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Sigma-Aldrich Posts 2 Percent Revenue Growth for Q1

NEW YORK (GenomeWeb News) – Sigma-Aldrich today reported that its first-quarter 2013 revenues increased 2 percent year over year led by sales gains for its SAFC business.

The St. Louis-based chemicals and research products firm had total revenues of $675 million for the three months ended March 31, compared to revenues of $665 million for the first quarter of 2012. It beat the consensus Wall Street estimate of $672.8 million.

Sales for Sigma-Aldrich's Research business unit declined 3 percent to $361 million from $372 million, while sales for its Applied & Industrial unit were up 4 percent at $159 million from $153 million year over year, and sales for the SAFC unit climbed 11 percent to $155 million from $140 million.

Part of the reason for the decrease in sales for the Research unit was a decline in academic/government sales due to sequestration in the US, the firm said. In addition, fewer shipping days in the quarter trimmed sales.

Despite the decline in sales for the unit, "we continue to see signs that headwinds are abating from the large pharma site consolidations that occurred over the last several years," Sigma-Aldrich President and CEO Rakesh Sachdev said in a statement. "Our overall end markets remain steady with improving pharma trends offset by slower academic spending."

Sigma-Aldrich posted net income of $122 million, or $1.01 per share, for the quarter, compared to $117 million, or $.96 per share, for Q1 2012. It beat analysts' consensus estimate by a penny.

The firm's R&D spending for the quarter decline to $17 million from $18 million, and its SG&A expenditures inched up to $161 million from $160 million.

Sigma-Aldrich closed the quarter with $471 million in cash and cash equivalents.

The company re-affirmed its guidance for FY 2013. It expects organic sales growth in the low- to mid-single-digit range, with adjusted EPS of $4.10 to $4.20.