This article has been updated to include commenst from a conference call and a stock quote.
NEW YORK (GenomeWeb News) – Thermo Fisher Scientific today reported a 9 percent increase in first-quarter revenues, aided by a 4 percent contribution from currency translation, and a 67.7 percent jump in profit year over year.
The Waltham, Mass.-based science research products giant, which was formed through the $10.6 billion merger of Thermo Electron and Fisher Scientific in November 2006, reported revenues of $2.55 billion, up from $2.34 billion in the first quarter of 2007. Currency effects and acquisitions combined contributed 5 percent to the total revenue growth.
Revenues for Thermo Fisher’s Analytical Technologies segment grew 10 percent year over year to $1.09 billion from $988 million, while revenues for the Laboratory products and Services segment grew 9 percent to $1.57 billion from $1.43 billion.
Despite the current economic climate and reports of possible belt-tightening among pharmaceutical companies, "our major life sciences and healthcare end markets remained strong overall," Thermo Fisher President and CEO Marijn Dekkers said during a conference call today. "We have not experienced any change from what we’ve seen over the past few quarters."
He said the firm "did well" among large pharmaceutical customers during the first quarter. "At the same time I think some of our peers have said that in Europe, in particular, it was a slow quarter for higher-cost items in large pharma and we saw the same thing," Dekkers said. "So, we did see the same behavior in larger European pharma companies of delaying — hopefully delaying orders.”
Thermo Fisher's R&D costs inched up 3.7 percent to $62 million from $59.8 million, while its SG&A expenses rose 5.9 percent to $541.6 million from $511.2 million.
The firm posted a first-quarter profit of $233 million, or $.53 per share, compared to net income of $138.9 million, or $.31 per share, in last year’s first quarter.
It finished the quarter with $734 million in cash and cash equivalents.
Dekkers said in a statement that as a result of favorable currency translation the company raised its revenue guidance for 2008 to a range of between $10.6 billion and $10.7 billion, which would be 9 percent to 10 percent higher than its fiscal 2007 revenues.
In Thursday afternoon trade on the New York Stock Exchange, shares of Thermo Fisher were down 1.2 percent at $55.47.