Beckman Instruments, FULLERTON
Nature of Business: Manufactures and markets bioanalytical systems for research.
Total Employees: 6,900 In Orange County: 1,900
Stock Listing in The Times: On NYSE as “BckIns” Ticker Symbol: “BEC”
Friday’s Close: $18.25 One-Week Change: Up $0.63
Analyst Review: “In looking at Beckman, you have to put it in the context of being an independent entity after its spinoff from SmithKline. It is slowly getting itself on track to put a more consistent pattern of earnings. on the board. It successfully launched its new Synchron family of clinical chemistry analyzers. That has protected the company’s diagnostic franchise, and we would expect that division to grow 8% to 9%. The primary weakness in its current mix of business, though, is in the bioanalytical division--products sold to the government and for privately-supported research. I would compliment its management on being able to manage in a tough climate, though. They continue to spend over $80 million a year--just under 10% of sales, on research and development. Because Beckman has had a product line centered on federally-funded research markets, they have had to shift to being more responsive to pharmaceutical manufacturers, and the newer biotechnological companies. We believe the company will earn $1.35 per share this year, and $1.50 next year.
--Kenneth Kulju, analyst
Rothschild Inc., New York
SALES VS. PROFITS
Fiscal year ending Dec. 31 Dec. 31 Dec. 31 3 Qtrs. 3 Qtrs. 1988 1989 1990 1990 1991 Net Sales $770.3 $785.9 $815.2 $589.4 $624.2 Net Profit (Loss) $42.5 $41.9 $36.2 $26.2 $27.7
Corporate Outlook: “Beckman is very optimistic about its focus on the biological sciences, particularly as the understanding of biological processes explodes in the research environment. We expect that the 1990s will provide good opportunities for our company. Our investments in research and development has allowed us to weather the current difficulties better than many of our competitors.”
--Jay Steffenhagen, Investor Relations Manager
3-YEAR SUMMARY AND YEAR-TO-DATE: RETURN ON STOCKHOLDER INVESTMENT
Fiscal year ending Dec. 31 Dec. 31 Dec. 31 3 Qtrs. 3 Qtrs. 1988* 1989 1990 1990 1991 52-Week High $19.00 $22.75 $19.00 $19.00 $20.63 52-Week Low $17.50 $17.13 $11.88 $11.88 $13.88 Book Value Per Share* $8.14 $9.43 $11.34 $11.34 $11.33 Net Earnings Per Share $1.49 $1.47 $1.26 $0.91 $0.95 Price-to-Earnings Ratio 12:1 12:1 12:1 10:1 16:1 Avg. Return on Investor Equity 18% 16% 11% 11% 11%
* Beckman Instruments Inc. was a wholly-owned subsidiary of SmithKline Beckman until Nov. 4, 1988 when SmithKline Beckman sold 16% of Beckman Instrument’s stock in a public offering; in July, 1989, Beckman Instruments Inc. became fully independent of SmithKline, when the parent distributed the remaining 84% of stock to shareholders.
For more information call or write, Beckman Instruments, Inc.: 2500 Harbor Blvd., Fullerton, Calif., 92634-3100. (714) 773-7764
Source: Beckman Instruments, Inc.
