Becton, Dickinson and (BDX)
Q4 2012 Earnings Call
November 07, 2012 8:00 am ET
Vincent A. Forlenza - Chairman, Chief Executive Officer and President
David V. Elkins - Chief Financial Officer and Executive Vice President
Suketu Upadhyay - Senior Vice President and Controller
Tom Polen - President
William A. Kozy - Chief Operating Officer and Executive Vice President
David R. Lewis - Morgan Stanley, Research Division
Kimberly Weeks Gailun - JP Morgan Chase & Co, Research Division
David H. Roman - Goldman Sachs Group Inc., Research Division
Kristen M. Stewart - Deutsche Bank AG, Research Division
Amit Bhalla - Citigroup Inc, Research Division
Jonathan P. Groberg - Macquarie Research
Matthew Taylor - Barclays Capital, Research Division
Brian Weinstein - William Blair & Company L.L.C., Research Division
Eric Criscuolo - Mizuho Securities USA Inc., Research Division
David C. Clair - Piper Jaffray Companies, Research Division
Jonathan J. Palmer - Credit Agricole Securities (USA) Inc., Research Division
Alex Morozov - Morningstar Inc., Research Division
Previous Statements by BDX
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[Operator Instructions] Beginning today's call is Ms. Monique Dolecki. Ms. Dolecki, you may begin.
Thank you, Jackie. Good morning, everyone, and thank you for joining us to review our fourth fiscal quarter and year-end 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 bd.com.
During today's call, we will make forward-looking statements, and it is possible that actual results could differ from our expectations. Factors that could cause such differences appear in our fourth fiscal quarter press release and in the MD&A sections of our recent SEC filings. 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 bd.com website.
Leading the call this morning is Vince Forlenza, Chairman, Chief Executive Officer and President. Also joining us are David Elkins, Executive Vice President and Chief Financial Officer; Suke Upadhyay, Senior Vice President and Corporate Controller; Bill Kozy, Executive Vice President and Chief Operating Officer; Gary Cohen, Executive Vice President; and Tom Polen, President of Diagnostic Systems.
It is now my pleasure to turn the call over to Vince.
Vincent A. Forlenza
Thank you, Monique, and good morning, everyone. Today, I'll begin with a brief overview of BD's performance for the full fiscal year 2012. Then, I'll spend some time highlighting the guidance for fiscal year 2013. After that, David will provide a financial review of the total company and segment performance. Suke will also participate on this call. He will provide you with the framework for fiscal year 2013 and how we are thinking about the various aspects of our P&L. I will spend the balance of our time discussing our performance in emerging markets and the progress we have made in our product pipeline. After that, we'll open the call up for questions.
As we stated in our press release, we are proud of our solid finish to the year in a challenging business environment. We delivered on our commitments even after absorbing additional costs from acquisitions. Revenue growth was primarily driven by our BD Medical and BD Diagnostics segments, and we continue to experience strong growth in international safety and emerging markets. We also continue to see a positive impact on our top line from the new product launches and recent acquisitions. We continue to face challenges in our Bioscience business in the U.S. as we expected. The Bioscience business continues to be impacted by an uncertain research spending environment.
Our recently announced acquisitions are performing on track. In August, we announced our acquisition of Sirigen Group Limited, a developer of unique polymer dyes that are used in flow cytometry. This new technology is a natural complement to our instrument platforms and reagent portfolio. In our Medical segment, we announced our plans to acquire Safety Syringes, Inc. or SSI. We expect to close on this transaction by the end of the calendar year.
This year, we have demonstrated that we're making progress delivering against our strategy. I'd like to highlight 4 key achievements to date. First, strategic opportunities. Our goal is to complement organic growth through bolt-on acquisitions. In the past 18 months, we have completed the acquisitions of Accuri, Carmel, KIESTRA and Sirigen, and we expect to close on SSI by the end of the year. These acquisitions have been nice additions to our portfolio and have contributed about 100 basis points to our top line growth this year.
Second, we have expanded our portfolio through new product launches. At our Analyst Day last November, we communicated that we believe we have the most robust pipeline in the company's history. Since then, we've launched 10 new products across our 3 segments. We also expect to launch at least 10 new products in fiscal year 2013, which I will provide more color on later in the call.
Our third achievement to date is driving operational effectiveness. We're doing this through our ReLoCo programs, EVEREST and other G&A initiatives, some of which have already started to yield savings in 2012. We're on track to continue delivering ReLoCo savings in 2013 and '14 as we have been communicating to you throughout the year. Our first wave of EVEREST went live in April, and we are continuing to implement this program worldwide with our peak year of spending in 2013. We are also pleased with the performance in our shared service centers.