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Bard Announces Second Quarter Results

MURRAY HILL, N.J.--(BUSINESS WIRE)--July 19, 2005--C. R. Bard, Inc. (NYSE-BCR) today reported 2005 second quarter financial results. Second quarter 2005 net sales were $447.4 million, an increase of 7 percent over the prior-year period. Excluding the impact of a 2004 divestiture and foreign exchange, second quarter 2005 ongoing net sales increased 10 percent over the prior-year period.

For the second quarter 2005, net sales in the U.S. were $304.1 million and net sales outside the U.S. were $143.3 million, up 5 percent and 14 percent, respectively, over the prior-year period. Excluding the impact of a 2004 divestiture and foreign exchange, second quarter 2005 ongoing net sales in the U.S. and outside the U.S. increased 9 percent and 12 percent, respectively, over the prior-year period.

For the second quarter 2005, net income was $85.3 million and diluted earnings per share were 79 cents, an increase of 45 percent and 44 percent, respectively, over the prior-year period.

The 2005 second quarter results included certain items that increased net income by $5.1 million (after-tax), or 5 cents per diluted share. Excluding certain items, second quarter 2005 net income was $80.2 million and diluted earnings per share were 74 cents. Net income and diluted earnings per share, excluding certain items, increased 31 percent and 30 percent, respectively, as compared to the prior-year period.

"We are pleased to report solid revenue and earnings results for the quarter. Our diversified product portfolio helped drive top line growth and we benefited specifically from strong sales in our Oncology business," commented Timothy M. Ring, chairman and chief executive officer. "Healthy margins and controlled spending have again positively impacted earnings this quarter. We continue to prudently invest operational savings into the business with a goal to enhance growth and increase shareholder value."

C. R. Bard, Inc. (www.crbard.com), headquartered in Murray Hill, N.J., is a leading multinational developer, manufacturer and marketer of innovative, life-enhancing medical technologies in the fields of vascular, urology, oncology and surgical specialty products.

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on management's current expectations, the accuracy of which is necessarily subject to risks and uncertainties. These statements are not historical in nature and use words such as "anticipate", "estimate", "expect", "project", "intend", "forecast", "plan", "believe", and other words of similar meaning in connection with any discussion of future operating or financial performance. Many factors may cause actual results to differ materially from anticipated results including product developments, sales efforts, expenses, the outcomes of contingencies such as legal proceedings, and other economic, business, competitive and regulatory factors. The company undertakes no obligation to update its forward-looking statements. Please refer to our March 31, 2005 10-Q for more detailed information about these and other factors that may cause actual results to differ materially from those expressed or implied.

The company sold certain assets of its Endoscopic Technologies division on September 30, 2004. Net sales excluding sales of the divested Endoscopic Technologies products are referred to as "ongoing net sales". The earnings per share figures reported in this press release reflect the company's two-for-one common stock split that became effective on May 28, 2004.

Net sales, excluding foreign exchange, ongoing net sales and net income and diluted earnings per share excluding certain items are non-GAAP financial measures. The company analyzes net sales on a constant currency and ongoing basis to better measure the comparability of results between periods. Because changes in foreign currency exchange rates have a non-operating impact on net sales, the company believes that evaluating growth in net sales on a constant currency basis provides an additional and meaningful assessment of net sales. The company believes that comparing ongoing net sales between periods provides an additional and meaningful analysis of comparable operations. Net income and EPS excluding certain items are used by the company to measure the comparability of results between periods. Because certain items such as investment gains and litigation outcomes may not reflect underlying operating results, the company believes the exclusion of these and similar items provides an additional and meaningful assessment of net income and EPS. The limitation of these non-GAAP measures is that, by excluding certain items, they do not reflect results on a standardized reporting basis. All non-GAAP financial measures are intended to supplement the applicable GAAP disclosures and should not be viewed as a replacement for GAAP results. For a reconciliation of these non-GAAP measures to the most comparable GAAP measures, please see the attached tables.


                           C. R. Bard, Inc.
                   Consolidated Statements of Income
      (dollars in thousands except per share amounts, unaudited)

                                                     Quarter Ended
                                                        June 30,
                                                  -------------------
                                                     2005      2004
                                                  --------- ---------

Net sales                                         $447,400  $416,300

Costs and expenses:
     Cost of goods sold                            173,500   169,000
     Marketing, selling & administrative expense   136,000   130,500
     Research & development expense                 29,000    31,600
     Interest expense                                3,100     3,000
     Other (income) expense, net                   (11,500)    3,100
                                                  --------- ---------
Total costs and expenses                           330,100   337,200
                                                  --------- ---------

Income before tax provision                        117,300    79,100
     Income tax provision                           32,000    20,400
                                                  --------- ---------

Net income                                         $85,300   $58,700
                                                  ========= =========

Basic earnings per share                             $0.81     $0.56
                                                  ========= =========

Diluted earnings per share                           $0.79     $0.55
                                                  ========= =========

Wt. avg. common shares outstanding - basic         105,200   104,500
Wt. avg. common shares outstanding - diluted       108,500   107,500


                                                    Six Months Ended
                                                         June 30,
                                                   -------------------
                                                      2005      2004
                                                   --------- ---------

Net sales                                          $876,000  $810,100

Costs and expenses:
     Cost of goods sold                             338,400   330,600
     Marketing, selling & administrative
      expense                                       264,600   251,200
     Research & development expense                  56,200    54,800
     Interest expense                                 6,200     6,400
     Other (income) expense, net                    (17,900)  (10,300)
                                                   --------- ---------
Total costs and expenses                            647,500   632,700
                                                   --------- ---------

