though it concluded its independence was not impaired.
Dec 13, 2004
2003
BECTON DICKINSON & CO Annual Report, Year Ended Sep 30, 2003
Becton, Dickinson and Company (BD) reported fiscal 2003 (year ended September 30, 2003) revenues of $4.53 billion, up 12% year over year, of which roughly 4 points came from favorable foreign currency translation and about 8% was underlying volume-driven growth. Net income rose 14% to $547 million, and diluted EPS increased to $2.07 from $1.79. Growth was broad-based across the three segments: BD Medical revenues grew 14% to $2.5 billion, driven by safety-engineered devices and the launch of blood glucose monitoring products; BD Diagnostics grew 11% to $1.4 billion, led by the BD ProbeTec ET molecular platform and safety-engineered preanalytical products; and BD Biosciences grew 8% to $697 million, though it was weighed down by a $27 million impairment tied to discontinuing BD IMAGN development and by Clontech reagent weakness. Operating margin was roughly flat at 16.5%, and gross margin was 48.4%, with the safety-engineered device transition supporting margins even as selling and administrative expense rose to 26.7% of revenues on IT and product-launch spending. Balance sheet and cash flow data show a larger, more leveraged company. Total assets grew to $5.57 billion and long-term debt rose to $1.18 billion after $400 million of April 2003 notes were issued to refinance commercial paper. Operating cash flow was $906 million, capital expenditures were $261 million, and BD repurchased about $350 million of stock. Debt-to-capitalization improved to 30.4% from 32.6%. The company made a $100 million contribution to its U.S. pension plan, and management expects pension expense to rise by about $18 million in 2004. In the fourth quarter BD also changed its inventory costing method from LIFO to FIFO, applied retroactively. The change reduced inventories by $11.5 million and retained earnings by $7.1 million and did not affect reported income. Risk disclosures center on product liability and antitrust litigation. These include roughly 524 latex glove suits, a Retractable Technologies antitrust suit with a trial scheduled for February 2004, a British Columbia class action over BD ProbeTec ET test results, and needlestick class actions. Management states the claims lack merit but acknowledges that outcomes could exceed reserves and materially affect results. Other risks include group purchasing organization scrutiny, pricing pressure from healthcare consolidation, emerging-market and currency exposure (about half of revenue is international), and the SARS epidemic.
Dec 23, 2003
2002
BECTON DICKINSON & CO Annual Report, Year Ended Sep 30, 2002
Becton, Dickinson and Company (BD) closed fiscal 2002 (year ended September 30, 2002) with revenues of $4.03 billion, up 8% from $3.75 billion in fiscal 2001, driven mainly by volume growth across all three segments. Net income rose 19.5% to $480 million and diluted EPS increased to $1.79 from $1.49 (or $1.63 before the prior year's accounting change). Excluding special charges in 2002 and goodwill amortization in 2001, diluted EPS was $1.85 versus $1.73, so underlying earnings growth was solid. Growth was led by the conversion to safety-engineered devices, which generated $573 million in sales (up 38%), and by Biosciences flow cytometry products. Operating margin slipped to 16.8% from 17.0% as gross margin declined to 48.3% from 48.9%, reflecting lower insulin syringe and molecular biology sales and Latin America weakness. Cash generation remained strong, with operating cash flow of $836 million, although it absorbed a $100 million voluntary pension contribution. Capital expenditures fell to $260 million from $371 million as the safety-device build-out matured, and BD repurchased 6.6 million shares for $224 million. Debt to capitalization improved to 32.5% from 34.1%, and the company carries A2/A+ credit ratings. Management expects 2003 capital spending of roughly $275 million and a $24 million increase in U.S. pension cost, which is a modest headwind. The filing also flags material legal risk. BD faces roughly 520 natural rubber latex glove suits, class action needlestick litigation in several states, and an antitrust suit from Retractable Technologies with trial set for April 2003. Management states that these matters should not have a material adverse effect, but it cannot estimate potential losses and acknowledges that future charges could be material to results and cash flow.
Dec 20, 2002
2001
BECTON DICKINSON & CO Annual Report, Year Ended Sep 30, 2001
Becton, Dickinson and Company (BD) reported fiscal 2001 (year ended September 30, 2001) revenue of $3.75 billion, up 4% from $3.62 billion in 2000, though foreign currency translation reduced growth by roughly 3 points. Underlying growth was driven by volume gains across all three segments, led by the conversion to advanced protection safety devices (syringes, blood collection products) in Medical Systems and Clinical Lab. Operating income rose 25% to $646 million, with operating margin of 17.2% versus 14.3% in 2000 (16.3% excluding special charges). Diluted EPS before the cumulative accounting effect was $1.63, compared with $1.49 in 2000, and reported diluted EPS was $1.49 after a $0.14 charge from adopting SAB 101 revenue recognition changes. Free cash flow improved, with operating cash flow of $779 million versus $615 million, and total debt was reduced by $180 million, lowering debt-to-capitalization to 34.1% from 41.4%. The balance sheet strengthened over the year, with shareholders' equity rising to $2.33 billion from $1.96 billion and the weighted average cost of debt falling to 4.8% from 7.0%. Management indicated expectations of excess cash in fiscal 2002, which could be used for further debt reduction, and noted a $100 million contribution to the U.S. pension plan in November 2001. Management also flagged several items for investors: ongoing product liability litigation involving about 482 latex glove lawsuits and class actions related to needlestick injuries, a CalOSHA citation concerning the BD Eclipse device, an antitrust suit from Retractable Technologies, and a possible smaller restructuring of manufacturing facilities in 2002. Management expects the adoption of SFAS 142 to add roughly $0.09 per share in fiscal 2002 by eliminating goodwill amortization.
