News & Events
BD Announces Results for Fiscal First Quarter
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Franklin Lakes, NJ
(January 23, 2002) --
BD (Becton, Dickinson and Company) (NYSE: BDX) today reported revenues of $945 million for the fiscal first quarter ended December 31, 2001, an increase of 9 percent from the same period a year ago. At constant foreign exchange rates, revenues increased 10 percent.
"We are pleased with our increasing revenue growth, which was driven primarily by safety-engineered devices, prefillable drug delivery devices and Biosciences products," said Edward J. Ludwig, president and chief executive officer. "This quarter's performance underscores our confidence in achieving financial and operating performance consistent with our goals for the year."
Diluted earnings per share and net income were 37 cents and $100 million for the first quarter. Excluding the cumulative effect of an accounting change recorded in the prior year, diluted earnings per share and net income were 28 cents and $74 million for the same period in fiscal 2001. First quarter 2002 earnings per share reflect an approximate 2 1/2 cent benefit from the adoption of Statement of Financial Accounting Standards (SFAS) No. 142, "Goodwill and Other Intangible Assets," which, among other things, eliminates the requirement to amortize goodwill and certain other intangibles. The Company currently estimates the full year impact to earnings per share as a result of the elimination of such amortization under SFAS No. 142 to be approximately 10 cents per share. Also, as discussed in the notes to the attached unaudited Consolidated Income Statements, first quarter earnings per share benefited from a favorable comparison to the prior year's quarter due to the timing and recognition of net foreign currency translation hedge costs, and by the restatement of the income tax rate for the first quarter of fiscal 2001 in connection with the Company's adoption of Securities and Exchange Commission Staff Accounting Bulletin No. 101.
Q1 Segment Results
In the Clinical Laboratory Solutions segment, first quarter worldwide revenues increased 7 percent to $295 million. Revenue growth was driven primarily by the Preanalytical Solutions segment component. U.S. safety-engineered sales were $49 million and increased 54 percent versus the prior year's quarter. Growth in the segment also reflected increased worldwide sales in the Diagnostic Systems segment component due in part to sales relating to its molecular diagnostic platform, BDProbeTec™ ET.
Revenues for the Biosciences segment grew by 14 percent to $147 million. International Biosciences revenue growth of approximately 25 percent was led by sales from the Immunocytometry Systems and Reagents, and Discovery Labware segment components. Domestic sales grew by approximately 5 percent. Discovery Labware sales growth was enhanced by sales of Gentest, which was acquired in January 2001. Domestic growth was offset, in part, by essentially flat immunocytometry instrument sales, due primarily to comparatively lower instrument installations, and weaker demand for certain molecular biology products.
Q1 Geographic Results
Fiscal 2002 and Q2 Outlook
The Company previously announced that it was considering a relatively small-scale restructuring of manufacturing facilities in the Medical Systems segment and the possible sale of certain business units with combined revenues of less than $200 million. With respect to the manufacturing restructuring, which commenced this month, the Company estimates an unfavorable impact on earnings per share of 2 to 3 cents for the full year excluding related special charges of $25 to $28 million that it expects to record in the second quarter.
The divestitures remain under consideration. The Company estimates that fiscal 2002 earnings per share would have been reduced by approximately 5 cents, assuming these divestitures had been completed as of October 1, 2001.
BD is a medical technology company that serves healthcare institutions, life science researchers, clinical laboratories, industry and the general public. BD manufactures and sells a broad range of medical supplies, devices, laboratory equipment and diagnostic products. For the fiscal year ended September 30, 2001, BD reported total revenues of $3.8 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 24, 2002. The conference call will be available for playback at 1-800-944-2000 through the close of business on January 31, 2002.
