NEW YORK (GenomeWeb News) – Thermo Fisher Scientific today reported soaring profits and a 57 percent increase in revenues for the fourth quarter of 2007 ended Dec. 31, beating Wall Street’s expectations for the firm.
Thermo Fisher reported fourth-quarter revenues of $2.62 billion compared to $1.67 billion in the fourth quarter of 2006. Analysts surveyed by Thomson Financial, on average, expected revenues of $2.51 billion. On a pro forma basis — if the operations of Thermo Electron and Fisher Scientific had been combined for the full fourth quarter of 2006 — revenue growth would have been 12 percent from $2.35 billion last year.
The firms completed their $10.6 billion merger in November 2006.
Sales for its Analytical Technologies segment increased 14 percent on a pro forma basis to $1.17 billion from $1.02 billion year over year. Revenues for the Laboratory Products and Services Segment grew 10 percent on a pro forma basis to $1.55 billion from $1.4 billion.
Thermo Fisher posted a fourth-quarter profit of $239.8 million, or $.54 per share, up from a profit of $25.3 million, or $.08 per share, in the comparable period last year, when the firm took a $125 million charge related to the merger. On a pro forma basis, net earnings were $.76 per share, up from $.57 in the fourth quarter of 2006. The results beat analysts’ expectations of $.69 per share.
The firm’s R&D costs grew 17.6 percent in the quarter to $61.4 million from $52.2 million in the fourth quarter of 2006, while SG&A expenses increased 38.5 percent to $558 million from $403 million.
For full-year 2007, Thermo Fisher reported revenue of $9.75 billion, up from $3.79 billion for 2006. On a pro forma basis, revenues for 2006 would have been $8.87 billion and revenue growth for 2007 would have been 10 percent.
Net earnings for full-year 2007 were $761.1 million, or $1.72 per share, compared with $168.9 million, or $.84 per share, for 2006. The firm’s R&D spending rose to $238.7 million from $170.2 million in 2006, while SG&A costs rose sharply to $2.1 billion from $952.7 million.
Thermo Fisher finished 2007 with $636.2 million in cash and cash equivalents.