Laboratory equipment maker Thermo Electron saw its Q4 net income fall 53 per cent to $56.5 (€47.2) m from $121.1 m a year ago due to one-time tax charges, but new acquisitions and a surge in demand for its instruments, particularly from its pharmaceutical and biotechnology clients, meant that revenues climbed up 21 per cent, from $613.3 m to $740.8 m.
The results are encouraging in what has been a tough year for its major pharmaceutical customers, with the company's life and laboratory sciences segment reporting revenue growth of 24 per cent in Q4 of 2005 to $563 m, compared with $455 m in 2004.
Revenue from measurement and control rose 12 per cent to $177 m as industrial customers started spending more on instrumentation.
Commenting on the results of the firm, Marijn E. Dekkers, the company's president and CEO said: "We experienced very strong growth from our industrial markets, especially in commodity materials and environmental monitoring. In addition, growth from our life sciences customers continued at a good pace."
"Our aggressive growth investments were key contributors to our excellent performance in 2005," he added.
Thermo 's confidence in the pharmaceutical and biotechnology sector was reaffirmed last year when it spent $834 m to acquire the Kendo Laboratory products division of SPX in North Carolina, which offers it gear to prepare and store samples at life sciences companies.
Its acquisitions also included Niton LLC, a manufacturer of handheld X-ray analyzers in Massachusetts, for $41 m.
But a large tax gain in the year-earlier quarter resulted in Thermo's balance sheet being hit this year.
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posted by srikanth....july7
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