Contact:
- --------
Dean J. Paranicas/Investor Relations - 201-847-7102
Patricia A. Spinella/Investor Relations - 201-847-5453
Charles A. Borgognoni/Corporate Communications - 201-847-6651
BD ANNOUNCES RESULTS FOR FISCAL FIRST QUARTER
Franklin Lakes, NJ (January 23, 2003) - BD (Becton, Dickinson and Company)
(NYSE: BDX) today reported revenues of $1.052 billion for the fiscal first
quarter ended December 31, 2002, an increase of 11 percent from the same period
a year ago. At constant foreign exchange rates, revenues increased 9 percent.
"We are pleased with the Company's strong revenue growth in the quarter, paced
by our BD Medical Systems and BD Clinical Laboratory Solutions segments that
reflect contributions from several key areas - safety-engineered products,
prefillable drug delivery devices and our BD ProbeTec ET'TM' diagnostic
instrument platform," said Edward J. Ludwig, Chairman, President and Chief
Executive Officer. "As we had forecast, BD Biosciences' first quarter revenues
were slightly ahead of the prior year's quarter. This reflected the impact of
factors unfavorably affecting sales of molecular biology reagents and flow
cytometry instruments that we expect will continue through the second quarter,
but which we anticipate will improve in the second half of the year."
"We are very excited about the launch of our new blood glucose monitoring
products, the BD Logic'TM' Blood Glucose Monitor and the BD Latitude'TM'
Diabetes Management System," Mr. Ludwig added. "These products are among the
most significant launches in the Company's history, and we believe their
best-in-class performance characteristics, coupled with our strategic
relationships with Medtronic, Inc. and Eli Lilly and Company, position us for
success in the blood glucose monitoring market."
Diluted earnings per share and net income for the quarter were 43 cents and $114
million, respectively. For the same period in fiscal 2002, diluted earnings per
share and net income were 37 cents and $100 million, respectively. Diluted
earnings per share reflected, among other things, the benefit of approximately 2
cents related to favorable foreign exchange translation, particularly in Europe.
Segment Results
- ---------------
In the BD Medical Systems segment, worldwide revenues of $572 million increased
14 percent in the quarter, driven by U.S. safety-engineered product sales of
$100 million, versus $78 million in the prior year's quarter, and strong sales
of prefillable drug delivery devices, which grew 30 percent to $93 million.
Consumer Healthcare products also posted strong growth in the quarter, based in
part on a favorable comparison to 2002 in U.S. diabetes syringe sales. The
overall growth rate in the segment was partly offset by reduced sales of certain
conventional devices in the U.S. due to the transition to safety-engineered
devices.
In the BD Clinical Laboratory Solutions segment, worldwide revenues increased 13
percent for the quarter to $332 million. Revenue growth of 12 percent in the
Preanalytical Solutions portion of the segment was due primarily to strong U.S.
safety-engineered product sales, which were $65 million, versus $49 million in
the prior year's quarter, and which were partly offset by reduced sales of
certain conventional devices in the U.S. due to the transition to
safety-engineered devices. Contributing to revenue growth of 13 percent in the
Diagnostics Systems portion of the segment were strong sales of respiratory and
flu diagnostic tests, especially in Japan, and worldwide sales of its molecular
diagnostic platform, BD ProbeTec ET'TM'.
The BD Biosciences segment's worldwide revenues were slightly ahead of last year
at $148 million. These results reflected strong sales of flow cytometry reagents
and immunology/cell biology (Pharmingen) reagents and Discovery Labware
products. This growth was partly offset by sales of molecular biology (Clontech)
reagents, which were below the prior year due to continued weakness in some
portions of the molecular biology research market. In addition, as anticipated,
flow cytometry instrument sales growth in the quarter was negatively impacted by
a reduction in order backlog in fiscal 2002 resulting from order fulfillment and
installation improvements. In addition, favorable reaction to the first quarter
announcement of the new BD FACSAria'TM' cell sorter caused some order
postponement in anticipation of the availability of this new instrument later in
the year.
Geographic Results
- ------------------
On a geographic basis, first quarter revenues in the U.S. increased 12 percent
to $557 million. Revenues outside the U.S. of $494 million grew 10 percent, or
5 percent at constant foreign exchange rates. International revenues in the
first quarter benefited from strong performance in Japan, offset in part by the
effects of continuing unfavorable economic conditions in Latin America.
A conference call regarding BD's first quarter results and its expectations for
the second quarter and full fiscal year will be broadcast live on BD's website
at 8:30 a.m. EST Thursday, January 23, 2003. The conference call will be
available for playback at 1-800-468-0320 (domestic) and 1-402-344-6805
(international) through the close of business on January 30, 2003.
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, 2002,
BD reported total revenues of $4.033 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
Wire at www.businesswire.com.
