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Contact: Patricia A. Spinella
Investor Relations
(201) 847-5453
Email: patricia_spinella@bd.com
Colleen T.
White
Corporate Communications
(201) 847-5369
Email: colleen_white@bd.com
Franklin Lakes, NJ
(April 22, 2004) --
BD (Becton,
Dickinson and Company) (NYSE: BDX) today reported record quarterly revenues of
$1.271 billion for the fiscal second quarter ended March 31, 2004, an increase
of 12 percent from the same period a year ago. At constant foreign exchange
rates, revenues increased 6 percent. Revenue growth in all segments benefited
from favorable foreign currency translation, particularly with respect to the
Euro.
"We are pleased with the Company's continued strong performance in the
second quarter. Solid revenue growth in our BD Medical and BD Biosciences
segments reflects contributions from several key areas -- prefillable drug
delivery devices, diabetes related products and our BD FACSAria™ cell
sorter," said Edward J. Ludwig, Chairman, President and Chief Executive
Officer. "Strong revenue growth in nearly all of our international regions
was another driving force."
Diluted earnings per share and net income for the quarter were 62 cents
and $165 million, respectively. For the same period in fiscal 2003, diluted
earnings per share were 54 cents and net income was $142 million.
Q2 Segment Results
In the BD Medical segment, worldwide revenues for the quarter were $683
million, representing an increase of 13 percent over the prior year period.
Included in BD Medical revenues were U.S. safety-engineered product sales of
$107 million, as compared with $98 million in the prior year's quarter, which
was offset in part by reduced sales of certain conventional devices in the
U.S. due to the transition to safety-engineered devices. Also contributing to
the growth of the segment were increased sales of diabetes related products
and prefillable drug delivery devices.
In the BD Diagnostics segment, worldwide revenues for the quarter were
$383 million, representing an increase of 7 percent over the prior year
period. Revenue growth of 11 percent in the Preanalytical Systems unit of the
segment included U.S. safety-engineered device sales of $75 million, compared
with $68 million in the prior year's quarter, which was offset in part by
reduced sales of conventional devices in the U.S. due to the transition to
safety-engineered devices. After having experienced a 31 percent increase in
the first quarter, due in large part to earlier than usual and exceptionally
strong sales of respiratory and flu diagnostic tests in the U.S. and Japan,
revenues in the Diagnostic Systems unit of the segment increased 3 percent in
the second quarter. For the first half of fiscal 2004, the Diagnostic Systems
unit reported 17 percent revenue growth.
In the BD Biosciences segment, worldwide revenues were $205 million,
representing an increase of 17 percent over the prior year period. These
results reflected broad market acceptance of the BD FACSAria™ cell sorter,
which BD Biosciences began shipping at the end of the second fiscal quarter of
2003, along with strong sales of flow cytometry reagents in the
Immunocytometry Systems and Pharmingen units. Revenue growth was also driven
by Discovery Labware products.
Q2 Geographic Results
Second quarter revenues in the U.S. of $619 million represented an
increase of 7 percent over the prior year period. Revenues outside the U.S.
of $651 million represented an increase of 17 percent over the prior year
period, or 4 percent at constant foreign exchange rates. International
revenues in the second quarter benefited from favorable foreign exchange in
substantially all regions. Excluding the impact of favorable foreign
exchange, revenues increased in substantially all regions.
Six-month Results
For the six-month period ended March 31, 2004, reported revenues were
$2.470 billion, a 13 percent increase over the same period a year ago, or 6
percent at constant foreign exchange rates. Diluted earnings per share for
the six-month period were $1.10. For the same period in fiscal 2003, diluted
earnings per share were 97 cents. Included in the first half results of
fiscal 2004 was a first quarter charge of 11 cents related to certain actions
taken in connection with our blood glucose monitoring products. Excluding the
charge of 11 cents, pro forma diluted earnings per share for the first half of
fiscal 2004 were $1.21.
Fiscal 2004 Outlook
The Company estimates that its reported diluted earnings per share for
fiscal 2004, which includes a charge of 11 cents per share relating to its
blood glucose monitoring products, will increase in the range of 10 to 12
percent over the prior period. This estimate is based on fiscal 2003 pro
forma earnings per share of $2.15, which excludes 8 cents of non-cash charges
related to the write-down of certain intangible assets and inventory in the BD
Biosciences segment.
