BD's profits shrink 10 percent on tax provision

July 29, 2010 by MassDevice staff

Becton, Dickinson and Company's profits drop 10 percent during the third quarter on a $34 million income tax provision; firm expands share repurchase program to $700 million.

The tax man took a bite out of Becton, Dickinson and Company's (NYSE:BDX) bottom line during the third quarter.

The Franklin Lakes, N.J.-based medical device and diagnostic kit-maker reported $306.9 million in net income, or $1.29 per diluted share, on $1.88 billion in sales during the three months ended June 30, a 10 percent slide from the $341 million, or $1.39 per diluted share profit on sales of $1.82 billion during the same period last year.

An income tax provision of $124 million the company took during the quarter was the primary culprit in its sliding bottom line.

Sales of the company's medical segment increased to $993 million or 2.5 percent in Q3. For the nine-month period ended June 30, 2010, BD Medical revenues increased 9.3 percent.

BD reaffirmed its guidance for the 2010 of EPS growth estimates in the 8 to 10 percent range, excluding the effects of foreign exchange, according to the company.

During the fourth quarter, the company expects to close the sale of its BD medical segment, including the Waltham, Mass.-based ophthalmic systems unit as well as the surgical blades, critical care and extended dwell catheter product platforms of the medical surgical systems unit.

The company also today announced the promotion of president Vince Forlenza to COO. The company on July 27 named former CEO of advertising giant JWT Worldwide Christopher Jones to its board of directors.