Dec 21, 2001
1999
BECTON DICKINSON & CO Annual Report, Year Ended Sep 30, 1999
Becton, Dickinson and Company (BDX) reported fiscal 1999 (year ended September 30, 1999) with revenues of $3.42 billion, up 10% from $3.12 billion in 1998, of which acquisitions contributed roughly 5 points and currency translation was not significant. Growth was led by Medical Systems (up 12% to $1.92 billion, driven by prefillable syringes and infusion therapy, with home health care underperforming), Biosciences (up 7% to $986 million, led by flow cytometry), and Preanalytical Solutions (up 6% to $509 million, driven by advanced protection devices). Net income rose 17% to $276 million, but reported diluted EPS of $1.04 was depressed by $76 million of third-quarter special charges, $27 million of related inventory write-offs in cost of products sold, and $49 million of purchased in-process R&D from acquisitions. Excluding these items, management cites diluted EPS of $1.49. Operating income was $445 million (13.0% of revenues as reported; 17.4% excluding special and IPR&D charges). The balance sheet and cash flow picture shows increased leverage tied to acquisitions. Total assets grew to $4.44 billion, and debt to capitalization rose to 47.2% from 41.4%. Short-term debt reached 40% of total debt, with $573 million of commercial paper outstanding. Operating cash flow fell to $432 million from $501 million, while capital expenditures more than doubled to $312 million, leaving free cash flow thin relative to dividends of $88 million. Management said it expects 2000 capital spending to rise 10-15% and acquisition activity to slow considerably, with excess cash used to repay debt. Standard & Poor's moved its outlook to negative, and Moody's downgraded long-term debt from A1 to A2. Investors should weigh several risks: pricing pressure from healthcare cost containment and consolidation in the Medical segment; ongoing latex glove product liability suits (about 300 cases); a set of needlestick class action suits, including a Texas class certification development the court signaled in October 1999; an antitrust suit from Retractable Technologies; and Year 2000 and euro-related disclosures. The company also has a Genesis systems upgrade running through 2001 and a 1998 manufacturing restructuring that includes closing a surgical blade plant.
Dec 10, 1999
1998
BECTON DICKINSON & CO Annual Report, Year Ended Sep 30, 1998
Becton, Dickinson and Company's fiscal 1998 (year ended September 30, 1998) was a year of strong top-line growth overshadowed by one-time charges and a large acquisition. Worldwide revenues rose 11% to $3.12 billion (up 14% excluding unfavorable currency translation, with acquisitions contributing 7 points), driven by infusion therapy, hypodermic products, sample collection devices and FACS flow cytometry. Gross margin improved to 50.6% from 49.7%, and the company said operating margin excluding special charges and acquisition effects rose to 18.7%. However, reported net income fell 21% to $237 million, and diluted EPS dropped to $0.90 from $1.15, reflecting $91 million in special charges (manufacturing restructuring, including a surgical blade plant closure, and an impairment in manual microbiology goodwill), $22 million of business-systems reengineering charges, and a $30 million in-process R&D write-off tied to the roughly $457 million purchase of BOC's Medical Devices Division. Management's underlying diluted EPS growth excluding these items was 19%. The balance sheet expanded materially. Total assets rose to $3.85 billion from $3.08 billion, and total debt increased by $352 million, pushing debt-to-capitalization to 41.4% from 36.3%. Short-term debt rose to 33% of total debt, and return on equity fell to 15.8% from 22.1%. Operating cash flow was $501 million, capital expenditures were $181 million, and acquisitions consumed $537 million net of cash acquired. Share repurchases were sharply reduced to $44 million, and a two-for-one stock split was completed in August 1998. Management indicated that it intends to use substantial excess cash for further acquisitions, which implies that the buyback program will remain subordinate to deal-making. The filing also highlights ongoing legal and regulatory risk. The company faces roughly 194 latex glove product liability suits and multiple needle-stick class actions and antitrust claims, including a Texas case brought by Retractable Technologies. Management says none is expected to be material. Year 2000 remediation is roughly 50-55% complete as of October 1998, with a total estimated cost of about $15 million and completion targeted for 1999.