Conference Call Information
A conference call regarding BD's second quarter results and its
expectations for the full fiscal year will be broadcast live on BD's website,
www.bd.com/investors, at 10:00 a.m. (ET) Thursday, April 22, 2004. The
conference call will be available for replay on BD's website at
www.bd.com/investors or at 1-800-283-9732 (domestic) and 1-402-998-1159
(international) through April 29, 2004.
This news release contains certain non-GAAP financial measures. A
reconciliation of these and other measures to the comparable GAAP measures is
included in the attached financial tables.
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, 2003, BD reported total revenues of $4.528 billion.
***
This press release, including the section entitled "Fiscal 2004 Outlook,"
contains certain forward-looking statements (as defined under Federal
securities laws) regarding BD's performance, including future revenues,
products and income, or events or developments that BD expects to occur or
anticipates occurring in the future. All such statements are based upon
current expectations of BD 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; changes in BD's sales
volume and product mix; BD's ability to achieve its cost savings objectives;
changes in regional, national or foreign economic conditions; increases in
energy costs; fluctuations in costs and availability of raw materials and in
BD's ability to maintain favorable supplier arrangements and relationships;
changes in interest or foreign currency exchange rates; delays in product
introductions; and changes in healthcare or other governmental regulation, as
well as other factors discussed in this press release and in BD's filings with
the Securities and Exchange Commission. We do not intend to update any
forward-looking statements.
BECTON DICKINSON AND COMPANY
CONSOLIDATED INCOME STATEMENTS
(Unaudited; Amounts in thousands, except per-share data)
Three Months Ended March 31,
2004 2003 % Change
REVENUES $1,270,523 $1,134,041 12.0
Cost of products sold 638,049 578,428 10.3
Selling and administrative 338,628 298,798 13.3
Research and development 62,554 60,034 4.2
TOTAL OPERATING COSTS
AND EXPENSES 1,039,231 937,260 10.9
OPERATING INCOME 231,292 196,781 17.5
Interest expense, net (7,961) (8,653) (8.0)
Other expense, net (3,118) (1,847) NM
INCOME BEFORE
INCOME TAXES 220,213 186,281 18.2
Income tax provision 55,053 44,241 24.4
NET INCOME $165,160 $142,040 16.3
EARNINGS PER SHARE
Basic $0.65 $0.56 16.1
Diluted $0.62 $0.54 14.8
AVERAGE SHARES OUTSTANDING
Basic 253,294 254,694
Diluted 265,055 263,369
NM - Not Meaningful
BECTON DICKINSON AND COMPANY
CONSOLIDATED INCOME STATEMENTS
(Unaudited; Amounts in thousands, except per-share data)
Six Months Ended March 31,
2004 2003 % Change
REVENUES $2,470,054 $2,185,689 13.0
Cost of products sold 1,278,933 1,128,467 13.3
Selling and administrative 668,248 582,979 14.6
Research and development 123,207 119,879 2.8
TOTAL OPERATING COSTS
AND EXPENSES 2,070,388 1,831,325 13.1
OPERATING INCOME 399,666 354,364 12.8
Interest expense, net (16,890) (17,286) (2.3)
Other expense, net (3,164) (1,763) NM
INCOME BEFORE
INCOME TAXES 379,612 335,315 13.2
Income tax provision 89,050 79,637 11.8
NET INCOME $290,562 $255,678 13.6
EARNINGS PER SHARE
Basic $1.15 $1.00 15.0
Diluted $1.10 $0.97 13.4
AVERAGE SHARES OUTSTANDING
Basic 252,710 254,994
Diluted 263,763 263,328
NM - Not Meaningful
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY SEGMENT AND GEOGRAPHIC AREA
(Unaudited; Amounts in thousands)
Three Months Ended March 31,
