10-QPeriod: Q1 FY2010

BECTON DICKINSON & CO Quarterly Report for Q1 Ended Dec 31, 2009

Filed February 8, 2010For Securities:BDX

Summary

Becton Dickinson & Co. (BDX) reported strong first-quarter results for fiscal year 2010, with revenues increasing by 12% year-over-year to $1.917 billion. This growth was driven by a 9% volume increase and a 3% favorable foreign currency impact, with notable contributions from the Medical and Diagnostics segments, partly due to flu-related sales. Diluted earnings per share from continuing operations rose to $1.30 from $1.25 in the prior year, indicating improved profitability. The company also demonstrated solid cash flow generation, with net cash provided by continuing operating activities at $395 million, an increase from $266 million in the prior year. Despite significant investment in acquisitions, notably HandyLab, Inc., and capital expenditures, BDX maintained a healthy financial position, with total debt representing 24.0% of total capital. Management expressed confidence in its ability to fund ongoing operations, dividends, and share repurchases.

Financial Highlights

49 data points
Beta

Revenue

$1.87B

52.1% Gross Margin

Net Income

$316.38M

16.9% Net Margin

EPS (Diluted)

$1.30

Total Assets

$9.09B

Cash & Equivalents

$1.18B

Free Cash Flow

$260.36M

Financial Statements
Beta
Revenue$1.87B
Cost of Revenue$894.32M
Gross Profit$974.49M
SG&A Expenses$445.67M
Operating Expenses$1.44B
Operating Income$429.67M
Interest Expense$12.99M
Net Income$316.38M
EPS (Basic)$1.33
EPS (Diluted)$1.30
Shares Outstanding (Basic)237.36M
Shares Outstanding (Diluted)242.97M

Key Highlights

  • 1Revenues increased by 12% year-over-year to $1.917 billion, driven by volume growth and favorable foreign currency translation.
  • 2Diluted Earnings Per Share (EPS) from continuing operations grew to $1.30, up from $1.25 in the prior year's quarter.
  • 3Net cash provided by continuing operating activities increased significantly to $395 million.
  • 4The company completed the acquisition of HandyLab, Inc. for approximately $277.6 million, strengthening its molecular diagnostics offerings.
  • 5Medical and Diagnostics segments showed strong revenue growth, with significant contributions from flu-related products.
  • 6Total debt remained a manageable 24.0% of total capital, indicating a stable financial structure.
  • 7The company continued its share repurchase program, buying back $191 million of common stock during the quarter.

Frequently Asked Questions

BDX reported a 12% increase in revenue for the first quarter ended December 31, 2009, reaching $1.917 billion, compared to $1.718 billion in the prior year's quarter. This growth was attributed to a 9% increase in volume and a 3% favorable impact from foreign currency translation.

BDX acquired HandyLab, Inc. on November 19, 2009, for approximately $277.6 million. This acquisition is expected to enhance its molecular diagnostics offerings and create revenue and cost synergies. The acquisition involved significant investment, including $169 million in acquired in-process research and development and $148 million in goodwill, and was funded through cash.

BDX maintains a strong liquidity position. As of December 31, 2009, total debt was $1.7 billion, representing 24.0% of total capital, a decrease from the previous quarter. The company has a commercial paper program and a $1 billion syndicated credit facility available for short-term financing and general corporate purposes, with a strong interest coverage ratio.

Both the Medical and Diagnostics segments saw significant revenue growth. The Medical segment's 16% increase was driven by strong sales in Medical Surgical Systems and Pharmaceutical Systems, including approximately 7% from flu-related products. The Diagnostics segment's 10% growth was boosted by sales of safety-engineered devices and infectious disease testing systems, with about 2% from flu-related products.