Dec 16, 1998
1997
BECTON DICKINSON & CO Annual Report, Year Ended Sep 30, 1997
Becton, Dickinson and Company (BDX) reported fiscal 1997 (year ended September 30, 1997) revenues of $2.81 billion, up 1.5% reported and roughly 5% on an underlying basis after a 3% unfavorable foreign currency translation effect. Operating income rose 4.5% to $451 million, and the operating margin improved to 16.0% from 15.6%, driven mainly by a gross profit margin that expanded sharply to 49.7% from 48.4%. Net income increased 6% to $300 million, and diluted EPS was $2.30, up 9%. Management says that excluding a $15 million in-process R&D charge and currency effects, EPS grew about 22%, and return on equity improved to 22.1%. The company's two segments performed differently. Medical Supplies and Devices was flat at $1.5 billion in revenue, though segment operating income rose 2%, and infusion therapy and prefillable syringes led growth. Diagnostic Systems grew 3% to $1.3 billion with operating income up 11%, helped by sample collection, FACS flow cytometry, and the PharMingen and Difco acquisitions completed in May 1997 for about $187 million. Geographically, U.S. revenues grew 4%, while non-U.S. revenues fell 2% reported but grew about 7% underlying, with Asia-Pacific cited as the fastest-growing region. Balance sheet and cash flow metrics show a company still generating solid cash but using more of it for growth. Operating cash flow was $443 million, capital expenditures were $170 million, and acquisitions consumed $201 million net of cash acquired. Share repurchases fell to $150 million from $325 million, and total debt rose $102 million, lifting the debt-to-capitalization ratio to 36.3%. Risks flagged in the filing include foreign currency exposure in Brazil and Mexico, health care cost containment pressure on pricing, and approximately 75 latex glove product liability lawsuits, which management does not expect to be material.
Dec 16, 1997
1995
BECTON DICKINSON & CO Annual Report, Year Ended Sep 30, 1995
Becton, Dickinson and Company (BDX) reported fiscal 1995 (year ended September 30, 1995) as a year of solid operating improvement. Revenues rose 6% to $2.71 billion, or 6% on an underlying basis excluding a 3% favorable currency effect and the impact of divestitures (the radioimmunoassay and medical glove businesses) and reduced year-end sales promotions. Gross profit margin expanded to 47.0% from 45.3%, and operating income grew 22% to $397 million, lifting the operating margin to 14.6% from 12.7%. Net income rose 11% to $252 million, and earnings per share increased 18% to $3.59, helped by share repurchases. Return on equity improved to 17.5% from 15.5%, moving toward management's stated 20% target. The Medical Supplies and Devices segment ($1.5 billion revenue, $330 million operating income, up 20%) was led by diabetes care, safety injection systems, prefillable syringes, and IV catheters. The Diagnostic Systems segment ($1.2 billion revenue, $158 million operating income, up 42% reported and about 24% excluding a $12 million goodwill write-off for cellular imaging) was driven by VACUTAINER blood collection and FACS flow cytometry products. Revenues outside the U.S. grew 12% reported, including 8% from currency. Headwinds included a higher effective tax rate of 28.0% (up from 23.3%) due to reduced Puerto Rico tax benefits, rising resin and paper costs, higher selling and administrative expense (27% of revenues), and economic instability in Mexico and Brazil. Balance sheet and capital allocation were strong. Operating cash flow was $472 million, capital expenditures $124 million, and the company repurchased 5.8 million shares for $300 million. Total debt fell $79 million and debt-to-capitalization declined to 35.2%. Management intends to use excess cash for acquisitions and further buybacks, with 4.1 million shares remaining under the existing authorization. The filing also notes routine Superfund involvement and ordinary-course litigation that management does not expect to be material.
Dec 27, 1995
1994
BECTON DICKINSON & CO Annual Report, Year Ended Sep 30, 1994
Becton, Dickinson and Company (BDX) closed fiscal 1994 (year ended September 30, 1994) with a strong recovery in earnings and cash generation. Revenues rose 4% to $2.56 billion (5% excluding unfavorable currency translation), and operating income climbed 20% to $325 million. Net income was $227 million, or $3.05 per share, versus $72 million ($0.88 per share) in 1993, which had been depressed by a $141 million after-tax cumulative effect of accounting changes. Excluding special charges and currency effects, income growth was driven by gross margin expansion (45.3% vs. 44.5%), tighter selling and administrative spending (25.8% of revenue vs. 26.8%), and benefits from U.S. medical plan changes. The Medical Supplies and Devices segment was the primary growth engine, with operating income up 20% on strong safety syringe, insulin syringe, and prefillable syringe sales. The Diagnostic Systems segment was weaker. Its operating income was flat at $111 million, held back by cost-containment pressure on microbiology testing in the U.S. and Europe, competition and tight research budgets hurting FACS cellular analysis sales, and a fourth-quarter $30 million special charge tied to exiting thyroid, pregnancy, fertility, and anemia testing lines. Management is refocusing that segment around DNA probes and clinical cellular analysis. Europe's government cost containment also weighed on instrumented systems sales. From a balance sheet and capital allocation standpoint, operating cash flow rose to $480 million from $320 million, while capital expenditures fell to $123 million. The company repurchased 5.4 million shares for $210 million and reduced total debt by $45 million, bringing debt-to-capitalization down to 36.1%. Management signaled intent to deploy excess cash toward acquisitions and further buybacks, with 9.9 million shares still authorized, and expects a higher effective tax rate in 1995 as Puerto Rico tax benefits decline.
Dec 27, 1994