Summary
Thermo Fisher Scientific Inc. (TMO), formerly Thermo Electron Corporation, reported its financial results for the third quarter and the first nine months ended September 28, 2002. The company saw an increase in revenue for the third quarter of 2002, reaching $517.2 million, a slight rise from $512.9 million in the same period last year. However, year-to-date revenue declined to $1.518 billion from $1.629 billion in the prior year. Operating income showed significant improvement, with third-quarter operating income rising to $44.9 million from $28.6 million in the prior year. For the nine-month period, operating income increased to $116.8 million from $82.6 million. This improvement is partly attributed to the cessation of goodwill amortization following the adoption of SFAS No. 142 and ongoing cost reduction and restructuring efforts. Despite revenue headwinds in some segments, the company demonstrated effective cost management and operational efficiency.
Key Highlights
- 1Third-quarter revenue increased slightly to $517.2 million, while nine-month revenue decreased to $1.518 billion.
- 2Operating income improved significantly, with a 57% increase in the third quarter ($44.9M vs $28.6M) and a 41% increase for the nine-month period ($116.8M vs $82.6M).
- 3Goodwill amortization ceased in 2002 due to the adoption of SFAS No. 142, positively impacting operating income.
- 4The company continued its restructuring efforts, incurring charges but also expecting future cost savings.
- 5Acquisitions were made in the Radiation-monitoring products (RMP) and CRS Robotics businesses, adding to goodwill.
- 6Discontinued operations saw a net gain of $70.4 million for the nine-month period, primarily from the sale of Thermo Cardiosystems and the power-generation business.
- 7The company's liquidity remains solid, with consolidated working capital of $647.9 million as of September 28, 2002.