Becton, Dickinson and Co., a major producer of medical supplies, devices and equipment, reported a notable decrease in earnings in the second quarter because of losses from investments and the strong dollar's effect on international revenue.
The latest quarter will be the last standalone quarter for BD before it integrates devicemaker Carefusion, which it acquired for $12.2 billion in October. Carefusion makes devices for infusion, anesthesia delivery and respiratory care, among other products.
Net income for the quarter was $216 million in the three months ended March 31, down 25% from $287 million the year before. Decreasing revenue was compounded by nearly-tripled interest expenses and a 15.7% drop in interest income. Expenses were also slightly up due to $113 million in costs related to the Carefusion acquisition.
Many American healthcare companies with overseas operations have been seeing less-than-satisfactory results in their quarterly earnings as unfavorable foreign exchange rates make a dent in their international business. Decreasing overseas revenue in both BD's medical and life sciences segments offset gains in the U.S. market in the second quarter.
Quarterly revenue for the BD medical segment was $1.1 million, down about 1% from the same time last year. This stemmed from a 3.5% decrease in international revenue that offset 3% growth in the U.S., where the company saw strong results from its medical-surgical unit.
Life sciences likewise declined about 1%, to $945 million. International was down 6.1% at $530 million, while U.S. revenue increased at the same rate to $416 million. BD said solid sales of its clinical microbiology products contributed to the growth in the U.S.