Income before tax provision                         228,500   177,400
     Income tax provision                            61,900    46,800
                                                   --------- ---------

Net income                                         $166,600  $130,600
                                                   ========= =========

Basic earnings per share                              $1.59     $1.25
                                                   ========= =========

Diluted earnings per share                            $1.54     $1.22
                                                   ========= =========

Wt. avg. common shares outstanding - basic          105,000   104,300
Wt. avg. common shares outstanding - diluted        108,300   107,100


                  Product Group Summary of Net Sales
                   (dollars in thousands, unaudited)

                                        Quarter Ended June 30,
                                  -----------------------------------
                                                             Constant
                                     2005     2004    Change Currency
                                  --------- --------- ------ --------
Vascular                          $108,800  $100,100      9%       6%
Urology                            131,900   121,500      9%       7%
Oncology                           102,000    84,200     21%      19%
Surgery                             85,600    76,900     11%      10%
Other                               19,100    17,500      9%       8%
                                  --------- ---------

Ongoing Sales                     $447,400  $400,200     12%
                                                      ======
FX Impact                              ---     6,400
                                  --------- ---------
Con. Currency                     $447,400  $406,600              10%
                                  ========= =========        ========

Ongoing Sales                     $447,400  $400,200     12%
                                                      ======
Divested Sales                         ---    16,100
                                  --------- ---------
Reported Sales                    $447,400  $416,300      7%
                                  ========= ========= ======


                                        Six Months Ended June 30,
                                   -----------------------------------
                                                              Constant
                                     2005      2004    Change Currency
                                   --------- --------- ------ --------
Vascular                           $213,100  $192,200     11%       8%
Urology                             259,300   238,000      9%       8%
Oncology                            195,200   163,300     20%      18%
Surgery                             171,100   152,100     12%      12%
Other                                37,300    33,300     12%      11%
                                   --------- ---------

Ongoing Sales                      $876,000  $778,900     12%
                                                       ======
FX Impact                               ---    10,900
                                   --------- ---------
Con. Currency                      $876,000  $789,800              11%
                                   ========= =========        ========

Ongoing Sales                      $876,000  $778,900     12%
                                                       ======
Divested Sales                          ---    31,200
                                   --------- ---------
Reported Sales                     $876,000  $810,100      8%
                                   ========= ========= ======

Notes to Consolidated Statements of Income

  • Net sales of divested products were previously reported in the oncology product group.
  • All earnings per share numbers reflect the company's 2 for 1 stock split that became effective May 28, 2004.
  • For the second quarter ended June 30, 2005, in addition to interest income and exchange gains and losses, other (income) expense, net included the following certain items: an investment gain of approximately $1.2 million pretax ($0.7 million after-tax; $0.01 diluted earnings per share) and the resolution of a royalty matter of approximately $7.1 million pretax ($4.4 million after-tax; $0.04 diluted earnings per share). For the six months ended June 30, 2005, in addition to interest income and exchange gains and losses, other (income) expense, net included the following certain items: investment gains and the resolution of a royalty matter for a net adjustment of approximately $11.5 million pretax ($7.1 million after-tax; $0.07 diluted earnings per share).
  • For the second quarter of 2004, in addition to interest income and exchange gains and losses, other (income) expense, net included the following certain items: a charge for a legal settlement partially offset by an investment gain, which resulted in a net pretax charge of $4.3 million ($2.6 million after tax; $0.02 diluted earnings per share). For the six months ended June 30, 2004, in addition to interest income and exchange gains and losses, other (income) expense, net included the following certain items: the adjustment of a fourth quarter 2003 reserve recorded in connection with a legal verdict, offset by unrelated legal settlements and investment gains for a net adjustment of $7.8 million pretax ($4.9 million after tax; $.05 diluted earnings per share).

Additionally in the first quarter of 2004, the company recorded a $1.1 million tax credit in income tax provision related to the retroactive effective date of its Malaysian high-technology pioneer grant ($0.01 diluted earnings per share).


                                      Reconciliation of Earnings
                                   (in millions, except per share)
                                       Quarter Ended June 30,
                               --------------------------------------
                                      2005                2004
                               ------------------  ------------------
                                  Net     Diluted    Net      Diluted
                                Income     EPS      Income      EPS
                               --------  --------  --------  --------
GAAP Basis                       $85.3     $0.79     $58.7     $0.55
Certain Items                     (5.1)    (0.05)      2.6      0.02
                               --------  --------  --------  --------

Adjusted Basis                   $80.2     $0.74     $61.3     $0.57
                               ========  ========  ========  ========


                                      Reconciliation of Earnings
                                    (in millions, except per share)
                                       Six Months Ended June 30,
                               --------------------------------------
                                      2005                2004
                               ------------------  ------------------
                                 Net     Diluted     Net     Diluted
                               Income      EPS       Income     EPS
                               --------  --------  --------  --------
GAAP Basis                      $166.6    $1.54     $130.6     $1.22
Certain Items                     (7.1)   (0.07)      (6.0)    (0.06)
                               --------  --------  --------  --------

Adjusted Basis                  $159.5     $1.47    $124.6     $1.16
                               ========  ========  ========  ========

CONTACT: C. R. Bard, Inc.
Investor Relations:
Eric J. Shick, 908-277-8413
Media Relations:
Holly P. Glass, 703-754-2848

SOURCE: C. R. Bard, Inc.


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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