10-KPeriod: FY2008

BECTON DICKINSON & CO Annual Report, Year Ended Sep 30, 2008

Filed November 26, 2008For Securities:BDX

Summary

Becton Dickinson and Company (BDX) filed its 2008 10-K report, detailing its operations as a global medical technology company. The company is structured into three key segments: BD Medical, BD Diagnostics, and BD Biosciences, offering a wide array of products and devices for healthcare institutions, life science researchers, and clinical laboratories. The report highlights BD's commitment to innovation through significant investments in research and development, which are crucial for maintaining its competitive edge in a rapidly evolving medical technology landscape. BD's business is characterized by its diverse product portfolio and global presence, with substantial operations outside the U.S. The company emphasizes safety-engineered devices and diagnostic solutions, particularly in areas like infectious disease testing and cell analysis. However, BD also faces considerable risks, including the impact of current economic conditions, foreign currency fluctuations, intense competition, regulatory scrutiny, and ongoing legal proceedings, particularly antitrust litigation. Investors should note the company's efforts to mitigate these risks through strategic initiatives, product development, and operational efficiency.

Financial Statements
Beta
Revenue$6.90B
Cost of Revenue$3.36B
Gross Profit$3.54B
SG&A Expenses$1.67B
Operating Expenses$5.41B
Operating Income$1.49B
Interest Expense$36.34M
Net Income$1.13B
EPS (Basic)$4.61
EPS (Diluted)$4.46
Shares Outstanding (Basic)244.32M
Shares Outstanding (Diluted)252.68M

Key Highlights

  • 1BD operates through three main segments: Medical, Diagnostics, and Biosciences, offering a broad range of medical supplies, devices, laboratory equipment, and diagnostic products.
  • 2The company made a strategic acquisition of Cytopeia Inc. in May 2008, aiming to advance its capabilities in cell-based research and flow cytometry.
  • 3BD maintains a significant global presence, with over half of its fiscal year 2008 revenues derived from international operations, across various regions including Europe, Asia Pacific, and Latin America.
  • 4Significant investments in research and development are a core strategy, with approximately $396 million spent in fiscal year 2008 to drive innovation and maintain a competitive advantage.
  • 5The company is subject to numerous legal proceedings, including antitrust class action lawsuits and product liability claims, which could impact financial results.
  • 6BD is actively managing risks associated with foreign currency exchange rates due to its substantial international revenue base.
  • 7The report details BD's extensive network of manufacturing, warehousing, and administrative facilities globally, underscoring its operational scale.

Frequently Asked Questions

Becton Dickinson operates under three primary business segments: BD Medical, which provides a range of medical devices for medication delivery, surgery, and home healthcare; BD Diagnostics, offering products for specimen collection, infectious disease testing, and specimen analysis; and BD Biosciences, which develops tools for cell research, drug discovery, and disease diagnosis.

Key risks identified include the impact of current economic conditions on customer spending and demand, foreign currency exchange rate fluctuations due to significant international operations, intense competition in the medical technology industry, product liability and other litigation, regulatory changes and compliance, potential supply chain disruptions for raw materials, and the inherent risks of integrating strategic acquisitions.

BD invests heavily in research and development, spending approximately $396 million in fiscal year 2008. This investment is crucial for developing new products, enhancing existing ones, and maintaining its competitive position through innovation in areas like safety-engineered devices and advanced diagnostics and biosciences tools.

BD is involved in several significant legal proceedings, including antitrust class action lawsuits related to its products and pricing, as well as product liability claims. The company states it believes it has meritorious defenses and is vigorously defending these matters, but acknowledges that unfavorable outcomes could adversely affect its results of operations and cash flows.