Breaking News
FONT-SIZE Plus   Neg
Share SHARE

Sigma-Alrich Profit Declines, But In Line With Street - Update

RELATED NEWS
Trade SIAL now with 

Specialty chemicals maker Sigma-Aldrich Corp. (SIAL: Quote), said Tuesday its first-quarter profit dropped from last year as lower operating margin and increased tax rate offset growth in sales. Nevertheless, earnings for the quarter were in line with analysts' estimates, while sales topped expectations. Looking ahead, the company reaffirmed its outlook for the full year 2012.

Sigma-Aldrich Corp. is a life science and technology company that makes chemicals, biochemicals, and equipment. The company's sales for the quarter grew 5 percent from last year, and on an organic basis was up 3 percent.

Sales at its Research business grew organically by 4 percent, driven by strong growth in the Asia Pacific and Latin American regions. SAFC segment grew 1 percent organically.

Sigma-Aldrich said results were impacted as operating margin declined to 25.9 percent from 26.4 percent last year, due mainly on higher amortization of intangible assets. Also, tax rate was higher at 31.6 percent compared to 27.9 percent last year, when results benefited from the resolution and related release of certain contingencies.

St. Louis, Missouri-based Sigma-Aldrich reported first-quarter net income of $117 million or $0.96 per share, compared to $119 million or $0.97 per share last year.

Excluding items, earnings for the quarter were $121 million or $0.99 per share, compared to $116 million or $0.94 per share in the prior year.

On average, 14 analysts polled by Thomson Reuters expected earnings of $0.99 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter were $665 million, compared to $632 million last year. Analysts expected sales of $658.48 million for the quarter. Sigma-Aldrich continues to expect full year 2012 adjusted earnings of $3.90 to $4.05 per share. Analysts currently expect earnings of $4.00 per share for the year.

The company continues to expect organic sales to grow in the mid single digit range for 2012, while the recent acquisitions of BioReliance and Research Organics are expected to add 6 percent to its topline growth in 2012.

SIAL is trading at $70.33, down $0.16 or 0.23%, on a volume of about 0.9 million shares on the Nasdaq.

Register
To receive FREE breaking news email alerts for Sigma-Aldrich Corporation and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
The Swiss economy stalled in the second quarter as the improvement in household spending was insufficient to offset the weakness in exports and investment in construction. Gross domestic product remained flat from the first quarter, when it accelerated to 0.5 percent, the State Secretariat for Economic Affairs said Tuesday. Economists had expected GDP to rise 0.5 percent in the second quarter. Policymakers of Reserve Bank of Australia decided to maintain its record low interest rate once again as they continue to assess that the most prudent course is a period of stability in interest rates. The monetary policy board retained the cash rate at 2.50 percent. The rate has been at the current level since August 2013. A ban on athletes using stamina-boosting gases - xenon and argon - came into effect on Monday. The World Anti-Doping Agency (WADA) said Hypoxia-Inducible Factor (HIF) activators Xenon and Argon have been added to the 2014 List of Prohibited Substances and Methods List following the required three-month notice period and UNESCO's communication to all States Parties. A recommendation to revise the
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.