Summary
Becton Dickinson & Co. (BDX) reported strong performance in its first quarter of fiscal year 2013, with revenues increasing by 3.7% year-over-year to $1.9 billion. This growth was driven by solid contributions from the Medical and Diagnostics segments, supported by an early start to the influenza season and continued international demand for safety-engineered products. The company also successfully completed the divestiture of its BD Biosciences—Discovery Labware unit, generating significant cash proceeds and a pre-tax gain. Despite ongoing economic uncertainties and pricing pressures, BDX demonstrated operational improvements, including enhanced gross profit margins attributed to cost-saving initiatives like Project ReLoCo and lower raw material costs. The company continued its commitment to shareholder returns through substantial share repurchases and dividend payments. While facing some legal contingencies and the upcoming impact of the medical device excise tax, BDX's financial position remains robust, with ample liquidity and a strong cash flow from operations.
Financial Highlights
50 data points| Revenue | $1.90B |
| Cost of Revenue | $894.00M |
| Gross Profit | $1.01B |
| R&D Expenses | $118.00M |
| SG&A Expenses | $496.00M |
| Operating Expenses | $1.51B |
| Operating Income | $392.00M |
| Interest Expense | $35.00M |
| Net Income | $625.00M |
| EPS (Basic) | $3.18 |
| EPS (Diluted) | $3.13 |
| Shares Outstanding (Basic) | 196.43M |
| Shares Outstanding (Diluted) | 199.57M |
Key Highlights
- 1Total revenue for the first quarter of fiscal year 2013 increased by 3.7% to $1.9 billion, up from $1.83 billion in the prior year period.
- 2The Medical segment revenue grew by 3.5% to $983 million, driven by strong sales in Diabetes Care and Medical Surgical Systems.
- 3The Diagnostics segment revenue increased by 5.0% to $652 million, primarily due to international expansion and favorable comparisons to the prior year.
- 4The company completed the sale of its BD Biosciences—Discovery Labware unit on October 31, 2012, generating approximately $724.4 million in cash proceeds and a pre-tax gain of $562.8 million.
- 5Net cash provided by continuing operating activities was $225.9 million for the quarter, although this was lower than the prior year's $297.6 million due to changes in pension obligations and working capital.
- 6BDX repurchased approximately $300 million of its common stock and paid $97 million in dividends during the quarter, demonstrating a commitment to returning capital to shareholders.
- 7The company is facing an estimated $40-$50 million impact from the new medical device excise tax in fiscal year 2013.