10-KPeriod: FY2012

BECTON DICKINSON & CO Annual Report, Year Ended Sep 30, 2012

Filed November 21, 2012For Securities:BDX

Summary

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.

Financial Highlights

55 data points
Beta

Revenue

$7.71B

51.3% Gross Margin

Net Income

$1.17B

15.2% Net Margin

EPS (Diluted)

$5.59

Total Assets

$11.36B

Cash & Equivalents

$1.67B

Free Cash Flow

$1.21B

Financial Statements
Beta
Revenue$7.71B
Cost of Revenue$3.75B
Gross Profit$3.95B
R&D Expenses$472.00M
SG&A Expenses$1.92B
Operating Expenses$6.15B
Operating Income$1.56B
Interest Expense$135.00M
Net Income$1.17B
EPS (Basic)$5.69
EPS (Diluted)$5.59
Shares Outstanding (Basic)205.46M
Shares Outstanding (Diluted)209.18M

Key Highlights

  • 1BD reported total revenues of $7.7 billion for fiscal year 2012, a 1.6% increase from the prior year, driven by volume increases and strategic acquisitions.
  • 2The company's three segments (Medical, Diagnostics, Biosciences) all contributed to revenue growth, with Medical and Diagnostics showing particular strength from new products and acquisitions.
  • 3BD made strategic acquisitions during the year, purchasing KIESTRA Lab Automation for $59 million and Sirigen Group for $64 million to enhance its lab automation and flow cytometry offerings.
  • 4Research and development spending remained robust at $472 million, reflecting BD's commitment to innovation and new product development across its segments.
  • 5The company ended the fiscal year with a strong liquidity position, holding $2.2 billion in cash and short-term investments.
  • 6BD actively managed its capital structure, repurchasing $1.5 billion of its common stock and paying $368 million in dividends during fiscal year 2012.
  • 7Significant legal proceedings, including antitrust litigation, are ongoing and pose a potential risk to the company's financial condition.

Frequently Asked Questions

Becton, Dickinson and Company (BDX) reported total revenues of $7.7 billion for fiscal year 2012, representing a 1.6% increase compared to the prior year. The company's income from continuing operations was $1.11 billion, or $5.30 per diluted share. Despite challenging economic conditions, BD demonstrated resilience through strategic acquisitions and continued investment in its product lines.

BD's revenue growth was primarily driven by new product launches and the successful integration of recent acquisitions, such as KIESTRA Lab Automation and Sirigen Group. Growth was also supported by increased sales of safety-engineered products and expansion in emerging markets, particularly within the BD Medical and BD Diagnostics segments.

BDX identified several key risks, including the impact of challenging global economic conditions on healthcare utilization and pricing, foreign currency exchange rate fluctuations due to significant international sales, changes in third-party reimbursement practices, and the consequences of U.S. healthcare reform, specifically the 2.3% excise tax on medical device manufacturers starting in 2013. Additionally, ongoing litigation poses a potential risk to operations and financial results.

BD maintained a strong financial position with substantial cash reserves and actively returned capital to shareholders. In fiscal year 2012, the company repurchased approximately $1.5 billion of its common stock and paid cash dividends totaling $368 million. BD also reported a debt-to-capitalization ratio of 49.7% at the end of fiscal year 2012, indicating strategic use of debt financing.