NEW YORK (GenomeWeb News) – Sigma-Aldrich today reported its third-quarter sales grew 2 percent year over year on soft demand from its research end markets and a 6 percent negative effect from foreign currency exchange.
The St. Louis-based chemicals and research products firm reported total sales of $639 million for the three months ended Sept. 30 compared to $626 million in sales for the third quarter of 2011. It fell short of Wall Street's consensus estimate of $657.6 million.
Sales for its Research Chemicals unit dropped 4 percent to $428 million from $446 million. On an organic basis, sales for the unit were up 1 percent.
Sales for the firm's SAFC business grew 17 percent to $211 million from $180 million. On an organic basis, sales for the unit were up 5 percent year over year.
"While we continue to experience soft demand in our Research business, our end markets have remained relatively stable from second quarter levels," Sigma-Aldrich President and CEO Rakesh Sachdev said in a statement. "We believe our recent initiatives, including new product launches and expansion in emerging markets, have set us up for improved performance in the coming quarters."
Sigma-Aldrich posted a profit of $112 million, or $.92 per share, compared to net income of $117 million, or $.95 per share, for Q3 2011. On an adjusted basis, EPS was $.94, matching analysts' consensus estimate.
The firm's R&D spending for the quarter was down around 6 percent to $17 million from $18 million, and its SG&A expenses declined 3 percent to $147 million from $152 million.
Sigma-Aldrich finished the quarter with $589 million in cash and cash equivalents.
The company said that it expects to report full-year 2012 organic revenue growth of around 3 percent, in line with its prior guidance of low- to mid-single digits. Foreign exchange rates are expected to reduce reportable sales for the year by around 3 percent. Its adjusted EPS is expected to between $3.80 and $3.90.