BD Announces Results for Second Fiscal Quarter

- Reports earnings per share from continuing operations of $1.06, or $1.18 after excluding specified item

- Reaffirms guidance for full fiscal year 2009 earnings per share from continuing operations, excluding specified item

FRANKLIN LAKES, N.J., April 28 /PRNewswire-FirstCall/ — BD (Becton, Dickinson and Company) (NYSE: BDX) today reported quarterly revenues of $1.741 billion for the second fiscal quarter ended March 31, 2009, representing a decrease of 0.4 percent from the prior year period. This quarter’s revenue growth rate reflects the unfavorable impact from foreign currency translation, which overall is estimated to account for 3.4 percentage points.

“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

Reported 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, as described in BD’s Current Report on Form 8-K filed with the SEC today. Second quarter fiscal 2009 diluted earnings per share from continuing operations, excluding the charge of 11 cents, of $1.18 increased by 8 percent 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 percent 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, representing a decrease of 3 percent from the prior year period after taking into account an estimated 5 percentage 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 U.S. For the six-month period ended March 31, 2009, the BD Medical segment reported a 2 percent decrease in revenue growth after taking into account an estimated 4 percentage points of unfavorable impact from foreign currency translation. On a currency neutral basis, BD Medical revenues for the six-month period increased by 2 percent.

In the BD Diagnostics segment, worldwide revenues for the quarter were $540 million, representing an increase of 2 percent 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 percent revenue growth after taking into account an estimated 3 percentage points of unfavorable impact from foreign currency translation. On a currency neutral basis, BD Diagnostics revenues for the six-month period increased by 6 percent.

In the BD Biosciences segment, worldwide revenues for the quarter were $304 million, representing an increase of 3 percent 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 percent revenue growth after taking into account an estimated 1 percentage point favorable impact from foreign currency translation. On a currency neutral basis, BD Biosciences revenues for the six-month period increased by 6 percent.

Geographic Results

Second quarter revenues in the U.S. were $778 million, representing a decrease of 1 percent from the prior year period. Revenues outside the U.S. were $963 million, representing flat revenues from the prior year period, and reflect an estimated 6 percentage 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 percent from the prior year period. Revenues outside of the U.S. were $1.887 billion, representing an increase of 0.5 percent from the prior year period, and reflect an estimated 6 percentage points of unfavorable impact from foreign currency translation.

Fiscal 2009 Outlook 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 percent 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 percent.

Conference Call Information

A conference call regarding BD’s second fiscal quarter results and its expectations for the full fiscal year will be broadcast live on BD’s website, www.bd.com/investors, along with related slides, at 10:00 a.m. (ET) Tuesday, April 28, 2009. The conference call will be available for replay on BD’s website, www.bd.com/investors, or at 800-642-1687 (domestic) and 706-645-9291 (international), Conference ID: 92219921, through the close of business on Tuesday, May 5, 2009.

This news release contains certain non-GAAP financial measures. A reconciliation of these and other measures to the comparable GAAP measures is included in this release and in the attached financial tables.

About BD

BD is a leading global medical technology company that develops, manufactures and sells medical devices, instrument systems and reagents. The Company is dedicated to improving people’s health throughout the world. BD is focused on improving drug delivery, enhancing the quality and speed of diagnosing infectious diseases and cancers, and advancing research, discovery and production of new drugs and vaccines. BD’s capabilities are instrumental in combating many of the world’s most pressing diseases. Founded in 1897 and headquartered in Franklin Lakes, New Jersey, BD employs approximately 28,000 people in approximately 50 countries throughout the world. The Company serves healthcare institutions, life science researchers, clinical laboratories, the pharmaceutical industry and the general public. For more information, please visit www.bd.com.

This press release, including the section entitled “Fiscal 2009 Outlook for Full Year,” contains certain estimates and other forward-looking statements (as defined under Federal securities laws) regarding BD’s performance, including future revenues, earnings per share and income, or events or developments that BD expects to occur or anticipates occurring in the future. All such statements are based upon current expectations of BD and involve a number of business risks and uncertainties. Actual results could vary materially from anticipated results described, implied or projected in any forward-looking statement. With respect to forward-looking statements contained herein, factors that could cause actual results to vary materially from any forward-looking statement include, but are not limited to: adverse changes in regional, national or foreign economic conditions, including any impact that may result from the current global economic downturn on our ability to access credit markets and finance our operations, the demand for our products and services, or our suppliers’ ability to provide products needed for our operations; changes in interest or foreign currency exchange rates, particularly in light of increased volatility in currency exchange rates; competitive factors; pricing and market share pressures; difficulties inherent in product development and delays in product introductions; increases in energy costs and their effect on, among other things, the cost of producing BD’s products; fluctuations in costs and availability of raw materials and in BD’s ability to maintain favorable supplier arrangements and relationships; uncertainties of litigation (as described in BD’s filings with the Securities and Exchange Commission); the effects of potential pandemic diseases; changes in healthcare or other governmental regulation, including changes in government pricing and reimbursement policies or other cost containment reforms; and issuance of new or revised accounting standards, as well as other factors discussed in this press release and in BD’s filings with the Securities and Exchange Commission. We do not intend to update any forward-looking statements to reflect events or circumstances after the date hereof except as required by applicable laws or regulations.

