EX-99 2 dex99.txt PRESS RELEASE ISSUED APRIL 18, 2001 BD [LOGO] Contact: -------- Camilla Jenkins / Media Relations - 201-847-5369 Dean Paranicas / Investor Relations - 201-847-7102 BD ANNOUNCES RECORD REVENUES FOR FISCAL SECOND QUARTER Company Reaffirms Outlook for Full Year Franklin Lakes, NJ (April 18, 2001) - BD (Becton, Dickinson and Company) (NYSE:BDX) today announced revenues of $961 million for the second quarter ended March 31, 2001, the largest quarterly revenues reported in the history of the Company. Reported revenues for the quarter represented an increase of 4 percent over the same period a year ago. Revenues were affected by foreign currency translation, related primarily to the Euro and Japanese Yen, which reduced revenues by an estimated 3 percent. Diluted earnings per share for the quarter were 44 cents, compared with 45 cents for the prior year's quarter. The prior year's reported earnings per share included a gain on the sale of an equity investment offset in part by the unfavorable impact of a voluntary product recall. Excluding these items, earnings per share for the prior year would have been 42 cents. "We are pleased with our revenue growth, which was driven by U.S. sales of advanced protection devices and from strong sales in our Biosciences segment," said Edward J. Ludwig, president and chief executive officer. "The growth in sales of our advanced protection devices reflects our effectiveness in converting the U.S. market to the adoption of new devices engineered to provided added protection for healthcare workers." Commenting on the Company's outlook, Mr. Ludwig noted, "For fiscal 2001, we continue to expect year-on-year net income growth to be double digit, with expected earnings per share of approximately 46 cents in the third quarter and $1.63 for the full year." Q2 Segment Results As previously announced, beginning October 1, 2000, the Company revised its reporting segments. The microbiology product line (now known as diagnostic systems) was moved from the Biosciences segment and combined with the segment formerly known as Preanalytical Solutions to form the Clinical Laboratory Solutions segment. Summary revenue data reflecting the revised segments are as follows:
Six Months Revenues by Segment Ended ($in millions) Second Fiscal Quarter March 31 -------------------- --------------------- ------------ 2001 2000 2001 2000 ----- ----- ------ ------ Medical Systems $ 507 $ 489 $ 945 $ 952 Clinical Laboratory Solutions 298 294* 575 565* Biosciences 156 142* 284 267* ----- ----- ------ ------ Total $ 961 $ 925 $1,804 $1,784 ===== ===== ====== ======
* Restated Clinical Laboratory Solutions revenues for the three months and six months ended March 31, 2000 include, respectively, $139 million and $272 million related to the former Preanalytical Solutions segment, and $154 million and $293 million related to the microbiology product group that previously had been included in Biosciences revenues. In the Medical Systems segment, worldwide revenues of $507 million increased 4 percent for the quarter, or 7 percent at constant foreign exchange rates. In the Clinical Laboratory Solutions segment, worldwide revenues increased 2 percent to $298 million, or 5 percent at constant foreign exchange rates. Both segments benefited from strong sales of advanced protection devices. U.S. sales of safety-engineered products were $58 million for Medical Systems, representing an increase of 53 percent versus the prior year's quarter, and $38 million for Clinical Laboratory Solutions, representing an increase of 44 percent versus the prior year's quarter. Revenues for the Biosciences segment grew 10 percent to $156 million. At constant foreign exchange rates, revenues increased 14 percent. All product groups contributed to this growth. Q2 Geographic Results On a geographic basis, second quarter revenues in the United States increased 6 percent to $511 million. Revenues outside the United States of $451 million increased 2 percent, or 9 percent at constant foreign exchange rates. Six-Month Results For the six-month period ended March 31, 2001, reported revenues were $1.804 billion, a 1 percent increase over $1.784 billion a year ago, or 5 percent at constant foreign exchange rates. Diluted earnings per share for the six-month period were 67 cents. For the same period in fiscal 2000, diluted earnings per share were 74 cents, which included the items in the second quarter referred to above. BD is a medical technology company that manufactures and sells a broad range of supplies, devices and systems for use by healthcare professionals, medical research institutions, industry and the general public. 