Early Access

10-KPeriod: FY2011

THERMO FISHER SCIENTIFIC INC. Annual Report, Year Ended Dec 31, 2011

Filed February 29, 2012For Securities:TMO

Summary

Thermo Fisher Scientific Inc.'s 2011 10-K filing highlights a year of significant growth, driven by strategic acquisitions and organic expansion across its three key segments: Analytical Technologies, Specialty Diagnostics, and Laboratory Products and Services. The company reported a substantial increase in revenues, reaching $11.73 billion, a 11% rise from the previous year, fueled by the impactful acquisitions of Phadia and Dionex. This growth was achieved despite challenges such as uncertainty in academic and government funding and inflationary pressures on raw materials, which were partially offset by productivity improvements and cost efficiencies. Financially, Thermo Fisher demonstrated resilience with strong operational cash flow and strategic debt management. The company also announced its intention to initiate a quarterly cash dividend, signaling a commitment to returning value to shareholders. Key areas of focus for investors include the company's ongoing integration of acquisitions, its strategy to drive internal growth through R&D and market expansion, and its ability to navigate economic uncertainties and currency fluctuations. The company's robust business model, serving diverse end markets, positions it for continued leadership in the scientific industry.

Financial Statements
Beta
Revenue$11.56B
Cost of Revenue$5.73B
Gross Profit$5.83B
R&D Expenses$340.20M
SG&A Expenses$3.11B
Operating Expenses$10.31B
Operating Income$1.25B
Interest Expense$175.30M
Net Income$1.33B
EPS (Basic)$3.49
EPS (Diluted)$3.46
Shares Outstanding (Basic)380.80M
Shares Outstanding (Diluted)384.80M

Key Highlights

  • 1Total revenues reached $11.73 billion in 2011, an increase of 11% from $10.57 billion in 2010, primarily driven by acquisitions.
  • 2The company completed significant acquisitions in 2011, including Phadia and Dionex, to expand its specialty diagnostics and analytical technologies portfolios, respectively.
  • 3Operating income for 2011 was $1.25 billion, a slight increase from $1.21 billion in 2010, though operating margin slightly decreased due to higher acquisition-related charges and amortization expenses.
  • 4Thermo Fisher reported strong cash flow from operations, totaling $1.69 billion in 2011, enabling continued investment in acquisitions and debt repayment.
  • 5The company announced its decision to initiate a quarterly cash dividend, with the first payment expected in April 2012.
  • 6Research and development spending increased to $341 million in 2011 from $285 million in 2010, underscoring a commitment to innovation.
  • 7The company experienced a favorable currency translation effect of $266 million on revenues in 2011, contrasting with an unfavorable effect of $19 million in 2010.

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