In its second-quarter conference call July 26, Waters said it anticipated sales to grow 8 percent in the third quarter year over year. The company now expects growth to be around 3 percent year over year.
Waters generated $264.8 million in revenues during the third quarter 2004. Based on the company's renewed projections, third-quarter 2005 receipts are now expected to be around $272.7 million.
Third-quarter earnings per share, which Waters originally said would be $.47, are now projected at approximately $.43, excluding a $24-million tax provision to be recorded in the third quarter related to a dividend distribution.
Organic sales growth in the quarter was also 3 percent as foreign currency translation "had little incremental effect" on third-quarter revenue, Waters said.
Geographically, sales declined in the
However, strong sales growth in
Sales of liquid-chromatography products grew "moderately" in the third quarter 2005 compared with the prior year, while mass spectrometry sales "modestly" declined. Thermal analysis instrument sales grew in the quarter at a rate that was higher than Water's overall growth rate, the company said.
Global sales to life-science companies were "roughly flat" in the quarter, while a "relatively strong" performance of Waters' industrial business was largely offset by a decline in sales to governmental and academic institutions, the company said.
"At this time, the company anticipates a continuation of the challenging business conditions experienced in the third quarter, with comparable sales growth before currency impacts, and is evaluating opportunities to control operating expenses," Waters said in a statement.
Waters will release its full third-quarter earnings on Oct. 25.