DOW JONES NEWSWIRES
Becton Dickinson & Co.'s (BDX) fiscal first-quarter net
income rose 15% amid sales and margin increases and a foreign
currency hedging boost.
The medical-products maker raised its 2009 earnings outlook as
the company so far has been able to avoid getting squeezed by the
weakening economy.
Chairman and Chief Executive Edward J. Ludwig said the company
"is off to a solid start," as it continues to see strength in its
biosciences and diagnostics businesses and strong sales of insulin
delivery products.
For the year, the company raised its forecasted per-share
earnings range from November by a percentage point to 9% to
11%.
For the quarter ended Dec. 31, the company reported net income
of $312.1 million, or $1.26 a share, up from $271.5 million, or
$1.07 a share, a year earlier.
Revenue climbed 1.6% to $1.73 billion, though the stronger
dollar pared sales by nearly 3 percentage points.
Analysts polled by Thomson Reuters expected earnings of $1.15 a
share on revenue of $1.77 billion.
Operating margin rose to 24.3% from 21.3%.
U.S. revenue was up 3% and international sales, which represent
more than half of its revenue, rose 1%, hurt by 5 percentage points
by the stronger dollar.
In the biosciences segment, sales rose 11% on demand for
clinical and research instruments. Sales were down in the medical
segment by 2% as strong sales of insulin delivery products were
more than offset by a drop in surgical systems products and an
expected decline in prefillable devices in the U.S.
Becton Dickinson Chief Executive Edward Ludwig said earlier this
month that the company hasn't felt the economic squeeze thus far,
though he did note concern that hospital budget constraints will
slow device makers. While acknowledging these strains, he also
noted many of Becton's medical products are very basic items - like
surgical blades or catheters. Though no primary demand disruptions
have been seen, the company is carefully controlling costs.
Analysts are also keeping a keen eye on resin prices for signs
of a possible retreat. High oil prices last summer boosted the cost
of resins, which are used to make plastic syringes, as well as
plastic dishes used in diagnostic tests and other laboratory
equipment. The company spent about $230 million in resins in the
last fiscal year, which was up $30 million from the prior year.
Shares closed Tuesday at $74.15, and there was no premarket
trading. The stock has fallen 20% since its 52-week high last
February.
-By Shirleen Dorman, Dow Jones Newswires; 201-938-2310;
shirleen.dorman@dowjones.com
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