NEW YORK (GenomeWeb News) – Sigma-Aldrich today reported third-quarter revenue growth of 11 percent, with organic sales up 4 percent year over year.
The St. Louis-based chemicals and research products firm reported total revenues of $626 million for the three-month period ended Sept. 30, compared to revenues of $563 million for Q3 2010. The results fell short of Wall Street estimates for revenues of $632.3 million.
Sigma-Aldrich reported double-digit growth across all of its business units. Its Research Essentials business grew 15 percent to $121 million; Research Specialties increased 12 percent to $231 million; Research Biotech grew 12 percent to $94 million; and the SAFC business unit grew sales 8 percent to $180 million.
The firm's net income jumped to $117 million, or $.95 per share, from $93 million, or $.76 per share. It beat the consensus Wall Street estimate of $.92 per share.
Sigma-Aldrich's R&D spending increased around 13 percent to $18 million from $16 million, and its SG&A expenses were up 9 percent to $152 million from $139 million.
"While we are pleased with the 4 percent organic growth in our research business in the third quarter, the economic and research funding uncertainties in the US and Europe are creating a cautious climate with some of our customers," Sigma-Aldrich President and CEO Rakesh Sachdev said in a statement. "With our continued focus on the faster growth segments in analytical chemistry, biology and material science, coupled with our achievements in the emerging markets, we remain cautiously optimistic in achieving organic growth in the low- to mid-single digits in our research business in the fourth quarter."
Sigma-Aldrich expects to report full-year organic revenue growth in the mid-single digits and adjusted EPS of between $3.73 and $3.81.
The firm finished the quarter with $643 million in cash and cash equivalents.