Summary
Thermo Fisher Scientific Inc. reported solid financial results for the second quarter and first six months of 2010, demonstrating revenue growth and improved operating income compared to the prior year. The company's strategy of augmenting internal growth with strategic acquisitions, such as Ahura Scientific and Finnzymes, is contributing to its expansion. Revenue increased due to higher demand and contributions from recent acquisitions, with both the Analytical Technologies and Laboratory Products and Services segments showing positive performance. Operationally, the company is focusing on productivity improvements and cost management, including benefits from restructuring actions. While facing some headwinds such as the termination of a supply contract and currency translation impacts, Thermo Fisher Scientific remains confident in its financial position and liquidity, with sufficient cash reserves and borrowing capacity to meet its foreseeable cash requirements. The company's proactive debt management, including the redemption of senior subordinated notes and settlement of convertible debentures, further strengthens its financial structure.
Financial Highlights
51 data points| Revenue | $2.60B |
| Cost of Revenue | $1.34B |
| Gross Profit | $1.05B |
| SG&A Expenses | $673.20M |
| Operating Expenses | $2.30B |
| Operating Income | $297.90M |
| Interest Expense | $23.80M |
| Net Income | $237.30M |
| EPS (Basic) | $0.58 |
| EPS (Diluted) | $0.57 |
| Shares Outstanding (Basic) | 409.30M |
| Shares Outstanding (Diluted) | 415.90M |
Key Highlights
- 1Consolidated revenues increased by 7% to $2.65 billion for the second quarter of 2010 and by 12% to $5.32 billion for the first six months, driven by increased demand and strategic acquisitions.
- 2Operating income grew by 20% to $312 million for the second quarter and by 35% to $605 million for the first six months, reflecting improved margins and productivity gains.
- 3The Analytical Technologies segment saw revenue growth of 10% in the second quarter and 14% in the first six months, with strong demand in mass spectrometry and bioscience offerings.
- 4The Laboratory Products and Services segment reported a 5% revenue increase in the second quarter and a 12% increase in the first six months, despite a $22 million revenue reduction due to the termination of a supply contract.
- 5The company completed several strategic acquisitions in early 2010, including Ahura Scientific and Finnzymes, to expand its product portfolios and market reach.
- 6Thermo Fisher Scientific actively managed its debt, issuing new senior notes and redeeming outstanding debt, including Senior Subordinated Notes and Convertible Debentures.
- 7Cash flow from operations was $627 million for the first six months of 2010, a decrease from the prior year primarily due to increased investment in working capital to support sales growth.