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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) November 6, 1998
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BECTON, DICKINSON AND COMPANY
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(Exact name of registrant as specified in its charter)
New Jersey 001-4802 22-0760120
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(State or other juris- (Commission (IRS Employer Iden-
diction of incorporation) File Number) tification Number)
1 Becton Drive, Franklin Lakes, New Jersey 07417-1880
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (201) 847-6800
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N/A
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(Former name or former addresses if changed since last report.)
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Item 5. OTHER EVENTS
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On November 5, 1998, the Registrant announced in a press release
its results for the fiscal year ended September 30, 1998. Attached
hereto as Exhibit 99, which is incorporated herein by reference, is
a copy of such press release.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
BECTON, DICKINSON AND COMPANY
(Registrant)
By: /s/ Bridget M. Healy
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Bridget M. Healy
Vice President and Secretary
Date: November 6, 1998
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<PAGE>
INDEX TO EXHIBITS
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Exhibit
Number Description of Exhibits
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99 Press Release issued on November 5, 1998
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[BECTON DICKINSON AND COMPANY LETTERHEAD]
Refer To: R. Jasper -- 201-847-7160
Release Date: November 5, 1998
BECTON DICKINSON ANNOUNCES
RECORD REVENUES FOR FISCAL YEAR
FRANKLIN LAKES, NJ (NOVEMBER 5, 1998) - Becton Dickinson and Company
(NYSE:BDX) announced today results for its fiscal fourth quarter and full year,
which ended September 30, 1998.
FULL-YEAR RESULTS
Revenues for the year were a record $3.117 billion (three billion, one
hundred seventeen million dollars), an 11 percent increase from last year's
$2.811 billion (two billion, eight hundred eleven million dollars), as most of
the company's worldwide businesses reported increases of greater than ten
percent, excluding the estimated effect of foreign currency translation. Recent
acquisitions contributed to revenue growth. Diluted earnings per share for the
year, excluding previously announced restructuring and other charges and the
impact of the acquisition of the medical device business of The BOC Group (MDD),
were $1.37. Reported earnings per share for fiscal 1997 were $1.15, which
included a $.06 a share charge for in-process research and development
associated with acquisitions. Fiscal 1998 earnings per share, inclusive of the
aforementioned charges and MDD acquisition, were $.90.
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Clateo Castellini, chairman, president and chief executive officer, said:
"1998 marks the beginning of demonstrated revenue acceleration for the company,
as recent acquisitions are contributing. In addition, we are pleased with our
earnings performance and the record we are showing for improving productivity
and profit margins."
The company said that reported revenues for the year would have been an
estimated $87 million higher if not for the strength of the dollar compared with
foreign currencies. Reported earnings per share were reduced by an estimated
$.07 as a result of currency translation.
By business segment, diagnostic systems revenues grew eight percent over
1997 to $1.402 billion (one billion, four hundred two million dollars),
reflecting good performance in the company's flow cytometry and sample
collection businesses. Excluding the estimated impact of foreign currency
translation, the increase would have been 11 percent. Revenues of the company's
infectious disease diagnostics business continue to reflect the negative impact
of reduced testing, although the acquisition of Difco, Inc. contributed to
reported growth as the company increased its role in industrial microbiology.
Medical supplies and devices revenues for the year were $1.715 billion (one
billion, seven hundred fifteen million dollars), 14 percent higher than last
year, as the recent MDD acquisition added more than $80 million to reported
results. Excluding the estimated impact from foreign currency translation,
revenues would have increased 16 percent. Customer conversions to devices that
enhance healthcare worker protection continue to generate good underlying growth
in the injection systems and infusion therapy businesses. The pharmaceutical
systems business, primarily prefillable syringes, also showed excellent growth,
as did the company's surgical products business.
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By geographic area, revenues in the United States were $1.690 billion (one
billion, six hundred ninety million dollars), an increase of 14 percent.
Revenues outside the United States were $1.427 billion (one billion, four
hundred twenty-seven million dollars), compared with $1.324 billion (one
billion, three hundred twenty-four million dollars) last year, an eight percent
increase. Excluding the estimated impact of foreign currency translation, the
increase would have been 14 percent.
