News & Events
BD Announces Results For Third Fiscal Quarter -- Safety and Biosciences Sales Add To Top Line Growth
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Contact: Ronald Jasper Becton, Dickinson and Company (201) 847-7160 (July 20, 2000) -- BD ANNOUNCES RESULTS FOR THIRD FISCAL QUARTER SAFETY AND BIOSCIENCES SALES ADD TO TOP LINE GROWTH
Franklin Lakes, NJ (July 20, 2000) – BD (Becton, Dickinson and Company) (NYSE:BDX) announced today diluted earnings per share of $.43 for its third fiscal quarter which ended June 30, 2000. Earnings per share included a gain on the sale of an equity investment offset, in part, by charges related to the acquisition of in-process research and development and the write-down of an asset held for sale. The net favorable impact of these items was $.03. Foreign currency translation reduced the quarter’s earnings by an estimated $.03 primarily as a result of the weak Euro versus a year ago. Excluding the gain and charges noted above, earnings per share for the third quarter were $.40, or $.43 on a foreign currency neutral basis (“FX-neutral”). Third quarter 1999 earnings per share were $.12, or $.38 after excluding the effects of special and other charges, as described in the Company's 1999 Annual Report on Form 10K. Reported revenues for the quarter were $914 million, an increase of 5 percent over last year, or 8 percent on an FX-neutral basis. Edward J. Ludwig, President and Chief Executive Officer, said: “Top line growth was led by revenues from our advanced protection (safety-engineered) devices and sales contributions from recent Biosciences segment acquisitions. Customer conversions to advanced protection devices continue to accelerate based on recently updated Federal OSHA regulations and legislation enacted in a growing number of key states. In Biosciences, the recent acquisition of Clontech Laboratories, Inc. is contributing significantly to the growth of our flow cytometry sales. We remain committed to building these franchises and delivering results consistent with our expectations." By business segment, Medical Systems segment revenues grew 7 percent for the quarter on an FX-neutral basis to $512 million, led by sales of advanced protection devices and pre-fillable syringes which continue to show strong growth. Preanalytical Solutions segment revenues grew 3 percent for the quarter on an FX-neutral basis to $133 million. Shifts in inventory levels by a key distributor during the quarter resulted in lower reported Preanalytical Solutions sales. End-user demand for Preanalytical Solutions products remains strong, led by sales of advanced protection devices. Preanalytical Solution sales are expected to return, on an FX-neutral basis, to approximately 10 percent in the fourth quarter. Biosciences segment revenues of $269 million grew 12 percent for the quarter on an FX-neutral basis, which reflects sales from the Clontech acquisition in late 1999. By geographic area, revenues inside the United States were $481 million, 7 percent higher than a year earlier, while revenues outside the United States grew 8 percent, FX-neutral, to $433 million. Strong growth was experienced in Latin America and Asia. Nine-Month Results For the nine-month period ended June 30, 2000, revenues were $2.698 billion, a 7 percent increase over $2.516 billion a year ago. Excluding the unfavorable foreign currency translation that reduced revenues by an estimated $53 million for the nine-month period, revenues grew 9 percent over the prior year. Medical Systems revenues for the nine-month period were $1.464 billion, Preanalytical Solutions revenues totaled $404 million, and Biosciences revenues were $830 million. * * * This press release may contain certain forward-looking statements (as defined under Federal securities laws) regarding the Company’s performance, including future revenues, products and income, or events or developments that the Company expects to occur or anticipates occurring in the future. All such statements are based upon current expectations of the Company and involve a number of business risks and uncertainties. Actual results could vary materially from anticipated results described in any forward-looking statement. Factors that could cause actual results to vary materially from any forward-looking statement include, but are not limited to, competitive factors, changes in regional, national or foreign economic conditions, changes in interest or foreign currency exchange rates, delays in product introductions, and changes in health care or other governmental regulation, as well as other factors discussed herein and in the Company’s filings with the Securities and Exchange Commission. - Selected Financial Schedules follow -
BECTON DICKINSON AND COMPANY
CONSOLIDATED INCOME STATEMENTS
(Unaudited; Amounts in thousands, except per-share data)
Three Months Ended June 30,
2000 1999 % Change
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REVENUES $914,140 $873,002 4.7
Cost of products sold 453,838 461,323 (1.6)
Selling and administrative 248,773 231,924 7.3
Research and development 60,202 50,694 18.8
Special charges - 75,553 NM
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TOTAL OPERATING COSTS
AND EXPENSES 762,813 819,494 (6.9)
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OPERATING INCOME 151,327 53,508 NM
Interest expense, net (17,564) (16,877) 4.1
Other income (expense), net 27,745 (1,267) NM
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INCOME BEFORE
INCOME TAXES 161,508 35,364 NM
Income tax provision 47,090 2,240 NM
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NET INCOME $114,418 $33,124 NM
