March 9, 2009 - Becton, Dickinson & Co. (BDX-NYSE) a medical technology company, develops, manufactures, and sells medical supplies, devices, laboratory equipment, and diagnostic products worldwide.

The company's BD Diagnostics segment provides products for the safe collection and transport of diagnostic specimens and instruments for analysis, including preanalytical and diagnostic systems comprising integrated systems for specimen collection, a line of safety-engineered blood collection products and systems; plated media; automated blood culturing systems; molecular testing systems for sexually transmitted diseases and healthcare-associated infections; microorganism identification and drug susceptibility systems; liquid-based cytology systems for cervical cancer screening; and rapid diagnostic assays.

Its BD Biosciences segment offers fluorescence activated cell sorters and analyzers; cell imaging systems, monoclonal antibodies, and kits for performing cell analysis; reagent systems for life sciences research; tools to aid in drug discovery and growth cells and tissue; cell culture media supplements for biopharmaceutical manufacturing; and diagnostic assays.

Becton, Dickinson and Company serves hospitals, laboratories, clinics, consumers and retail pharmacies, public health agencies, pharmaceutical and biotech companies, healthcare workers, blood banks, patients, physicians' office practices, and academic and government institutions. The company was founded in 1897 and is based in Franklin Lakes, New Jersey.

What struck me about BDX was its earnings record. Every year since 1993 (as far back as my data source provides), the company delivered higher earnings per share. Back then, they were 68 cents. In 2008, they hit $4.46, well above the $3.84 of 2007. For 2009, analysts predict $4.93, and for 2010, $5.44. Clearly, this is a company doing a lot of things right.

While the global economic slowdown has hurt every company and the stronger dollar lowers top lines through currency translations, BDX started its fiscal year (beginning October 1) with a 2% gain in sales, up to $1.73 billion of product, compared to the first quarter of 2008. Strong demand continues for its Biosciences and Diagnostic divisions, as well as clinical and research instruments, safety-engineered devices, cancer diagnostics, and infectious disease testing systems.

While revenues moved up by 2%, earnings jumped by 18% in the first 90 days compared to the same period in 2008. Cost cutting and spending controls contributed to the better results. Per share reports were also helped by a large stock repurchase in the quarter.

The company is sharing its success with shareholders. The board recently increased the quarterly dividend to 33 cents a share, up 16% from the last dividend paid (the company pays 3 quarters a year, the first, second and third). Furthermore, management announced a 10 million share buyback program. That's on top of the 5.9 million shares still open for purchase under the old program.

More numbers: Market Cap is $15.32 billion. Forward P/E is 11.75. Price to Book is 3.2. Operating margin for the last 12 months was 22.43% while Profit margin was 16.23%. There's $777 million in cash for total cash per share of $3.24. Total debt is $1.16 billion. Current ratio is 2.12. Book Value is $19.88. Beta is a relatively quiet .69. 52-week high was $91 set on March 19 of last year. The low was hit on November 21 at $58.14. There are 239.7 million shares outstanding with a float of 237.4 million. Institutions own 84% of the stock.

Becton, Dickinson is a stock that appears to have all the right ingredients for any type of investor. Management has shown its abilities to deliver good earnings over a long period of time. Sales are growing, as are profits. While it's not immune from a global economic slowdown, its services are not discretionary. The company should weather the storm better than most. Look more closely at BDX if you're still interested in buying stocks.

- Company Web site: www.bd.com

- Ted Allrich