2004 2003 % Change
BD MEDICAL
United States $320,687 $292,794 9.5
International 361,954 309,025 17.1
TOTAL $682,641 $601,819 13.4
BD DIAGNOSTICS
United States $211,419 $206,206 2.5
International 171,456 150,594 13.9
TOTAL $382,875 $356,800 7.3
BD BIOSCIENCES
United States $87,317 $78,545 11.2
International 117,690 96,877 21.5
TOTAL $205,007 $175,422 16.9
TOTAL REVENUES
United States $619,423 $577,545 7.3
International 651,100 556,496 17.0
TOTAL $1,270,523 $1,134,041 12.0
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY SEGMENT AND GEOGRAPHIC AREA
(Unaudited; Amounts in thousands)
Six Months Ended March 31,
2004 2003 % Change
BD MEDICAL
United States $624,435 $589,220 6.0
International 685,074 584,236 17.3
TOTAL $1,309,509 $1,173,456 11.6
BD DIAGNOSTICS
United States $424,336 $397,738 6.7
International 359,484 290,716 23.7
TOTAL $783,820 $688,454 13.9
BD BIOSCIENCES
United States $162,346 $147,882 9.8
International 214,379 175,897 21.9
TOTAL $376,725 $323,779 16.4
TOTAL REVENUES
United States $1,211,117 $1,134,840 6.7
International 1,258,937 1,050,849 19.8
TOTAL $2,470,054 $2,185,689 13.0
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS
Three Months Ended March 31,
(Unaudited; Amounts in thousands)
United States
2004 2003 % Change
BD MEDICAL
Medical Surgical Systems $196,418 $180,731 8.7
Diabetes Care 88,730 83,658 6.1
Pharmaceutical Systems 30,276 22,795 32.8
Ophthalmic Systems 5,263 5,610 (6.2)
TOTAL $320,687 $292,794 9.5
BD DIAGNOSTICS
Preanalytical Systems $109,464 $102,958 6.3
Diagnostic Systems 101,955 103,248 (1.3)
TOTAL $211,419 $206,206 2.5
BD BIOSCIENCES
Discovery Labware $24,465 $23,226 5.3
Immunocytometry Systems 36,129 29,141 24.0
Clontech 8,234 8,399 (2.0)
Pharmingen 18,489 17,779 4.0
TOTAL $87,317 $78,545 11.2
TOTAL UNITED STATES $619,423 $577,545 7.3
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS
Three Months Ended March 31, (continued)
(Unaudited; Amounts in thousands)
International
% Change
FX FX
2004 2003 Reported Neutral Impact
BD MEDICAL
Medical Surgical Systems $187,062 $160,667 16.4 4.6 11.8
Diabetes Care 61,338 50,174 22.3 7.5 14.8
Pharmaceutical Systems 105,100 91,011 15.5 0.1 15.4
Ophthalmic Systems 8,454 7,173 17.9 4.0 13.9
TOTAL $361,954 $309,025 17.1 3.7 13.4
BD DIAGNOSTICS
Preanalytical Systems $86,479 $73,099 18.3 4.1 14.2
Diagnostic Systems 84,977 77,495 9.7 (1.5) 11.2
TOTAL $171,456 $150,594 13.9 1.2 12.7
BD BIOSCIENCES
Discovery Labware $24,088 $20,160 19.5 6.3 13.2
Immunocytometry Systems 67,434 54,339 24.1 10.5 13.6
Clontech 8,553 8,889 (3.8) (14.3) 10.5
Pharmingen 17,615 13,489 30.6 14.7 15.9
TOTAL $117,690 $96,877 21.5 7.9 13.6
TOTAL INTERNATIONAL $651,100 $556,496 17.0 3.8 13.2
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS
Three Months Ended March 31, (continued)
(Unaudited; Amounts in thousands)
Total
% Change
FX FX
2004 2003 Reported Neutral Impact
BD MEDICAL
Medical Surgical Systems $383,480 $341,398 12.3 6.7 5.6
Diabetes Care 150,068 133,832 12.1 6.6 5.5
Pharmaceutical Systems 135,376 113,806 19.0 6.6 12.4
Ophthalmic Systems 13,717 12,783 7.3 (0.5) 7.8
TOTAL $682,641 $601,819 13.4 6.5 6.9
BD DIAGNOSTICS
Preanalytical Systems $195,943 $176,057 11.3 5.4 5.9
Diagnostic Systems 186,932 180,743 3.4 (1.4) 4.8
TOTAL $382,875 $356,800 7.3 2.0 5.3
BD BIOSCIENCES
Discovery Labware $48,553 $43,386 11.9 5.8 6.1
Immunocytometry Systems 103,563 83,480 24.1 15.2 8.9
Clontech 16,787 17,288 (2.9) (8.3) 5.4
Pharmingen 36,104 31,268 15.5 8.6 6.9
TOTAL $205,007 $175,422 16.9 9.4 7.5
TOTAL REVENUES $1,270,523 $1,134,041 12.0 5.5 6.5
