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Sigma's Q2 Sales Drop 10 Percent on Currency Translation

NEW YORK (GenomeWeb News) – Sigma-Aldrich today reported that its second-quarter revenues fell by 10 percent year over year, with much of that drop coming from an 8.4 percent negative impact from foreign currency translation.

The chemicals and lab products firm brought in revenues of $522 million for the three-month period ended June 30, compared to revenues of $580.7 million for the second quarter of 2008.

Sigma said that organic sales for its research business grew just under 1 percent, and organic sales for its fine chemicals (SAFC) business were down 7.2 percent for the quarter.

The Research Essentials business had sales of $104.2 million, the Research Specialties business had sales of $192.8 million, the Research Biotech business had sales of $79.2 million, and the Research Chemicals business brought in revenues of $376.2 million for the quarter. SAFC had sales of $145.8 million.

Sigma's profit declined to $83.6 million, or $.69 per share, from $90.8 million, or $.71 per share.

The company's R&D expenses were down around 2 percent to $15.7 million from $16 million, while its SG&A spending fell around 11 percent to $129.3 million from $144.5 million.

Sigma-Aldrich ended the quarter with $258.5 million in cash and cash equivalents.

"We've reaffirmed our sales and profit expectations for all of 2009, believing that we can repeat our first half performance for the remainder of the year, even with a continuation of the challenging market conditions," Sigma-Aldrich Chairman, President, and CEO Jai Nagarkatti said in a statement.

The company expects full-year organic sales to be in the low single-digits range. The firm also said it is not factoring in any benefits the company could see from the US Government's stimulus package, the American Recovery and Reinvestment Act, due to "the lack of clarity of allocations and timing" of the program.

Currency considerations also are expected to lower reportable growth for the year by roughly 5 percent, if exchange rates remain at current levels.

The company also noted that in the second quarter it had repurchased 400,000 of its shares through a repurchasing program at an average share price of $44.77 per share.

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