Corporate Banner
Satellite Banner
Medicinal Chemistry
Scientific Community
 
Become a Member | Sign in
Home>News>This Article
  News
Return

Record Revenues for Thermo Fisher Scientific

Published: Thursday, January 31, 2013
Last Updated: Thursday, January 31, 2013
Bookmark and Share
Revenue for the quarter grew 6% to $3.26 billion in 2012, versus $3.09 billion in 2011.

Fourth Quarter and Full Year 2012 Highlights

• Adjusted earnings per share (EPS) in the fourth quarter of 2012 grew 14% to a record $1.36, and for the full year grew 19% to a record $4.94.

• Revenue in the fourth quarter increased 6% to a record $3.26 billion.

• Adjusted operating margin in the fourth quarter expanded 40 basis points to 19.6%.

• Generated record full year free cash flow of $1.77 billion.

• Full year revenue from high-growth Asia-Pacific markets now represents 17% of total company revenue, up from 15% in 2011; China became the second largest geography by revenue, at more than $700 million in 2012.

• Strengthened technology leadership with numerous Thermo Scientific product launches in 2012, including the iCAP™Q ICP mass spectrometer, Trace™ 1300 gas chromatograph, TruNarc™ handheld drug analyzer, Lynx SuperSpeed centrifuge and the PikoReal™ PCR system.

• Invested $1.1 billion to acquire complementary businesses that increase depth of capabilities, highlighted by acquisition of One Lambda, which expanded specialty diagnostics offering into high-growth transplant diagnostics market.

• Deployed $350 million in the fourth quarter to repurchase 5.7 million shares, and $1.15 billion for the full year to repurchase 20.8 million shares.

• Initiated first quarterly dividend in company history and increased dividend by 15% in the fourth quarter to $0.15, based on strong performance and outlook.

Adjusted EPS, adjusted operating income, adjusted operating margin and free cash flow are non-GAAP measures that exclude certain items detailed later in this press release under the heading “Use of Non-GAAP Financial Measures.”

“I’m extremely proud of our outstanding results in 2012, which led to a 19 percent increase in adjusted EPS,” said Marc N. Casper, president and chief executive officer of Thermo Fisher Scientific. “Our teams executed well in a challenging environment to deliver strong performance in all three of our business segments.

“Our strategy to invest in innovation, commercial excellence and emerging markets is clearly driving growth. This was a banner year for innovation, with significant new product launches in each of our key technology platforms. Through strong commercial execution, our value proposition is making a difference for our customers and helping us to gain share across a broad customer set. Last, we expanded our footprint in the Asia-Pacific, including opening our fifth factory in China and a new demo lab in South Korea, to capture opportunities in high-growth emerging markets.

“It was another stand-out year in terms of effectively deploying our capital to create shareholder value. We invested more than $1 billion to complete complementary acquisitions that broaden our offering for our customers and strengthen our competitive position. We also returned $1.3 billion to our shareholders through stock repurchases and dividends, reflecting our confidence in continuing our growth momentum into 2013 and beyond.”

Fourth Quarter 2012
For the fourth quarter of 2012, adjusted EPS grew 14% to a record $1.36, versus $1.19 in the fourth quarter of 2011. Revenue for the quarter grew 6% to $3.26 billion in 2012, versus $3.09 billion in 2011. Organic revenue grew 4%, with currency translation lowering revenue by 1% and acquisitions increasing revenue by 2%. Adjusted operating income for the fourth quarter of 2012 increased 7% compared with the year-ago period, and adjusted operating margin expanded to 19.6%, compared with 19.2% in the fourth quarter of 2011.

GAAP diluted EPS for the fourth quarter of 2012 was $1.04, versus $0.77 in the same quarter last year. GAAP operating income for the fourth quarter of 2012 increased 15% to $401 million, compared with $348 million in 2011. GAAP operating margin increased to 12.3%, compared with 11.2% in the fourth quarter of 2011.

Full Year 2012
For the full year 2012, adjusted EPS grew 19% to a record $4.94, versus $4.16 in 2011. Revenue for 2012 grew 8% to $12.51 billion, versus $11.56 billion a year ago. On a pro forma basis, as if Dionex and Phadia were owned for the full year in 2011, organic revenue grew 4%. Acquisitions, other than Phadia and Dionex, increased revenue by 1% and currency translation lowered revenue by 2%. Adjusted operating income for 2012 increased 12% compared with 2011, and adjusted operating margin expanded to 19.0%, compared with 18.4% a year ago.

