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BD [LOGO]
Contact:
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Camilla Jenkins / Media Relations - 201-847-5369
Dean Paranicas / Investor Relations - 201-847-7102
BD ANNOUNCES RESULTS FOR FISCAL FIRST QUARTER
Performance Consistent With Company's November 9, 2000 Guidance
Franklin Lakes, NJ (January 17, 2001) - BD (Becton, Dickinson and Company)
(NYSE: BDX) today reported revenues of $843 million for the first quarter ended
December 31, 2000, down 2 percent from the same period a year ago. At constant
foreign exchange rates, revenues increased 3 percent.
As expected, revenues were negatively affected by foreign exchange translation,
related primarily to the Euro, which reduced first quarter revenues by an
estimated $46 million. The quarter also reflected the impact of remaining
inventory reductions at the trade level following the discontinuation of certain
distributor incentive programs in the prior quarter, and an unfavorable
comparison to the first quarter of fiscal 2000, which benefited from Y2K-related
inventory stocking.
Diluted earnings per share and net income were 23 cents and $61 million for the
first quarter, compared with 29 cents and $75 million for the same period in
fiscal 2000.
Edward J. Ludwig, president and chief executive officer, reaffirmed the
Company's guidance given at its November 9, 2000 meeting with analysts,
investors and the press, indicating that "in fiscal 2001, the Company expects to
achieve sales growth of approximately 5 percent on a reported basis, or
approximately 7 percent at constant exchange rates." Mr. Ludwig also stated
that "the Company remains on track to achieve earnings per share of
approximately 44 cents for the second quarter of fiscal 2001, and an increase in
net income of about 10 percent for fiscal 2001.
"While we remain focused on delivering solid financial performance, we continue
to invest in promising product initiatives to drive revenue growth," Mr. Ludwig
continued. "This includes scaling up production of the industry's broadest line
of safety-engineered devices to meet the increasing customer demand related to
federal and state needlestick safety legislation."
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Q1 Segment Results
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As previously announced, beginning October 1, 2000, the Company revised its
reporting segments. The microbiology product line (now known as diagnostic
systems) was moved from the Biosciences segment and combined with the segment
formerly known as Preanalytical Solutions to form the Clinical Laboratory
Solutions segment. Summary revenue data reflecting the revised segments are as
follows:
First Fiscal Quarter
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($ in millions)
Segment 2001 2000
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Medical Systems $ 438 $ 463
Clinical Laboratory Solutions 277 271*
Biosciences 128 125*
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Total $ 843 $ 859
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* Restated Clinical Laboratory Solutions revenues for the first quarter of
fiscal 2000 include $132 million related to Preanalytical Solutions, and $139
million related to microbiology that previously had been included in
Biosciences revenues.
In the Medical Systems segment, worldwide revenues of $438 million declined 5
percent in the quarter, and were essentially flat at constant foreign exchange
rates. Included in Medical Systems revenues were U.S. safety-engineered sales
of $51 million, an increase of 37 percent versus the prior year's quarter.
Growth in this segment was offset by the impact of inventory reductions at the
trade level related to distributor incentive programs discontinued in the prior
quarter. Segment revenue comparisons with the prior year also were affected by
Y2K-related inventory stocking.
In the Clinical Laboratory Solutions segment, first quarter worldwide revenues
increased 2 percent to $277 million, or 7 percent at constant foreign exchange
rates. Revenue growth was equally driven by the preanalytical solutions and
diagnostic systems product lines. Included in Clinical Laboratory Solutions
revenues were U.S. safety-engineered sales of $31 million, an increase of 38
percent versus the prior year's quarter.
Revenues for the Biosciences segment grew by 2 percent to $128 million. At
constant foreign exchange rates, revenues increased 8 percent. Biosciences
revenue increases were led by sales of Clontech, PharMingen and Transduction
Labs products.
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Q1 Geographic Results
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On a geographic basis, first quarter revenues in the United States increased 1
percent to $431 million. Revenues outside the United States of $412 million
declined 5 percent, but increased 6 percent at constant foreign exchange rates.
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, 2000, BD reported total
revenues of $3.6 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
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Wire at www.businesswire.com. A conference call with analysts regarding this
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news release will be broadcast live on BD's website at 8:30 a.m. EST Thursday,
January 18, 2000. The conference call will be available for playback at 1-888-
300-0165.
