Thermo Fisher Scientific Inc. (Thermo Fisher), a US-based medical devices company, has reported revenues of $2.26 billion for the first quarter of 2009, down 12%, compared with the revenues of $2.55 billion in the year-ago quarter. It has posted net income of $148.9 million, or $0.35 per diluted share, for the first quarter of 2009, compared with the net income of $229.7 million, or $0.53 per diluted share, in the year-ago quarter.
Quarterly Snapshot
Revenues decreased 12%
Adjusted EPS declined 15%
Generated record free cash flow of more than $310 million
Significant new products launched to address customer needs for advanced analytical performance and improved productivity in a range of applications
New food-safety solutions leverage breadth of portfolio to meet growing demand for melamine and salmonella testing
“The tough economy had a significant impact on our results for the first quarter, particularly in our instrumentation and equipment businesses,” said Marijn E. Dekkers, president and chief executive officer of Thermo Fisher Scientific. “Our customers are clearly delaying their capital purchases in the current environment. In addition, our revenue growth was affected by considerable foreign currency exchange headwinds. On a positive note, we generated record free cash flow of more than $310 million for the quarter. This underscores the strength of our company, even in these unprecedented times, and gives us the ability to invest for the future.
“We are focused on a combination of cost control and strategic investment that will allow us to emerge from this recession an even stronger industry leader. We continue to drive operational productivity through our company-wide practical process improvement program, and are rationalizing our global footprint where it makes sense.
“At the same time, we are investing in opportunities that will lead to growth in the longer term. We introduced a number of innovative new products during the quarter to provide our customers with advanced analytical performance and more productive workflows. We are also strengthening our presence in growth markets – for example, China, which continues to invest in consumer product safety, environmental quality and infrastructure. In addition, we have ramped up our commercial activities to capitalize on opportunities tied to global economic stimulus programs.”
Dekkers added, “With the global economy showing little sign of improvement at this point in the year, we are lowering our revenue guidance for 2009 by $400 million, to a range of $9.6 to $9.9 billion. This would result in a 6% to 9% decline in revenues from our strong performance in 2008. We are also lowering our adjusted EPS guidance for the year by $.20, to a range of $2.80 to $3.10. This revised estimate would lead to a 1% to 11% decline in adjusted EPS, compared with our 2008 adjusted EPS of $3.13.” (The 2009 guidance does not include any future acquisitions or divestitures, and is based on present currency 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.”).