GAAP diluted EPS for 2012 was $3.21, versus $3.46 in 2011, due primarily to gains on the sale of discontinued operations in 2011. GAAP operating income for 2012 increased 18% to $1.48 billion, compared with $1.25 billion a year ago. GAAP operating margin increased to 11.8%, compared with 10.8% in 2011.

Annual Guidance for 2013
Casper added, “Looking ahead to 2013, we are planning for the global economic environment to remain challenging. That said, given our performance in 2012 and our proven strategy of delivering top-line growth, using our productivity levers to expand margins and effectively deploying our capital, I’m confident we can deliver another successful year.”

Thermo Fisher is initiating adjusted EPS and revenue guidance for the full year 2013. The company expects to achieve adjusted EPS in the range of $5.32 to $5.46 for 2013, which would result in 8% to 11% adjusted EPS growth over 2012. The company expects to achieve 2013 revenue in the range of $12.80 billion to $13.00 billion, for 2% to 4% revenue growth year over year.

The 2013 guidance does not include any future acquisitions or divestitures and is based on current foreign exchange rates. In addition, the adjusted EPS estimate excludes amortization expense for acquisition-related intangible assets and certain other items detailed later in this press release under the heading “Use of Non-GAAP Financial Measures.”

Segment Results
Management uses adjusted operating results to monitor and evaluate performance of the company’s three business segments, as highlighted below.

Analytical Technologies Segment
In the fourth quarter of 2012, Analytical Technologies Segment revenue increased 2% to $1.11 billion, compared with revenue of $1.08 billion in the fourth quarter of 2011. Segment adjusted operating income decreased 3% in the fourth quarter of 2012, and adjusted operating margin was 20.0%, versus 21.1% in the 2011 quarter.

For the full year 2012, Analytical Technologies Segment revenue increased 7% to $4.12 billion, compared with revenue of $3.85 billion in 2011. Segment adjusted operating income increased 7% in 2012, and adjusted operating margin was 18.7% in both periods.

Specialty Diagnostics Segment
Specialty Diagnostics Segment revenue in the fourth quarter increased 12% to $792 million in 2012, compared with revenue of $706 million in the fourth quarter of 2011. Segment adjusted operating income increased 21% in the fourth quarter of 2012, and adjusted operating margin increased to 25.9%, versus 24.0% in the 2011 quarter.

For the full year 2012, Specialty Diagnostics Segment revenue increased 20% to $2.96 billion, compared with revenue of $2.47 billion in 2011. Segment adjusted operating income increased 27% in 2012, and adjusted operating margin increased to 25.7%, versus 2011 results of 24.2%.

Laboratory Products and Services Segment
In the fourth quarter of 2012, Laboratory Products and Services Segment revenue increased 4% to $1.50 billion, compared with revenue of $1.44 billion in the fourth quarter of 2011. Segment adjusted operating income increased 8% in the fourth quarter of 2012, and adjusted operating margin was 14.1%, versus 13.7% in the 2011 quarter.

For the full year 2012, Laboratory Products and Services Segment revenue increased 4% to $5.99 billion, compared with revenue of $5.76 billion in 2011. Segment adjusted operating income increased 4% in 2012, and adjusted operating margin was 14.1% in both years.

Use of Non-GAAP Financial Measures
In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), we use certain non-GAAP financial measures, including adjusted EPS, adjusted operating income and adjusted operating margin, which exclude restructuring and other costs/income and amortization of acquisition-related intangible assets. Adjusted EPS also excludes certain other gains and losses, tax provisions/benefits related to the previous items, benefits from tax credit carryforwards, the impact of significant tax audits or events and discontinued operations. We exclude the above items because they are outside of our normal operations and/or, in certain cases, are difficult to forecast accurately for future periods. We also use a non-GAAP measure, free cash flow, which excludes operating cash flows from discontinued operations and deducts net capital expenditures. We believe that the use of non-GAAP measures helps investors to gain a better understanding of our core operating results and future prospects, consistent with how management measures and forecasts the company’s performance, especially when comparing such results to previous periods or forecasts.

