Medical-device manufacturer Becton Dickinson and Co. on Wednesday reported a significant revenue gain for its fourth quarter, ended Sept. 30., but profits suffered as expenses nearly doubled with its CareFusion acquisition this year.
Revenue grew as a result of the New Jersey-based company expanding its two strategic areas: medication management and genomics. The medical segment contributed heavily to the company's revenue with $2 billion in the fourth quarter, an increase of 5.2% from the same time period last year, according to investor information provided by BD.
“We are very pleased with our results this quarter and our finish to the year,” CEO Vincent Forlenza said in a Wednesday morning conference call. “This was a unique year for BD in which we successfully completed the largest acquisition in the company's 118-year history. Our results reflect our consistent performance and the benefit of our diverse geographic and product portfolio.”
BD, however, experienced a significant spike in expenses, which grew 53%. BD reported earnings of $181 million on $3 billion in revenue. Net income fell by 39.9% from $301 million last year. However, total revenue grew by 38.9% from $2.2 billion last year.
The picture looks similar for BD's entire fiscal year. For the fiscal year ended Sept. 30, BD reported earnings of $695 million on $10.2 billion in revenue. Although total revenue increased by 21.7% in 2015 from $8.4 billion, earnings plunged 41.3% from $1.1 billion last year. Total operating expenses in 2015 increased 34.6%.
Looking ahead, BD projects 2016 revenue to increase 24.5% to 25%.
“We enter fiscal 2016 with continued confidence in our ability to execute our strategy, deliver against our financial commitments and return value to our shareholders,” Forlenza said.