("Becton Dickinson 3Q Income Rises 15%, Results Beat Views,"
published at 7 a.m. EDT, incorrectly said the CEO said the worst
was over for the company's entire biosciences unit. The story also
misstated the company's fiscal third-quarter earnings. The
corrected version follows.)
Becton Dickinson & Co.'s (BDX) fiscal third-quarter income
rose 15% on a tax benefit and strength in its diagnostics segment,
helping results topping expectations.
The medical-products maker also raised its fiscal-year earnings
target slightly to $4.92 to $4.96 a share from $4.86 to $4.95 a
share.
The company so far has been largely immune from the recession
and concerns about hospital-spending cutbacks. Many of Becton's
products are basic essentials such as surgical blades and
catheters. Chief Executive Edward Ludwig had said in May the worst
was over for the company's U.S. biosciences unit, which makes tools
used in medical research and has been hurt by biotech companies
that have cut back spending and universities that have seen
endowments dry up.
Ludwig said Thursday that Becton was pleased with the results
shown by its diagnostics segment and its medical segments'
pharmaceutical systems and diabetes care units.
For the period ended June 30, the company posted income of $341
million, or $1.39 a share, up from $297.1 million, or $1.18 a
share, a year earlier. The latest results included a net gain of 9
cents a share.
Revenue decreased 1.6% to $1.82 billion, but would have risen
about 5% excluding currency changes.
Analysts polled by Thomson Reuters expected earnings of $1.24 a
share and revenue of $1.81 billion.
Gross margin rose to 52.8% from 51%.
U.S. revenue rose 3%, and international sales, which represent
more than half of the company's revenue, fell 5%, hurt 11
percentage points by foreign-currency translation.
Becton shares closed Wednesday at $73.60 and haven't traded
premarket.
-By Kerry Grace Benn, Dow Jones Newswires; 212-416-2353;
kerry.benn@dowjones.com