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Consistent Sales Growth Drives Bard's Second Quarter EPS

Murray Hill, NJ -- July 17, 2002 -- C. R. Bard, Inc. (NYSE-BCR) today reported net sales of $317.5 million for the quarter ended June 30, 2002, up 7 percent on both a reported and constant currency basis. For the quarter ended June 30, 2001, Bard reported net sales of $295.9 million. Net income for the second quarter was $43.9 million, and diluted earnings per share was 83 cents, up 25 percent and 22 percent, respectively, over the same period in the prior year. For the quarter ended June 30, 2001, Bard reported net income of $35.0 million and diluted earnings per share of 68 cents, which included pretax goodwill amortization of $3.3 million (6 cents per share diluted) no longer required due to the company's adoption of Financial Accounting Standard 142, "Goodwill and Other Intangible Assets." Excluding the impact of goodwill amortization in the prior-year period, net income and diluted earnings per share for the quarter increased 15 percent and 12 percent, respectively, over 2001.

William H. Longfield, chairman and chief executive officer, commented, "Bard continues to generate reliable sales growth which translates into healthy earnings and a strong balance sheet. This marks the 14th consecutive quarter that the company has recorded sales growth of at least 7 percent on a constant currency basis."

Second quarter net sales in the U.S. were $231.7 million, up 8 percent, and net sales outside the U.S. were $85.8 million, up 6 percent from the prior-year period on both a reported and constant currency basis.

C. R. Bard (www.crbard.com), headquartered in Murray Hill, New Jersey, is a leading multinational developer, manufacturer, and marketer of health care products in the fields of vascular, urology, oncology, and surgical specialty products.

This press release contains forward-looking statements, the accuracy of which is necessarily subject to risks and uncertainties. Please refer to our March 31, 2002 Form 10-Q for a statement with regard to forward-looking statements, including disclosure of the factors that could cause actual results to differ materially from those expressed or implied.

C. R. Bard, Inc.
Consolidated Statements of Income

(thousands of dollars except per share amounts, unaudited)

Quarter Ended June 30,
Six Months Ended June 30,
2002
2001
2002
2001
Net sales $317,500 $295,900 $619,400 $580,700
Costs and expenses:
    Cost of goods sold 147,000 138,200 286,500 270,700
    Marketing, selling & administrative (1) 92,800 93,700 181,100 181,100
    Research & development expense 14,900 13,600 29,200 27,200
    Interest expense 3,200 3,700 6,400 7,700
    Other (income) expense, net (2) (1,800)
(3,300)
6,400
(3,400)
Total costs and expenses 256,100
245,900
509,600
483,300
Income before taxes 61,400 50,000 109,800 97,400
    Income tax provision 17,500
15,000
31,200
29,200
Net income $43,900
$35,000
$78,600
$68,200
Basic earnings per share $0.84
$0.69
$1.50
$1.34
Diluted earnings per share $0.83
$0.68
$1.48
$1.33
Average common shares outstanding - basic 52,300 50,700 52,400 50,750
Average common shares outstanding - diluted 53,100 51,400 53,100 51,300

(1) 2001 marketing, selling & administrative expense includes $3.3 million pretax ($0.06 diluted earnings per share) and $6.6 million pretax ($0.12 diluted earnings per share) of goodwill amortization for the second quarter and six month period, respectively. Goodwill amortization is not required for fiscal years beginning after December 15, 2001 per Financial Accounting Standard 142, "Goodwill and Other Intangible Assets".

(2) In addition to interest income and exchange gains and losses, first quarter 2002 other (income) expense, net includes costs related to the termination of the Tyco merger ($6.2 million pretax $0.08 diluted earnings per share), divisional and manufacturing consolidation projects ($2.6 million pretax $0.03 diluted earnings per share) and corporate severance related costs ($6.5 million pretax $0.08 diluted earnings per share). These costs are offset with the reversal of certain legal accruals ($5.0 million pretax $0.06 diluted earnings per share.)

Product Group Summary of Net Sales
Quarter Ended June 30,
Six Months Ending June 30,
Constant Constant
2002
2001
Change
Currency
2002
2001
Change
Currency
Vascular $63,700 $61,900 3% 3% $123,600 $123,100 - 1%
Urology 106,100 99,400 7% 7% 205,300 191,300 7% 8%
Oncology 74,900 68,300 10% 10% 145,800 133,400 9% 10%
Surgery 56,300 50,800 11% 10% 112,300 102,200 10% 10%
Other 16,500
15,500
6% 6% 32,400
30,700
6% 5%
Total net sales $317,500
$295,900
7% 7% $619,400
$580,700
7% 7%


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Primary Media Relations Contact

Scott Lowry
Vice President and Treasurer
C. R. Bard, Inc.
730 Central Avenue
Murray Hill, NJ 07974

Tel: 908-277-8365