EXHIBIT 99 BECTON DICKINSON REPORTS THIRD QUARTER RESULTS; RECORD REVENUES INCREASE 18 PERCENT; CHARGES REDUCE NET INCOME BY $106 MILLION FRANKLIN LAKES, NJ (JULY 21, 1998) -- Becton Dickinson and Company (NYSE:BDX) announced today results for its fiscal third quarter ended June 30, 1998, which included the previously announced effects of restructuring, one-time and other charges. Excluding the charges, diluted earnings per share were $.73, a 35 percent increase from last year's $.54, which included an $.11 per share charge for acquired in-process research and development. Last year's earnings per share, excluding the charge, were $.65. Foreign currency translation reduced reported revenues and earnings per share for this year's third quarter by an estimated $17 million and $.02, respectively. Revenues for the quarter were $834 million, an 18 percent increase from last year's $707 million, as virtually all of the company's worldwide businesses reported increases of better than ten percent. The company noted that the results for the quarter include, for the first time, revenues of the medical device business of The BOC Group, which the company acquired early in the quarter. This acquisition added approximately $40 million to the quarter's revenues. CHARGES REDUCE REPORTED E.P.S. The company announced in May that results for the quarter would include charges to restructure certain manufacturing operations and to adjust asset valuations related to some earlier acquisitions, as it prepared to introduce its new DNA probe technology. It had also said in May that certain costs associated with its acquisition in April of The BOC Group's medical device business and costs associated with its company-wide program to upgrade its business systems would be included in the quarter's results. These charges totaled $117 million pre-tax for the quarter. Also included in this quarter's results was a one-time charge for in-process research and development of approximately $30 million in connection with its acquisition of The BOC Group's medical device business. The net income effect of all of these charges was $106 million, resulting in a net loss of $10 million or $.09 a share. The company also announced in May that its fourth fiscal quarter would include charges that it now estimates will approximate $25 million pre-tax associated with the company-wide business systems upgrade and the integration of the medical device business acquired from The BOC Group. Clateo Castellini, chairman, president and chief executive officer, said, "We are pleased with our results for the quarter and first nine months of our fiscal year. Our accelerated revenue growth for the quarter is noteworthy because, as we have said previously, it is a major focus of the company. Revenues are showing the positive effects of our efforts to increase our relevance to health care providers, and the initiatives we have taken this quarter add to our confidence in reporting good performance for future years." SEGMENT AND GEOGRAPHIC REVENUES By business segment, medical supplies and devices revenues for the quarter increased to $474 million, including the acquisition, a 24 percent increase from last year's $384 million. All of the company's worldwide medical businesses reported double-digit revenue growth, with particularly strong performance in parts of its consumer health care and infusion therapy businesses. Diagnostic systems revenues were $359 million for the quarter, an increase of 11 percent over last year's $323 million. Especially strong results were reported for the company's sample collection and flow cytometry businesses. Foreign currency translation reduced reported diagnostic systems revenues by an estimated three percentage points and medical supplies and devices revenues by an estimated two percentage points. On a geographic basis, revenues in the United States were $442 million for the quarter, a 17 percent increase from last year's $377 million. Revenues from non-U.S. markets were $392 million compared with $329 million a year ago, or an increase of 19 percent. Foreign currency translation reduced non-U.S. revenues by an estimated $17 million, or 5 percentage points. NINE MONTHS RESULTS For the nine months ended June 30, 1998, revenues increased 10 percent to $2.274 billion, compared with $2.062 billion last year, while diluted earnings per share were $1.12, including $.81 for the restructuring, one-time and other charges and the in-process research and development charges. Net income for the nine months was $147 million, including $106 million for the charges. The company said that foreign currency translation for the nine months reduced reported revenues by an estimated $69 million, or 3 percentage points. ### 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 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, 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. Becton Dickinson and Company Selected Financial Schedules Thousands of dollars, except per share amounts
================================================================================================================== INCOME STATEMENTS Three Months Ended June 30, Nine Months Ended June 30, ---------------------------------------------------------------------------------- 1998 1997 % Change 1998 1997 % Change ================================================================================================================== REVENUES $ 833,561 $ 706,539 18.0 $ 2,273,634 $ 2,061,545 10.3 Cost of products sold 419,007 352,745 18.8 1,137,890 1,048,551 8.5 Selling and administrative 234,418 191,106 22.7 619,575 563,090 10.0 Research and development 80,859 57,551 40.5 169,285 136,618 23.9 Special charges 90,945 - NM 90,945 - NM - --------------------------------------------------------- ------------------------- Total Operating Costs and Expenses 825,229 601,402 37.2 2,017,695 1,748,259 15.4 - --------------------------------------------------------- ------------------------- Operating Income 8,332 105,137 (92.1) 255,939 313,286 (18.3) Interest expense, net (17,526) (10,116) 73.3 (39,194) (28,126) 39.4 Other (expense) income, net (1,815) 3,779 NM (7,112) 11,920 NM - --------------------------------------------------------- ------------------------- Income (Loss) Before Income Taxes (11,009) 98,800 (111.1) 209,633 297,080 (29.4) Income tax provision (benefit) (1,024) 28,652 (103.6) 62,962 86,153 (26.9) - --------------------------------------------------------- ------------------------- Net Income (Loss) $ (9,985) $ 70,148 (114.2) $ 146,671 $ 210,927 (30.5) ================================================================================================================== Earnings (Loss) Per Share Basic $ (.09) $ .57 (115.8) $ 1.18 $ 1.70 (30.6) Diluted $ (.09) $ .54 (116.7) $ 1.12 $ 1.62 (30.9) ================================================================================================================== Average Shares Outstanding Basic 123,302 122,206 122,527 122,724 Diluted 123,302 129,847 130,342 129,940 ================================================================================================================== NM - Not Meaningful ================================================================================================================== SUMMARY OF REVENUES Three Months Ended June 30, Nine Months Ended June 30, ---------------------------------------------------------------------------------- 1998 1997 % Change 1998 1997 % Change ================================================================================================================== Business Segment Medical Supplies and Devices $ 474,351 $ 383,800 23.6 $ 1,230,601 $ 1,107,820 11.1 Diagnostic Systems 359,210 322,739 11.3 1,043,033 953,725 9.4 - --------------------------------------------------------- ------------------------- Total $ 833,561 $ 706,539 18.0 $ 2,273,634 $ 2,061,545 10.3 - --------------------------------------------------------- ------------------------- Geographic Area United States $ 441,662 $ 377,235 17.1 $ 1,232,409 $ 1,069,608 15.2 International 391,899 329,304 19.0 1,041,225 991,937 5.0 - --------------------------------------------------------- ------------------------- Total $ 833,561 $ 706,539 18.0 $ 2,273,634 $ 2,061,545 10.3 ==================================================================================================================