For example:

We exclude costs and tax effects associated with restructuring activities, such as reducing overhead and consolidating facilities. We believe that the costs related to these restructuring activities are not indicative of our normal operating costs.

We exclude certain acquisition-related costs, including charges for the sale of inventories revalued at the date of acquisition and significant transaction costs. We exclude these costs because we do not believe they are indicative of our normal operating costs.

We exclude the expense and tax effects associated with the amortization of acquisition-related intangible assets because a significant portion of the purchase price for acquisitions may be allocated to intangible assets that have lives of 5 to 20 years. Our adjusted EPS estimate for 2013 excludes approximately $1.43 of expense for the amortization of acquisition-related intangible assets for acquisitions completed through the end of the fourth quarter of 2012. Exclusion of the amortization expense allows comparisons of operating results that are consistent over time for both our newly acquired and long-held businesses and with both acquisitive and non-acquisitive peer companies.

We also exclude certain gains/losses and related tax effects, benefits from tax credit carryforwards and the impact of significant tax audits or events (such as the one-time effect on deferred tax balances of enacted changes in tax rates), which are either isolated or cannot be expected to occur again with any regularity or predictability and that we believe are not indicative of our normal operating gains and losses. For example, we exclude gains/losses from items such as the sale of a business or real estate, gains or losses on significant litigation-related matters, gains on curtailments of pension plans, the early retirement of debt and discontinued operations.

We also report free cash flow, which is operating cash flow, net of capital expenditures, and also excludes operating cash flows from discontinued operations to provide a view of the continuing operations’ ability to generate cash for use in acquisitions and other investing and financing activities.

Thermo Fisher’s management uses these non-GAAP measures, in addition to GAAP financial measures, as the basis for measuring the company’s core operating performance and comparing such performance to that of prior periods and to the performance of our competitors. Such measures are also used by management in their financial and operating decision-making and for compensation purposes.

The non-GAAP financial measures of Thermo Fisher’s results of operations and cash flows included in this press release are not meant to be considered superior to or a substitute for Thermo Fisher’s results of operations prepared in accordance with GAAP. Reconciliations of such non-GAAP financial measures to the most directly comparable GAAP financial measures are set forth in the accompanying tables. Thermo Fisher’s earnings guidance, however, is only provided on an adjusted basis. It is not feasible to provide GAAP EPS guidance because the items excluded, other than the amortization expense, are difficult to predict and estimate and are primarily dependent on future events, such as acquisitions and decisions concerning the location and timing of facility consolidations.


Further Information
Access to this exclusive content is for Technology Networks Premium members only.

Join Technology Networks Premium for free access to:

  • Exclusive articles
  • Presentations from international conferences
  • Over 2,400+ scientific posters on ePosters
  • More than 3,700+ scientific videos on LabTube
  • 35 community eNewsletters


Sign In



Forgotten your details? Click Here
If you are not a member you can join here

*Please note: By logging into TechnologyNetworks.com you agree to accept the use of cookies. To find out more about the cookies we use and how to delete them, see our privacy policy.