BECTON DICKINSON AND COMPANY
CONSOLIDATED INCOME STATEMENTS
(Unaudited; Amounts in thousands, except per-share data)
Three Months Ended December 31,
2001 2000 % Change
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REVENUES $ 944,946 $ 864,418 9.3
Cost of products sold 499,762 453,918 10.1
Selling and administrative 248,294 235,292 5.5
Research and development 55,237 52,727 4.8
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TOTAL OPERATING COSTS
AND EXPENSES 803,293 741,937 8.3
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OPERATING INCOME 141,653 122,481 15.7
Interest expense, net (9,571) (18,564) (48.4)
Other expense, net (1,616) (2,059) (21.5)
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INCOME BEFORE
INCOME TAXES 130,466 101,858 28.1
Income tax provision 30,793 28,160 9.4
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INCOME BEFORE
CUMULATIVE EFFECT OF
CHANGE IN ACCOUNTING
PRINCIPLE, NET OF TAX 99,673 73,698 35.2
Cumulative effect, net of tax - (36,750) NM
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NET INCOME $ 99,673 $ 36,948 NM
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BASIC EARNINGS PER SHARE
Before Cumulative Effect $ 0.38 $ 0.29 31.0
Cumulative Effect - (0.14) NM
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Basic Earnings Per Share $ 0.38 $ 0.15 NM
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DILUTED EARNINGS PER SHARE
Before Cumulative Effect $ 0.37 $ 0.28 32.1
Cumulative Effect - (0.14) NM
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Diluted Earnings Per Share $ 0.37 $ 0.14 NM
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AVERAGE SHARES OUTSTANDING
Basic 259,192 254,465
Diluted 270,172 266,237
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NM - Not Meaningful
See page 2 for Notes to Consolidated Income Statements.
BECTON DICKINSON AND COMPANY
NOTES TO CONSOLIDATED INCOME STATEMENTS
Three Months Ended December 31, 2001
First quarter fiscal 2002 Revenues include $1.6 million of hedging
costs related to BD's purchase of option contracts to hedge a portion
of anticipated sales from the United States to non-U.S. customers. In
the first quarter of fiscal 2001, similar hedging costs of $5.9
million had been recorded in Other Expense under previous accounting
guidance. This amount has now been reclassified to Revenues. Also
included in Revenues were gains on purchased option contracts which,
in the first quarter of fiscal 2002 and fiscal 2001, were $1.2 million
and $2.1 million, respectively.
BD adopted the provisions of Securities and Exchange Commission
Staff Accounting Bulletin No. 101 "Revenue Recognition in Financial
Statements," (SAB 101) in the fourth quarter of fiscal 2001,
retroactive to October 1, 2000. Prior year results have been restated
to reflect this adoption. As part of the restatement, the first
quarter of fiscal 2001 includes $27 million of additional revenues
that were taxed at a 41% rate. As a result, the first quarter of
fiscal 2001, on a restated basis, reflects a 28% effective tax rate,
as compared to 24% on a pre-SAB 101 basis. For the year, the fiscal
2001 tax rate remained at 24%. A complete discussion of this
accounting change can be found in BD's 2001 annual report on Form
10-K.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY SEGMENT AND GEOGRAPHIC AREA
(Unaudited; Amounts in thousands)
Three Months Ended December 31,
2001 2000 % Change
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MEDICAL SYSTEMS
United States $ 250,902 $ 226,004 11.0
International 252,128 234,385 7.6
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TOTAL $ 503,030 $ 460,389 9.3
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CLINICAL LABORATORY SOLUTIONS
United States $ 172,488 $ 159,679 8.0
International 122,261 114,924 6.4
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TOTAL $ 294,749 $ 274,603 7.3
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BIOSCIENCES
United States $ 76,700 $ 73,246 4.7
International 70,467 56,180 25.4
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TOTAL $ 147,167 $ 129,426 13.7
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TOTAL REVENUES
United States $ 500,090 $ 458,929 9.0
International 444,856 405,489 9.7
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TOTAL $ 944,946 $ 864,418 9.3
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BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND MAJOR PRODUCT GROUPS
