“By the end of 2000, we will have invested more than $200 million to achieve our goals for Genesis. When fully implemented, we expect substantial annual P&L benefits, in addition to a reduction in inventories on the order of a few hundred million dollars. Our manufacturing facility in Columbus, Nebraska, was the first to go live with Genesis, and we also added three more manufacturing locations and Canada in November. We expect to complete implementation in North America by the end of 2000, and in Europe and the rest of the world by the end of 2001.

“Through this effort, real-time information will be available to associates around the world-an essential element for rapid decision-making on a global scale. The team-based, self-managed processes we are encouraging cannot effectively operate unless good information can be accessed by all decision makers. By implementing Genesis, we are achieving far greater benefits than if we had implemented separate information system upgrades around the world.

“A second One Company initiative resulted from a critical self-assessment of our procurement processes. We plan over the next several years to add tens of millions of dollars to the bottom line by taking a global approach to procurement. These savings will enable us to fund new growth initiatives even as we improve quality and service to our customers.

“We also are transforming manufacturing, a traditional source of competitive advantage for BD. Over the years, we have done an excellent job optimizing performance at each of our plants. Now, a team of seasoned manufacturing executives, headed by a senior vice president, is optimizing company-wide manufacturing. Once again, the information support provided by Genesis will be essential to success. We expect that the successes in procurement and manufacturing will enhance our gross profit margins beginning in 2001.

“Driven by product and service specialists bringing outstanding levels of competence and support to our customers, BD has developed a reputation for sales excellence around the world. Over the past two years, we have sought to make this extraordinary resource even more powerful by organizing around One Company go-to-market initiatives. For example, in the United States we created a cross-business sales organization to serve as a single point of contact for integrated care networks and multi-hospital systems. Our biggest win of the past year was an 8-year contract with Tenet Healthcare Corp. having a potential for $56 million additional revenue. This new structure enables us to sell strategically, so BD customers can better understand our unique value proposition. And, cross-company collaboration allows our businesses to come to the table with integrated health care solutions.

“Transformation really does touch every aspect of our lives, both as individuals and team members. Transformation will help us grow our top line and facilitate the productivity enhancements we need to win in the next millennium. Transformation helps us to harness our exceptional technology capabilities -by design. Let us turn now to three key areas where the combination of transformation and technology is creating solid opportunities for our future. First, Deb Neff will highlight developments in BD Biosciences. Then, we’ll hear from Rick Brajer, who heads BD Preanalytical Solutions. Gary Cohen will conclude with a discussion of BD Medical Systems.”