    BECTON DICKINSON AND COMPANY
    CONSOLIDATED INCOME STATEMENTS
    (Unaudited; Amounts in thousands, except per share data)

                                            Three Months Ended March 31,
                                             2009        2008  % Change

    REVENUES                           $1,740,804  $1,746,925      (0.4)

    Cost of products sold                 838,101     853,807      (1.8)
    Selling and administrative            440,502     415,523       6.0
    Research and development               98,734      96,034       2.8
    TOTAL OPERATING COSTS
     AND EXPENSES                       1,377,337   1,365,364       0.9

    OPERATING INCOME                      363,467     381,561      (4.7)

    Interest income                         4,312       8,005     (46.1)
    Interest expense                       (7,495)     (8,098)     (7.4)
    Other (expense) income, net            (5,701)        828        NM

    INCOME FROM CONTINUING OPERATIONS
     BEFORE INCOME TAXES                  354,583     382,296      (7.2)

    Income tax provision                   93,256     106,661     (12.6)

    INCOME FROM CONTINUING OPERATIONS     261,327     275,635      (5.2)

    (LOSS) INCOME FROM DISCONTINUED
     OPERATIONS NET OF INCOME TAX
     (BENEFIT) PROVISION OF $(32) AND
     $347, RESPECTIVELY                       (53)        550        NM

    NET INCOME                           $261,274    $276,185      (5.4)

    EARNINGS PER SHARE

    Basic:
    Income from continuing operations       $1.09       $1.13      (3.5)
    (Loss) income from discontinued
     operations                                $-          $-         -
    Net income                              $1.09       $1.13      (3.5)

    Diluted:
    Income from continuing operations       $1.06       $1.09      (2.8)
    (Loss) income from discontinued
     operations                                $-          $-         -
    Net income                              $1.06       $1.09      (2.8)

    AVERAGE SHARES OUTSTANDING

      Basic                               240,239     244,869
      Diluted                             245,890     252,788

    NM - Not Meaningful

    BECTON DICKINSON AND COMPANY
    SUPPLEMENTAL INFORMATION
    (Unaudited; Amounts in thousands, except per share data)

                                          Three Months Ended March 31, 2009
                                            As       Litigation    Excluding
                                         Reported    Charge (1)       Item

    Selling and administrative           $440,502      $(45,000)    $395,502
      as a % of revenues                     25.3%                      22.7%

    Operating Income                      363,467        45,000      408,467
      as a % of revenues                     20.9%                      23.5%

    Income taxes                           93,256        17,100      110,356
      effective tax rate                     26.3%                      27.6%

    Income from continuing operations     261,327        27,900      289,227
      as a % of revenues                     15.0%                      16.6%

    Diluted earnings per share
    Income from continuing
     operations (2)                         $1.06         $0.11        $1.18

    (1) Represents the charge relating to the settlement agreement with the
    direct purchaser plaintiffs (which includes BD's distributors) in the
    antitrust class actions.
    (2) Total per share amounts may not add due to rounding.

    BECTON DICKINSON AND COMPANY
    CONSOLIDATED INCOME STATEMENTS
    (Unaudited; Amounts in thousands, except per share data)

                                             Six Months Ended March 31,
                                             2009        2008  % Change

    REVENUES                           $3,474,309  $3,452,692       0.6

    Cost of products sold               1,642,399   1,683,654      (2.5)
    Selling and administrative            850,444     837,240       1.6
    Research and development              196,191     187,561       4.6
    TOTAL OPERATING COSTS
     AND EXPENSES                       2,689,034   2,708,455      (0.7)

    OPERATING INCOME                      785,275     744,237       5.5

    Interest income                         5,962      21,534     (72.3)
    Interest expense                      (15,319)    (18,438)    (16.9)
    Other income, net                       3,711       1,535        NM