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EARNINGS PER SHARE
Basic $0.45 $0.13 NM
Diluted $0.43 $0.12 NM
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AVERAGE SHARES OUTSTANDING
Basic 252,904 250,075
Diluted 263,659 265,072
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NM - Not Meaningful
BECTON DICKINSON AND COMPANY
CONSOLIDATED INCOME STATEMENTS
(Unaudited; Amounts in thousands, except per-share data)
Nine Months Ended June 30,
2000 1999 % Change
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REVENUES $2,698,436 $2,515,932 7.3
Cost of products sold 1,377,776 1,276,293 8.0
Selling and administrative 726,674 688,044 5.6
Research and development 171,120 167,255 2.3
Special charges - 75,553 NM
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TOTAL OPERATING COSTS
AND EXPENSES 2,275,570 2,207,145 3.1
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OPERATING INCOME 422,866 308,787 36.9
Interest expense, net (60,320) (53,506) 12.7
Other income, net 65,818 1,218 NM
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INCOME BEFORE
INCOME TAXES 428,364 256,499 67.0
Income tax provision 119,481 57,103 NM
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NET INCOME $308,883 $199,396 54.9
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EARNINGS PER SHARE
Basic $1.22 $0.79 54.4
Diluted $1.17 $0.75 56.0
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AVERAGE SHARES OUTSTANDING
Basic 252,093 249,213
Diluted 263,192 265,335
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NM - Not Meaningful
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
(Unaudited; Amounts in thousands)
Three Months Ended June 30,
2000 1999 % Change
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MEDICAL SYSTEMS
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United States $249,407 $237,646 4.9
International 262,775 257,489 2.1
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TOTAL $512,182 $495,135 3.4
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BIOSCIENCES
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United States $158,932 $136,292 16.6
International 110,408 108,970 1.3
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TOTAL $269,340 $245,262 9.8
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PREANALYTICAL SOLUTIONS
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United States $73,062 $75,678 (3.5)
International 59,556 56,927 4.6
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TOTAL $132,618 $132,605 -
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TOTAL REVENUES
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United States $481,401 $449,616 7.1
International 432,739 423,386 2.2
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TOTAL $914,140 $873,002 4.7
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Nine Months Ended June 30,
2000 1999 % Change
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MEDICAL SYSTEMS
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United States $688,032 $656,712 4.8
International 776,085 747,366 3.8
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TOTAL $1,464,117 $1,404,078 4.3
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BIOSCIENCES
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United States $481,028 $401,873 19.7
International 349,045 328,993 6.1
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TOTAL $830,073 $730,866 13.6
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PREANALYTICAL SOLUTIONS
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United States $220,539 $208,382 5.8
International 183,707 172,606 6.4
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TOTAL $404,246 $380,988 6.1
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TOTAL REVENUES
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United States $1,389,599 $1,266,967 9.7
International 1,308,837 1,248,965 4.8
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TOTAL $2,698,436 $2,515,932 7.3
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BECTON DICKINSON AND COMPANY
SELECTED FINANCIAL INFORMATION
(Unaudited; Amounts in thousands)
CONDENSED June 30, September 30,
BALANCE SHEETS 2000 1999
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Cash & equivalents $76,940 $59,932
Trade receivables, net 753,227 812,544
Inventories 706,565 642,533
Other 171,294 168,716
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TOTAL CURRENT ASSETS 1,708,026 1,683,725
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Property, plant & equipment, net 1,538,884 1,431,149
Other 1,313,897 1,322,084
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TOTAL ASSETS $4,560,807 $4,436,958
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Current Liabilities $1,440,418 $1,329,322
Long-term Liabilities 1,165,024 1,338,948
Equity 1,955,365 1,768,688
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TOTAL LIABILITIES & EQUITY $4,560,807 $4,436,958
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Nine Months Ended
SELECTED CASH June 30,
FLOW INFORMATION 2000 1999
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Depreciation & amortization $214,755 $191,250
Cash flow from operating
activities 437,095 299,522
Capital expenditures (271,296) (212,098)
Acquisitions of businesses (21,047) (153,247)
Cash flow from investing
activities (285,822) (471,786)
Cash flow from financing
activities (134,265) 155,997
Net Change in Cash &
Equivalents 17,008 (16,267)
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Contact:
Refer to:
Ronald Jasper
Director, Investor Relations
(201) 847-7160
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