NEW YORK (GenomeWeb News) —Sigma-Aldrich today said fourth-quarter revenue rose 13 percent as R&D spending increased 9 percent and net income widened 25 percent.
Total receipts for the three months ended Dec. 31, 2006, rose to $464.5 million from $410.5 million year over year.
The jump in receipts was fueled by “robust” sales in all of the company’s major units, CEO Jai Nagarkatti said, adding that the better-than-predicted growth gives the company “confidence that our strategic initiatives are gaining momentum.”
Revenue from Sigma’s Research Essentials division increased to $88 million from 81.3 million; Research Specialties receipts jumped to $172.6 million from $152.6 million; and Research Biotech revenue increased to $70.6 million from $64.8 million.
R&D spending increased to $13.3 million from $12.2 million year over year.
The company said profit increased to $71.6 million $57.3 million in the year-ago period.
Sigma-Aldrich said it had around $173.8 million in cash and equivalents as of Dec. 31, 2006.
The company said it expects 2007 revenues to increase roughly 7 percent year over year. Broken down, growth in Research Biotech may slip somewhat from the company’s earlier predictions from around 10 percent to between 7 and 9 percent.
Sigma said organic growth in its other units should meet or exceed the goals of 4 percent for Research Essentials, 6 percent for Research Specialties, and 10 percent for its SAFC segment.
The company expects “modest” growth from its recent acquisitions, with Epichem expected to make the largest contribution by adding 2 percent to revenues.