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BD's Q4 Revenues Increase 10 Percent

NEW YORK (GenomeWeb News) – Becton Dickinson today reported that its fourth-quarter revenues increased 10 percent year over year with growth across all segments aided by currency effects.

The Franklin Lakes, NJ-based maker of medical, research, and diagnostic products recorded total revenues of $2.05 billion for the fourth quarter ended Sept. 30, compared to revenues of $1.87 billion for Q4 2010. On a currency-neutral basis its revenues rose 4 percent year over year.

The results edged past Wall Street's consensus estimate of $2.02 billion.

The BD Biosciences segment had revenues of $354.2 million, up 10 percent from $323.1 million for Q4 2010. Its sales were driven by instrument and reagent sales in the Cell Analysis unit, BD said. On a currency-neutral basis, sales for the segment were up 5 percent.

The BD Diagnostics segment had sales of $642 million, up 9 percent from $591.5 million, or 4 percent excluding the effects of currency. Sales for the segment were led by women's health, cancer, and infectious disease testing products. In a conference call following the release of the results, BD President and CEO Vince Forlenza said that the BD Diagnostics segment is benefitting from a series of product launches.

The BD Medical segment had sales of $1.05 billion, up 10 percent from $958.6 million, or 4 percent excluding the effects of currency.

BD posted net income of $300 million, or $1.36 per share, for the quarter, compared to $396.7 million, or $1.68 per share, for Q4 2010. Adjusted EPS was $1.39 and in line with analyst estimates. The 2010 Q4 results included $103.6 million in income from discontinued operations.

The firm spent $126.1 million on R&D in the quarter, up 2 percent from $123.6 million. Its SG&A expenses climbed 11 percent to $487.2 million from $438.1 million.

For full-year 2011, BD reported revenues of $7.83 billion, up 6 percent from $7.37 billion for full-year 2010. Revenues for BD Biosciences increased 7 percent for the year to $1.34 billion from $1.26 billion, while sales for BD Diagnostics increased 7 percent to $2.48 billion from $2.32 billion. Sales for BD Medical rose 6 percent to $4 billion from $3.80 billion.

BD beat Wall Street's consensus revenue estimate of $7.80 billion.

BD's net income for the year was $1.27 billion, or $5.62 per share, compared to $1.32 billion, or $5.49 per share for FY 2010.

The firm spent $476.5 million on R&D during the year, up 11 percent from $431 million. Its SG&A spending jumped 8 percent to $1.85 billion from $1.72 billion.

BD said that it expects full-year 2012 revenues to increase between 1 percent and 3 percent, or between 2 percent and 4 percent on a currency-neutral basis, which would place the revenues between $7.91 billion and $8.06 billion, below the Wall Street estimate of $8.21 billion. The firm said the guidance "reflects the anticipated effects of lower healthcare utilization, reduced research funding, and global macroeconomic conditions."

Forlenza added on the call, "We continue to see economic pressures on healthcare utilization in the US and Western Europe. Additionally, we anticipate lower research funding and expect a downward trend on pricing to continue in fiscal year 2012."

BD also guided for FY 2012 EPS from continuing operations of $5.75 to $5.85, below the consensus Wall Street estimate of $8.21 billion.

The company also announced that it was expanding its share buyback program from a previous amount of $600 million to $1.5 billion. The buyback is factored into its EPS guidance for next year.

In early Wednesday trade on the New York Stock Exchange, shares of BD were down 5 percent at $72.33.

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