Related Content

Thermo Completes Sale of Cole-Parmer to GTCR
Thermo Fisher Scientific Inc. announced that it has completed the sale of its Cole-Parmer customer channel business to private equity firm GTCR LLC for approximately $480 million in cash.
Wednesday, August 20, 2014
Thermo to Sell Cole-Parmer for $480M
Company has signed a definitive agreement to sell its Cole-Parmer channel business to private equity firm GTCR, LLC for $480 million in cash.
Monday, July 21, 2014
Thermo Scientific Selected to Supply Maybridge Fragment Library for Key Research
Recommended for use by renowned fragment library design expert.
Tuesday, February 05, 2013
Thermo Scientific Announces New UHPLC/MS Method for Trace-Level Analysis of Perfluorinated Compounds in Human Breast Milk
The method utilizes SRM and H-SRM on an integrated UHPLC/MS platform enables robust detection of PFCs at ppt concentrations.
Friday, August 27, 2010
Thermo Fisher Scientific Names Recipients of In Vitro Protein Expression Grants
Program provides $25,000 in protein expression tools to advance scientific discovery.
Friday, July 16, 2010
Thermo Fisher Scientific Launches Maybridge Ro3 Diversity Fragment Library
Diverse set of 1,500 molecules engineered for high-quality fragment screening-based programmes.
Tuesday, July 06, 2010
Thermo Fisher Scientific Opens Global Food Safety Response Center
Designed to aid governments and businesses facing unknown food safety threats involving chemical contaminants.
Friday, April 16, 2010
Thermo Fisher Scientific Opens New UK Facility for Cancer Diagnostics and Chromatography Products
The new facility houses Thermo Fisher’s Anatomical Pathology and Chromatography Consumables businesses.
Thursday, February 11, 2010
Thermo Fisher Scientific Names Recipients of RNAi Discovery Grants
More than $400,000 in RNAi screening tools awarded to advance biomedical research and drug discovery.
Friday, November 06, 2009
Thermo Fisher Scientific to Showcase Innovative Mass Spectrometry Solutions at IMSC 2009
Company will showcase a variety of mass spectrometry software and hardware solutions to deliver improved analytical performance.
Monday, September 07, 2009
Thermo Fisher Scientific Collaborates with the Institute of Cancer Research to Create Proteomics Laboratory
The ICR's new, proteomics laboratory is equipped with a complete Thermo Scientific proteomics workflow.
Friday, July 24, 2009
Cancer Research Technology Selects Maybridge Fragments for Lead Discovery Programmes
CRT purchases 2,000 Maybridge Fragments as the foundation of its new fragment screening library.
Friday, May 22, 2009
Thermo Fisher Scientific’s Exactive LC-MS Wins ACHEMA Innovation Award
The Company has been presented with the award for the category of Laboratory and Analytical Techniques.
Friday, May 22, 2009
Thermo Fisher Scientific Event Showcases New Breakthroughs in FAIMS
Attendees presented a number of breakthroughs enabled through their use of the FAIMS technology.
Friday, May 08, 2009
Thermo Fisher Scientific Welcomes New Members to RNAi Global Initiative
The new member institutions include the Children's Hospital of Eastern Ontario Research Institute and the University of Leiden in Amsterdam.
Monday, March 02, 2009
Scientific News
Toxin from Salmonid Fish has Potential to Treat Cancer
Researchers from the University of Freiburg decode molecular mechanism of fish pathogen.
New Diabetes Drug has Unexpected Side Effect
A type of drug used to treat diabetes may reduce the risk of developing Parkinson’s disease, according to new research.
Researchers Develop Vaccine that Protects Primates Against Ebola
A collaborative team from The University of Texas Medical Branch at Galveston and the National Institutes of Health have developed an inhalable vaccine that protects primates against Ebola.
Cannabis May Be Used to Treat Fractures
TAU researcher finds non-psychotropic compound in marijuana can help heal bone fissures.
A Novel Drug to FIght Malaria
An international team of scientists has announced that a new compound to fight malaria is ready for human trials.
New Cell Structure Finding Might Lead to Novel Cancer Therapies
University of Warwick scientists in the U.K. say they have discovered a cell structure which could help researchers understand why some cancers develop.
Creating More Potent Vaccines
Yale researchers uncovered a new role for a type of immune cell, known as regulatory T cells, in promoting long-term immunity.
Potential Therapeutic for Blinding Eye Disease
NIH research points to microglia as potential therapeutic target in retinitis pigmentosa.
Potential New Class of Cancer Drugs
Scientists have found a way to stop cancer cell growth by targeting the Warburg Effect, a trait of cancer cell metabolism that scientists have been eager to exploit.
Global Search for Next Antibiotic
University of Queensland researchers have launched a global search to discover antibiotics capable of combating superbug bacteria that are resistant to current antibiotics.
Skyscraper Banner

Skyscraper Banner
Go to LabTube
Go to eposters
 
Access to the latest scientific news
Exclusive articles
Upload and share your posters on ePosters
Latest presentations and webinars
View a library of 1,800+ scientific and medical posters
2,400+ scientific and medical posters
A library of 2,500+ scientific videos on LabTube
3,700+ scientific videos
Close
Premium CrownJOIN TECHNOLOGY NETWORKS PREMIUM FREE!