Early Access

10-QPeriod: Q2 FY2013

BECTON DICKINSON & CO Quarterly Report for Q2 Ended Mar 31, 2013

Filed May 9, 2013For Securities:BDX

Summary

Becton, Dickinson and Company (BDX) reported solid revenue growth for the second quarter of fiscal year 2013, with total revenues increasing by 3.7% to $2.0 billion, driven by volume increases across its Medical and Diagnostics segments, partially offset by price decreases and unfavorable foreign currency translation. The company continues to focus on strategic investments in research and development and geographic expansion to fuel long-term growth. Despite a challenging economic environment and pricing pressures in some product lines, BD maintained a strong financial position, with $2.4 billion in cash and short-term investments. The company also returned value to shareholders through share repurchases and dividends. Key financial events during the quarter included the adoption of new accounting guidance for accumulated other comprehensive income, which did not impact consolidated financial statements. The company also announced the acquisition of Cato Software Solutions to enhance its medication safety offerings and Safety Syringes, Inc. to broaden its healthcare worker safety portfolio. These acquisitions are expected to bolster the Medical segment. Furthermore, BD completed the divestiture of its BD Biosciences—Discovery Labware unit, recognizing a significant pre-tax gain. A new medical device excise tax in the U.S. had a notable impact, resulting in a pre-tax charge of $14 million and reducing diluted earnings per share by $0.05 for the quarter.

Financial Statements
Beta
Revenue$2.00B
Cost of Revenue$982.00M
Gross Profit$1.02B
R&D Expenses$122.00M
SG&A Expenses$515.00M
Operating Expenses$1.62B
Operating Income$381.00M
Interest Expense$35.00M
Net Income$276.00M
EPS (Basic)$1.42
EPS (Diluted)$1.39
Shares Outstanding (Basic)194.61M
Shares Outstanding (Diluted)198.14M

Key Highlights

  • 1Total revenues for the second quarter of FY2013 increased by 3.7% to $2.0 billion, driven by volume growth in the Medical and Diagnostics segments.
  • 2Net income for the quarter was $275.6 million, with diluted earnings per share of $1.39 from continuing operations.
  • 3The company completed two acquisitions: Cato Software Solutions and Safety Syringes, Inc., both to strengthen its Medical segment offerings.
  • 4BD successfully divested its BD Biosciences—Discovery Labware unit, resulting in a pre-tax gain of $561.7 million.
  • 5A new U.S. medical device excise tax resulted in a $14 million pre-tax charge and a $0.05 reduction in diluted EPS for the quarter.
  • 6Cash generated from operations remained strong, with $543 million in the first six months of FY2013, supporting ongoing investments and shareholder returns.
  • 7Shareholder returns included $356 million in share repurchases and $193 million in dividends paid during the first six months of the fiscal year.

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