NEW YORK (GenomeWeb News) — Thermo Electron today said that third-quarter profit declined 15 percent even as revenues climbed 8 percent.
Total receipts for the quarter ended Sept. 30 increased to $725 million from $679 million last year.
Thermo Electron said positive revenue growth came from mass spec sales, small molecule research, and increased elemental analysis sales in its Life and Lab Sciences division, which rose 5 percent in the current period to $543 million from $516 million last year.
Led by sales on online systems for commodity materials, sales in the company’s Measurement and Control division were up 11 percent to $181 million from $163 million last year.
R&D spending in the quarter declined 5.3 percent in the quarter to $38.7 million from $38.8 million year over year.
The company said earnings in the quarter declined to $48.8 million from $57.7 million year over year. The company said the decrease in profits “reflect a $.03 impact from stock option expense for rules that became effective this year, and 2005 earnings included a $.10 net gain from the disposal of discontinued businesses.”
Thermo had around $158 million in cash, equivalents, and short-term available-for-sale investments as of Sept. 30.
Thermo said it expects to post between $2.88 billion and $2.90 billion in revenues this year, which would be between 9 percent and 10 percent stronger than revenues in 2005.
Thermo Electron is awaiting clearance from the European Commission to complete its merger with Fisher Scientific. As a condition of the deal, Fisher said it would divest its Genevac business. Both companies said they expect to close the deal by Nov. 9.