Franklin Lakes, NJ (November 07, 1996) -- Becton Dickinson and Company today reported record revenues and earnings for both its fourth fiscal quarter and full year, which ended September 30, 1996.

Full Year Results

For the fiscal year, reported revenues increased to $2.770 billion (two billion, seven hundred and seventy million dollars) from $2.713 billion (two billion, seven hundred and thirteen million dollars) for fiscal 1995. Earnings per share in fiscal 1996 were $2.11, an increase of 18 percent, on net income of $283 million, which increased 13 percent.

The company said that foreign currency translation reduced reported revenues by an estimated $14 million and earnings per share by an estimated $.01. Adjusted for divestitures and currency translation, revenues increased 6 percent compared with last year.

The company noted that gross profit margin, often seen as a measure for manufacturing productivity, increased 1.4 percentage points to 48.4 percent, and that operating margins improved to 15.6 percent of revenues, from 14.6 percent for the year earlier.

Clateo Castellini, chairman, president and chief executive officer, said: "We are again pleased with our earnings performance for the year and the record we are building for improved productivity and profit margins even as we have begun to accelerate our investment in research and development. We are also pleased with the increase in return on equity, which was 20.8 percent, the highest in the company's history."

By business segment, diagnostic systems revenues grew 4 percent over 1995 to $1.260 billion (one billion, two hundred and sixty million dollars), reflecting strong performance in the company's flow cytometry and sample collection businesses. The company's infectious disease diagnostics business continues to feel the negative impact of reduced testing.

Medical supplies and devices revenues for the year increased 1 percent to $1.509 billion (one billion, five hundred and nine million dollars). Excluding the impact from the divested businesses the increase was 6 percent. Conversion to safety devices by the company's customers continues to generate good 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 $1.424 billion (one billion, four hundred and twenty-four million dollars), about the same as last year, or an increase of 3 percent excluding the impact from the divested businesses. Revenues outside the United States grew 6 percent to $1.346 billion (one billion, three hundred and forty-six million dollars).

Fourth Quarter Results

For the fourth quarter, the company reported that earnings per share of $.66 were slightly better than expected early in the quarter, and increased five percent over the prior year. Revenues for the quarter were $731 million, an increase of one percent. The company said that foreign currency translation reduced revenue growth by an estimated two percentage points.

Gross profit margin for the quarter increased to 50.8 percent of revenues from 50.1 percent, as productivity improvements and an improved product mix aided performance. Operating margin improved to 17.3 percent of revenues, from 16.8 percent, reflecting the improvement in gross profit and good control of selling and administrative expenses even as the company was increasing research and development investments.

By business segment, diagnostic systems revenues for the quarter were $325 million compared with $319 million a year ago, while medical supplies and devices revenues were $406 million compared with $403 million last year. On a geographic basis, revenues in the United States were $381 million compared with $382 million for the year ago quarter, while revenues outside the United States were $351 million compared with $340 million in the prior fiscal year's fourth quarter.

Outlook

Looking at fiscal 1997, Mr. Castellini said: "We expect to continue to report good earnings growth for the new fiscal year, as we continue to focus on further profitability improvements. Revenue growth for next year should begin to show gradual acceleration as our new products become available in more markets."