Becton Dickinson Reports Third Quarter Results; One-Time Charges Reduce E.P.S. By $.11.

FRANKLIN LAKES, N.J.--(BUSINESS WIRE)--July 21, 1997--Becton Dickinson and Company (NYSE: BDX) today reported earnings per share of $.54 for the fiscal third quarter ended June 30, 1997, including $.11 per share of one-time charges for in-process research and development related to two recent acquisitions. Excluding the one-time charges, earnings per share were $.65, an increase of 12 percent over last year's $.58. Net income was $70 million for the quarter, including the one-time charges, compared with $77 million a year ago.

Reported revenues for the quarter were $707 million, compared with last year's third quarter revenues of $693 million. The company said that foreign currency translation reduced reported revenues by an estimated $23 million for the quarter. Adjusted for currency translation, revenues increased 5 percent compared with last year.

Segment and Geographic Revenues

By business segment, diagnostic systems revenues for the quarter were $323 million, an increase of 2 percent. Medical supplies and devices revenues were $384 million, also an increase of 2 percent. The company noted that excluding the impact of foreign currency, medical segment revenues grew 5 percent and diagnostic systems revenues grew 6 percent.

On a geographic basis, revenues in the United States were $377 million, a 7 percent increase, while revenues outside the United States were $329 million, a decrease of 3 percent, reflecting the negative impact of currency translation.

Nine Months Results

For the nine months ended June 30, 1997 revenues were $2.062 billion compared with $2.039 billion last year, while earnings per share for the nine months were $1.61 including the $.11 of one-time charges noted earlier, compared with $1.45 a share a year ago. Net income for the nine months was $211 million, including the one-time charges, versus $196 million for the year ago period.

Foreign currency translation for the first nine months of the fiscal year reduced reported revenues by an estimated $53 million. The company also said that the growth in revenues was affected by the absence of approximately $55 million in revenues from divested businesses and $13 million is included in the current year from acquisitions.

Clateo Castellini, chairman, president and chief executive officer, said, "We are pleased with our results for the nine months, and the continuing improvement in gross profit. We believe these margins are sustainable and are a good measure of our fundamental profitability." -0-

                    BECTON DICKINSON AND COMPANY
                    SELECTED FINANCIAL SCHEDULES
             Thousands of dollars, except per share amounts

                                Three Months Ended June 30,
                                                       %
                                 1997        1996    Change
                             ----------  ----------  -------
REVENUES                     $  706,539  $  692,945     2.0
Cost of products sold           352,745     351,851      .3
Selling and administrative      191,106     182,956     4.5
Research and development         57,551      38,091    51.1
                             ----------  ----------
TOTAL OPERATING COSTS
    AND EXPENSES                601,402     572,898     5.0
                             ----------  ----------

OPERATING INCOME                105,137     120,047   (12.4)

Interest expense, net           (10,116)     (9,773)    3.5
Other income (expense), net       3,779      (3,098)     NM
                             ----------  -----------

INCOME BEFORE INCOME TAXES       98,800     107,176    (7.8)

Income tax provision             28,652      30,009    (4.5)
                             ----------  ----------

NET INCOME                   $   70,148  $   77,167    (9.1)
                             ==========  ==========

EARNINGS PER SHARE               $  .54      $  .58    (6.9)
                             ==========  ==========

Average common and common
equivalent shares outstanding   129,059     131,826
                             ==========  ==========

NM - Not Meaningful
-0-

                       BECTON DICKINSON AND COMPANY
                       SELECTED FINANCIAL SCHEDULES
             Thousands of dollars, except per share amounts

                               Nine Months Ended June 30,
                                                       %
                                1997        1996     Change
                             ----------  ---------- --------
REVENUES                     $2,061,545  $2,038,605     1.1
Cost of products sold         1,048,551   1,069,306    (1.9)
Selling and administrative      563,090     550,766     2.2
Research and development        136,618     113,748    20.1
                             ----------  ----------
TOTAL OPERATING COSTS
    AND EXPENSES              1,748,259   1,733,820      .8
                             ----------  ----------

OPERATING INCOME                313,286     304,785     2.8

Interest expense, net           (28,126)    (28,758)   (2.2)
Other income (expense), net      11,920      (3,140)     NM
                             -----------  ----------

INCOME BEFORE INCOME TAXES      297,080     272,887     8.9

Income tax provision             86,153      76,408    12.8
                             ----------  ----------

NET INCOME                   $  210,927  $  196,479     7.4
                             ==========  ==========

EARNINGS PER SHARE               $ 1.61      $ 1.45    11.0
                             ==========  ==========

Average common and common
equivalent shares outstanding   129,073     133,658
                              =========  ==========

NM - Not Meaningful
-0-

                        BECTON DICKINSON AND COMPANY
                             SUMMARY OF REVENUES
                            Thousands of dollars

                                Three Months Ended June 30,
                                                         %
                                 1997        1996     Change
                             ----------  ---------- --------
BUSINESS SEGMENT
Medical Supplies and Devices $  383,800  $  376,828     1.9
Diagnostic Systems              322,739     316,117     2.1
                             ----------  ----------
Total                        $  706,539  $  692,945     2.0
                             ==========  ==========
GEOGRAPHIC AREA
United States                $  377,235  $  352,657     7.0
International                   329,304     340,288    (3.2)
                             ----------  ----------
Total                        $  706,539  $  692,945     2.0
                             ==========  ==========

                                Nine Months Ended June 30,
                                                        %
                                 1997        1996     Change
                             ----------  ----------  -------
BUSINESS SEGMENT
Medical Supplies and Devices $1,107,820  $1,103,076      .4
Diagnostic Systems              953,725     935,529     1.9
                             ----------  ----------
Total                        $2,061,545  $2,038,605     1.1
                             ==========  ==========
GEOGRAPHIC AREA
United States                $1,069,608  $1,043,291     2.5
International                   991,937     995,314    ( .3)
                             ----------  ----------
Total                        $2,061,545  $2,038,605     1.1
                             ==========  ==========

CONTACT: Becton Dickinson

R. Jasper, 201/847-7160