Skip to content
AnalystLens

BECTON DICKINSON & CO Annual Report, Year Ended Sep 30, 1997

Filing Date
Filed December 16, 1997
Period End
September 30, 1997
Security
BDX
In the record · 2016–202610-K1010-Q338-K175

BDX filed 10 annual reports (10-K), 33 quarterly reports (10-Q) and 175 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · May ’17May ’17
  2. Material agreement8-K · Jun ’19Jun ’19
  3. Leadership change8-K · Oct ’21Oct ’21
  4. Leadership change8-K · Oct ’25Oct ’25

01—Abstract

Summary

Summary of the 10-K filed December 16, 1997. Cited figures are marked; the original filing is the authoritative source.

Becton, Dickinson and Company (BDX) reported fiscal 1997 (year ended September 30, 1997) revenues of $2.81 billiona, up 1.5% reported and roughly 5% on an underlying basis after a 3% unfavorable foreign currency translation effect.

Operating income rose 4.5% to $451 millionb, and the operating margin improved to 16.0% from 15.6%, driven mainly by a gross profit margin that expanded sharply to 49.7% from 48.4%. Net income increased 6% to $300 million, and diluted EPS was $2.30, up 9%. Management says that excluding a $15 million in-process R&D charge and currency effects, EPS grew about 22%, and return on equity improved to 22.1%.

The company's two segments performed differently. Medical Supplies and Devices was flat at $1.5 billionc in revenue, though segment operating income rose 2%, and infusion therapy and prefillable syringes led growth. Diagnostic Systems grew 3% to $1.3 billion with operating income up 11%, helped by sample collection, FACS flow cytometry, and the PharMingen and Difco acquisitions completed in May 1997 for about $187 million.

Geographically, U.S. revenues grew 4%, while non-U.S. revenues fell 2% reported but grew about 7% underlying, with Asia-Pacific cited as the fastest-growing region. Balance sheet and cash flow metrics show a company still generating solid cash but using more of it for growth. Operating cash flow was $443 milliond, capital expenditures were $170 million, and acquisitions consumed $201 million net of cash acquired.

Share repurchases fell to $150 million from $325 million, and total debt rose $102 million, lifting the debt-to-capitalization ratio to 36.3%. Risks flagged in the filing include foreign currency exposure in Brazil and Mexico, health care cost containment pressure on pricing, and approximately 75 latex glove product liability lawsuits, which management does not expect to be material.

02—Key points

Key Highlights

  1. Fiscal 1997 revenues reached $2.81 billion (+1.5% reported, ~5% underlying), with currency translation a 3% headwind.
  2. Gross profit margin expanded to 49.7% from 48.4%, the main driver of operating margin improvement to 16.0%.
  3. Diluted EPS of $2.30 rose 9% (about 22% excluding a $0.11 in-process R&D charge and a $0.17 currency impact).
  4. Diagnostic Systems revenue grew 3% to $1.3 billion, with operating income up 11%, while Medical was flat at $1.5 billion.
  5. Return on equity improved to 22.1% from 20.8%, and operating cash flow was $443 million.
  6. Acquisitions of PharMingen and Difco for about $187 million in May 1997 added revenue of $43 million in the year.
  7. Debt-to-capitalization rose to 36.3% from 34.3%, and buybacks fell to $150 million from $325 million.

03—Questions

Frequently Asked Questions

  1. How did Becton Dickinson perform financially in fiscal 1997?

    Revenues rose 1.5% to $2.81 billion, and net income grew 6% to $300 million. Diluted EPS was $2.30, up 9% from $2.11. Excluding a one-time in-process R&D charge and currency translation, management reports EPS growth of about 22%.

  2. What drove the improvement in margins?

    Gross profit margin rose to 49.7% from 48.4%, reflecting manufacturing efficiency gains and a more profitable product mix. Selling and administrative expense held at 27.3% of revenue, so most of the gross margin gain flowed to operating margin, which reached 16.0%.

  3. Which business segment is performing better?

    Diagnostic Systems grew revenue 3% and operating income 11%, helped by sample collection, flow cytometry, and acquisitions. Medical Supplies and Devices was roughly flat in revenue, with operating income up 2%, though underlying growth excluding currency and divestitures was about 7%.

  4. What are the main risks highlighted in the filing?

    Key risks include foreign currency exchange exposure, especially in Brazil and Mexico, which together represent 7% or less of revenue, net income, and assets. Health care cost containment pressures prices, and the company faces about 75 natural rubber latex glove product liability lawsuits, which management does not expect to be material.

  5. How is the company deploying its cash?

    Operating cash flow of $443 million funded $170 million in capital expenditures and $201 million in acquisitions. Share repurchases were reduced to $150 million from $325 million, and the company has authorization for 11.6 million more shares and plans further acquisitions.

04—Continue

← View all 10-K filings