BECTON DICKINSON AND COMPANY
CONSOLIDATED INCOME STATEMENTS
(Unaudited; Amounts in thousands, except per-share data)
Three Months Ended December 31,
2002 2001 % Change
- ----------------------------------------------------------------------------------
REVENUES $ 1,051,648 $ 944,946 11.3
Cost of products sold 550,039 499,762 10.1
Selling and administrative 284,181 248,294 14.5
Research and development 59,845 55,237 8.3
- ----------------------------------------------------------------------------------
TOTAL OPERATING COSTS
AND EXPENSES 894,065 803,293 11.3
- ----------------------------------------------------------------------------------
OPERATING INCOME 157,583 141,653 11.2
Interest expense, net (8,633) (9,571) (9.8)
Other income (expense), net 84 (1,616) NM
- ----------------------------------------------------------------------------------
INCOME BEFORE
INCOME TAXES 149,034 130,466 14.2
Income tax provision 35,396 30,793 14.9
- ----------------------------------------------------------------------------------
NET INCOME $ 113,638 $ 99,673 14.0
- ----------------------------------------------------------------------------------
EARNINGS PER SHARE
Basic $ 0.44 $ 0.38 15.8
Diluted $ 0.43 $ 0.37 16.2
- ----------------------------------------------------------------------------------
AVERAGE SHARES OUTSTANDING
Basic 255,286 259,192
Diluted 263,081 270,172
- ----------------------------------------------------------------------------------
NM - Not Meaningful
Page 1
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY SEGMENT AND GEOGRAPHIC AREA
(Unaudited; Amounts in thousands)
Three Months Ended December 31,
2002 2001 % Change
-------------------------------------------
BD MEDICAL SYSTEMS
- ------------------
United States $ 296,426 $ 250,902 18.1
International 275,211 252,128 9.2
- ----------------------------------------------------------------------------------
TOTAL $ 571,637 $ 503,030 13.6
- ----------------------------------------------------------------------------------
BD CLINICAL LABORATORY SOLUTIONS
- --------------------------------
United States $ 191,532 $ 172,488 11.0
International 140,122 122,261 14.6
- ----------------------------------------------------------------------------------
TOTAL $ 331,654 $ 294,749 12.5
- ----------------------------------------------------------------------------------
BD BIOSCIENCES
- --------------
United States $ 69,337 $ 73,859 (6.1)*
International 79,020 73,308 7.8 *
- ----------------------------------------------------------------------------------
TOTAL $ 148,357 $ 147,167 0.8
- ----------------------------------------------------------------------------------
TOTAL REVENUES
- --------------
United States $ 557,295 $ 497,249 12.1*
International 494,353 447,697 10.4*
- ----------------------------------------------------------------------------------
TOTAL $ 1,051,648 $ 944,946 11.3
- ----------------------------------------------------------------------------------
* Prior year data reclassified to conform to current year presentation - see page 5
Page 2
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND MAJOR PRODUCT GROUPS
Three Months Ended December 31,
(Unaudited; Amounts in thousands)
United States
-------------------------------------------
2002 2001 % Change
-------------------------------------------
BD MEDICAL SYSTEMS
- ------------------
Medical Surgical $ 192,751 $ 167,031 15.4 *
Consumer Health Care 75,496 61,292 23.2 *
Pharmaceutical Systems 21,527 16,283 32.2
Ophthalmic Systems 6,652 6,296 5.7
- ----------------------------------------------------------------------------------
TOTAL $ 296,426 $ 250,902 18.1
- ----------------------------------------------------------------------------------
BD CLINICAL LABORATORY SOLUTIONS
- --------------------------------
Preanalytical Solutions $ 101,023 $ 87,315 15.7
Diagnostic Systems 90,509 85,173 6.3
- ----------------------------------------------------------------------------------
TOTAL $ 191,532 $ 172,488 11.0
- ----------------------------------------------------------------------------------
BD BIOSCIENCES
- --------------
Discovery Labware 23,120 22,265 3.8
Immunocytometry & Reagents:
Flow Cytometry Instruments
& Reagents 23,199 27,381 (15.3)
Molecular Biology Reagents 7,863 9,734 (19.2)*
Immunology/Cell Biology Reagents 15,155 14,479 4.7
- ----------------------------------------------------------------------------------
Total Immunocytometry & Reagents 46,217 51,594 (10.4)*
- ----------------------------------------------------------------------------------
TOTAL $ 69,337 $ 73,859 (6.1)*
- ----------------------------------------------------------------------------------
TOTAL UNITED STATES $ 557,295 $ 497,249 12.1 *
- ----------------------------------------------------------------------------------
International
-------------------------------------------
2002 2001 % Change
-------------------------------------------
BD MEDICAL SYSTEMS
- ------------------
Medical Surgical $ 152,768 $ 145,964 4.7
Consumer Health Care 44,049 44,974 (2.1)
Pharmaceutical Systems 71,718 55,265 29.8
Ophthalmic Systems 6,676 5,925 12.7
- ----------------------------------------------------------------------------------
TOTAL $ 275,211 $ 252,128 9.2
