News & Events
BD Announces Results for Fiscal First Quarter
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Performance Consistent With Company's November 9, 2000 Guidance
Contact: Camilla B. Jenkins BD (201) 847-5369 Franklin Lakes, NJ (January 17, 2001) -- BD (Becton, Dickinson and Company) (NYSE: BDX) today reported revenues of $843 million for the first quarter ended December 31, 2000, down 2 percent from the same period a year ago. At constant foreign exchange rates, revenues increased 3 percent. As expected, revenues were negatively affected by foreign exchange translation, related primarily to the Euro, which reduced first quarter revenues by an estimated $46 million. The quarter also reflected the impact of remaining inventory reductions at the trade level following the discontinuation of certain distributor incentive programs in the prior quarter, and an unfavorable comparison to the first quarter of fiscal 2000, which benefited from Y2K-related inventory stocking. Diluted earnings per share and net income were 23 cents and $61 million for the first quarter, compared with 29 cents and $75 million for the same period in fiscal 2000. Edward J. Ludwig, president and chief executive officer, reaffirmed the Company's guidance given at its November 9, 2000 meeting with analysts, investors and the press, indicating that "in fiscal 2001, the Company expects to achieve sales growth of approximately 5 percent on a reported basis, or approximately 7 percent at constant exchange rates." Mr. Ludwig also stated that "the Company remains on track to achieve earnings per share of approximately 44 cents for the second quarter of fiscal 2001, and an increase in net income of about 10 percent for fiscal 2001." "While we remain focused on delivering solid financial performance, we continue to invest in promising product initiatives to drive revenue growth," Mr. Ludwig continued. "This includes scaling up production of the industry's broadest line of safety-engineered devices to meet the increasing customer demand related to federal and state needlestick safety legislation."
Q1 Segment Results
* Restated BD Clinical Laboratory Solutions revenues for the first quarter of fiscal 2000 include $132 million related to BD Preanalytical Solutions, and $139 million related to microbiology that previously had been included in BD Biosciences revenues. In the BD Medical Systems segment, worldwide revenues of $438 million declined 5 percent in the quarter, and were essentially flat at constant foreign exchange rates. Included in BD Medical Systems revenues were U.S. safety-engineered sales of $51 million, an increase of 37 percent versus the prior year¡¦s quarter. Growth in this segment was offset by the impact of inventory reductions at the trade level related to distributor incentive programs discontinued in the prior quarter. Segment revenue comparisons with the prior year also were affected by Y2K-related inventory stocking. In the BD Clinical Laboratory Solutions segment, first quarter worldwide revenues increased 2 percent to $277 million, or 7 percent at constant foreign exchange rates. Revenue growth was equally driven by the BD Preanalytical Solutions and BD Diagnostic Systems product lines. Included in BD Clinical Laboratory Solutions revenues were U.S. safety-engineered sales of $31 million, an increase of 38 percent versus the prior year's quarter. Revenues for the BD Biosciences segment grew by 2 percent to $128 million. At constant foreign exchange rates, revenues increased 8 percent. BD Biosciences revenue increases were led by sales of Clontech, PharMingen and Transduction Labs products. Q1 Geographic Results On a geographic basis, first quarter revenues in the United States increased 1 percent to $431 million. Revenues outside the United States of $412 million declined 5 percent, but increased 6 percent at constant foreign exchange rates. BD manufactures and sells a broad range of supplies, devices and systems for use by health professionals, medical research institutions, industry and the general public. For the fiscal year ended September 30, 2000, BD reported total revenues of $3.6 billion.
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, implied or projected 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; pricing and market share pressures; uncertainties of litigation; the Company¡¦s ability to achieve sales and earnings forecasts, which are based on sales volume and product mix assumptions, to achieve its cost savings objectives, and to achieve anticipated synergies and other cost savings in connection with acquisitions; changes in regional, national or foreign economic conditions; increases in energy costs; fluctuations in costs and availability of raw materials and in the Company¡¦s ability to maintain favorable supplier arrangements and relationships; 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 in this press release and in the Company's filings with the Securities and Exchange Commission. We do not intend to update any forward-looking statements.
BD's news releases can be found on its website at www.bd.com or through Business Wire at www.businesswire.com. A conference call with analysts regarding this news release will be broadcast live on BD's website at 8:30 a.m. EST Thursday, January 18, 2000. The conference call will be available for playback at 1-888-300-0165.
