C.R. Bard Earnings Call Nuggets: Emerging Markets and Determining Divisions
C.R. Bard, Inc. (NYSE:BCR) recently reported its fourth quarter earnings and discussed the following topics in its earnings conference call.
Michael Matson – Mizuho Securities: I guess this is a lot of information to absorb here. I guess my first question would just be with regard to the emerging markets, what areas are you most focused in terms of investing in which countries, which products, et cetera, and where do you think you can take that as a percentage of your raw sales by say to 2015 time frame?
Timothy M. Ring – Chairman and CEO: Well the emerging markets for us fundamentally would exclude everything except U.S., Europe, Japan, Canada and Australia is pretty much what we throw in there. Our focus has been China. We have talked a lot about that. We have made a lot of investment in Brazil and a few other countries in Latin America. Eastern European markets are starting to – we are investing more there. The other Asian markets we are investing heavily there. So we have been doing well there. We are kind of doubling down there. When you look at the execution aspect of it we have done a very good job. It’s really a fairly fundamental business model in the sense that you get the products registered. You get – you hire employees, very good employees which is critical in that part of the world, retention is key and then training both the employees and then the clinical community on the technology. So it’s really that fundamental and we are very focused on that with 7% of total revenue growth as of the end of fourth quarter. We mentioned the increase in heads which is more than 50% from where we are so kind of that summarizes that at the top line.
Michael Matson – Mizuho Securities: Then with regard to the R&D expansion and the new product entry, how far astray from the current markets that you are in are you willing to go and would it be possible that we’d see you add a fifth business segment or would it really just be more incremental to the existing segments that you are already in.