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

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.

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.

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