News & Events

Franklin Lakes, NJ (November 06, 1997) -- Becton Dickinson and Company (NYSE: BDX) today reported record revenues and earnings for both its fourth fiscal quarter and full year, which ended September 30, 1997.

Full Year Results

For the fiscal year, reported revenues increased to $2.811 billion (two billion, eight hundred eleven million dollars) from $2.770 billion (two billion, seven hundred seventy million dollars) for fiscal 1996. Earnings per share in fiscal 1997 were $2.30, including $.11 of one-time charges for in-process research and development associated with two recent acquisitions. Excluding the one-time charges, earnings per share were $2.41, an increase of 14 percent over last year's $2.11.

The company said that foreign currency translation reduced reported revenues by an estimated $84 million and earnings per share by an estimated $.17. Excluding the effects of acquisitions, divestitures and currency translation, revenues increased 5 percent compared with last year.

The company noted that gross profit margin, often seen as a measure of manufacturing productivity, increased 1.3 percentage points to 49.7 percent, and that operating margins improved to 16.0 percent of revenues, from 15.6 percent for the year earlier.

Clateo Castellini, chairman, president and chief executive officer, said: "We are pleased with our earnings performance for the year and the record we have demonstrated for improved productivity and profit margins even as we have begun to accelerate our investments for growth."

By business segment, diagnostic systems revenues grew 3 percent over 1996 to $1.300 billion (one billion, three hundred million dollars), reflecting strong performance in the company's flow cytometry and sample collection businesses. Revenues of the company's infectious disease diagnostics business continue to reflect the negative impact of reduced testing.

Medical supplies and devices revenues for the year were $1.511 billion (one billion, five hundred eleven million dollars), virtually unchanged from last year. Excluding the impact from the divested businesses and foreign currency translation, the increase would have been 7 percent. Conversion to safety devices by the company's customers continues to generate good underlying growth in the injection systems business as well as in the company's infusion therapy business. The pharmaceutical systems business, primarily prefillable syringes, also showed excellent growth.

By geographic area, revenues in the United States were $1.487 billion (one billion, four hundred eighty-seven million dollars), an increase of 4 percent. Revenues outside the United States were $1.324 billion (one billion, three hundred twenty-four million dollars), compared with $1.346 billion (one billion, three hundred forty-six million dollars) last year. Foreign currency translation reduced reported non-U.S. revenues by $84 million.

Fourth Quarter Results

For the fourth quarter, the company reported that earnings per share of $.69 were slightly better than expected early in the quarter, and increased five percent over the prior year. Revenues for the quarter were $749 million, an increase of 2.4 percent. The company said that foreign currency translation reduced revenue growth by an estimated 4 percentage points for the quarter.

Gross profit margin for the quarter increased to 51.3 percent of revenues from 50.8 percent, aided by productivity improvements and an improved product mix. Operating margin improved to 18.3 percent of revenues, from 17.3 percent, reflecting the improvement in gross profit and continued control of selling and administrative expenses while increasing research and development investments.

By business segment, diagnostic systems revenues for the quarter were $346 million compared with $325 million a year ago. Medical supplies and devices revenues were $403 million compared with $406 million last year. This decrease was a result of negative foreign currency translation. On a geographic basis, revenues in the United States were $417 million compared with $381 million for the year ago quarter, while revenues outside the United States were $332 million compared with $351 million in the prior fiscal year's fourth quarter. Foreign currency translation reduced non-U.S. revenues by an estimated $31 million.

Outlook

Looking at fiscal 1998, Mr. Castellini said: "We expect to continue to report good earnings growth for the new fiscal year, even as we sharpen our focus on increasing our revenue growth, which we anticipate will show a notable increase for next year."