Becton, Dickinson And Company (BD) has reported revenues of $7.16 billion for the fiscal 2009, up 1.2%, compared with the revenues of $7.07 billion in the previous year-end. It has also reported net income of $1.23 billion, or $4.99 per diluted share, for the fiscal 2009, compared with the net income of $1.13 billion, or $4.46 per diluted share, in the previous year-end.
“The achievement of solid fourth quarter performance, in particular BD Medical and BD Diagnostics, marks the conclusion of another successful year for BD,” said Edward J. Ludwig, Chairman and Chief Executive Officer. “This strong finish to the year provides a platform for growth in fiscal 2010 and gives us confidence we will achieve our stated long-term goals.”
Fourth Quarter Earnings and Analysis of Full Fiscal Year 2009 and 2008 Earnings
Reported diluted earnings per share from continuing operations of $1.25 for the fourth quarter of 2009 increased by 13 percent over reported diluted earnings per share from continuing operations of $1.11 for the fourth quarter of 2008. On a currency-neutral basis, diluted earnings per share from continuing operations for the fourth quarter of fiscal 2009 increased 17 percent.
The preceding analysis (Table 1) of diluted earnings per share from continuing operations for the twelve-month periods ended September 30, 2009 and 2008 identifies the specified items that affect comparability of results between periods. As illustrated, fiscal year 2009 diluted earnings per share from continuing operations of $4.92 included the third quarter tax benefit of 8 cents and the second quarter charge of 11 cents relating to a pending antitrust class action settlement. Excluding these specified items, diluted earnings per share from continuing operations for the twelve-month period in fiscal year 2009 were $4.95, representing an increase of 12 percent over diluted earnings per share from continuing operations of $4.42 from the prior-year period. On a currency-neutral basis, adjusted diluted earnings per share from continuing operations for the twelve-month period ending September 30, 2009 increased 10 percent.
Segment Results
In the BD Medical segment, worldwide revenues for the quarter were $1 billion, representing an increase of 8 percent from the prior-year period, or 13 percent excluding the unfavorable impact from foreign currency translation. Strong sales of Pharmaceutical Systems products, as expected, and solid sales of Medical Surgical Systems products contributed to revenue growth; both included a favorable impact from flu-related sales. For the twelve-month period ended September 30, 2009, the BD Medical segment reported flat revenue growth. On a currency-neutral basis, BD Medical revenues for the twelve-month period increased by 6 percent to $3.731 billion.
In the BD Diagnostics segment, worldwide revenues for the quarter were $580 million, representing an increase of 5 percent from the prior-year period or 8 percent excluding the unfavorable impact from foreign currency translation. Sales of safety-engineered devices, cancer diagnostics products and infectious disease testing systems, including flu-related products, contributed to revenue growth. For the twelve-month period ended September 30, 2009, the BD Diagnostics segment reported 3 percent revenue growth to $2.226 billion. On a currency-neutral basis, BD Diagnostics revenues for the twelve-month period increased by 7 percent.
In the BD Biosciences segment, worldwide revenues for the quarter were $312 million, representing a decrease of 5 percent from the prior-year period, or a decrease of 4 percent excluding the unfavorable impact from foreign currency translation. Demand in the U.S. for capital equipment in the research and clinical segments continued to be impacted by funding constraints. International revenue growth continued to moderate as well. For the twelve-month period ended September 30, 2009, the BD Biosciences segment reported 1 percent revenue growth to $1.204 billion. On a currency-neutral basis, BD Biosciences revenues for the twelve-month period increased by 2 percent.
Geographic Results
Fourth quarter revenues in the U.S. were $840 million, representing an increase of 6 percent from the prior-year period. Revenues outside of the U.S. were $1.058 billion, representing an increase of 4 percent from the prior-year period, or 10 percent excluding the unfavorable impact from foreign currency translation.
For the twelve-month period ended September 30, 2009, revenues in the U.S. were $3.205 billion, representing an increase of 3 percent from the prior-year period. Revenues outside of the U.S. were $3.956 billion, representing flat growth from the prior-year period, or 7 percent growth excluding the unfavorable impact from foreign currency translation.
Fiscal 2010 Outlook for Full Year
The Company estimates that reported revenues for the full fiscal year 2010 will increase about 6 percent, or 5 to 6 percent excluding the estimated favorable impact from foreign currency translation.
The Company expects diluted earnings per share from continuing operations for the full fiscal year 2010 to increase approximately 1 to 3 percent over adjusted diluted earnings per share from continuing operations, excluding specified items, of $4.95 for the fiscal year 2009, or 7 to 9 percent excluding the estimated unfavorable impact from foreign currency translation.