FOURTH QUARTER RESULTS
For the fourth quarter, the company reported diluted earnings per share of
$.34, which included the previously announced impact of the MDD acquisition and
costs associated with the company's program to upgrade its worldwide business
systems. These items reduced earnings per share by $.06.
Revenues for the quarter were $843 million, an increase of 13 percent,
aided by recent acquisitions. The company said that foreign currency translation
reduced reported revenue growth by an estimated two percentage points for the
quarter.
Gross profit margin for the quarter increased to 52.2 percent of revenues
from 51.3 percent, aided by productivity improvements and an improved product
mix.
By business segment, diagnostic systems revenues for the quarter were $359
million compared with $346 million a year ago. Medical supplies and devices
revenues were $484 million compared with $403 million last year.
On a geographic basis, revenues in the United States were $458 million
compared with $417 million for the year ago quarter, while revenues outside the
United States were $385 million compared with $332 million in the prior fiscal
year's fourth quarter. Foreign currency translation reduced non-U.S. revenues by
an estimated $18 million.
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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, which 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 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, changes in regional,
national or foreign economic conditions, changes in interest or foreign
currency exchange rates, delays in product introductions, Year 2000 issues,
and changes in health care or other governmental regulation, as well as
other factors discussed herein and in the company's filings with the
Securities and Exchange Commission.
# # #
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BECTON DICKINSON AND COMPANY
SELECTED FINANCIAL SCHEDULES
Thousands of dollars, except per share amounts
<TABLE>
<CAPTION>
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INCOME STATEMENTS
Three Months Ended September 30, Twelve Months Ended September 30,
-------------------------------- ---------------------------------
1998 1997 % Change 1998 1997 % Change
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<S> <C> <C> <C> <C> <C> <C>
REVENUES $ 843,239 $ 748,978 12.6 $3,116,873 $2,810,523 10.9
Cost of products sold 403,142 364,760 10.5 1,541,032 1,413,311 9.0
Selling and administrative 241,989 202,981 19.2 861,564 766,071 12.5
Research and development 48,615 44,008 10.5 217,900 180,626 20.6
Special Charges - - - 90,945 - NM
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Total Operating Costs
and Expenses 693,746 611,749 13.4 2,711,441 2,360,008 14.9
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Operating Income 149,493 137,229 8.9 405,432 450,515 (10.0)
Interest expense, net (17,146) (11,247) 52.4 (56,340) (39,373) 43.1
Other expense, net (1,114) (422) NM (8,226) 11,498 NM
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Income Before Income Taxes 131,233 125,560 4.5 340,866 422,640 (19.3)
Income tax provision 41,336 36,413 13.5 104,298 122,566 (14.9)
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Net Income $ 89,897 $ 89,147 0.8 $ 236,568 $ 300,074 (21.2)
========== ========== ==== ========== ========== ======
EARNINGS PER SHARE
Basic $ 0.36 $ 0.36 - $ 0.95 $ 1.21 (21.5)
Diluted $ 0.34 $ 0.34 - $ 0.90 $ 1.15 (21.7)
========== ========== ==== ========== ========== ======
AVERAGE SHARES OUTSTANDING
Basic 247,614 244,454 245,700 245,230
Diluted 265,106 259,186 262,128 259,586
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NM - Not Meaningful
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SUMMARY OF REVENUES
Three Months Ended September 30, Twelve Months Ended September 30,
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1998 1997 % Change 1998 1997 % Change
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BUSINESS SEGMENT
Medical Supplies and Devices $ 484,351 $ 403,061 20.2 $1,714,952 $1,510,881 13.5
Diagnostic Systems 358,888 345,917 3.7 1,401,921 1,299,642 7.9
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Total $ 843,239 $ 748,978 12.6 $3,116,873 $2,810,523 10.9
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Geographic Area
United States $ 458,117 $ 417,093 9.8 $1,690,282 $1,486,701 13.7
International 385,122 331,885 16.0 1,426,591 1,323,822 7.8
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Total $ 843,239 $ 748,978 12.6 $3,116,873 $2,810,523 10.9
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</TABLE>
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