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. A conference call with analysts regarding this -------------------- news release will be broadcast live on BD's website at 8:30 a.m. EDT Thursday, April 19, 2001, and will be available for playback through April 25, 2001. The conference call will be recorded for playback at 1-800-391-9847. BECTON DICKINSON AND COMPANY CONSOLIDATED INCOME STATEMENTS (Unaudited; Amounts in thousands, except per-share data) Three Months Ended March 31, 2001 2000 % Change ----------------------------------------------------------------------------- REVENUES $ 961,179 $ 925,132 3.9 Cost of products sold 487,615 473,987 2.9 Selling and administrative 241,912 244,063 (0.9) Research and development 54,497 57,175 (4.7) ----------------------------------------------------------------------------- TOTAL OPERATING COSTS AND EXPENSES 784,024 775,225 1.1 ----------------------------------------------------------------------------- OPERATING INCOME 177,155 149,907 18.2 Interest expense, net (15,998) (21,199) (24.5) Other (expense) income, net (5,418) 36,399 NM ----------------------------------------------------------------------------- INCOME BEFORE INCOME TAXES 155,739 165,107 (5.7) Income tax provision 37,377 45,936 (18.6) ----------------------------------------------------------------------------- NET INCOME $ 118,362 $ 119,171 (0.7) ----------------------------------------------------------------------------- EARNINGS PER SHARE Basic $ 0.46 $ 0.47 (2.1) Diluted $ 0.44 $ 0.45 (2.2) ----------------------------------------------------------------------------- AVERAGE SHARES OUTSTANDING Basic 257,021 252,055 Diluted 269,172 263,376 ----------------------------------------------------------------------------- NM - Not Meaningful BECTON DICKINSON AND COMPANY CONSOLIDATED INCOME STATEMENTS (Unaudited; Amounts in thousands, except per-share data) Six Months Ended March 31, 2001 2000 % Change ----------------------------------------------------------------------------- REVENUES $ 1,804,436 $ 1,784,296 1.1 Cost of products sold 936,562 923,938 1.4 Selling and administrative 477,204 477,901 (0.1) Research and development 107,224 110,918 (3.3) ----------------------------------------------------------------------------- TOTAL OPERATING COSTS AND EXPENSES 1,520,990 1,512,757 0.5 ----------------------------------------------------------------------------- OPERATING INCOME 283,446 271,539 4.4 Interest expense, net (34,562) (42,756) (19.2) Other (expense) income, net (13,379) 38,073 NM ----------------------------------------------------------------------------- INCOME BEFORE INCOME TAXES 235,505 266,856 (11.7) Income tax provision 56,521 72,391 (21.9) ----------------------------------------------------------------------------- NET INCOME $ 178,984 $ 194,465 (8.0) ----------------------------------------------------------------------------- EARNINGS PER SHARE Basic $ 0.69 $ 0.77 (10.4) Diluted $ 0.67 $ 0.74 (9.5) ----------------------------------------------------------------------------- AVERAGE SHARES OUTSTANDING Basic 255,729 251,690 Diluted 267,806 262,986 ----------------------------------------------------------------------------- NM - Not Meaningful BECTON DICKINSON AND COMPANY SUPPLEMENTAL REVENUE INFORMATION (Unaudited; Amounts in thousands) Three Months Ended March 31, 2001 2000 % Change -------------------------------------------- MEDICAL SYSTEMS --------------- United States $ 250,942 $ 232,003 8.2 International 255,896 257,326 (0.6) ----------------------------------------------------------------------------- TOTAL $ 506,838 $ 489,329 3.6 ----------------------------------------------------------------------------- CLINICAL LABORATORY SOLUTIONS ----------------------------- United States $ 175,725 $ 172,427 1.9 International 122,634 121,506 0.9 ----------------------------------------------------------------------------- TOTAL $ 298,359 $ 293,933 1.5 ----------------------------------------------------------------------------- BIOSCIENCES ----------- United States $ 83,905 $ 77,309 8.5 International 72,077 64,561 11.6 ----------------------------------------------------------------------------- TOTAL $ 155,982 $ 141,870 9.9 ----------------------------------------------------------------------------- TOTAL REVENUES -------------- United States $ 510,572 $ 481,739 6.0 International 450,607 443,393 1.6 ----------------------------------------------------------------------------- TOTAL $ 961,179 $ 925,132 3.9 ----------------------------------------------------------------------------- Six Months Ended March 31, 2001 2000 % Change -------------------------------------------- MEDICAL SYSTEMS --------------- United States $ 452,961 $ 438,625 3.3 International 492,311 513,310 (4.1) ----------------------------------------------------------------------------- TOTAL $ 945,272 $ 951,935 (0.7) ----------------------------------------------------------------------------- CLINICAL LABORATORY SOLUTIONS ----------------------------- United States $ 335,404 $ 320,950 4.5 International 239,908 244,082 (1.7) ----------------------------------------------------------------------------- TOTAL $ 575,312 $ 565,032 1.8 ----------------------------------------------------------------------------- BIOSCIENCES ----------- United States $ 153,491 $ 148,623 3.3 International 130,361 118,706 9.8 ----------------------------------------------------------------------------- TOTAL $ 283,852 $ 267,329 6.2 ----------------------------------------------------------------------------- TOTAL REVENUES -------------- United States $ 941,856 $ 908,198 3.7 International 862,580 876,098 (1.5) ----------------------------------------------------------------------------- TOTAL $ 1,804,436 $ 1,784,296 1.1 ----------------------------------------------------------------------------- BECTON DICKINSON AND COMPANY REVENUES BY BUSINESS SEGMENTS AND MAJOR PRODUCT GROUPS THREE MONTHS ENDED MARCH 31, (Unaudited; Amounts in thousands) United States -------------------------------------- 2001 2000 % Change -------------------------------------- MEDICAL SYSTEMS --------------- Core Medical $ 152,165 $ 138,673 9.7 Consumer Health Care 79,135 75,624 4.6 Pharmaceutical Systems 12,422 11,190 11.0 Ophthalmic Systems 7,220 6,516 10.8 --------------------------------------------------------------------------- TOTAL $ 250,942 $ 232,003 8.2 --------------------------------------------------------------------------- CLINICAL LABORATORY SOLUTIONS ----------------------------- Preanalytical Solutions $ 86,489 $ 78,406 10.3 Diagnostic Systems 89,236 94,021 (5.1) --------------------------------------------------------------------------- TOTAL $ 175,725 $ 172,427 1.9 --------------------------------------------------------------------------- BIOSCIENCES ----------- Immunocytometry & Reagents $ 60,332 $ 57,100 5.7 Discovery Labware 23,573 20,209 16.6 --------------------------------------------------------------------------- TOTAL $ 83,905 $ 77,309 8.5 --------------------------------------------------------------------------- TOTAL UNITED STATES $ 510,572 $ 481,739 6.0 --------------------------------------------------------------------------- International -------------------------------------- 2001 2000 % Change -------------------------------------- MEDICAL SYSTEMS --------------- Core Medical $ 144,842 $ 150,591 (3.8) Consumer Health Care 48,277 50,524 (4.4) Pharmaceutical Systems 56,601 50,700 11.6 Ophthalmic Systems 6,176 5,511 12.1 --------------------------------------------------------------------------- TOTAL $ 255,896 $ 257,326 (0.6) --------------------------------------------------------------------------- CLINICAL LABORATORY SOLUTIONS ----------------------------- Preanalytical Solutions $ 62,657 $ 61,080 2.6 Diagnostic Systems 59,977 60,426 (0.7) --------------------------------------------------------------------------- TOTAL $ 122,634 $ 121,506 0.9 --------------------------------------------------------------------------- BIOSCIENCES ----------- Immunocytometry & Reagents $ 56,045 $ 48,723 15.0 Discovery Labware 16,032 15,838 1.2 --------------------------------------------------------------------------- TOTAL $ 72,077 $ 64,561 11.6 --------------------------------------------------------------------------- TOTAL INTERNATIONAL $ 450,607 $ 443,393 1.6 --------------------------------------------------------------------------- Total -------------------------------------- 2001 2000 % Change -------------------------------------- MEDICAL SYSTEMS --------------- Core Medical $ 297,007 $ 289,264 2.7 Consumer Health Care 127,412 126,148 1.0 Pharmaceutical Systems 69,023 61,890 11.5 Ophthalmic Systems 13,396 12,027 11.4 --------------------------------------------------------------------------- TOTAL $ 506,838 $ 489,329 3.6 --------------------------------------------------------------------------- CLINICAL LABORATORY SOLUTIONS ----------------------------- Preanalytical Solutions $ 149,146 $ 139,486 6.9 Diagnostic Systems 149,213 154,447 (3.4) --------------------------------------------------------------------------- TOTAL $ 298,359 $ 293,933 1.5 --------------------------------------------------------------------------- BIOSCIENCES ----------- Immunocytometry & Reagents $ 116,377 $ 105,823 10.0 Discovery Labware 39,605 36,047 9.9 --------------------------------------------------------------------------- TOTAL $ 155,982 $ 141,870 9.9 --------------------------------------------------------------------------- TOTAL REVENUES $ 961,179 $ 925,132 3.9 --------------------------------------------------------------------------- FX Neutral % Growth ------------------------------- International Total --------------- --------------- MEDICAL SYSTEMS --------------- Core Medical 1.8 5.6 Consumer Health Care 1.8 3.5 Pharmaceutical Systems 21.3 19.4 Ophthalmic Systems 20.8 15.4 ---------------------------------------------------------------- TOTAL 6.0 7.0 ---------------------------------------------------------------- CLINICAL LABORATORY SOLUTIONS ----------------------------- Preanalytical Solutions 10.2 10.3 Diagnostic Systems 5.9 (0.8) ---------------------------------------------------------------- TOTAL 8.1 4.5 ---------------------------------------------------------------- BIOSCIENCES ----------- Immunocytometry & Reagents 23.4 13.8 Discovery Labware 8.5 13.1 ---------------------------------------------------------------- TOTAL 19.7 13.6 ---------------------------------------------------------------- TOTAL 8.6 7.2 ---------------------------------------------------------------- BECTON DICKINSON AND COMPANY REVENUES BY BUSINESS SEGMENTS AND MAJOR PRODUCT GROUPS SIX MONTHS ENDED MARCH 31, (Unaudited; Amounts in thousands) United States ------------------------------------------ 2001 2000 % Change ------------------------------------------ MEDICAL SYSTEMS --------------- Core Medical $ 292,205 $ 273,582 6.8 Consumer Health Care 123,636 131,257 (5.8) Pharmaceutical Systems 22,692 19,808 14.6 Ophthalmic Systems 14,428 13,978 3.2 --------------------------------------------------------------------------- TOTAL $ 452,961 $ 438,625 3.3 --------------------------------------------------------------------------- CLINICAL LABORATORY SOLUTIONS ----------------------------- Preanalytical Solutions $ 163,069 $ 147,477 10.6 Diagnostic Systems 172,335 173,473 (0.7) --------------------------------------------------------------------------- TOTAL $ 335,404 $ 320,950 4.5 --------------------------------------------------------------------------- BIOSCIENCES ----------- Immunocytometry & Reagents $ 111,826 $ 110,428 1.3 Discovery Labware 41,665 38,195 9.1 --------------------------------------------------------------------------- TOTAL $ 153,491 $ 148,623 3.3 --------------------------------------------------------------------------- TOTAL UNITED STATES $ 941,856 $ 908,198 3.7 --------------------------------------------------------------------------- International ------------------------------------------ 2001 2000 % Change ------------------------------------------ MEDICAL SYSTEMS --------------- Core Medical $ 281,678 $ 301,848 (6.7) Consumer Health Care 96,183 99,411 (3.2) Pharmaceutical Systems 103,322 101,373 1.9 Ophthalmic Systems 11,128 10,678 4.2 --------------------------------------------------------------------------- TOTAL $ 492,311 $ 513,310 (4.1) --------------------------------------------------------------------------- CLINICAL LABORATORY SOLUTIONS ----------------------------- Preanalytical Solutions $ 119,701 $ 124,151 (3.6) Diagnostic Systems 120,207 119,931 0.2 --------------------------------------------------------------------------- TOTAL $ 239,908 $ 244,082 (1.7) --------------------------------------------------------------------------- BIOSCIENCES ----------- Immunocytometry & Reagents $ 99,884 $ 87,907 13.6 Discovery Labware 30,477 30,799 (1.0) --------------------------------------------------------------------------- TOTAL $ 130,361 $ 118,706 9.8 --------------------------------------------------------------------------- TOTAL INTERNATIONAL $ 862,580 $ 876,098 (1.5) --------------------------------------------------------------------------- Total ------------------------------------------ 2001 2000 % Change ------------------------------------------ MEDICAL SYSTEMS --------------- Core Medical $ 573,883 $ 575,430 (0.3) Consumer Health Care 219,819 230,668 (4.7) Pharmaceutical Systems 126,014 121,181 4.0 Ophthalmic Systems 25,556 24,656 3.7 --------------------------------------------------------------------------- TOTAL $ 945,272 $ 951,935 (0.7) --------------------------------------------------------------------------- CLINICAL LABORATORY SOLUTIONS ----------------------------- Preanalytical Solutions $ 282,770 $ 271,628 4.1 Diagnostic Systems 292,542 293,404 (0.3) --------------------------------------------------------------------------- TOTAL $ 575,312 $ 565,032 1.8 --------------------------------------------------------------------------- BIOSCIENCES ----------- Immunocytometry & Reagents $ 211,710 $ 198,335 6.7 Discovery Labware 72,142 68,994 4.6 --------------------------------------------------------------------------- TOTAL $ 283,852 $ 267,329 6.2 --------------------------------------------------------------------------- TOTAL REVENUES $ 1,804,436 $ 1,784,296 1.1 --------------------------------------------------------------------------- FX Neutral % Growth ------------------------------- International Total --------------- --------------- MEDICAL SYSTEMS --------------- Core Medical (0.1) 3.2 Consumer Health Care 5.2 (1.0) Pharmaceutical Systems 15.2 15.1 Ophthalmic Systems 14.5 8.1 ---------------------------------------------------------------- TOTAL 4.3 3.8 ---------------------------------------------------------------- CLINICAL LABORATORY SOLUTIONS ----------------------------- Preanalytical Solutions 5.4 8.2 Diagnostic Systems 8.1 2.9 ---------------------------------------------------------------- TOTAL 6.7 5.5 ---------------------------------------------------------------- BIOSCIENCES ----------- Immunocytometry & Reagents 25.5 12.0 Discovery Labware 7.2 8.3 ---------------------------------------------------------------- TOTAL 20.7 11.0 ---------------------------------------------------------------- TOTAL 7.2 5.4 ----------------------------------------------------------------