DOW JONES NEWSWIRES 
 

Becton Dickinson & Co.'s (BDX) fiscal first-quarter net income rose 15% amid sales and margin increases and a foreign currency hedging boost.

The medical-products maker raised its 2009 earnings outlook as the company so far has been able to avoid getting squeezed by the weakening economy.

Chairman and Chief Executive Edward J. Ludwig said the company "is off to a solid start," as it continues to see strength in its biosciences and diagnostics businesses and strong sales of insulin delivery products.

For the year, the company raised its forecasted per-share earnings range from November by a percentage point to 9% to 11%.

For the quarter ended Dec. 31, the company reported net income of $312.1 million, or $1.26 a share, up from $271.5 million, or $1.07 a share, a year earlier.

Revenue climbed 1.6% to $1.73 billion, though the stronger dollar pared sales by nearly 3 percentage points.

Analysts polled by Thomson Reuters expected earnings of $1.15 a share on revenue of $1.77 billion.

Operating margin rose to 24.3% from 21.3%.

U.S. revenue was up 3% and international sales, which represent more than half of its revenue, rose 1%, hurt by 5 percentage points by the stronger dollar.

In the biosciences segment, sales rose 11% on demand for clinical and research instruments. Sales were down in the medical segment by 2% as strong sales of insulin delivery products were more than offset by a drop in surgical systems products and an expected decline in prefillable devices in the U.S.

Becton Dickinson Chief Executive Edward Ludwig said earlier this month that the company hasn't felt the economic squeeze thus far, though he did note concern that hospital budget constraints will slow device makers. While acknowledging these strains, he also noted many of Becton's medical products are very basic items - like surgical blades or catheters. Though no primary demand disruptions have been seen, the company is carefully controlling costs.

Analysts are also keeping a keen eye on resin prices for signs of a possible retreat. High oil prices last summer boosted the cost of resins, which are used to make plastic syringes, as well as plastic dishes used in diagnostic tests and other laboratory equipment. The company spent about $230 million in resins in the last fiscal year, which was up $30 million from the prior year.

Shares closed Tuesday at $74.15, and there was no premarket trading. The stock has fallen 20% since its 52-week high last February.

-By Shirleen Dorman, Dow Jones Newswires; 201-938-2310; shirleen.dorman@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary. You can use this link on the day this article is published and the following day.