01—Abstract
Summary
Summary of the 10-K filed November 23, 2011. Cited figures are marked; the original filing is the authoritative source.
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 billiona, 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.
02—Key points
Key Highlights
- BD reported a 6% increase in worldwide revenues to $7.8 billion for fiscal year 2011, driven by volume increases and favorable foreign exchange, despite pricing pressures.
- The company completed two strategic acquisitions: Accuri Cytometers, Inc. for $205 million and Carmel Pharma Inc. for $287 million, enhancing its capabilities in flow cytometry and closed-system drug transfer devices.
- BD's Medical segment experienced revenue growth of 5.6% to $4.0 billion, led by strong performance in Pharmaceutical Systems and international safety-engineered products.
- The Diagnostics segment saw a 7.0% revenue increase to $2.5 billion, driven by sales of safety-engineered products and growth in automated diagnostic platforms.
- The Biosciences segment's revenues grew by 6.7% to $1.3 billion, primarily due to instrument and reagent sales in the Cell Analysis unit.
- The company repurchased $1.5 billion of its common stock and paid $361 million in dividends, demonstrating a commitment to shareholder returns.
- BD maintained a strong financial position with $1.7 billion in cash flow from operating activities and $1.6 billion in cash and equivalents at year-end.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2011, Becton Dickinson & Co kept $0.17.
- Revenue$7.58B100.0%
- Cost of revenue−$3.63B47.8%
- Gross profit$3.96B52.2%
- Operating costs−$2.29B30.2%
- Operating income$1.67B22.0%
- Interest, other & tax−$395.0M5.2%
- Net income$1.27B16.8%
Where FY2011 revenue went
$7.58B- Cost of revenue: $3.63B, 48% of revenue
- SG&A: $1.82B, 24% of revenue
- Net income: $1.27B, 17% of revenue
- R&D: $470.0M, 6.2% of revenue
- Interest, other & tax: $395.0M, 5.2% of revenue
Kept 17% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2011filed November 23, 2011Financial Statements
FY2011 against FY2010
| Line item | FY2011FY2010 | Change |
|---|---|---|
| Revenue | $7.58B$7.12B | +6.5% |
| Cost of Revenue | $3.63B$3.43B | +5.7% |
| Gross Profit | $3.96B$3.70B | +7.1% |
| R&D Expenses | $470.00M$422.77M | +11.2% |
| SG&A Expenses | $1.82B$1.69B | +7.9% |
| Operating Expenses | $5.92B$5.54B | +6.8% |
| Operating Income | $1.67B$1.58B | +5.3% |
| Interest Expense | $84.00M$51.26M | +63.9% |
| Net Income | $1.27B$1.32B | −3.5% |
| EPS (Basic) | $5.75$5.62 | +2.3% |
| EPS (Diluted) | $5.62$5.49 | +2.4% |
| Shares Outstanding (Basic) | 221.18M234.33M | −5.6% |
| Shares Outstanding (Diluted) | 226.28M240.14M | −5.8% |
05—Questions
Frequently Asked Questions
What were Becton Dickinson's key acquisitions in fiscal year 2011?
In fiscal year 2011, Becton Dickinson acquired Accuri Cytometers, Inc. for $205 million, a company specializing in personal flow cytometers for researchers, and Carmel Pharma Inc. for $287 million, a manufacturer of a closed-system drug transfer device.
How did the company's revenue performance compare to the previous year, and what were the main drivers?
Worldwide revenues increased by 6% to $7.8 billion in fiscal year 2011 compared to fiscal year 2010. This growth was driven by volume increases of approximately 4%, estimated favorable foreign exchange translation of 3%, and offset by an estimated price decrease of just under 1%. Strong international sales of safety-engineered products and growth in emerging markets were key contributors, though partially offset by weaker demand in Western Europe.
What are the primary risks facing Becton Dickinson, as highlighted in the 10-K filing?
Key risks include adverse impacts from current economic conditions on product demand and pricing, foreign currency exchange rate fluctuations, changes in third-party reimbursement practices, and the potential adverse effects of federal healthcare reform (like the medical device excise tax). Other risks include reliance on R&D for growth, integration risks from acquisitions, intense competition, and potential supply chain disruptions.
How did the company's R&D spending trend during this period?
Becton Dickinson's research and development (R&D) spending increased year-over-year, with $476 million spent in fiscal year 2011, compared to $431 million in 2010 and $405 million in 2009. This reflects the company's ongoing investment in developing new products and platforms across its business segments.
06—Continue