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Sigma-Aldich Reports Q3 2010 Financials
Posted: October 28, 2010
Sigma-Aldrich has reported its Q3 2010 financials, noting a diluted EPS of $0.76. The diluted EPS increased by 9% and 19% on a reported and adjusted basis, respectively, and Q3 sales performance remains strong, with the full year 2010 diluted adjusted EPS outlook being raised to $3.20–$3.28.
Reported sales for the third quarter of 2010 were $563 million, an increase of 5% from the third quarter of 2009. Excluding a 2% impact from unfavorable currency rates, third-quarter organic sales growth was 7%, consistent with the organic sales growth achieved in 2010's second quarter and above the first-quarter organic sales growth of 4%. Sales for the company's Research business grew 5% on a currency adjusted basis for the third quarter of 2010, driven primarily by volume growth in each of the three geographic regions. Third-quarter sales for the company's SAFC business grew 14% on a currency adjusted basis, with sales growth improving over the prior quarters of the year as sales of its Supply Solutions, Bioscience and Hitech products again reflected stronger demand.
Commenting on third quarter 2010 performance, chairman, president and CEO Jai Nagarkatti said, "Our earnings for the third quarter of 2010 continued the strong performance achieved in the earlier quarters of 2010, driving our adjusted diluted EPS for the first nine months of the year up by 20% over the comparable prior year level. Our third quarter sales growth for SAFC again improved over prior 2010 quarterly gains. Each of our research initiatives in analytical, biology and materials science products also made a positive contribution to our sales growth.
“Our SAFC business continued its strong quarterly sales performance with another double-digit percentage organic sales increase in 2010's third quarter, with continued strong growth of materials and precursors for semi-conductor and LED applications, industrial cell culture media for biological drugs and improved growth in the sale of bulk chemical products for development and manufacturing. Each of our research business units had organic sales growth in 2010's third quarter that was largely equivalent to or exceeded results in this year's first half driven in part by continued strength in non-European international markets.
"We've increased our adjusted diluted EPS for 2010 to a new range of $3.20–$3.28, fully expecting to deliver another record year of earnings in 2010. We reaffirm our mid-single digit percentage organic sales growth expectation for the full year of 2010. We expect to deliver improved profit margins driven by our sales expectation, ability to effectively manage costs and a weaker than anticipated U.S. dollar."