    INCOME FROM CONTINUING OPERATIONS
     BEFORE INCOME TAXES                  779,629     748,868       4.1

    Income tax provision                  206,233     202,337       1.9

    INCOME FROM CONTINUING OPERATIONS     573,396     546,531       4.9

    (LOSS) INCOME FROM DISCONTINUED
     OPERATIONS NET OF INCOME TAX
     (BENEFIT) PROVISION OF $(23) AND
     $734, RESPECTIVELY                       (40)      1,201        NM

    NET INCOME                           $573,356    $547,732       4.7

    EARNINGS PER SHARE

    Basic:
    Income from continuing operations       $2.38       $2.23       6.7
    (Loss) income from discontinued
     operations                                $-          $-         -
    Net income (1)                          $2.38       $2.24       6.3

    Diluted:
    Income from continuing operations       $2.32       $2.16       7.4
    (Loss) income from discontinued
     operations                                $-          $-         -
    Net income                              $2.32       $2.16       7.4

    AVERAGE SHARES OUTSTANDING

      Basic                               241,330     244,580
      Diluted                             247,436     253,288

    NM - Not Meaningful
    (1) Total per share amounts may not add due to rounding

    BECTON DICKINSON AND COMPANY
    SUPPLEMENTAL INFORMATION
    (Unaudited; Amounts in thousands, except per share data)

                                           Six Months Ended March 31, 2009
                                            As        Litigation    Excluding
                                         Reported     Charge (1)      Item

    Selling and administrative           $850,444      $(45,000)    $805,444
      as a % of revenues                     24.5%                      23.2%

    Operating Income                      785,275        45,000      830,275
      as a % of revenues                     22.6%                      23.9%

    Income taxes                          206,233        17,100      223,333
      effective tax rate                     26.5%                      27.1%

    Income from continuing operations     573,396        27,900      601,296
      as a % of revenues                     16.5%                      17.3%

    Diluted earnings per share
    Income from continuing operations       $2.32         $0.11        $2.43

    (1) Represents the charge relating to the settlement agreement with the
    direct purchaser plaintiffs (which includes BD's distributors) in the
    antitrust class actions.

    BECTON DICKINSON AND COMPANY
    SUPPLEMENTAL REVENUE INFORMATION
    REVENUES BY SEGMENT AND GEOGRAPHIC AREA
    (Unaudited; Amounts in thousands)

                               Three Months Ended March 31,
                                2009       2008   % Change

    BD MEDICAL
      United States         $388,966    $388,281      0.2
      International          508,358     533,971     (4.8)
    TOTAL                   $897,324    $922,252     (2.7)

    BD DIAGNOSTICS
      United States         $285,113    $281,088      1.4
      International          254,527     249,484      2.0
    TOTAL                   $539,640    $530,572      1.7

    BD BIOSCIENCES
      United States         $104,039    $114,581     (9.2)
      International          199,801     179,520     11.3
    TOTAL                   $303,840    $294,101      3.3

    TOTAL REVENUES
      United States         $778,118    $783,950     (0.7)
      International          962,686     962,975        -
    TOTAL                 $1,740,804  $1,746,925     (0.4)

    BECTON DICKINSON AND COMPANY
    SUPPLEMENTAL REVENUE INFORMATION
    REVENUES BY SEGMENT AND GEOGRAPHIC AREA
    (Unaudited; Amounts in thousands)

                                     Six Months Ended March 31,
                                     2009        2008  % Change

    BD MEDICAL
      United States              $796,474    $795,772     0.1
      International               991,626   1,035,764    (4.3)
    TOTAL                      $1,788,100  $1,831,536    (2.4)

    BD DIAGNOSTICS
      United States              $572,681    $560,576     2.2
      International               507,150     492,747     2.9
    TOTAL                      $1,079,831  $1,053,323     2.5

    BD BIOSCIENCES
      United States              $217,790    $217,653     0.1
      International               388,588     350,180    11.0
    TOTAL                        $606,378    $567,833     6.8

    TOTAL REVENUES
      United States            $1,586,945  $1,574,001     0.8
      International             1,887,364   1,878,691     0.5
    TOTAL                      $3,474,309  $3,452,692     0.6

    BECTON DICKINSON AND COMPANY
    SUPPLEMENTAL REVENUE INFORMATION
    REVENUES BY BUSINESS SEGMENTS AND UNITS
    Three Months Ended March 31,
    (Unaudited; Amounts in thousands)

                                                     United States
                                               2009       2008  % Change

