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BD Revenues Up 3 Percent in Q1; Lowers Revenue Guidance for 2012

NEW YORK (GenomeWeb News) – Becton Dickinson today said that its fiscal first-quarter revenues rose 3 percent year over year and slightly beat analyst estimates.

For the quarter ended Dec. 31, 2011, BD posted $1.89 billion in revenues, up from $1.84 billion during the first quarter of 2011, and surpassing analyst estimates of $1.88 billion.

Revenues from the firm's BD Diagnostics segment rose 3 percent to $620.7 million, compared to $601.7 million a year ago. Growth was driven primarily by Preanalytical Systems safety-engineered products and Women's Health and Cancer, the company said.

Within the segment Preanalytical Systems revenues increased to $316.6 million from $312.6 million, a 1 percent increase, and Diagnostic Systems revenues rose 5 percent to $304.1 million from $289.1 million.

BD Medical revenues increased 3 percent to $950.4 million from $926.5 million, and BD Biosciences revenues increased 1 percent to $316.5 million from $313.7 million.

By geography, US revenues during the quarter were flat year over year at $829 million. The company cited a difficult research spending environment and tough pricing comparisons. Outside the US, revenues rose 4.5 percent on a currency-neutral basis to $1.06 billion. BD attributed the improvement to continued strength in the emerging markets and safety-engineered products.

R&D expenses contracted 1 percent to $113.9 million from $115.5 million, and SG&A costs increased 9 percent to $489.0 million from $448.0 million.

BD's net income for the quarter shrank to $263.0 million, or $1.21 per share, from $315.9 million, or $1.36 a share a year ago, but still beat analyst expectations of $1.17 per share.

The company said the decrease resulted from tough pricing comparisons, higher raw material costs, and higher expenses from recent acquisitions.

For full-year 2012, BD lowered revenue growth estimates to flat versus prior guidance of 1 to 3 percent growth. EPS from continuing operations is now estimated to fall between $5.60 and $5.70, down from an earlier forecast of $5.75 and $5.85.

However, the firm reiterated plans to repurchase $1.5 billion of its stock in fiscal 2012, subject to market conditions.

In early Tuesday trading, shares of BD were down 4 percent to $77.50 on the New York Stock Exchange.