10-QPeriod: Q3 FY2012

BECTON DICKINSON & CO Quarterly Report for Q3 Ended Jun 30, 2012

Filed August 6, 2012For Securities:BDX

Summary

Becton Dickinson & Co. (BDX) reported its financial results for the fiscal third quarter ended June 30, 2012. The company demonstrated modest revenue growth of 1.5% year-over-year, reaching $1.98 billion, driven by solid performance in its Medical and Diagnostics segments, buoyed by new product introductions and recent acquisitions. However, the Biosciences segment experienced a revenue decline of 2.7%, primarily due to a challenging research spending environment and constrained demand. Despite overall revenue growth, net income saw a slight decrease to $326.9 million from $343.1 million in the prior year's quarter, resulting in diluted earnings per share of $1.59 compared to $1.53 in the prior year. The company continues to invest in R&D and geographic expansion, while also returning value to shareholders through share repurchases and dividends. Management noted that ongoing economic uncertainties, particularly in Europe, and potential impacts from the U.S. healthcare reform, including the medical device excise tax, present ongoing challenges.

Financial Highlights

51 data points
Beta

Revenue

$1.98B

52.2% Gross Margin

Net Income

$326.87M

16.5% Net Margin

EPS (Diluted)

$1.59

Total Assets

$11.02B

Cash & Equivalents

$1.66B

Free Cash Flow

$459.54M

Financial Statements
Beta
Revenue$1.98B
Cost of Revenue$947.39M
Gross Profit$1.03B
R&D Expenses$114.99M
SG&A Expenses$469.13M
Operating Expenses$1.53B
Operating Income$449.02M
Interest Expense$34.85M
Net Income$326.87M
EPS (Basic)$1.62
EPS (Diluted)$1.59
Shares Outstanding (Basic)202.01M
Shares Outstanding (Diluted)205.29M

Key Highlights

  • 1Total revenues increased by 1.5% to $1.98 billion for the third quarter, driven by Medical and Diagnostics segments.
  • 2Net income decreased to $326.9 million from $343.1 million in the prior year's quarter.
  • 3Diluted earnings per share from continuing operations were $1.52, an increase from $1.44 in the prior year's quarter.
  • 4The Biosciences segment experienced a revenue decline of 2.7%, attributed to reduced research funding and demand.
  • 5The company made strategic acquisitions, including KIESTRA Lab Automation BV, to enhance its Diagnostics portfolio.
  • 6BD repurchased approximately $1.25 billion of its common stock and paid $280 million in dividends in the first nine months of 2012.
  • 7The company is planning to divest its BD Biosciences—Discovery Labware unit, expecting approximately $730 million in gross cash proceeds.

Frequently Asked Questions

Becton Dickinson & Co. (BDX) reported a 1.5% increase in total revenues to $1.98 billion for the third quarter of fiscal year 2012. While the Medical and Diagnostics segments showed growth, the Biosciences segment experienced a revenue decline. Net income decreased year-over-year to $326.9 million, and diluted EPS from continuing operations rose to $1.52.

Revenue growth was primarily driven by new product launches and acquisitions in the Medical and Diagnostics segments. The decline in the Biosciences segment is attributed to reduced research funding in the U.S. and a challenging competitive environment for reagents.

The company continues to invest in R&D and geographic expansion. Key concerns include ongoing global economic uncertainties, particularly in Europe, pricing pressures, and the potential impact of the U.S. healthcare reform, specifically the medical device excise tax scheduled to begin in January 2013.

BDX acquired KIESTRA Lab Automation BV to strengthen its Diagnostics segment and signed an agreement to sell its BD Biosciences—Discovery Labware unit. The company also continued its share repurchase program and paid dividends, demonstrating a commitment to returning value to shareholders.