ST. LOUIS (dpa-AFX) - Life Science and high technology company Sigma-Aldrich Corp. (SIAL) reported Thursday a profit for the fourth quarter that increased 15 percent from last year, boosted by improved margins and revenue growth. Adjusted earnings per share for the quarter topped analysts' expectations by two cents, while quarterly revenues missed their estimates by a whisker. The company also provided earnings guidance for the full-year 2012, in line with Street view.
The St. Louis, Missouri-based company reported net income of $108 million or $0.89 per share for the fourth quarter, higher than $94 million or $0.76 per share in the prior-year quarter.
Excluding items, adjusted net income for the quarter increased to $110 million or $0.91 per share from $102 million or $0.83 per share in the year-ago quarter.
On average, 14 analysts polled by Thomson Reuters expected the company to earn $0.89 per share for the fourth quarter. Analysts' estimates typically exclude one-time charges and gains.
Net sales for the quarter increased 5 percent to $610 million from $582 million in the same quarter last year, but missed thirteen Wall Street analysts' consensus estimate of $626.90 million. Organic sales growth was 3 percent. Sales in the focus markets of India, China and Brazil grew organically 17 percent.
Revenues from research chemicals for the quarter increased 3 percent to $425 million from the prior-year quarter, with organic sales growth being 1 percent. Revenues from essentials rose 3 percent, specialties revenues grew 3 percent, and biotech revenues increased 5 percent from a year ago.
Research and Fine Chemicals revenues for the quarter rose 8 percent to $185 million from the year-ago quarter. Organic sales growth was 7 percent.
Operating margins for the quarter expanded 390 basis points to 26.2 percent, as gross margin grew 140 basis points to 53.1 percent and selling, general and administrative expenses, as a percentage or total sales, decreased 70 basis points to 23.9 percent from last year.
For fiscal 2011, Sigma-Aldrich reported net income of $457 million or $3.72 per share, higher than $384 million or $3.12 per share in the previous year.
Excluding items, adjusted net income for the year increased to $462 million or $3.76 per share from $408 million or $3.31 per share last year. Analysts expected the company to report earnings of $3.74 per share for fiscal 2011.
Net sales for the full year increased 10 percent to $2.51 billion from $2.27 billion posted in fiscal 2010. Street was looking for full-year 2011 revenues of $2.52 billion. Organic sales growth was 5 percent.
Looking ahead to fiscal 2012, the company provided adjusted earnings guidance in a range of $3.90 to $4.05 per share, on projected organic sales growth in the mid single digit range. Analysts currently expect the company to report full-year 2012 earnings of $4.03 per share, on annual revenues of $2.65 billion.
SIAL closed Wednesday's regular trading session at $70.51, up $0.23 on a volume of 0.74 million shares, higher than the three-month average volume of 0.69 million shares.
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