10-QPeriod: Q3 FY2013

BECTON DICKINSON & CO Quarterly Report for Q3 Ended Jun 30, 2013

Filed August 5, 2013For Securities:BDX

Summary

Becton Dickinson and Company (BDX) reported its Q3 2013 results, showing a modest revenue increase of 3.6% year-over-year to $2.05 billion. This growth was primarily driven by volume increases, with contributions from the Medical and Diagnostics segments, bolstered by new product sales and acquisitions. However, the company experienced unfavorable foreign currency translation impacts which partially offset revenue gains. Net income for the quarter was $301.6 million, a slight decrease from $326.9 million in the prior year, resulting in diluted EPS of $1.52, down from $1.59. The decrease in profitability was influenced by a $22 million charge related to a settlement in an antitrust class action lawsuit and a $13 million charge for the U.S. medical device excise tax. Despite these headwinds, the company's financial position remains strong, with significant operating cash flows and substantial cash reserves.

Financial Highlights

50 data points
Beta

Revenue

$2.05B

51.6% Gross Margin

Net Income

$301.55M

14.7% Net Margin

EPS (Diluted)

$1.52

Total Assets

$11.59B

Cash & Equivalents

$1.96B

Free Cash Flow

$304.00M

Financial Statements
Beta
Revenue$2.05B
Cost of Revenue$993.00M
Gross Profit$1.06B
R&D Expenses$121.00M
SG&A Expenses$534.00M
Operating Expenses$1.65B
Operating Income$405.00M
Interest Expense$35.00M
Net Income$301.55M
EPS (Basic)$1.55
EPS (Diluted)$1.52
Shares Outstanding (Basic)194.88M
Shares Outstanding (Diluted)198.72M

Key Highlights

  • 1Revenue increased by 3.6% to $2.05 billion, driven by volume growth and acquisitions, though partially offset by unfavorable foreign currency translation.
  • 2Net income decreased to $301.6 million from $326.9 million in the prior year, impacting diluted EPS to $1.52 from $1.59.
  • 3A $22 million settlement charge for antitrust class action litigation and a $13 million charge for the U.S. medical device excise tax impacted quarterly results.
  • 4The Medical segment showed strong revenue growth (6.6%), supported by international sales and safety-engineered products.
  • 5The Diagnostics segment experienced a 2.0% revenue increase, primarily driven by Preanalytical Systems.
  • 6The Biosciences segment saw a 4.2% decrease in revenue due to weaker European sales and timing of orders.
  • 7The company generated $989 million in net cash from continuing operating activities for the first nine months of the fiscal year, indicating strong operational cash generation.

Frequently Asked Questions

Becton Dickinson reported a revenue increase of 3.6% to $2.05 billion for the third quarter ended June 30, 2013, compared to the same period in the prior year. This growth was driven by an approximate 4.9% increase in volume, partially offset by unfavorable foreign currency translation of approximately 1.5%.

The company recorded a $22 million pre-tax charge related to a settlement for indirect purchaser antitrust class action cases and a $13 million pre-tax charge for the U.S. medical device excise tax. These charges, along with other factors, contributed to a decrease in net income and diluted earnings per share compared to the prior year.

The Medical segment demonstrated robust growth with a 6.6% revenue increase, largely due to international sales and safety-engineered products. The Diagnostics segment saw a 2.0% revenue increase, primarily from Preanalytical Systems. The Biosciences segment experienced a 4.2% revenue decrease, impacted by softer European sales and order timing.

The company's financial position remains strong, with $2.3 billion in cash and short-term investments as of June 30, 2013. For the first nine months of fiscal year 2013, net cash provided by continuing operating activities was $989 million, indicating healthy cash generation. The company also continued to return value to shareholders through share repurchases and dividends.