    BD MEDICAL
      Medical Surgical Systems             $242,350   $232,447      4.3
      Diabetes Care                          97,196     96,883      0.3
      Pharmaceutical Systems                 43,065     52,779    (18.4)
      Ophthalmic Systems                      6,355      6,172      3.0
    TOTAL                                  $388,966   $388,281      0.2

    BD DIAGNOSTICS
      Preanalytical Systems                $147,436   $140,674      4.8
      Diagnostic Systems                    137,677    140,414     (1.9)
    TOTAL                                  $285,113   $281,088      1.4

    BD BIOSCIENCES
      Cell Analysis                         $71,770    $78,269     (8.3)
      Discovery Labware                      32,269     36,312    (11.1)
    TOTAL                                  $104,039   $114,581     (9.2)

    TOTAL UNITED STATES                    $778,118   $783,950     (0.7)

    BECTON DICKINSON AND COMPANY
    SUPPLEMENTAL REVENUE INFORMATION
    REVENUES BY BUSINESS SEGMENTS AND UNITS
    Three Months Ended March 31, (continued)
    (Unaudited; Amounts in thousands)

                                                 International
                                                             % Change
                                                                FX       FX
                                   2009      2008   Reported  Neutral  Impact

    BD MEDICAL
      Medical Surgical Systems   $230,233  $248,269   (7.3)     3.7    (11.0)
      Diabetes Care                87,033    90,577   (3.9)     2.7     (6.6)
      Pharmaceutical Systems      178,085   181,660   (2.0)     3.2     (5.2)
      Ophthalmic Systems           13,007    13,465   (3.4)     3.8     (7.2)
    TOTAL                        $508,358  $533,971   (4.8)     3.4     (8.2)

    BD DIAGNOSTICS
      Preanalytical Systems      $131,029  $133,518   (1.9)     7.0     (8.9)
      Diagnostic Systems          123,498   115,966    6.5     11.5     (5.0)
    TOTAL                        $254,527  $249,484    2.0      9.1     (7.1)

    BD BIOSCIENCES
      Cell Analysis              $159,223  $141,452   12.6     11.5      1.1
      Discovery Labware            40,578    38,068    6.6      4.7      1.9
    TOTAL                        $199,801  $179,520   11.3     10.1      1.2

    TOTAL INTERNATIONAL          $962,686  $962,975      -      6.1     (6.1)

    BECTON DICKINSON AND COMPANY
    SUPPLEMENTAL REVENUE INFORMATION
    REVENUES BY BUSINESS SEGMENTS AND UNITS
    Three Months Ended March 31, (continued)
    (Unaudited; Amounts in thousands)

                                                     Total
                                                             % Change
                                                                 FX       FX
                                   2009        2008  Reported  Neutral  Impact

    BD MEDICAL
      Medical Surgical Systems  $472,583    $480,716  (1.7)     4.0     (5.7)
      Diabetes Care              184,229     187,460  (1.7)     1.5     (3.2)
      Pharmaceutical Systems     221,150     234,439  (5.7)    (1.6)    (4.1)
      Ophthalmic Systems          19,362      19,637  (1.4)     3.6     (5.0)
    TOTAL                       $897,324    $922,252  (2.7)     2.0     (4.7)

    BD DIAGNOSTICS
      Preanalytical Systems     $278,465    $274,192   1.6      5.9     (4.3)
      Diagnostic Systems         261,175     256,380   1.9      4.1     (2.2)
    TOTAL                       $539,640    $530,572   1.7      5.0     (3.3)

    BD BIOSCIENCES
      Cell Analysis             $230,993    $219,721   5.1      4.5      0.6
      Discovery Labware           72,847      74,380  (2.1)    (3.1)     1.0
    TOTAL                       $303,840    $294,101   3.3      2.6      0.7

    TOTAL REVENUES            $1,740,804  $1,746,925  (0.4)     3.0     (3.4)

    BECTON DICKINSON AND COMPANY
    SUPPLEMENTAL REVENUE INFORMATION
    REVENUES BY BUSINESS SEGMENTS AND UNITS
    Six Months Ended March 31,
    (Unaudited; Amounts in thousands)

                                                        United States
                                                2009        2008    % Change

    BD MEDICAL
      Medical Surgical Systems               $498,605    $485,192       2.8
      Diabetes Care                           199,008     195,409       1.8
      Pharmaceutical Systems                   85,717     102,757     (16.6)
      Ophthalmic Systems                       13,144      12,414       5.9
    TOTAL                                    $796,474    $795,772       0.1

