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Print Edition StoriesThursday, April 23, 2009
Thermo Fisher re-adjusts financial outlook amid revenue drop
By Marc Songini
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Giant instrumentation and research products company Thermo Fisher Scientific Inc. saw revenues drop 12 percent in the first quarter.
The Waltham-based Thermo Fisher (NYSE: TMO) divulged the revenue drop in its first quarter earnings announcement. The company stated it made $2.26 billion in the first quarter of 2009, compared with $2.55 billion in the same quarter last year. In part, the drop is the result of the negative impact of foreign currency translation, which reduced revenues by 5 percent. Thermo Fisher also stated operating income for the 2009 quarter was $190 million, compared with $290.4 million in 2008.
The company also attributed the dip to the fact that its customers are delaying their capital purchases because of the existing poor economic environment. However, Thermo Fisher struck a positive note by claiming it had generated a record free cash flow of more than $310 million for the quarter. This cash could be used for future investments, it stated. In the first quarter, the company also launched new products, including food-safety solutions to meet the demand for melamine and salmonella testing.
Looking ahead, the company lowered its revenue guidance for 2009 by $400 million, to range from $9.6 billion to $9.9 billion. This would result in a 6 percent to 9 percent decline in revenues from 2008.
This past month, Thermo Fisher announced one of its units was forming a strategic supply chain alliance with the Cambridge-based Massachusetts Biotechnology Council.
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