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BD Announces Results for Fiscal First Quarter
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FRANKLIN LAKES, N.J.--(BUSINESS WIRE)--Jan. 23, 2003--BD (Becton, Dickinson and Company) (NYSE:BDX) today reported revenues of $1.052 billion for the fiscal first quarter ended December 31, 2002, an increase of 11 percent from the same period a year ago. At constant foreign exchange rates, revenues increased 9 percent.
"We are pleased with the Company's strong revenue growth in the quarter, paced by our BD Medical Systems and BD Clinical Laboratory Solutions segments that reflect contributions from several key areas - safety-engineered products, prefillable drug delivery devices and our BD ProbeTec ET(TM) diagnostic instrument platform," said Edward J. Ludwig, Chairman, President and Chief Executive Officer. "As we had forecast, BD Biosciences' first quarter revenues were slightly ahead of the prior year's quarter. This reflected the impact of factors unfavorably affecting sales of molecular biology reagents and flow cytometry instruments that we expect will continue through the second quarter, but which we anticipate will improve in the second half of the year."
"We are very excited about the launch of our new blood glucose monitoring products, the BD Logic(TM) Blood Glucose Monitor and the BD Latitude(TM) Diabetes Management System," Mr. Ludwig added. "These products are among the most significant launches in the Company's history, and we believe their best-in-class performance characteristics, coupled with our strategic relationships with Medtronic, Inc. and Eli Lilly and Company, position us for success in the blood glucose monitoring market."
Diluted earnings per share and net income for the quarter were 43 cents and $114 million, respectively. For the same period in fiscal 2002, diluted earnings per share and net income were 37 cents and $100 million, respectively. Diluted earnings per share reflected, among other things, the benefit of approximately 2 cents related to favorable foreign exchange translation, particularly in Europe.
Segment Results
In the BD Medical Systems segment, worldwide revenues of $572 million increased 14 percent in the quarter, driven by U.S. safety-engineered product sales of $100 million, versus $78 million in the prior year's quarter, and strong sales of prefillable drug delivery devices, which grew 30 percent to $93 million. Consumer Healthcare products also posted strong growth in the quarter, based in part on a favorable comparison to 2002 in U.S. diabetes syringe sales. The overall growth rate in the segment was partly offset by reduced sales of certain conventional devices in the U.S. due to the transition to safety-engineered devices.
In the BD Clinical Laboratory Solutions segment, worldwide revenues increased 13 percent for the quarter to $332 million. Revenue growth of 12 percent in the Preanalytical Solutions portion of the segment was due primarily to strong U.S. safety-engineered product sales, which were $65 million, versus $49 million in the prior year's quarter, and which were partly offset by reduced sales of certain conventional devices in the U.S. due to the transition to safety-engineered devices. Contributing to revenue growth of 13 percent in the Diagnostics Systems portion of the segment were strong sales of respiratory and flu diagnostic tests, especially in Japan, and worldwide sales of its molecular diagnostic platform, BD ProbeTec ET(TM).
The BD Biosciences segment's worldwide revenues were slightly ahead of last year at $148 million. These results reflected strong sales of flow cytometry reagents and immunology/cell biology (Pharmingen) reagents and Discovery Labware products. This growth was partly offset by sales of molecular biology (Clontech) reagents, which were below the prior year due to continued weakness in some portions of the molecular biology research market. In addition, as anticipated, flow cytometry instrument sales growth in the quarter was negatively impacted by a reduction in order backlog in fiscal 2002 resulting from order fulfillment and installation improvements. In addition, favorable reaction to the first quarter announcement of the new BD FACSAria(TM) cell sorter caused some order postponement in anticipation of the availability of this new instrument later in the year.
Geographic Results
On a geographic basis, first quarter revenues in the U.S. increased 12 percent to $557 million. Revenues outside the U.S. of $494 million grew 10 percent, or 5 percent at constant foreign exchange rates. International revenues in the first quarter benefited from strong performance in Japan, offset in part by the effects of continuing unfavorable economic conditions in Latin America.
