8-KOther Events

THERMO FISHER SCIENTIFIC INC. 8-K Report (Apr 28, 2004)

Filed April 28, 2004For Securities:TMO

Summary

Thermo Fisher Scientific Inc. (TMO), formerly Thermo Electron Corporation, reported its first-quarter 2004 financial results on April 27, 2004. The company announced a significant 16% increase in total revenue, reaching $582.0 million, up from $500.2 million in the prior year's first quarter. This growth was driven by a combination of factors including a 5% organic revenue increase, a 7% positive currency translation effect, and a 4% contribution from acquisitions and divestitures. The company also highlighted a strong improvement in profitability, with GAAP diluted earnings per share (EPS) rising to $0.26 from $0.22 year-over-year, and adjusted EPS increasing by a robust 32% to $0.29. The results reflect improving market conditions across all three business segments and the benefits of strategic growth initiatives. The Life and Laboratory Sciences segment showed a notable 22% revenue increase, while Measurement and Control grew 5%, and Optical Technologies surged 18%. Thermo Fisher also announced the post-quarter acquisition of US Consulting Services, Inc. to enhance its laboratory informatics and services offerings. Management expressed confidence in continued performance, providing full-year 2004 adjusted EPS guidance of $1.23 to $1.28.

Key Highlights

  • 1Total revenue for Q1 2004 increased by 16% to $582.0 million, compared to $500.2 million in Q1 2003.
  • 2Organic revenue growth was 5%, demonstrating underlying business expansion.
  • 3GAAP diluted EPS rose to $0.26 in Q1 2004 from $0.22 in Q1 2003.
  • 4Adjusted EPS saw a significant 32% increase, reaching $0.29 in Q1 2004 from $0.22 in Q1 2003.
  • 5Adjusted operating margin improved by 160 basis points to 11.6% from 10.0% year-over-year.
  • 6The Life and Laboratory Sciences segment experienced strong revenue growth of 22%.
  • 7The company acquired US Consulting Services, Inc. after the quarter ended to bolster its services business.

Frequently Asked Questions

Thermo Fisher Scientific's revenue growth of 16% in the first quarter of 2004 was driven by a combination of 5% organic revenue growth, a 7% positive impact from currency translation, and a 4% contribution from acquisitions and divestitures. Improved market conditions across all segments and the successful execution of growth initiatives also played a significant role.

Profitability showed significant improvement. GAAP diluted EPS increased to $0.26 from $0.22 in the prior year. On an adjusted basis, which excludes certain items, EPS grew 32% to $0.29, and the adjusted operating margin expanded by 160 basis points to 11.6%.

Thermo Fisher provided guidance for full-year 2004 adjusted EPS in the range of $1.23 to $1.28. This guidance excludes approximately $0.02 per quarter related to the amortization of acquisition-related intangible assets and other specified items.

The company highlighted the acquisition of US Consulting Services, Inc. (USCS) after the first quarter closed, which is intended to expand its laboratory informatics and services business. USCS provides critical asset management services for laboratories.