Three Months Ended December 31,
(Unaudited; Amounts in thousands)
United States
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2001 2000 % Change
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MEDICAL SYSTEMS
Medical Surgical $ 169,554 $ 140,040 21.1
Consumer Health Care 58,769 68,486 (14.2)
Pharmaceutical Systems 16,283 10,270 58.5
Ophthalmic Systems 6,296 7,208 (12.7)
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TOTAL $ 250,902 $ 226,004 11.0
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CLINICAL LABORATORY SOLUTIONS
Preanalytical Solutions $ 87,315 $ 76,580 14.0
Diagnostic Systems 85,173 83,099 2.5
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TOTAL $ 172,488 $ 159,679 8.0
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BIOSCIENCES
Immunocytometry & Reagents $ 54,435 $ 55,154 (1.3)
Discovery Labware 22,265 18,092 23.1(1)
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TOTAL $ 76,700 $ 73,246 4.7
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TOTAL UNITED STATES $ 500,090 $ 458,929 9.0
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International
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2001 2000 % Change
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MEDICAL SYSTEMS
Medical Surgical $ 145,964 $ 135,912 7.4
Consumer Health Care 44,974 47,476 (5.3)
Pharmaceutical Systems 55,265 46,181 19.7
Ophthalmic Systems 5,925 4,816 23.0
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TOTAL $ 252,128 $ 234,385 7.6
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CLINICAL LABORATORY SOLUTIONS
Preanalytical Solutions $ 62,068 $ 56,356 10.1
Diagnostic Systems 60,193 58,568 2.8
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TOTAL $ 122,261 $ 114,924 6.4
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BIOSCIENCES
Immunocytometry & Reagents $ 54,691 $ 42,144 29.8
Discovery Labware 15,776 14,036 12.4
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TOTAL $ 70,467 $ 56,180 25.4
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TOTAL INTERNATIONAL $ 444,856 $ 405,489 9.7
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(1) Includes acquisition of Gentest in January 2001.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND MAJOR PRODUCT GROUPS
Three Months Ended December 31, (continued)
(Unaudited; Amounts in thousands)
Total
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2001 2000 % Change
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MEDICAL SYSTEMS
Medical Surgical $ 315,518 $ 275,952 14.3
Consumer Health Care 103,743 115,962 (10.5)
Pharmaceutical Systems 71,548 56,451 26.7
Ophthalmic Systems 12,221 12,024 1.6
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TOTAL $ 503,030 $ 460,389 9.3
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CLINICAL LABORATORY SOLUTIONS
Preanalytical Solutions $ 149,383 $ 132,936 12.4
Diagnostic Systems 145,366 141,667 2.6
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TOTAL $ 294,749 $ 274,603 7.3
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BIOSCIENCES
Immunocytometry & Reagents $ 109,126 $ 97,298 12.2
Discovery Labware 38,041 32,128 18.4
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TOTAL $ 147,167 $ 129,426 13.7
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TOTAL REVENUES $ 944,946 $ 864,418 9.3
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FX Neutral % Growth
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International Total
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MEDICAL SYSTEMS
Medical Surgical 10.8 16.0
Consumer Health Care (4.1) (10.1)
Pharmaceutical Systems 17.6 25.1
Ophthalmic Systems 23.0 1.6
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TOTAL 9.4 10.2
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CLINICAL LABORATORY SOLUTIONS
Preanalytical Solutions 10.3 12.5
Diagnostic Systems 3.6 2.9
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TOTAL 6.9 7.5
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BIOSCIENCES
Immunocytometry & Reagents 28.1 11.4
Discovery Labware 13.6 18.9
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TOTAL 24.5 13.3
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TOTAL 10.8 9.8
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CONTACT: Becton, Dickinson and Company
Investor and Media Relations:
Dean J. Paranicas,201/847-7102
Investor Relations:
Gavin A. Bell, 201/847-5453
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