THERMO FISHER SCIENTIFIC INC. Quarterly Report for Q1 Ended Mar 30, 2013

Summary

Thermo Fisher Scientific Inc. reported its first quarter 2013 financial results, showcasing a solid increase in revenue and net income compared to the prior year. Revenue grew by 4% to $3.19 billion, driven by organic growth and strategic acquisitions, with particular strength noted in the Specialty Diagnostics and Laboratory Products and Services segments. Net income saw a significant jump of 21% to $336.2 million, or $0.93 per diluted share, reflecting improved operating efficiencies and a lower effective tax rate. The company also announced a major development: the agreement to acquire Life Technologies Corporation for approximately $13.6 billion, a move poised to significantly expand its presence in genetic analysis and scientific research markets.

Key Highlights

• 1Revenue increased by 4% to $3.19 billion for the first quarter of 2013 compared to the same period in 2012.
• 2Net income rose by 21% to $336.2 million, with diluted EPS at $0.93, up from $0.75 in Q1 2012.
• 3Operating income increased by 7% to $387.1 million, and the operating margin improved to 12.1% from 11.8%.
• 4The company announced a definitive agreement to acquire Life Technologies Corporation for approximately $13.6 billion, expected to close in early 2014.
• 5Cash provided by operating activities was $298.3 million, though lower than the prior year's $392.0 million, primarily due to changes in working capital.
• 6The company's effective tax rate significantly decreased to 0.6% in Q1 2013, down from 9.7% in Q1 2012, due to tax planning initiatives and R&D tax credits.
• 7Significant restructuring charges of $36 million were recorded in Q1 2013, related to headcount reductions and facility consolidations.

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