- ----------------------------------------------------------------------------------
BD CLINICAL LABORATORY SOLUTIONS
- --------------------------------
Preanalytical Solutions $ 66,180 $ 62,068 6.6
Diagnostic Systems 73,942 60,193 22.8
- ----------------------------------------------------------------------------------
TOTAL $ 140,122 $ 122,261 14.6
- ----------------------------------------------------------------------------------
BD BIOSCIENCES
- --------------
Discovery Labware 18,755 15,776 18.9
Immunocytometry & Reagents:
Flow Cytometry Instruments
& Reagents 40,853 40,505 0.9
Molecular Biology Reagents 7,892 7,246 8.9 *
Immunology/Cell Biology Reagents 11,520 9,781 17.8
- ----------------------------------------------------------------------------------
Total Immunocytometry & Reagents 60,265 57,532 4.8 *
- ----------------------------------------------------------------------------------
TOTAL $ 79,020 $ 73,308 7.8 *
- ----------------------------------------------------------------------------------
TOTAL INTERNATIONAL $ 494,353 $ 447,697 10.4 *
- ----------------------------------------------------------------------------------
* Prior year data reclassified to conform to current year presentation - see page 5
Page 3
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND MAJOR PRODUCT GROUPS
Three Months Ended December 31, (continued)
(Unaudited; Amounts in thousands)
Total
-------------------------------------------
2002 2001 % Change
-------------------------------------------
BD MEDICAL SYSTEMS
- ------------------
Medical Surgical $ 345,519 $ 312,995 10.4 *
Consumer Health Care 119,545 106,266 12.5 *
Pharmaceutical Systems 93,245 71,548 30.3
Ophthalmic Systems 13,328 12,221 9.1
- ----------------------------------------------------------------------------------
TOTAL $ 571,637 $ 503,030 13.6
- ----------------------------------------------------------------------------------
BD CLINICAL LABORATORY SOLUTIONS
- --------------------------------
Preanalytical Solutions $ 167,203 $ 149,383 11.9
Diagnostic Systems 164,451 145,366 13.1
- ----------------------------------------------------------------------------------
TOTAL $ 331,654 $ 294,749 12.5
- ----------------------------------------------------------------------------------
BD BIOSCIENCES
- --------------
Discovery Labware 41,875 38,041 10.1
Immunocytometry & Reagents:
Flow Cytometry Instruments
& Reagents 64,052 67,886 (5.6)
Molecular Biology Reagents 15,755 16,980 (7.2)
Immunology/Cell Biology Reagents 26,675 24,260 10.0
- ----------------------------------------------------------------------------------
Total Immunocytometry & Reagents 106,482 109,126 (2.4)
- --------------------------------------------------------------------- ------------
TOTAL $ 148,357 $ 147,167 0.8
- ----------------------------------------------------------------------------------
TOTAL REVENUES $ 1,051,648 $ 944,946 11.3
- ----------------------------------------------------------------------------------
FX Neutral % Growth
------------------------------
International Total
-------------- --------------
BD MEDICAL SYSTEMS
- ------------------
Medical Surgical 1.0 8.7
Consumer Health Care (5.9) 10.9
Pharmaceutical Systems 20.4 23.1
Ophthalmic Systems 5.3 5.5
- ---------------------------------------------------------------------
TOTAL 4.1 11.1
- ---------------------------------------------------------------------
BD CLINICAL LABORATORY SOLUTIONS
- --------------------------------
Preanalytical Solutions 1.0 9.6
Diagnostic Systems 18.6 11.4
- ---------------------------------------------------------------------
TOTAL 9.6 10.5
- ---------------------------------------------------------------------
BD BIOSCIENCES
- --------------
Discovery Labware 13.8 8.0
Immunocytometry & Reagents:
Flow Cytometry Instruments
& Reagents (5.2) (9.3)
Molecular Biology Reagents 4.3 (9.2)
Immunology/Cell Biology Reagents 10.4 7.0
- ---------------------------------------------------------------------
Total Immunocytometry & Reagents (1.4) (5.6)
- ---------------------------------------------------------------------
TOTAL 1.9 (2.1)
- ---------------------------------------------------------------------
TOTAL 5.2 8.8
- ---------------------------------------------------------------------
* Prior year data reclassified to conform to current year presentation - see page 5
Page 4
BECTON DICKINSON AND COMPANY
IMPACT OF RECLASSIFICATIONS TO FISCAL 2002 REVENUES
(Unaudited; Amounts in thousands)
Fiscal 2002
Revenues
--------
BD BIOSCIENCES SEGMENT
Molecular Biology Reagents - US to International
- ----------------------------------------------------------------------
Quarter 1 $ 2,841
Quarter 2 4,304
Quarter 3 3,430
Quarter 4 4,044
- -----------------------------------------------------------------------------
Total Year $14,619
- -----------------------------------------------------------------------------
BD MEDICAL SYSTEMS SEGMENT
Medical Surgical to Consumer Health Care - US to US
- ----------------------------------------------------------------------
Quarter 1 $ 2,523
Quarter 2 3,020
Quarter 3 3,446
Quarter 4 4,157
- -----------------------------------------------------------------------------
Total Year $13,146
- -----------------------------------------------------------------------------
Page 5