Adjusted earnings per share (EPS) grew 35% to $0.84 in the first quarter of 2010, versus $0.62 in the 2009 quarter. Adjusted operating income for the 2010 quarter increased 34% versus 2009 results, and adjusted operating margin increased 200 basis points to 17.5%, compared with 15.5% in the 2009 period. GAAP diluted EPS was $0.56 in 2010, versus $0.35 in the year-ago period. GAAP operating income for the 2010 quarter was $293 million, compared with $190 million in 2009, and GAAP operating margin was 11.0%, compared with 8.4% a year ago.
Adjusted EPS, adjusted operating income, adjusted operating margin and free cash flow are non-GAAP measures that exclude certain items detailed later in this press release under the heading "Use of Non-GAAP Financial Measures."
- Revenues increased 19% to a record $2.68 billion
- Adjusted EPS grew 35% to a record $0.84
- Achieved 200 basis points of adjusted operating margin expansion
- Introduced industry-leading range of innovative new products at Pittcon and Analytica
- Deployed more than $260 million on complementary acquisitions to date
- Completed $750 million bond offering after quarter-end to refinance debt
- Authorized one-year $750 million stock buyback program
"We are extremely pleased to report a strong start to the year, with record revenues and earnings per share in the first quarter," said Marc N. Casper, president and chief executive officer of Thermo Fisher Scientific. "Our performance reflects outstanding execution by our teams in achieving our operating and financial goals. We had solid double-digit revenue growth in both of our reporting segments, as well as in North American and Asian markets. It’s clear that we have emerged from the recession a stronger industry leader as a result of the actions we took in 2009.
"Our long-term growth strategy of ongoing investment coupled with effective cost management provides us with many avenues for creating shareholder value, and we’ve seen a number of excellent examples so far this year. First, we continued to strengthen our technology leadership by introducing innovative products that exceed our customers’ expectations for performance – not only in advanced research but also in more routine applications such as environmental, food and forensics analysis. Second, we complemented our existing capabilities through strategic acquisitions, completing Ahura Scientific and Finnzymes during the quarter, and acquiring proteomics workflow provider Proxeon in mid-April. Last, we continued to leverage our strong balance sheet by authorizing a stock buyback program after quarter-end."
Casper added, "With a strong first quarter behind us, as well as the benefits expected from our recently announced stock buyback and debt refinancing, we are raising our 2010 adjusted EPS guidance to a new range of $3.40 to $3.50, for 11 to 15% growth over 2009. Despite increasing foreign exchange headwinds, we are also raising the low end of our revenue guidance to a new range of $10.65 to $10.80 billion based on our solid operating performance and the acquisitions we’ve made to date. This would result in 5 to 7% growth in revenues over 2009." (The 2010 guidance does not include any future acquisitions or divestitures and is based on current foreign exchange rates. In addition, the adjusted EPS estimate excludes amortization expense for acquisition-related intangible assets and certain other items detailed later in this press release under the heading "Use of Non-GAAP Financial Measures.")
About Thermo Fisher Scientific
Thermo Fisher Scientific Inc. is the world leader in serving science. Our mission is to enable our customers to make the world healthier, cleaner and safer. With revenues of more than $10 billion, we have approximately 35,000 employees and serve customers within pharmaceutical and biotech companies, hospitals and clinical diagnostic labs, universities, research institutions and government agencies, as well as in environmental and process control industries. We create value for our key stakeholders through two premier brands, Thermo Scientific and Fisher Scientific, which offer a unique combination of continuous technology development and the most convenient purchasing options. Our products and services help accelerate the pace of scientific discovery, and solve analytical challenges ranging from complex research to routine testing to field applications. Visit http://www.thermofisher.com .