News & Events
BD Announces Record Revenues For Fiscal Fourth Quarter and Full Year
|
Results Consistent With Company's September 26, 2000 Announcement
Contact: Franklin Lakes, NJ (November 8, 2000) – BD (Becton, Dickinson and Company) (NYSE: BDX) today reported diluted earnings per share for the fourth quarter of 32 cents. Excluding previously announced special charges, gains on investments and a favorable tax effect, diluted earnings per share were 39 cents, which were consistent with the Company's announcement on September 26, 2000. As the Company stated in September, the results for the fourth quarter ended September 30, 2000 included special charges against earnings associated with a worldwide organizational restructuring of 10 cents and certain estimated litigation defense costs of 4 cents. The effect of these charges on diluted earnings per share was 14 cents. Gains on investments of 2 cents, and the favorable tax effect of 5 cents from the conclusion of certain tax audits also were recorded in the fiscal quarter. Foreign currency translation reduced the quarter’s earnings by an estimated 2 cents primarily as a result of the weak Euro versus a year ago. The Company's reported fiscal 1999 fourth quarter earnings per share were 29 cents, or 42 cents excluding the impact of in-process research and development charges. "BD’s performance in the quarter was consistent with the guidance and reflected the strategic actions we announced in September. The steps we have taken set the stage for better, more consistent performance going forward," said BD President and Chief Executive Officer Edward J. Ludwig. "In 2001 we expect to achieve revenue growth of approximately 7 percent, or 5 percent on a reported basis that would reflect an estimated 2 percent unfavorable impact of foreign currency translation. Based on that forecast, we should achieve an increase in net income of approximately 10 percent in 2001."
Revenues for the fiscal fourth quarter were $920 million, an increase of 2 percent over fiscal 1999. Revenues for the fourth quarter were reduced by an estimated $50 million as a result of the Company’s previously announced decision to terminate certain incentive programs with distributors in order to improve supply chain and manufacturing efficiencies, reduce costs and establish closer links with customers. The estimated diluted earnings per share impact of the decision was 6 cents. Foreign currency translation reduced reported revenues by approximately $22 million for the fiscal quarter, or by about 2 percent. Q4 Segment and Geographic Results Medical Systems revenues for the fiscal quarter were $502 million, or 3 percent below last year, and Preanalytical Solutions revenues increased 2 percent to $131 million. The performance of Medical Systems and Preanalytical Solutions was impacted by the discontinuance of certain incentive programs with distributors in the United States. Biosciences revenues increased 13 percent to $287 million for the fiscal quarter.
On a geographic basis, fiscal fourth quarter revenues in the United States were $474 million compared with $481 million last year. Revenues outside the United States of $446 million were 6 percent higher than the prior year’s fourth quarter, or 11 percent after excluding the impact of unfavorable currency translation ("FX neutral"). Full Year Results Reported diluted earnings per share for fiscal 2000 were $1.49. The impact of fourth quarter items discussed above offset unusual items reported in previous quarters. Foreign currency translation reduced the year’s earnings by an estimated 6 cents per share. Reported fiscal 1999 diluted earnings per share were $1.04, or $1.49 excluding special and other charges and in-process research and development charges. Revenues for fiscal 2000 were a record $3.618 billion, a 6 percent increase from last year’s $3.418 billion, with acquisitions contributing 3 percent. Foreign currency translation reduced reported revenues by about 2 percent. By business segment, Medical Systems segment revenues grew 2 percent to $1.966 billion, or 5 percent on an FX neutral basis. Preanalytical Solutions segment revenues grew 5 percent to $535 million, or 8 percent on an FX neutral basis. Biosciences segment revenues of $1.118 billion increased 13 percent, or 15 percent on an FX neutral basis, with particularly strong reported growth from immunocytometry products. By geographic area, revenues inside the United States were $1.864 billion, 7 percent higher than a year earlier, while revenues outside the United States of $1.755 billion grew 5 percent, or 10 percent on an FX neutral basis. Strong growth was experienced in Latin America, Asia and Japan. Europe was affected by unfavorable foreign currency translation. BD is a medical technology company that manufactures and sells a broad range of supplies, devices, and systems for use by healthcare professionals, medical research institutions, industry and the general public. *** A live audio Web cast of BD’s investment community presentation will air Thursday, November 9, 2000 beginning at 8:30 a.m., EST. The audio Web cast can be accessed through the BD Web site, www.bd.com, and will be available for replay through Wednesday, November 22, 2000. Minimum requirements to listen to the broadcast are a 14.4bps connection to the Internet and RealPlayer® Basic software, which can be downloaded for free from the Real Networks® Web site. BD’s news releases can be found at www.bd.com or through Business Wire at www.businesswire.com. Financial tables attached |