A conference call regarding BD's first quarter results and its expectations for the second quarter and full fiscal year will be broadcast live on BD's website at 8:30 a.m. EST Thursday, January 23, 2003. The conference call will be available for playback at 1-800-468-0320 (domestic) and 1-402-344-6805 (international) through the close of business on January 30, 2003.
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, 2002, BD reported total revenues of $4.033 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.
BECTON DICKINSON AND COMPANY
CONSOLIDATED INCOME STATEMENTS
(Unaudited; Amounts in thousands, except per-share data)
Three Months Ended December 31,
2002 2001 % Change
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REVENUES $ 1,051,648 $ 944,946 11.3
Cost of products sold 550,039 499,762 10.1
Selling and administrative 284,181 248,294 14.5
Research and development 59,845 55,237 8.3
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TOTAL OPERATING COSTS
AND EXPENSES 894,065 803,293 11.3
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OPERATING INCOME 157,583 141,653 11.2
Interest expense, net (8,633) (9,571) (9.8)
Other income (expense), net 84 (1,616) NM
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INCOME BEFORE
INCOME TAXES 149,034 130,466 14.2
Income tax provision 35,396 30,793 14.9
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NET INCOME $ 113,638 $ 99,673 14.0
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EARNINGS PER SHARE
Basic $ 0.44 $ 0.38 15.8
Diluted $ 0.43 $ 0.37 16.2
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AVERAGE SHARES OUTSTANDING
Basic 255,286 259,192
Diluted 263,081 270,172
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NM - Not Meaningful page 1
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY SEGMENT AND GEOGRAPHIC AREA
(Unaudited; Amounts in thousands)
Three Months Ended December 31,
2002 2001 % Change
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BD MEDICAL SYSTEMS
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United States $ 296,426 $ 250,902 18.1
International 275,211 252,128 9.2
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TOTAL $ 571,637 $ 503,030 13.6
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BD CLINICAL LABORATORY SOLUTIONS
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United States $ 191,532 $ 172,488 11.0
International 140,122 122,261 14.6
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TOTAL $ 331,654 $ 294,749 12.5
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BD BIOSCIENCES
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United States $ 69,337 $ 73,859 (6.1)*
International 79,020 73,308 7.8 *
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TOTAL $ 148,357 $ 147,167 0.8
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TOTAL REVENUES
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United States $ 557,295 $ 497,249 12.1 *
International 494,353 447,697 10.4 *
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TOTAL $ 1,051,648 $ 944,946 11.3
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* Prior year data reclassified to conform to current
year presentation - see page 5.
page 2
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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2002 2001 % Change
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BD MEDICAL SYSTEMS
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Medical Surgical $ 192,751 $ 167,031 15.4 *
Consumer Health Care 75,496 61,292 23.2 *
Pharmaceutical Systems 21,527 16,283 32.2
Ophthalmic Systems 6,652 6,296 5.7
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TOTAL $ 296,426 $ 250,902 18.1
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BD CLINICAL LABORATORY SOLUTIONS
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Preanalytical Solutions $ 101,023 $ 87,315 15.7
Diagnostic Systems 90,509 85,173 6.3
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TOTAL $ 191,532 $ 172,488 11.0
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BD BIOSCIENCES
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Discovery Labware 23,120 22,265 3.8
Immunocytometry & Reagents:
Flow Cytometry Instruments
& Reagents 23,199 27,381 (15.3)
Molecular Biology Reagents 7,863 9,734 (19.2)*
Immunology/Cell Biology
Reagents 15,155 14,479 4.7
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Total Immunocytometry &
Reagents 46,217 51,594 (10.4)*
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TOTAL $ 69,337 $ 73,859 (6.1)*
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TOTAL UNITED STATES $ 557,295 $ 497,249 12.1 *
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International
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2002 2001 % Change
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BD MEDICAL SYSTEMS
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Medical Surgical $ 152,768 $ 145,964 4.7
Consumer Health Care 44,049 44,974 (2.1)
Pharmaceutical Systems 71,718 55,265 29.8
Ophthalmic Systems 6,676 5,925 12.7
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TOTAL $ 275,211 $ 252,128 9.2
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BD CLINICAL LABORATORY SOLUTIONS
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Preanalytical Solutions $ 66,180 $ 62,068 6.6
Diagnostic Systems 73,942 60,193 22.8
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TOTAL $ 140,122 $ 122,261 14.6
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BD BIOSCIENCES
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Discovery Labware 18,755 15,776 18.9
Immunocytometry & Reagents:
Flow Cytometry Instruments
& Reagents 40,853 40,505 0.9
Molecular Biology
Reagents 7,892 7,246 8.9 *
Immunology/Cell
Biology Reagents 11,520 9,781 17.8
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Total Immunocytometry &
Reagents 60,265 57,532 4.8 *
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TOTAL $ 79,020 $ 73,308 7.8 *
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TOTAL INTERNATIONAL $ 494,353 $ 447,697 10.4 *
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* Prior year data reclassified to conform to current year
presentation - see page 5.
