News & Events

Franklin Lakes, NJ (January 21, 1999) -- Becton Dickinson and Company (NYSE:BDX) announced today results for its fiscal first quarter, which ended December 31, 1998. Diluted earnings per share were $.29, a 16 percent increase over $.25 a year ago. Reported revenues for the quarter increased by 10 percent from the first quarter of fiscal 1998 to $769 million. Year-to-year changes in currency exchange rates reduced reported revenues by an estimated $4 million and earnings per share by an estimated $.01.

The company noted that gross profit margin, a key measure of manufacturing productivity, increased to 49.8 percent, reflecting the continuing leverage in this area. During the quarter, the company benefited from a favorable one-time $7 million tax judgment in Brazil, which was reflected in this quarter's income tax provision. The company expects its full year tax rate to be about 25 percent, which is at the low end of its customary 25-30 percent range.

By business segment, medical supplies and devices revenues grew 14 percent to $425 million compared with $373 million in last year's first quarter. These revenues reflected excellent growth from the prefillable syringe business and the infusion therapy business, which included the results from the purchase last April of the Medical Devices Division (MDD) of The BOC Group. This segment's growth rate was unfavorably affected by a decrease in revenues for the diabetes health care business versus the first quarter last year, when unusually high revenue growth in advance of a January 1998 price increase was reported.

Diagnostic systems revenues increased to $344 million, a 4 percent increase over the prior fiscal year's first quarter. The quarter's results reflected good growth in the company's flow cytometry, sample collection and tissue culture businesses. Infectious disease diagnostics revenues were about the same as last year, although the company noted that its BDProbeTec ET instrument, which was recently introduced in Europe, is expected to contribute to revenues in the second half of fiscal 1999.

By geographic area, revenues outside the United States were $390 million, a 24 percent increase. The MDD acquisition contributed to the strong revenue growth. Revenues inside the United States were $379 million, a decrease of 2 percent, primarily due to the diabetes health care business revenues discussed earlier.

Clateo Castellini, chairman, president and chief executive officer, said: "We continue to be pleased with our earnings performance as we strive to increase our relevance and drive towards our ambitious plans for growth. We are confident that we will report record earnings for the year and that sales growth will continue to show acceleration from recent years."

-Selected Financial Schedules Follow-

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

                                  Three Months Ended December 31,
INCOME STATEMENTS               1998           1997      % Change

REVENUES                   $   768,966    $   701,640        9.6 

Cost of products sold          385,710        354,803        8.7 
Selling and administrative     223,116        199,140       12.0 
Research and development        49,310         44,630       10.5
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TOTAL OPERATING COSTS
   AND EXPENSES                658,136        598,573       10.0 
-----------------------------------------------------

OPERATING INCOME               110,830        103,067        7.5 

Interest expense, net          (17,871)       (10,241)      74.5 
Other income (expense), net      1,025         (2,233)        NM 
------------------------------------------------------

INCOME BEFORE
   INCOME TAXES                 93,984         90,593        3.7 

Income tax provision            17,826         26,272      (32.1)
-----------------------------------------------------

NET INCOME                $     76,158    $    64,321       18.4 
-----------------------------------------------------

EARNINGS PER SHARE

     Basic                $       0.30    $      0.26       15.4 
     Diluted	          $       0.29    $      0.25       16.0 
-----------------------------------------------------

AVERAGE SHARES OUTSTANDING

     Basic                     248,320        243,624
     Diluted                   265,419        256,574
-----------------------------------------------------

NM - Not Meaningful


                                Three Months Ended December 31,
SUMMARY OF REVENUES            1998          1997        % Change
-----------------------------------------------------

BY BUSINESS SEGMENT

Medical Supplies and Devices $ 425,165     $  372,565       14.1 
Diagnostic Systems             343,801        329,075        4.5 
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     TOTAL                   $ 768,966     $  701,640        9.6 
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BY GEOGRAPHIC AREA

United States                $ 379,233     $  388,585       (2.4)
International                  389,733        313,055       24.5 
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     TOTAL                   $ 768,966     $  701,640        9.6