    BD DIAGNOSTICS
      Preanalytical Systems                  $296,666    $283,974       4.5
      Diagnostic Systems                      276,015     276,602      (0.2)
    TOTAL                                    $572,681    $560,576       2.2

    BD BIOSCIENCES
      Cell Analysis                          $149,150    $145,629       2.4
      Discovery Labware                        68,640      72,024      (4.7)
    TOTAL                                    $217,790    $217,653       0.1

    TOTAL UNITED STATES                    $1,586,945  $1,574,001       0.8

    BECTON DICKINSON AND COMPANY
    SUPPLEMENTAL REVENUE INFORMATION
    REVENUES BY BUSINESS SEGMENTS AND UNITS
    Six Months Ended March 31, (continued)
    (Unaudited; Amounts in thousands)

                                                   International
                                                           % Change
                                                                FX       FX
                                  2009        2008  Reported  Neutral  Impact

    BD MEDICAL
      Medical Surgical Systems  $454,480    $494,336  (8.1)     1.9     (10.0)
      Diabetes Care              180,813     181,438  (0.3)     6.0      (6.3)
      Pharmaceutical Systems     330,214     333,623  (1.0)     3.7      (4.7)
      Ophthalmic Systems          26,119      26,367  (0.9)     5.8      (6.7)
    TOTAL                       $991,626  $1,035,764  (4.3)     3.3      (7.6)

    BD DIAGNOSTICS
      Preanalytical Systems     $259,953    $261,687  (0.7)     7.7      (8.4)
      Diagnostic Systems         247,197     231,060   7.0     11.7      (4.7)
    TOTAL                       $507,150    $492,747   2.9      9.6      (6.7)

    BD BIOSCIENCES
      Cell Analysis             $311,364    $279,205  11.5     10.7       0.8
      Discovery Labware           77,224      70,975   8.8      6.4       2.4
    TOTAL                       $388,588    $350,180  11.0      9.8       1.2

    TOTAL INTERNATIONAL       $1,887,364  $1,878,691   0.5      6.2      (5.7)

    BECTON DICKINSON AND COMPANY
    SUPPLEMENTAL REVENUE INFORMATION
    REVENUES BY BUSINESS SEGMENTS AND UNITS
    Six Months Ended March 31, (continued)
    (Unaudited; Amounts in thousands)

                                                    Total
                                                            % Change
                                                                FX       FX
                                  2009        2008  Reported  Neutral  Impact

    BD MEDICAL
      Medical Surgical Systems  $953,085    $979,528  (2.7)     2.3     (5.0)
      Diabetes Care              379,821     376,847   0.8      3.8     (3.0)
      Pharmaceutical Systems     415,931     436,380  (4.7)    (1.1)    (3.6)
      Ophthalmic Systems          39,263      38,781   1.2      5.8     (4.6)
    TOTAL                     $1,788,100  $1,831,536  (2.4)     1.9     (4.3)

    BD DIAGNOSTICS
      Preanalytical Systems     $556,619    $545,661   2.0      6.0     (4.0)
      Diagnostic Systems         523,212     507,662   3.1      5.2     (2.1)
    TOTAL                     $1,079,831  $1,053,323   2.5      5.6     (3.1)

    BD BIOSCIENCES
      Cell Analysis             $460,514    $424,834   8.4      7.9      0.5
      Discovery Labware          145,864     142,999   2.0      0.8      1.2
    TOTAL                       $606,378    $567,833   6.8      6.1      0.7

    TOTAL REVENUES            $3,474,309  $3,452,692   0.6      3.7     (3.1)

    BECTON DICKINSON AND COMPANY
    SUPPLEMENTAL REVENUE INFORMATION
    SAFETY REVENUES
    (Unaudited; Amounts in thousands)

                                    Three Months Ended March 31,
                                                       % Change
                                                           FX      FX
                               2009      2008  Reported  Neutral Impact

    TOTAL SAFETY REVENUES
      United States         $255,026   $247,316   3.1      3.1       -
      International          136,718    126,418   8.1     18.9   (10.8)
    TOTAL                   $391,744   $373,734   4.8      8.5    (3.7)

                                     Six Months Ended March 31,
                                                       % Change
                                                           FX       FX
                               2009      2008  Reported  Neutral  Impact

    TOTAL SAFETY REVENUES
      United States         $523,995   $513,567   2.0      2.0        -
      International          270,798    247,303   9.5     19.1     (9.6)
    TOTAL                   $794,793   $760,870   4.5      7.6     (3.1)

SOURCE BD (Becton, Dickinson and Company)