Summary
Thermo Fisher Scientific Inc. (TMO) reported its third-quarter and nine-month results for the period ending September 26, 2009. For the third quarter, revenues were $2.53 billion, a slight decrease of 2% ($57 million) compared to the prior year, impacted by global economic conditions leading to reduced demand, particularly for equipment. However, the company saw growth in consumables. Net income for the quarter increased to $221.2 million from $218.1 million in the prior year, partly due to a lower effective tax rate. For the first nine months of 2009, revenues were $7.27 billion, a decrease of 7% ($581 million) year-over-year, also reflecting the economic downturn and unfavorable currency translation. Despite revenue pressures, the company demonstrated strong cash flow from operations, totaling $1.12 billion for the nine months, an increase from $960 million in the prior year, attributed to improved working capital management. The company also announced a significant acquisition, B.R.A.H.M.S. AG, for approximately $480 million, expanding its specialty diagnostics portfolio. Thermo Fisher maintains a strong liquidity position with substantial cash and investments, sufficient to cover anticipated operational needs.
Financial Highlights
51 data points| Revenue | $2.53B |
| Cost of Revenue | $1.29B |
| Gross Profit | $1.01B |
| SG&A Expenses | $662.10M |
| Operating Expenses | $2.26B |
| Operating Income | $275.50M |
| Interest Expense | $29.20M |
| Net Income | $221.20M |
| EPS (Basic) | $0.54 |
| EPS (Diluted) | $0.53 |
| Shares Outstanding (Basic) | 407.90M |
| Shares Outstanding (Diluted) | 420.20M |
Key Highlights
- 1Third-quarter revenue of $2.53 billion declined 2% year-over-year, driven by decreased demand in equipment sales due to economic uncertainty, though consumables showed resilience.
- 2Net income for the third quarter increased to $221.2 million from $218.1 million in the prior year, aided by a lower effective tax rate.
- 3Nine-month revenue decreased by 7% to $7.27 billion, reflecting continued impacts from the global economic downturn and currency translation.
- 4Operating income for the nine months decreased by 20% to $724.6 million, impacted by lower revenues and increased restructuring costs.
- 5Cash flow from operating activities for the first nine months was robust at $1.12 billion, up from $960 million in the prior year, due to improved working capital management.
- 6The company acquired B.R.A.H.M.S. AG in October 2009 for approximately $480 million, strengthening its specialty diagnostics segment and European manufacturing presence.
- 7Thermo Fisher Scientific maintained a strong liquidity position with $1.76 billion in cash and short-term investments as of September 26, 2009, sufficient for foreseeable future cash requirements.