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Thermo Fisher Posts 8 Percent Revenue Decline in Q2 but Ups Guidance

NEW YORK (GenomeWeb News) – Thermo Fisher Scientific today reported that its second-quarter revenues declined 8 percent year over year, with foreign currency translation contributing 4 percent to that decline.

The Waltham, Mass.-based life sciences giant brought in total revenues of $2.48 billion for the three-month period ended June 27, compared to revenues of $2.71 billion for the second quarter of 2008. Revenues for its Analytical technologies segment fell 14 percent to $1 billion from $1.16 billion, and revenues for its Laboratory products and Services Segment declined 3 percent to $1.6 billion from $1.66 billion year over year.

"Sales of our consumables products returned to positive growth during the quarter, while economic pressures continued to constrain capital spending by our customers for instrumentation and equipment," said Thermo Fisher President and CEO Marijn Dekkers in a statement. "In terms of profitability, the cost-reduction actions we began implementing late last year made a meaningful contribution to our strong margin improvement over the preceding quarter."

Thermo Fisher's profit for the quarter dropped 16 percent to $206.9 million, or $.49 per share, from $246.1 million, or $.56 per share.

The firm's SG&A spending was cut to $544 million from $578 million year over year, while its R&D spending declined to $58.1 million from $64.4 million.

Thermo Fisher raised its annual revenue guidance to a range of between $9.8 billion and $10.10 billion, due to "a more favorable foreign exchange climate at this point in the year and our acquisition of Biolab," Dekkers said. The firm acquired the Australian analytical instruments and life science consumables provider Biolab for A$175 million (US $120 million) during the second quarter of 2009.

Thermo Fisher also raised the low end of its adjusted EPS guidance by $.05 to a range of between $2.85 and $3.10 for the year.

The company finished the quarter with $1.42 billion in cash and cash equivalents and $9.3 million in short-term investments.

In early Thursday trade on the New York Stock Exchange, Thermo Fisher's shares rose 7 percent to $44.90.

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