Becton, Dickinson And Company (BD), a US-based medical devices company, has reported the revenues of $1.74 billion for the second quarter of fiscal 2009, down 0.4%, compared with the revenues of $1.75 billion in the year-ago quarter. It has also reported net income of $261.3 million, or $1.06 per diluted share, for the second quarter of fiscal 2009, down 5.4%, compared with the net income of $276.2 million, or $1.09 per diluted share, in the year-ago quarter.
In the face of global economic pressures, we are pleased to have achieved top-line growth in all three segments after adjusting for the negative impact of foreign currency translation. This growth, along with our continued focus on disciplined expense and currency risk management, has enabled us to deliver adjusted earnings in line with our expectations, stated Edward J. Ludwig, chairman and chief executive officer. Our strong performance for the first half of fiscal 2009, combined with our commitment to continue to drive efficiency throughout BD, gives us the confidence to reaffirm our guidance for full-year adjusted earnings.
Second Quarter and Six-Month Period of Fiscal Year 2009 and 2008 Earnings
Posted diluted earnings per share from continuing operations for the second quarter were $1.06. Second quarter results included a pre-tax charge of $45 million (11 cents diluted earnings per share from continuing operations) relating to the settlement agreement with the direct purchaser plaintiffs (which includes BD’s distributors) in the antitrust class actions. Second quarter fiscal 2009 diluted earnings per share from continuing operations, excluding the charge of 11 cents, of $1.18 increased by 8% over diluted earnings per share from continuing operations of $1.09 for the prior year period. For the six-month period ending March 31, 2009, reported diluted earnings per share from continuing operations were $2.32. Excluding the aforementioned charge of 11 cents, diluted earnings per share from continuing operations for the six-month period in fiscal 2009 were $2.43, representing an increase of 12.5% over diluted earnings per share from continuing operations of $2.16 from the prior year period.
Segment Results
In the BD Medical segment, worldwide revenues for the quarter were $897 million, down 3% from the prior year period after taking into account an estimated 5%age points of unfavorable impact from foreign currency translation. On a currency neutral basis, the increase in worldwide sales of Medical Surgical Systems products was offset in part by the expected decline in sales of prefillable devices in the US For the six-month period ended March 31, 2009, the BD Medical segment reported a 2% decrease in revenue growth after taking into account an estimated 4%age points of unfavorable impact from foreign currency translation. On a currency neutral basis, BD Medical revenues for the six-month period increased by 2%.
In the BD Diagnostics segment, worldwide revenues for the quarter were $540 million, representing an increase of 2% from the prior year period after taking into account an estimated 3 percentage points of unfavorable impact from foreign currency translation.
Increased sales of safety-engineered devices, cancer diagnostics products and infectious disease testing systems were partially offset by a decline in the sales of flu testing products due to a mild flu season in the U.S. For the six-month period ended March 31, 2009, the BD Diagnostics segment reported 3% revenue growth after taking into account an estimated 3%age points of unfavorable impact from foreign currency translation. On a currency neutral basis, BD Diagnostics revenues for the six-month period increased by 6%.
In the BD Biosciences segment, worldwide revenues for the quarter were $304 million, representing an increase of 3% from the prior year period. Strong international sales growth of research instruments and reagents, primarily in Western Europe and Japan, were offset in part by a slowdown in research-related capital spending in the U.S., particularly in the academic and biotech markets. For the six-month period ended March 31, 2009, the BD Biosciences segment reported 7% revenue growth after taking into account an estimated 1%age point favorable impact from foreign currency translation. On a currency neutral basis, BD Biosciences revenues for the six-month period increased by 6%.
Geographic Results
Second quarter revenues in the US were $778 million, representing a decrease of 1% from the prior year period. Revenues outside the US were $963 million, representing flat revenues from the prior year period, and reflect an estimated 6%age points of unfavorable impact from foreign currency translation.
For the six-month period ended March 31, 2009, revenues in the U.S. were $1.587 billion, representing an increase of 1% from the prior year period. Revenues outside of the US were $1.887 billion, representing an increase of 0.5% from the prior year period, and reflect an estimated 6%age points of unfavorable impact from foreign currency translation.
Fiscal 2009 Gudance for Full Year
Excluding the specified item, the company reaffirms that diluted earnings per share from continuing operations for the full fiscal year 2009 will increase approximately 9 to 11% over diluted earnings per share from continuing operations of $4.46 for the fiscal year 2008. The company expects that reported diluted earnings per share from continuing operations for the full fiscal year 2009 will increase 7 to 9%.