News & Events

Franklin Lakes, NJ (January 22, 1998) -- Becton Dickinson and Company (NYSE:BDX) today reported record revenues and earnings for its fiscal first quarter, which ended December 31, 1997.

For the quarter, reported revenues increased to $702 million, a 7 percent increase from the first quarter of fiscal 1997. Diluted earnings per share were $.50, a 14 percent increase over $.44 a year ago. The company noted that this was the first quarter for which it was reporting under the changed accounting rules for earnings per share.

The company said that foreign currency translation reduced reported revenues by an estimated $26 million and earnings per share by an estimated $.05. Excluding the effects of currency translation, revenues increased 11 percent compared with last year.

The company noted that gross profit margin, often used as a measure of manufacturing productivity, increased 1.7 percentage points to 49.4 percent, and that operating margins improved to 14.7 percent of revenues, from 13.2 percent for the year earlier.

By business segment, diagnostic systems revenues grew 7 percent over 1996 to $329 million, reflecting good performance in the company's flow cytometry and sample collection businesses and aided by the company's recent acquisitions of Difco Laboratories, Inc. and PharMingen. Excluding the effects of foreign currency translation, diagnostic systems revenues increased 11 percent.

Medical supplies and devices revenues were $373 million, a 7 percent increase from the prior year. Excluding the impact of foreign currency translation, the increase would have been 11 percent. The quarter's results reflected especially good results from the company's consumer health care business, including diabetes care, as well as from the infusion therapy business.

By geographic area, revenues in the United States were $389 million, an increase of 17 percent. Revenues outside the United States were $313 million, a decrease of 4 percent. Excluding the effects of foreign currency translation, revenues outside the United States grew 4 percent.

Clateo Castellini, chairman, president and chief executive officer, said: "We are pleased with our performance for the quarter and the record we have demonstrated for improved productivity and profit margins even as we have begun to accelerate our investments for growth. Despite a currency environment that is significantly more unfavorable than when the year began, we are optimistic about reporting record earnings for the year and sales growth notably higher than recent years."

BECTON DICKINSON AND COMPANY
               SELECTED FINANCIAL SCHEDULES
      Amounts in thousands, except per share amounts


                            Three Months Ended December 31,
                            -------------------------------
                                                       %
                                 1997        1996     Change
                              ----------  ---------- -------

REVENUES                      $  701,640  $  655,799    7.0

Cost of products sold            354,803     343,132    3.4
Selling and administrative       199,140     186,530    6.8
Research and development          44,630      39,656   12.5
                               ----------  ----------
TOTAL OPERATING COSTS
    AND EXPENSES                 598,573     569,318    5.1
                               ----------  ----------

OPERATING INCOME                 103,067      86,481   19.2

Interest expense, net            (10,241)     (9,447)   8.4
Other (expense) income, net       (2,233)      4,808     NM
                               ----------  ----------

INCOME BEFORE INCOME TAXES        90,593      81,842   10.7

Income tax provision              26,272      23,734   10.7
                               ----------  ----------

NET INCOME                    $   64,321  $   58,108   10.7
                               ==========  ==========


BASIC EARNINGS PER SHARE            $.52       $.46    13.0
                                   
DILUTED EARNINGS PER SHARE          $.50       $.44    13.6
                               ==========  ==========



Average common shares outstanding 121,812     123,183

Average common and common
equivalent shares outstanding -
assuming dilution                 128,287     130,297
                                ==========  ==========

NM - Not Meaningful





               BECTON DICKINSON AND COMPANY
                   SUMMARY OF REVENUES
                   Thousands of dollars


                            Three Months Ended December 31,
                            -------------------------------
                                                        %
                                  1997       1996    Change
                               ---------  ---------  ------
BUSINESS SEGMENT

Medical Supplies and Devices  $  372,565  $  348,244    7.0
Diagnostic Systems               329,075     307,555    7.0
                               ----------  ----------
Total                         $  701,640  $  655,799    7.0
                               ==========  ==========
GEOGRAPHIC AREA

United States                 $  388,585  $  330,720   17.5
International                    313,055     325,079   (3.7)
                               ----------  ----------
Total                         $  701,640  $  655,799    7.0