Summary
Becton, Dickinson and Company (BDX) reported its financial results for the fiscal quarter ended December 31, 2011. The company experienced a modest 2.5% increase in revenue to $1.89 billion, driven by volume growth partially offset by price decreases. While overall revenue grew, operating income saw a decline compared to the prior year, primarily due to increased costs in cost of products sold and selling and administrative expenses, as well as a decrease in operating income from the Medical segment. The company's liquidity remains strong, with significant cash flows from operations and substantial debt issuance to fund corporate purposes. Investors should note the ongoing legal proceedings, particularly the antitrust litigation and patent disputes, which carry potential material adverse effects.
Financial Highlights
49 data points| Revenue | $1.83B |
| Cost of Revenue | $900.47M |
| Gross Profit | $931.25M |
| R&D Expenses | $112.23M |
| SG&A Expenses | $482.27M |
| Operating Expenses | $1.49B |
| Operating Income | $336.76M |
| Interest Expense | $29.38M |
| Net Income | $262.99M |
| EPS (Basic) | $1.23 |
| EPS (Diluted) | $1.21 |
| Shares Outstanding (Basic) | 214.30M |
| Shares Outstanding (Diluted) | 217.63M |
Key Highlights
- 1Total revenues increased by 2.5% year-over-year to $1.89 billion, primarily due to volume increases of 3.7%, though tempered by price decreases of 1.3%.
- 2Operating income decreased by 13.2% to $358.6 million, impacted by higher cost of products sold and selling and administrative expenses.
- 3Net income for the quarter was $263.0 million, a decrease from $315.9 million in the same period last year, leading to a diluted EPS of $1.21, down from $1.36.
- 4The company strengthened its liquidity by issuing $1.5 billion in new long-term debt, while also returning capital to shareholders through $400 million in stock repurchases and $96 million in dividends.
- 5The Medical segment saw a revenue increase of 2.6% to $950.4 million, but operating income declined by 7.9%, partly due to amortization of intangibles from acquisitions and increased raw material costs.
- 6The Diagnostics and Biosciences segments also reported revenue increases of 3.2% and 0.9% respectively, though Biosciences experienced a notable decline in operating income (8.1%) due to acquisition-related amortization.
- 7BD continues to face pricing pressures and expects them to persist through fiscal year 2012, alongside increased raw material costs and constrained healthcare spending in key markets.