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10-QPeriod: Q2 FY2015

BECTON DICKINSON & CO Quarterly Report for Q2 Ended Mar 31, 2015

Filed May 8, 2015For Securities:BDX

Summary

Becton, Dickinson and Company (BDX) reported its financial results for the fiscal second quarter ended March 31, 2015. The quarter was marked by a significant event: the completion of the acquisition of CareFusion Corporation on March 17, 2015. This transformative acquisition, valued at approximately $12.5 billion, is expected to create a global leader in medication management and patient safety solutions. Financially, the company experienced a 1.0% decrease in revenue to $2.051 billion compared to the prior year, largely due to an unfavorable foreign currency translation impact of 5.9%. Despite this revenue dip, operational performance showed resilience, with strong sales in safety-engineered products and continued growth in key segments. Net income for the quarter was $216 million, down from $287 million in the prior year, resulting in diluted earnings per share of $1.08, compared to $1.45. The company also reported significant acquisition-related costs, including financing, transaction, integration, and restructuring expenses. The balance sheet reflects the impact of the CareFusion acquisition, with substantial increases in goodwill, intangible assets, and long-term debt. The company's financial position remains strong, with $2.0 billion in cash and equivalents and short-term investments at quarter-end. BDX is focused on integrating CareFusion and leveraging the combined entity's strengths to drive future growth and efficiencies.

Financial Statements
Beta
Revenue$2.05B
Cost of Revenue$1.00B
Gross Profit$1.05B
R&D Expenses$129.00M
SG&A Expenses$511.00M
Operating Expenses$1.76B
Operating Income$293.00M
Interest Expense$91.00M
Net Income$216.00M
EPS (Basic)$1.10
EPS (Diluted)$1.08
Shares Outstanding (Basic)196.09M
Shares Outstanding (Diluted)199.94M

Key Highlights

  • 1Acquisition of CareFusion Corporation completed on March 17, 2015, for approximately $12.5 billion.
  • 2Second quarter revenue decreased 1.0% to $2.051 billion, impacted by a 5.9% unfavorable foreign currency translation effect.
  • 3Net income for the quarter was $216 million, down from $287 million in the prior year, with diluted EPS of $1.08 versus $1.45.
  • 4Significant increase in long-term debt due to financing for the CareFusion acquisition, totaling $12.1 billion at quarter-end.
  • 5Goodwill and intangible assets increased substantially due to the CareFusion acquisition, reflecting significant brand and technology valuations.
  • 6Operating cash flow remained solid at $514 million for the six months ended March 31, 2015.
  • 7The company's share repurchase program was suspended for the remainder of fiscal year 2015 due to the CareFusion acquisition.

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