Second quarter revenues for IBO’s Laboratory Instrument Sales Index grew 4.5%, 4.9% excluding currency, to $5,999 million. Operating profit advanced 3.8% to $1,200 million. Based on continuing operations, operating margin slipped 10 basis points to 17.6% of sales. Modest growth rates are included for Oxford Instruments, which did not report earnings before this issue’s publication.

Second quarter sales for Affymetrix grew 19.7% to $79.5 million, including 28.3% growth from the acquisition of eBioscience (see IBO 6/30/12). On a pro forma basis, total sales declined 4.7%, primarily due to lower royalty payments and weak GeneChip sales. Core Consumable sales dipped 3.9%, while core Instrument revenue grew 10.5% to make up 64% and 5% of sales, respectively. Pro forma eBioscience sales improved 2.7% from a year ago and 5% sequentially excluding currency to account for 24% of revenues. Service and Other revenue fell 33.0% to make up 7% of sales. Genetic Analysis and Clinical Applications (GACA) sales climbed 14.5% to make up 29% of sales, including 15% and 19% growth in sales of cytogenetic and genotyping products, respectively. Cytogenetic product sales grew 30% sequentially to make up 12% of sales. Genotyping sales were driven by Axiom products but were partially offset by lower sales of SNP 6.0 arrays. Life Science Reagents (LSR) sales grew 3.7% to account for 10% of sales. Expression sales fell 18.2% to account for 31%, primarily due to lower demand for in vitro transcription arrays in Japan. However, the company reported sequential growth for GeneChip sales as a result of higher demand in the US and Europe. Adjusted operating profit was $5.9 million, compared with a loss of $0.6 million a year ago due to lower headcount and other compensation expenses. Adjusted gross profit margin improved 90 basis points to 60.4% of sales. For the second half of the year, GACA sales are projected to grow 15%–20% and LSR sales are expected to improve in the low single digits.

Analytik Jena’s fiscal third quarter sales grew 8.6% to €24.3 million ($31.6 million = €0.77 = $1) due to the acquisition of UVP (see IBO 4/30/13) (see page 12). Adjusted operating profit fell to just above breakeven from €1.3 million ($1.6 million) a year ago. Gross profit margin dropped 560 basis points to 44.4% of revenues. Sales in Germany and other European countries improved 2.5% and 5.4% to account for 24% and 19% of revenues, respectively. US sales more than doubled to represent 14% as a result of the acquisition. Sales to Asia and Rest of World declined 2.2% and 8.1% to make up 40% and 3%, respectively. Analytical Solutions (AI) sales contracted 14.2% to account for 52% of sales, as demand for X-ray fluorescence systems in Japan were below company expectations. AI adjusted operating profit slumped 88.5% to €0.2 million ($0.3 million), and gross profit margin fell 556 basis points to 49.8% of segment sales. Life Science (LS) revenue grew 67.1% to account for 43% of sales primarily due to the acquisition. However, LS organic sales improved as a result of new immunological assays and higher CyBio sales. LS operating profit was €0.1 ($0.2 million), compared with a loss of €0.3 million ($0.4 million). Gross profit margin slipped 66 basis points to 41.7% of LS sales. Given the significant weakness in Japan, the company lowered its fiscal 2013 sales outlook from more than €100 million ($130 million) to €96–€98 million ($125–$127 million).

Second quarter sales for HORIBA’s Process and Environmental Instruments & Systems (P&E) segment climbed 7.7%, 2% excluding currency, to ¥3,232 million ($32.7 million = ¥98.82 = $1) to account for 10% of company revenues (see page 12). Japanese sales fell 12.0% to make up 56% of P&E revenue due to lower demand for stack gas analyzers and environmental radiation monitors. Sales to Asia, the Americas and Europe increased 30.7%, 107.9% and 29.2% to account for 17%, 16% and 12% of P&E revenue, respectively. P&E operating income dropped 98.4% to ¥2 million ($20,239). Sales for the Scientific Instruments & Systems (SI) segment grew 7.3%, but declined roughly 3% excluding currency to ¥4,971 million ($50.3 million) to account for 16% of company sales. Sales were negatively impacted by lower academic and government spending. Japanese sales slumped 14.2% to account for 24% of SI revenue. Sales to Asia, the Americas and Europe grew 25.3%, 19.6% and 5.2% to account for 29%, 23% and 25% of segment sales, respectively. SI operating loss was ¥239 million ($2.4 million), compared with a profit of ¥2 million ($20,239) a year ago. The company lowered its full-year P&E segment revenue and operating income forecast by 3% and 15% to ¥14,500 million ($153 million) and ¥1,100 million ($12 million), respectively. Full-year sales and operating income forecasts for SI were unchanged at ¥22,000 million ($232 million) and ¥500 million ($5 million), respectively.

Fiscal first quarter 2014 sales for Shimadzu’s Analytical and Measuring Instrument (AMI) division grew 22.1% to ¥36,851 million ($372.9 million = ¥98.82 = $1) to represent 59% of total revenues (see page 12). Japanese sales increased due to strong MS sales to pharmaceutical and industrial customers, and higher academic and government sales. North American sales were strong, led by demand for LC and high-end MS systems from healthcare and testing laboratories. Within China, sales of spectrophotometers and chromatography products were elevated by food inspection activity. European sales increased as a result of higher LC sales. Following a weak comparison in the previous year, segment operating profit soared 341.5% to ¥1,903 million ($19.3 million). The company raised its fiscal full-year sales and operating income outlook by 2% and 5% to ¥293 billion ($3.1 billion) and ¥21 billion ($221 million), respectively.

For the first half of the year, sales for Spectris Materials Analysis (MA) declined 0.2%, 3% excluding currency, to £166.5 million ($256.9 million = £0.65 = $1) to account for 29% of company sales. Sales were particularly weak in the first quarter, but grew 2% excluding currency in the second quarter. For the first six months, demand from pharmaceutical customers increased due to stricter quality control measures for manufacturing. The company’s aseptic manufacturing business has grown by an average annual rate of 18% over the last three years. Despite growth in Europe, academic research market sales were weak due to lower government spending in the US and certain Asian markets. Sales to the metals, minerals and mining sectors also declined. Adjusted MA operating profit dropped 17.9% to £20.6 million ($31.8 million) due to higher R&D for life science and materials measurement products. Adjusted operating margin fell 270 basis points to 12.4% of sales.