Summary
Thermo Fisher Scientific Inc. (TMO) reported its first quarter 2011 results, showing a robust increase in revenues and operating income. Total revenues grew by 4% year-over-year to $2.72 billion, driven by strong performance in the Analytical Technologies segment and steady growth in Laboratory Products and Services. The company's operating income improved significantly, rising 13% to $321.5 million, with an operating margin of 11.8%, up from 10.8% in the prior year period. This improvement was attributed to productivity gains, cost efficiencies from restructuring, and reduced amortization expenses. The company also made significant strategic moves, including the pending acquisition of Dionex Corporation for approximately $2.1 billion, which was being funded by significant debt issuance, leading to a substantial increase in short-term obligations. Additionally, TMO completed the divestiture of its Athena Diagnostics and Lancaster Laboratories businesses, which have been classified as discontinued operations. Despite increased debt levels and integration efforts for Dionex, the company maintained a strong liquidity position with substantial cash and cash equivalents, believing it has sufficient resources to fund the acquisition and ongoing operations.
Financial Highlights
53 data points| Revenue | $2.68B |
| Cost of Revenue | $1.35B |
| Gross Profit | $1.12B |
| SG&A Expenses | $708.70M |
| Operating Expenses | $2.40B |
| Operating Income | $321.50M |
| Interest Expense | $27.80M |
| Net Income | $252.20M |
| EPS (Basic) | $0.65 |
| EPS (Diluted) | $0.64 |
| Shares Outstanding (Basic) | 388.60M |
| Shares Outstanding (Diluted) | 394.60M |
Key Highlights
- 1Total revenues increased by 4% to $2.72 billion for the first quarter of 2011, compared to $2.63 billion in the prior year period.
- 2Operating income grew by 13% to $321.5 million, with operating margin improving to 11.8% from 10.8% year-over-year.
- 3The company is in the process of acquiring Dionex Corporation for approximately $2.1 billion, a significant strategic move funded by new debt issuance.
- 4Thermo Fisher completed the sale of its Athena Diagnostics and Lancaster Laboratories businesses, which are now reported as discontinued operations.
- 5Cash and cash equivalents significantly increased to $2.79 billion as of April 2, 2011, largely due to debt financing for the Dionex acquisition.
- 6Restructuring actions resulted in additional charges but are expected to yield annual cost savings of approximately $20 million.
- 7Diluted earnings per share from continuing operations were $0.63, an increase from $0.54 in the first quarter of 2010.