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS
Six Months Ended March 31,
(Unaudited; Amounts in thousands)
United States
2004 2003 % Change
BD MEDICAL
Medical Surgical Systems $394,937 $373,482 5.7
Diabetes Care 163,579 159,154 2.8
Pharmaceutical Systems 54,631 44,322 23.3
Ophthalmic Systems 11,288 12,262 (7.9)
TOTAL $624,435 $589,220 6.0
BD DIAGNOSTICS
Preanalytical Systems $216,091 $203,981 5.9
Diagnostic Systems 208,245 193,757 7.5
TOTAL $424,336 $397,738 6.7
BD BIOSCIENCES
Discovery Labware $47,880 $46,346 3.3
Immunocytometry Systems 64,897 52,340 24.0
Clontech 15,087 16,262 (7.2)
Pharmingen 34,482 32,934 4.7
TOTAL $162,346 $147,882 9.8
TOTAL UNITED STATES $1,211,117 $1,134,840 6.7
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS
Six Months Ended March 31, (continued)
(Unaudited; Amounts in thousands)
International
% Change
FX FX
2004 2003 Reported Neutral Impact
BD MEDICAL
Medical Surgical Systems $363,386 $313,435 15.9 4.0 11.9
Diabetes Care 119,515 94,223 26.8 11.2 15.6
Pharmaceutical Systems 185,944 162,729 14.3 (1.4) 15.7
Ophthalmic Systems 16,229 13,849 17.2 3.9 13.3
TOTAL $685,074 $584,236 17.3 3.6 13.7
BD DIAGNOSTICS
Preanalytical Systems $164,832 $139,279 18.3 4.3 14.0
Diagnostic Systems 194,652 151,437 28.5 15.5 13.0
TOTAL $359,484 $290,716 23.7 10.1 13.6
BD BIOSCIENCES
Discovery Labware $45,556 $38,915 17.1 3.8 13.3
Immunocytometry Systems 120,810 95,192 26.9 13.3 13.6
Clontech 16,053 16,781 (4.3) (14.7) 10.4
Pharmingen 31,960 25,009 27.8 11.8 16.0
TOTAL $214,379 $175,897 21.9 8.3 13.6
TOTAL INTERNATIONAL $1,258,937 $1,050,849 19.8 6.2 13.6
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS
Six Months Ended March 31, (continued)
(Unaudited; Amounts in thousands)
Total
% Change
FX FX
2004 2003 Reported Neutral Impact
BD MEDICAL
Medical Surgical Systems $758,323 $686,917 10.4 4.9 5.5
Diabetes Care 283,094 253,377 11.7 5.9 5.8
Pharmaceutical Systems 240,575 207,051 16.2 3.8 12.4
Ophthalmic Systems 27,517 26,111 5.4 (1.6) 7.0
TOTAL $1,309,509 $1,173,456 11.6 4.8 6.8
BD DIAGNOSTICS
Preanalytical Systems $380,923 $343,260 11.0 5.3 5.7
Diagnostic Systems 402,897 345,194 16.7 11.0 5.7
TOTAL $783,820 $688,454 13.9 8.1 5.8
BD BIOSCIENCES
Discovery Labware $93,436 $85,261 9.6 3.6 6.0
Immunocytometry Systems 185,707 147,532 25.9 17.1 8.8
Clontech 31,140 33,043 (5.8) (11.0) 5.2
Pharmingen 66,442 57,943 14.7 7.8 6.9
TOTAL $376,725 $323,779 16.4 9.0 7.4
TOTAL REVENUES $2,470,054 $2,185,689 13.0 6.5 6.5
BECTON DICKINSON AND COMPANY
RECONCILIATION TO PRO FORMA AMOUNTS
Six Months Ended March 31,
(Unaudited)
2004
As BGM Excluding
Reported Charges * Charges
Diluted EPS $1.10 $0.11 $1.21
* Relates to the fiscal 2004 charge associated with blood glucose
monitoring (BGM) products.
BECTON DICKINSON AND COMPANY
RECONCILIATION TO PRO FORMA AMOUNTS
Twelve Months Ended September 30,
(Unaudited)
2003
As Non-cash Excluding
Reported Charges ** Charges
Diluted EPS $2.07 $0.08 $2.15
** Relates to the fiscal 2003 write-down of certain intangible assets and
inventory in the BD Biosciences segment.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
Six Months Ended March 31,
(Unaudited; Amounts in thousands)
2004
As BGM Excluding
Reported Charges * Charges
Gross Profit $1,191,121 $45,024 $1,236,145
as a % of revenues 48.2% 50.0%
Operating Income 399,666 45,024 444,690
as a % of revenues 16.2% 18.0%
Net Income 290,562 27,915 318,477
as a % of revenues 11.8% 12.9%
* Relates to the fiscal 2004 charge associated with blood glucose
monitoring (BGM) products.
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