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BECTON DICKINSON AND COMPANY
REVENUES BY BUSINESS SEGMENTS AND MAJOR PRODUCT GROUPS
FISCAL YEAR 2001
(Unaudited; Amounts in thousands)
United States
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Q1 % Change
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MEDICAL SYSTEMS
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Core Medical $ 140,040 3.8
Consumer Health Care 44,501 (20.0)
Pharmaceutical Systems 10,270 19.2
Ophthalmic Systems 7,208 (3.4)
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TOTAL $ 202,019 (2.2)
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CLINICAL LABORATORY SOLUTIONS
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Preanalytical Solutions $ 76,580 10.9
Diagnostic Systems 83,099 4.6
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TOTAL $ 159,679 7.5
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BIOSCIENCES
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Immunocytometry & Reagents $ 51,494 (3.4)
Discovery Labware 18,092 0.6
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TOTAL $ 69,586 (2.4)
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TOTAL UNITED STATES $ 431,284 1.1
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International
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Q1 % Change
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MEDICAL SYSTEMS
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Core Medical $ 136,836 (9.5)
Consumer Health Care 47,906 (2.0)
Pharmaceutical Systems 46,721 (7.8)
Ophthalmic Systems 4,952 (4.2)
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TOTAL $ 236,415 (7.6)
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CLINICAL LABORATORY SOLUTIONS
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Preanalytical Solutions $ 57,044 (9.6)
Diagnostic Systems 60,230 1.2
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TOTAL $ 117,274 (4.3)
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BIOSCIENCES
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Immunocytometry & Reagents $ 43,839 11.9
Discovery Labware 14,445 (3.4)
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TOTAL $ 58,284 7.6
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TOTAL INTERNATIONAL $ 411,973 (4.8)
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Total
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Q1 % Change
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MEDICAL SYSTEMS
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Core Medical $ 276,876 (3.2)
Consumer Health Care 92,407 (11.6)
Pharmaceutical Systems 56,991 (3.9)
Ophthalmic Systems 12,160 (3.7)
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TOTAL $ 438,434 (5.2)
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CLINICAL LABORATORY SOLUTIONS
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Preanalytical Solutions $ 133,624 1.1
Diagnostic Systems 143,329 3.1
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TOTAL $ 276,953 2.2
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BIOSCIENCES
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Immunocytometry & Reagents $ 95,333 3.1
Discovery Labware 32,537 (1.2)
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TOTAL $ 127,870 1.9
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TOTAL REVENUES $ 843,257 (1.9)
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BECTON DICKINSON AND COMPANY
CONSOLIDATED INCOME STATEMENTS
(Unaudited; Amounts in thousands, except per-share data)
Three Months Ended December 31,
2000 1999 % Change
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REVENUES $ 843,257 $ 859,164 (1.9)
Cost of products sold 448,947 449,951 (0.2)
Selling and administrative 235,292 233,838 0.6
Research and development 52,727 53,743 (1.9)
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TOTAL OPERATING COSTS
AND EXPENSES 736,966 737,532 (0.1)
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OPERATING INCOME 106,291 121,632 (12.6)
Interest expense, net (18,564) (21,557) (13.9)
Other (expense) income, net (7,961) 1,674 NM
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INCOME BEFORE
INCOME TAXES 79,766 101,749 (21.6)
Income tax provision 19,144 26,455 (27.6)
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NET INCOME $ 60,622 $ 75,294 (19.5)
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EARNINGS PER SHARE
Basic $ 0.24 $ 0.30 (20.0)
Diluted $ 0.23 $ 0.29 (20.7)
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AVERAGE SHARES OUTSTANDING
Basic 254,465 251,328
Diluted 266,237 262,593
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NM - Not Meaningful
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BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
(Unaudited; Amounts in thousands)
Three Months Ended December 31,
2000 1999 % Change
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MEDICAL SYSTEMS
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United States $ 202,019 $ 206,622 (2.2)
International 236,415 255,984 (7.6)
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TOTAL $ 438,434 $ 462,606 (5.2)
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CLINICAL LABORATORY SOLUTIONS
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United States $ 159,679 $ 148,523 7.5
International 117,274 122,576 (4.3)
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TOTAL $ 276,953 $ 271,099 2.2
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BIOSCIENCES
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United States $ 69,586 $ 71,314 (2.4)
International 58,284 54,145 7.6
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TOTAL $ 127,870 $ 125,459 1.9
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TOTAL REVENUES
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United States $ 431,284 $ 426,459 1.1
International 411,973 432,705 (4.8)
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TOTAL $ 843,257 $ 859,164 (1.9)
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