BECTON DICKINSON AND COMPANY
CONSOLIDATED INCOME STATEMENTS
(Unaudited; Amounts in thousands, except per-share data)
Three Months Ended December 31,
2000 1999 % Change
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REVENUES $ 843,257 $ 859,164 (1.9)
Cost of products sold 448,947 449,951 (0.2)
Selling and administrative 235,292 233,838 0.6
Research and development 52,727 53,743 (1.9)
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TOTAL OPERATING COSTS
AND EXPENSES 736,966 737,532 (0.1)
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OPERATING INCOME 106,291 121,632 (12.6)
Interest expense, net (18,564) (21,557) (13.9)
Other (expense) income, net (7,961) 1,674 NM
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INCOME BEFORE
INCOME TAXES 79,766 101,749 (21.6)
Income tax provision 19,144 26,455 (27.6)
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NET INCOME $ 60,622 $ 75,294 (19.5)
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EARNINGS PER SHARE
Basic $ 0.24 $ 0.30 (20.0)
Diluted $ 0.23 $ 0.29 (20.7)
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AVERAGE SHARES OUTSTANDING
Basic 254,465 251,328
Diluted 266,237 262,593
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NM - Not Meaningful
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
(Unaudited; Amounts in thousands)
Three Months Ended December 31,
2000 1999 % Change
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MEDICAL SYSTEMS
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United States $ 202,019 $ 206,622 (2.2)
International 236,415 255,984 (7.6)
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TOTAL $ 438,434 $ 462,606 (5.2)
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CLINICAL LABORATORY SOLUTIONS
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United States $ 159,679 $ 148,523 7.5
International 117,274 122,576 (4.3)
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TOTAL $ 276,953 $ 271,099 2.2
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BIOSCIENCES
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United States $ 69,586 $ 71,314 (2.4)
International 58,284 54,145 7.6
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TOTAL $ 127,870 $ 125,459 1.9
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TOTAL REVENUES
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United States $ 431,284 $ 426,459 1.1
International 411,973 432,705 (4.8)
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TOTAL $ 843,257 $ 859,164 (1.9)
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BECTON DICKINSON AND COMPANY
REVENUES BY BUSINESS SEGMENTS AND MAJOR PRODUCT GROUPS
FISCAL YEAR 2001
(Unaudited; Amounts in thousands)
United States
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Q1 % Change
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MEDICAL SYSTEMS
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Core Medical $ 140,040 3.8
Consumer Health Care 44,501 (20.0)
Pharmaceutical Systems 10,270 19.2
Ophthalmic Systems 7,208 (3.4)
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TOTAL $ 202,019 (2.2)
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CLINICAL LABORATORY SOLUTIONS
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Preanalytical Solutions $ 76,580 10.9
Diagnostic Systems 83,099 4.6
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TOTAL $ 159,679 7.5
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BIOSCIENCES
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Immunocytometry & Reagents $ 51,494 (3.4)
Discovery Labware 18,092 0.6
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TOTAL $ 69,586 (2.4)
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TOTAL UNITED STATES $ 431,284 1.1
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International
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Q1 % Change
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MEDICAL SYSTEMS
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Core Medical $ 136,836 (9.5)
Consumer Health Care 47,906 (2.0)
Pharmaceutical Systems 46,721 (7.8)
Ophthalmic Systems 4,952 (4.2)
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TOTAL $ 236,415 (7.6)
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CLINICAL LABORATORY SOLUTIONS
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Preanalytical Solutions $ 57,044 (9.6)
Diagnostic Systems 60,230 1.2
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TOTAL $ 117,274 (4.3)
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BIOSCIENCES
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Immunocytometry & Reagents $ 43,839 11.9
Discovery Labware 14,445 (3.4)
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TOTAL $ 58,284 7.6
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TOTAL INTERNATIONAL $ 411,973 (4.8)
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Total
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Q1 % Change
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MEDICAL SYSTEMS
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Core Medical $ 276,876 (3.2)
Consumer Health Care 92,407 (11.6)
Pharmaceutical Systems 56,991 (3.9)
Ophthalmic Systems 12,160 (3.7)
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TOTAL $ 438,434 (5.2)
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CLINICAL LABORATORY SOLUTIONS
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Preanalytical Solutions $ 133,624 1.1
Diagnostic Systems 143,329 3.1
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TOTAL $ 276,953 2.2
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BIOSCIENCES
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Immunocytometry & Reagents $ 95,333 3.1
Discovery Labware 32,537 (1.2)
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TOTAL $ 127,870 1.9
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TOTAL REVENUES $ 843,257 (1.9)
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