BD Announces Results For 2020 Second Fiscal Quarter; Withdraws Fiscal Year 2020 Guidance Due To COVID-19 Pandemic

• As reported, revenues of $4.253 billion increased 1.4 percent
• On a currency-neutral basis, revenues increased 2.4 percent
• As reported, diluted earnings per share of $0.53 increased 857.1 percent, primarily due to charges recorded in the prior year
• As adjusted, diluted earnings per share of $2.55 decreased 1.5 percent or 1.9 percent on a currency-neutral basis
• The company is withdrawing its previously issued fiscal year 2020 revenue and earnings per share guidance due to the COVID-19 pandemic

FRANKLIN LAKES, N.J., May 7, 2020 /PRNewswire/ -- BD (Becton, Dickinson and Company) (NYSE: BDX), a leading global medical technology company, today reported quarterly revenues of $4.253 billion for the second fiscal quarter ended March 31, 2020. This represents an increase of 1.4 percent as reported over the prior-year period, or 2.4 percent on a currency-neutral basis.

"As the world responds to the COVID-19 pandemic, BD is focused on protecting the health and safety of our employees while addressing the critical health needs of our customers and their patients," said Tom Polen, CEO and president. "We are extremely proud of our team for their impact supporting healthcare providers on the front lines, launching several new diagnostic offerings to identify COVID-19 and ramping up production of essential medical devices. While our second quarter results were slightly ahead of our prior expectations, we are seeing the negative impact of coronavirus on certain parts of our business. We are confident that our diversified portfolio and the proactive actions we are taking will help us navigate these current challenges while positioning BD well as we continue to advance our long-term growth strategy."

Second Quarter and Six-Month Fiscal 2020 Operating Results
As reported, diluted earnings per share for the second quarter were $0.53, compared with $(0.07) in the prior-year period. This represents an increase of 857.1 percent, and is primarily due to product liability reserves recorded in the prior year period. Adjusted diluted earnings per share were $2.55, compared with $2.59 in the prior-year period. This represents a decrease in adjusted diluted earnings per share of 1.5 percent, or 1.9 percent on a currency-neutral basis.

For the six-month period ended March 31, 2020, as reported, diluted earnings per share were $1.40, compared with $1.98 in the prior-year period. This represents a decrease of 29.3 percent. Adjusted diluted earnings per share were $5.20, compared with $5.29 in the prior-year period. This represents a decrease in adjusted diluted earnings per share of 1.7 percent, or 1.1 percent on a currency-neutral basis.

Segment Results
In the BD Medical segment, as reported, worldwide revenues for the quarter of $2.151 billion decreased 1.4 percent from the prior-year period, or 0.3 percent on a currency-neutral basis. The segment's results reflect strong growth in the Pharmaceutical Systems and Diabetes Care units that was offset by declines in the Medication Management Solutions and Medication Delivery Solutions units. As anticipated, BD Medical performance was impacted by the Alaris System remediation in the Medication Management Solutions unit and the effects of China's volume-based procurement initiative in the Medication Delivery Solutions unit. The segment's results also reflect the impact of the COVID-19 pandemic, most notably in China where hospital utilization declined significantly as the country responded with a strict adherence to stay-at-home measures. Within the BD Medical segment, the impact of coronavirus in China was most notable in the Medication Delivery Solutions unit. Conversely, demand for critical healthcare products increased in the U.S. and Europe, and was most notable in the Medication Delivery Solutions and Diabetes Care units.

For the six-month period ended March 31, 2020, BD Medical revenues were $4.241 billion as reported, which represents a decrease of 1.7 percent over the prior-year period, or 0.6 percent on a currency-neutral basis.

In the BD Life Sciences segment, as reported, worldwide revenues for the quarter of $1.113 billion increased 5.8 percent over the prior-year period, or 7.1 percent on a currency-neutral basis. Revenue growth was driven by strong performance in the Diagnostic Systems and Preanalytical Systems units. BD Life Sciences' growth was aided by flu-related revenues in the Diagnostic Systems unit as a result of a stronger flu season in comparison to the prior year as well as demand related to COVID-19 testing. The segment's results also reflect a tough comparison to the prior year in the Biosciences unit driven by the timing of licensing revenues. Additionally, results in the Biosciences unit reflect reduced demand for instruments and reagents as research lab activity slowed significantly during the COVID-19 pandemic.

For the six-month period ended March 31, 2020, BD Life Sciences revenues were $2.236 billion as reported, which represents an increase of 6.1 percent from the prior-year period, or 7.3 percent on a currency-neutral basis.

In the BD Interventional segment, as reported, worldwide revenues for the quarter of $0.990 billion increased 2.8 percent over the prior-year period, or 3.3 percent on a currency-neutral basis. Revenue growth was driven by solid performance in the Peripheral Intervention and Urology and Critical Care units. BD Interventional results were negatively impacted by decreased demand associated with the deferral of elective medical procedures as a result of the COVID-19 pandemic, particularly within the Surgery and Peripheral Intervention units.

For the six-month period ended March 31, 2020, BD Interventional revenues were $2.002 billion as reported, which represents an increase of 3.6 percent over the prior-year period, or 4.1 percent on a currency-neutral basis.

