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EXHIBIT 99.1
News Release [LOGO] BD
Indispensable to
human health
Contact:
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Camilla Jenkins / Media Relations
201-847-5369
Dean Paranicas / Investor Relations
201-847-7102
BD ANNOUNCES PROGRAM TO REDUCE COSTS, IMPROVE FINANCIAL
PERFORMANCE AND SUPPORT MAJOR PRODUCT INITIATIVES;
EXCLUDING SPECIAL CHARGES AND ONE-TIME EVENTS, COMPANY
EXPECTS TO REPORT FISCAL Q4 EPS OF 39 CENTS
Company Discontinues Certain Distributor Incentive Programs, Reducing Q4
Earnings By Approximately 6 Cents; Workforce Reductions Announced
Franklin Lakes, NJ (September 26, 2000) - BD (Becton, Dickinson and Company)
(NYSE:BDX) announced today a series of actions designed to enhance operational
efficiency, improve financial performance and provide better, more responsive
service to customers. These actions include the termination of certain
incentive programs with distributors in order to improve supply chain and
manufacturing efficiencies, reduce costs and establish closer links with
customers. Discontinuance of the incentive programs is expected to reduce
fiscal 2000 fourth quarter revenues and earnings per share by approximately $50
million and 6 cents, respectively.
The Company also is implementing a worldwide organizational restructuring
expected to eliminate approximately 1,000 positions during fiscal 2001. This
restructuring is expected to result in a charge against earnings in the fourth
quarter of fiscal 2000. The charge associated with the workforce reductions,
and a charge of approximately 4 to 5 cents for estimated litigation defense
costs relating to the Company's divested latex gloves business (the "special
charges"), will be reported on November 8, 2000 in conjunction with the release
of the Company's audited results for fiscal 2000.
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Excluding the special charges, BD would expect to report diluted earnings per
share of approximately 46 cents for the fourth quarter, which would include
approximately seven cents relating to one-time gains and the favorable impact of
the conclusion of tax audits in certain countries. Excluding the special
charges, the one-time gains and the favorable tax effect, fiscal fourth quarter
diluted earnings per share are expected to be 39 cents.
Edward J. Ludwig, president and chief executive officer, said, "As a first step
to improving our financial performance, we have imposed immediate and stringent
cost and capital spending controls and have taken actions that are designed to
improve both our financial and operational performance, while enabling us to
continue to invest in promising product initiatives, including advanced
protection (safety-engineered) devices and biosciences. We also have worked
closely with our distributors to discontinue certain incentive programs as an
initial step to better manage our supply chain efficiency and profitability, and
we are taking measures to mitigate the effects of foreign exchange volatility."
Mr. Ludwig continued, "As we move forward with these productivity initiatives,
our commitment is to drive growth, to serve our customers more efficiently and
to enhance our shareholder value."
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, 1999, BD reported total revenues
of $3.4 billion.
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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, 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
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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.
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BD's news releases can be found on its website at www.bd.com or through
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Business Wire at www.businesswire.com. A conference call with analysts
regarding this news release will be broadcast live on BD's website at 5:00 p.m.
EDT today, September 26, 2000. The conference call will be available for
playback.
The Internet link for the conference call is as follows:
www.corporate-ir.net/ireye/ir_site.zhtml?ticker=bdx&script=100&layout=7
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