Becton, Dickinson and Company (NYSE:BDX) Q1 2015 Earnings Conference Call - Final Transcript

Feb 05, 2015 • 08:00 am ET


Becton, Dickinson and Company (NYSE:BDX) Q1 2015 Earnings Conference Call - Final Transcript


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Hello, and welcome to BD's First Fiscal Quarter 2015 Earnings Call. At the request of BD, today's call is being recorded. It will be available for replay through February 12th, 2015, on the Investors page of the website or by phone at (800) 585-8367 for domestic calls and area code (404) 537-3406 for international calls, using confirmation number 64069271. I would like to inform all parties that your lines have been placed in a listen-only-mode until the question and answer segment. Beginning today's call is Ms. Monique Dolecki, Vice President of Investor Relations. Ms. Dolecki, you may begin.

Monique Dolecki

Thank you, Christie. Good morning, everyone, and thank you for joining us to review our first fiscal quarter results. As we referenced in our press release, we are presenting a set of slides to accompany our remarks on this call. The presentation is posted on the Investor Relations page of our website at

(Forward-Looking Cautionary Statements)

We will also discuss some non-GAAP financial measures with respect to our performance. A reconciliation to GAAP measures can be found in our press release and its related financial schedules and in the slides. A copy of the release, including the financial schedules is posted on the website. Leading the call this morning is Vince Forlenza, Chairman, CEO and President. Also joining us are Chris Reidy, CFO and EVP of Administration; Bill Kozy, EVP and COO; Tom Polen, Segment President; Linda Tharby, Segment President; and Alberto Mas, President of Diagnostic Systems.

This quarter, we recorded pretax adjustments totaling $97 million or $0.34 per share. These adjustments consisted of acquisition related charges, legal charges and the amortization of acquisition related intangibles. Last quarter, we noted that we would be moving to a cash EPS basis going forward. These adjustments were also made for the first quarter of fiscal year 2014 for comparison purposes and can be found in the appendix of the Investor Relations slides. I would also like to note that the guidance provided today is on a BD standalone basis. If we close on the transaction before the end of the first calendar quarter, we plan to provide guidance for BD's together with CareFusion on our regularly scheduled second quarter earnings conference call.

It is now my pleasure to turn the call over to Vince.

Vincent A. Forlenza

Thank you, Monique, and good morning, everyone. As we stated in our press release, we're off to a really good start this fiscal year. We're pleased with our first quarter results, with strength coming from both our Medical and Life Science segments. Our first quarter results were also aided by a stronger than expected flu season. Our core business remained strong, which is consistent with the results we've recorded for the past 10 consecutive quarters. We continue to have a robust pipeline, with recent product launches continuing to gain traction.

Growth in the quarter was also driven by strong sales in emerging markets and safety engineered products. Our pending acquisition of CareFusion remains on track with an expected