I'm glad Clateo is beginning to carry out his promise to strengthen the bottom line. Here's a positive first step.
Tuesday May 19, 4:19 pm Eastern Time
Company Press Release
BECTON DICKINSON AND COMPANY ANNOUNCES RESTRUCTURING PLANS, ONE-TIME CHARGES FOR THIRD FISCAL QUARTER.
FRANKLIN LAKES, N.J.--(BUSINESS WIRE)--May 19, 1998--Becton Dickinson and Company (NYSE:BDX - news) announced today that its Board of Directors has approved a plan to restructure certain manufacturing and administrative activities. This plan, coupled with previously announced initiatives, is expected to result in approximately $120 million in restructuring, one-time, and other charges. The charges will be primarily included in the company's results for the third fiscal quarter which ends on June 30, 1998. This approved plan of action is part of the company's ongoing efforts to improve the effectiveness and responsiveness of its manufacturing, selling and administrative operations.
Implementation of the restructuring plan will be completed by the end of 1999. The company said that excluding the $120 million in pre-tax charges, it is comfortable with consensus earnings per share expectations, which are in the $2.70 - $2.75 range.
Clateo Castellini, chairman, president and chief executive officer, said: ``We have developed this plan to support our program to double the size of the company by 2002. It will also benefit our performance beginning next year. Achieving our growth aspiration, while maintaining 15 percent earnings per share growth is crucial if we are to continue to provide a proper return to our shareholders as we transform Becton Dickinson for its second century.''
Just another affirmation of how committed Clateo and Co. are to maintain 15% earnings growth. These guys are determined to satisfy the Wall Street wizards. Expect further announcements to come soon in the cost savings area.
By the way.....as I said before, the key to owning this stock is patience. Buy on dips, hold what you own and you will be rewarded! This is not a stock for day traders!