page 3
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
------------------------------------
2002 2001 % Change
------------------------------------
BD MEDICAL SYSTEMS
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Medical Surgical $ 345,519 $ 312,995 10.4 *
Consumer Health Care 119,545 106,266 12.5 *
Pharmaceutical Systems 93,245 71,548 30.3
Ophthalmic Systems 13,328 12,221 9.1
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TOTAL $ 571,637 $ 503,030 13.6
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BD CLINICAL LABORATORY SOLUTIONS
--------------------------------
Preanalytical Solutions $ 167,203 $ 149,383 11.9
Diagnostic Systems 164,451 145,366 13.1
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TOTAL $ 331,654 $ 294,749 12.5
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BD BIOSCIENCES
--------------
Discovery Labware 41,875 38,041 10.1
Immunocytometry & Reagents:
Flow Cytometry Instruments
& Reagents 64,052 67,886 (5.6)
Molecular Biology Reagents 15,755 16,980 (7.2)
Immunology/Cell Biology
Reagents 26,675 24,260 10.0
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Total Immunocytometry &
Reagents 106,482 109,126 (2.4)
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TOTAL $ 148,357 $ 147,167 0.8
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TOTAL REVENUES $ 1,051,648 $ 944,946 11.3
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FX Neutral % Growth
-------------------------
International Total
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BD MEDICAL SYSTEMS
------------------
Medical Surgical 1.0 8.7
Consumer Health Care (5.9) 10.9
Pharmaceutical Systems 20.4 23.1
Ophthalmic Systems 5.3 5.5
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TOTAL 4.1 11.1
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BD CLINICAL LABORATORY SOLUTIONS
--------------------------------
Preanalytical Solutions 1.0 9.6
Diagnostic Systems 18.6 11.4
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TOTAL 9.6 10.5
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BD BIOSCIENCES
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Discovery Labware 13.8 8.0
Immunocytometry & Reagents:
Flow Cytometry Instruments
& Reagents (5.2) (9.3)
Molecular Biology Reagents 4.3 (9.2)
Immunology/Cell Biology
Reagents 10.4 7.0
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Total Immunocytometry & Reagents (1.4) (5.6)
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TOTAL 1.9 (2.1)
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TOTAL 5.2 8.8
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* Prior year data reclassified to conform to current year
presentation - see page 5.
page 4
BECTON DICKINSON AND COMPANY
IMPACT OF RECLASSIFICATIONS TO FISCAL 2002 REVENUES
(Unaudited; Amounts in thousands)
Fiscal 2002
Revenues
--------
BD BIOSCIENCES SEGMENT
Molecular Biology Reagents - US to International
-------------------------------------------------------------
Quarter 1 $ 2,841
Quarter 2 4,304
Quarter 3 3,430
Quarter 4 4,044
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Total Year $ 14,619
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BD MEDICAL SYSTEMS SEGMENT
Medical Surgical to Consumer Health Care - US to US
-------------------------------------------------------------
Quarter 1 $ 2,523
Quarter 2 3,020
Quarter 3 3,446
Quarter 4 4,157
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Total Year $ 13,146
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