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Thermo Posts Double-Digit Decline in Q1 Revenues, Profit

NEW YORK (GenomeWeb News) - Thermo Fisher Scientific today reported a 12 percent drop in first-quarter revenues and a 35 percent fall in net profit as it lowered its guidance for full-year 2009 by $400 million.

"The tough economy had a significant impact on our results for the first quarter, particularly in our instrumentation and equipment businesses," Marijn Dekkers, president and CEO of the company, said in a statement. "Our customers are clearly delaying their capital purchases in the current environment."

Dekkers added that the company's revenues were also affected by "considerable foreign currency exchange headwinds."

Thermo's total revenues for the three months ended March 28 fell to $2.26 billion from $2.55 billion in the year-ago period. Foreign currency translation lowered revenues by 5 percent, the company said.

Revenues in the company's Analytical Technologies Segment declined 14 percent to $939 million from $1.09 billion in the first quarter of 2008, while revenues for the Laboratory Products and Services Segment fell 9 percent to $1.42 billion from $1.57 billion.

R&D spending dipped 6 percent to $58.2 million from $62 million in the year-ago quarter, while selling, general and administrative expenses also fell 6 percent to $509.5 million from $541.6 million in the first quarter of 2008.

Net income fell to $148.9 million, or $0.35 per share, from $229.7 million, or $0.53 per share, in the comparable period of 2008.

Thermo lowered its revenue guidance for full-year 2009 by $400 million, to a range of $9.6 billion to $9.9 billion — a decline of between 6 percent and 9 percent from 2008 revenues.

Dekkers said that the company is "focused on a combination of cost control and strategic investment that will allow us to emerge from this recession an even stronger industry leader." Cost-control strategies include "a company-wide practical process improvement program" and "rationalizing our global footprint where it makes sense."

He added that Thermo will continue to invest in "opportunities that will lead to growth in the longer term," such as new products and an expanded presence in "growth markets," such as China, "which continues to invest in consumer product safety, environmental quality and infrastructure."

As of March 28, Thermo held $1.561.1 billion in cash and cash equivalents.

Thermo shares were down 9.5 percent to $31.84 in Thursday morning trade.

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