10-KPeriod: FY2009

THERMO FISHER SCIENTIFIC INC. Annual Report, Year Ended Dec 31, 2009

Filed February 26, 2010For Securities:TMO

Summary

Thermo Fisher Scientific Inc. (TMO) reported its 2009 fiscal year results in this 10-K filing on February 25, 2010. The company, a leader in serving science, operates through two primary segments: Analytical Technologies and Laboratory Products and Services. Despite a challenging global economic environment, TMO generated revenues of $10.11 billion. The company strategically navigated the economic downturn through productivity improvements, cost management, and targeted acquisitions, such as Biolab and B.R.A.H.M.S. AG, to expand its portfolio and geographic reach. Financially, the company demonstrated resilience with operating income of $1.05 billion and robust cash flow from operations totaling $1.66 billion. TMO maintained a strong liquidity position with $1.57 billion in cash and short-term investments. The company also continued to invest in research and development, spending $246.1 million in 2009 to drive innovation and maintain its competitive edge in rapidly evolving scientific markets. While facing headwinds from decreased demand in certain sectors, TMO's diversified business model and strategic focus on growth platforms provided a stable foundation.

Financial Statements
Beta
Revenue$9.91B
Cost of Revenue$5.16B
Gross Profit$4.76B
SG&A Expenses$2.59B
Operating Expenses$8.91B
Operating Income$1.00B
Interest Expense$118.00M
Net Income$850.30M
EPS (Basic)$2.06
EPS (Diluted)$2.01
Shares Outstanding (Basic)412.40M
Shares Outstanding (Diluted)422.80M

Key Highlights

  • 1Total revenues for fiscal year 2009 were $10.11 billion, a slight decrease from $10.50 billion in 2008, impacted by global economic conditions.
  • 2Operating income was $1.05 billion in 2009, down from $1.23 billion in 2008, reflecting efforts to manage costs amidst lower demand.
  • 3The company successfully executed strategic acquisitions in 2009, including Biolab and B.R.A.H.M.S. AG, to broaden its product offerings and market presence.
  • 4Cash flow from operations remained strong, totaling $1.66 billion in 2009, indicating efficient working capital management.
  • 5Thermo Fisher Scientific invested $246.1 million in Research & Development in 2009, underscoring its commitment to innovation and technological advancement.
  • 6The company maintained a healthy liquidity position with $1.57 billion in cash and short-term investments as of December 31, 2009.
  • 7Revenues from the Analytical Technologies segment decreased by 7% year-over-year, while Laboratory Products and Services saw a marginal decrease of 0% in 2009, demonstrating relative stability in the latter segment.

Frequently Asked Questions

The global economic downturn in 2009 led to decreased demand for some of Thermo Fisher Scientific's products, particularly equipment and services, impacting revenues and profitability compared to 2008. However, sales of consumables remained relatively stable, and the company implemented productivity improvements and cost-reduction measures to mitigate the impact. Despite the challenges, the company generated strong operating income and cash flow.

In 2009, Thermo Fisher Scientific focused on strategic acquisitions to enhance its portfolio and market reach. Notable acquisitions included Biolab, an Australian provider of analytical instruments, and B.R.A.H.M.S. AG, a German company specializing in specialty diagnostic tests. The company also continued to invest in R&D and implemented restructuring actions to improve efficiency and cost management.

Thermo Fisher Scientific demonstrated strong liquidity as of December 31, 2009, with $1.57 billion in cash and short-term investments. The company reported $1.66 billion in cash flow from operations for the year. With available borrowing capacity under its credit agreement, the company believed it had sufficient resources to meet its cash requirements for at least the next 24 months.

Thermo Fisher Scientific aims to achieve growth through a combination of internal development and strategic acquisitions. The company focuses on developing new products, finding new markets, expanding its service offerings, strengthening its presence in key geographic regions, and leveraging cross-selling opportunities across its broad product portfolio. Investment in R&D remains a key component of its growth strategy.