Geographic Results
As reported, second quarter revenues in the U.S. of $2.415 billion increased 3.2 percent over the prior-year period. Growth in the U.S. was driven by performance in the Life Sciences and Interventional segments, partially offset by a decline in the Medical segment that was primarily driven by lower Alaris System sales, as anticipated.

As reported, revenues outside of the U.S. of $1.839 billion decreased 0.8 percent over the prior-year period, and increased 1.5 percent on a currency-neutral basis. International revenue growth was primarily driven by strong performance in Europe and Latin America, offset by a decline in China.

For the six-month period ended March 31, 2020, U.S. revenues were $4.845 billion as reported, which represents an increase of 2.5 percent over the prior-year period. As reported, revenues outside of the U.S. of $3.634 billion increased 0.2 percent over the prior-year period, or 2.4 percent on a currency-neutral basis.

Fiscal 2020 Outlook for Full Year
Due to ongoing uncertainty regarding the scope and duration of the COVID-19 global pandemic, as well as the timing and pace of recovery, the company is currently unable to estimate the impact to its financial results and operations over the balance of fiscal year 2020. As this impact could be material, the company is withdrawing its previously issued fiscal year 2020 revenue and earnings per share guidance.

Conference Call Information
A conference call regarding BD's second quarter results will be broadcast live on BD's website, www.bd.com/investors, along with related slides, at 8:00 a.m. (ET) Thursday, May 7, 2020. The conference call will be available for replay on BD's website, www.bd.com/investors, or at 1-800-585-8367 (domestic) and 1-404-537-3406 (international) through the close of business on Thursday, May 14, 2020, confirmation number 2189907.

Non-GAAP Financial Measures/Financial Tables
This news release contains certain non-GAAP financial measures. Reconciliations of these and other non-GAAP measures to the comparable GAAP measures are included in the attached financial tables. Within the attached financial tables presented, certain columns and rows may not add due to the use of rounded numbers. Percentages and earnings per share amounts presented are calculated from the underlying amounts.

Current and prior-year adjusted diluted earnings per share results exclude, among other things, the impact of purchase accounting adjustments (including the non-cash amortization of acquisition-related intangible assets); integration, restructuring and transaction costs; transactional and product related impacts; and the loss on debt extinguishment. We also provide these measures on a currency-neutral basis after eliminating the effect of foreign currency translation, where applicable. We calculate foreign currency-neutral percentages by converting our current-period local currency financial results using the prior period foreign currency exchange rates and comparing these adjusted amounts to our current-period results. Reconciliations of these amounts to the most directly comparable GAAP measures are included in the tables at the end of this release.

About BD
BD is one of the largest global medical technology companies in the world and is advancing the world of health by improving medical discovery, diagnostics and the delivery of care. The company supports the heroes on the frontlines of health care by developing innovative technology, services and solutions that help advance both clinical therapy for patients and clinical process for health care providers. BD and its 65,000 employees have a passion and commitment to help enhance the safety and efficiency of clinicians' care delivery process, enable laboratory scientists to accurately detect disease and advance researchers' capabilities to develop the next generation of diagnostics and therapeutics. BD has a presence in virtually every country and partners with organizations around the world to address some of the most challenging global health issues. By working in close collaboration with customers, BD can help enhance outcomes, lower costs, increase efficiencies, improve safety and expand access to health care. For more information on BD, please visit bd.com.

This press release, including the section entitled "Fiscal 2020 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 and earnings per share. 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, a number of factors could cause actual results to vary materially. These factors include, but are not limited to risks relating to the COVID-19 pandemic on our business (including decreases in the demand for our products or disruptions to our operations and our supply chain); integration of the C.R. Bard operations, products and employees into BD and the possibility that the anticipated synergies and other benefits of the proposed acquisition will not be realized or will not be realized within the expected timeframe; new or changing laws and regulations impacting our business (including the imposition of tariffs or changes in laws impacting international trade) or changes in enforcement practices with respect to such laws; fluctuations in costs and availability of raw materials and in BD's ability to maintain favorable supplier arrangements and relationships; legislative or regulatory changes to the U.S. or foreign healthcare systems, potential cuts in governmental healthcare spending, or governmental or private measures to contain healthcare costs, including changes in pricing and reimbursement policies, each of which could result in reduced demand for our products or downward pricing pressure; changes in interest or foreign currency exchange rates; adverse changes in regional, national or foreign economic conditions, particularly in emerging markets, including any impact 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; the adverse impact of cyber-attacks on our information systems or products; competitive factors including technological advances and new products introduced by competitors; interruptions in our supply chain or manufacturing processes; pricing and market pressures; difficulties inherent in product development, delays in product introductions and uncertainty of market acceptance of new products; adverse changes in geopolitical conditions; increases in energy costs and their effect on, among other things, the cost of producing BD's products; product efficacy or safety concerns resulting in product recalls or actions being taken by the FDA or other regulators (including the potential ongoing impact of the FDA letters regarding the use of drug-coated balloons); our ability to successfully integrate any businesses we acquire; uncertainties of litigation (as described in BD's filings with the Securities and Exchange Commission); and issuance of new or revised accounting standards, as well as other factors discussed 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.

Contact:
Monique N. Dolecki, Investor Relations - 201-847-5378
Kristen Cardillo, Corporate Communications - 201-847-5657

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SOURCE BD (Becton, Dickinson and Company)

Company Codes: NYSE:BDX