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Sigma-Aldrich – Another record year for Sigma-Aldrich in sales and earnings per share

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Sigma-Aldrich (NASDAQ: SIAL) Reports Diluted EPS of $0.89, a 17% Increase, and 5% Sales Growth for Q4 2011. Full Year 2011 Diluted EPS Increased 14%. 2012 Diluted EPS Expected to Increase to $3.90 to $4.05.

Highlights:

2011 Results (all percentages are to comparable periods in 2010)


Q4 Results

  • Reported sales increased 5% to $610 million.  Sales grew organically by 3% with Research and Fine Chemicals (“SAFC”) sales growing organically by 1% and 7%, respectively.  Acquisitions contributed 2% to sales growth.
  • Net income was $108 million, up 15% from Q4 2010.
  • Reported diluted EPS was $0.89, up 17% from Q4 2010.  Excluding a one-time tax item in 2011 adjusted EPS was $0.91 in Q4 2011.

Full Year 2011 Results

  • Sales grew 10% to $2.5 billion.  Sales grew organically by 5% with Research and SAFC contributing 3% and 9% respectively to organic growth.
  • Net income was $457 million, up 19% from 2010.
  • Reported diluted EPS was $3.72, up 19% from 2010.  Excluding restructuring, diluted adjusted EPS was $3.76, up 14% over the prior year.
  • 2011 net cash provided by operating activities and free cash flow were $495 million and $391 million, respectively.

2012 Outlook (all percentages are compared to full year 2011 results)

  • Organic sales growth for the full year is expected to be in the mid single digit range assuming market conditions similar to late 2011, with lower sales growth in the first half of 2012 and higher sales growth later in the year. The recently completed acquisition of BioReliance Holdings, Inc. (“BioReliance”) is expected to increase 2012 sales growth by about 5%. At current exchange rates, currency rate changes are expected to reduce otherwise reportable sales growth for the full year by approximately 2%.
  • Diluted adjusted EPS forecast for 2012 (excluding any restructuring, one time transaction costs associated with the BioReliance acquisition or any other special charges) is $3.90 to $4.05. At current exchange rates, foreign currency rate changes are expected to reduce otherwise reportable diluted EPS by approximately $0.15 which is included in the outlook.  This outlook also includes $0.10 of higher income tax provision resulting from a higher effective tax rate of 30 – 31% compared to 29% in 2011 offset by a $0.05 – $0.07 benefit from the acquisition of BioReliance.    See 2012 Outlook below.
  • Net cash provided by operating activities and free cash flow are expected to be in excess of $525 million and $400 million, respectively, for 2012.

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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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