Second-quarter revenues for IBO’s Lab Equipment/Consumables Sales Index improved 0.7%, 2.0% excluding currency, to $4,061 million. Operating profits for the Index rose 4.0% to $737 million. Based on continuing operations, operating margin slipped 30 basis points to 17.9% of sales.

For the fiscal third quarter ending August 31, revenue for Gerresheimer Life Science Research grew 18.9%, 4.7% on a currency-neutral basis, to €27.7 million ($34.2 million = €0.81 = $1) to account for 9% of company sales (see page 12). Sales benefited from strong demand for reusable laboratory glass. Adjusted EBITA climbed 20.8% to €2.9 million ($3.6 million).

Kewaunee Scientific’s fiscal first-quarter sales ending July 31 grew 1.4% to $26.7 million. Back orders increased 24.4% to a record $86.7 million. Domestic sales fell 3.3% to account for 85% of revenues due to pricing and lower publicly funded educational projects. The company focused on sales of manufactured products instead of related project management and installation services, which also lowered domestic revenues. International sales climbed 38.6% to make up 15% of sales, as the company strengthened its dealer network in Asia and the Middle East. Operating profit soared 374.2% to $1.1 million. Gross margin jumped 370 basis points to 19.6% of sales due to product mix and higher sales of manufactured products.

For the fiscal fourth quarter ending July 31, revenue for Pall’s BioPharmaceuticals segment grew 8.9%, 12.6% organically, to $217.6 million. The acquisition of ForteBio (see IBO 12/31/11) added 3.5% to sales growth, while currency reduced sales growth by 7.2%. Consumables sales climbed 16.0% organically to account for 94% of BioPharmaceuticals revenue. System sales slumped 22.4% organically to represent 6% of segment sales.

Pall full-year BioPharmaceuticals revenue grew 10.7%, 10.2% organically, to $816.9 million to account for 31% of company sales. Acquisitions contributed 1.8% to revenue growth, while currency lowered sales growth by 1.3%. Back orders for the segment increased 0.8% to $156.6 million. Consumables and system sales improved 10.2% and 11.0% organically to make up 92% and 8% of BioPharmaceuticals revenue, respectively. Sales for the Pharmaceuticals subsegment grew 11.5% organically to account for roughly 85% of segment sales, including 11.8% and 10.9% organic growth in consumables and systems revenues, respectively. Sales were driven by strong demand from biotechnology customers and emerging markets. Sales for the Laboratory subsegment grew 2.1% organically to make up roughly 9% of BioPharmaceuticals revenue. Laboratory sales were led by China and India, which were partially offset by lower demand in Europe.

Second-quarter sales for Sartorius’s Lab Products & Services (LPS) segment grew 20.4%, but declined 3% organically, to €66.5 million ($85.3 million = €0.78 = $1) to account for 31% of company sales. The acquisition of Biohit’s liquid handling business (see IBO 10/31/11) and currency contributed 18% and 5% to sales growth, respectively. Sales were negatively impacted by weaker demand from the chemical industry. Organic sales to Asia/Pacific and North America grew 1% and 2%, respectively. European organic sales declined. LPS adjusted EBITA slipped 0.7% to €8.3 million ($10.6 million). For LPS, the company maintained its 2012 currency-neutral revenue growth outlook of 16%–20%.

For the fiscal fourth quarter ending June 30, revenue for Techne’s Biotechnology segment slipped 0.1%, down 0.3% organically, to $73.0 million to make up 93% of sales. Acquisitions added 2.4% to sales growth, while currency reduced sales growth by 2.2%. All figures below are organic. Sales to US industrial, pharmaceutical and biotechnology customers fell 2.6%. European sales fell 3.7%. US academic sales improved 0.3%, and sales to China and Pacific Rim distributors rose 19.6% and 9.8%, respectively. Biotechnology adjusted operating income declined 4.3% to $40.3 million, and adjusted gross margin fell 150 basis points to 79.9% of sales.

For the fiscal year, Techne’s Biotechnology sales grew 8.5%, 1.3% organically, to $293.3 million to account for 93% of revenues. Acquisitions contributed 7.2% to revenue growth, while currency was neutral. Sales of new protein-based biotechnology products accounted for roughly 1% of sales growth. All figures below are organic. Sales to US industrial, pharmaceutical and biotechnology customers improved 3.2% to account for 28% of segment sales. Sales to US academic customers fell 5.1% to make up 12%. Total sales to the US accounted for 57% of segment revenue. European sales declined 1.5% to represent 29%. Sales to China and Pacific Rim distributors climbed 21.6% and 7.0% to make up 4% and 7% of sales, respectively. Biotechnology adjusted operating income improved 4.4% to $170.7 million, but adjusted gross margin slipped 40 basis points to 80.3% of sales.

Second-quarter sales for Thermo Fisher Scientific’s Laboratory Products and Services (LPS) grew 2.4%, 3.9% organically, to $1,519.7 million to account for 49% of company revenues. Acquisitions added 1.1% to revenue growth, while currency lowered sales growth by 2.6%. Demand for consumables and clinical trial–logistics services increased, but was partially offset by lower demand for lab equipment, primarily from academic and government customers. LPS adjusted operating income improved 0.6% to $215.9 million. Adjusted operating margin slipped 30 basis points to 14.2% of sales due to product mix.

VWR’s second-quarter revenues fell 1.9%, 1.5% organically, to $1,022.8 million. Acquisitions added 4.0% to revenue growth. Currency lowered sales growth by 4.4%. Sales were negatively impacted by the loss of a major pharmaceutical customer in the North American Lab (NAL) segment. However, the decline in sales volume was mostly offset by favorable product mix. Adjusted operating profits declined 0.3% to $63.7 million. Gross profit margin grew 30 basis points to 28.5% of sales. NAL sales declined 0.1%, 4.4% organically, to account for 59% of total sales due to the loss of the customer. NAL now includes sales from Asian markets. By end-market, segment sales to pharmaceutical, government and educational customers declined. Sales to industrial and other customers grew in the low single digits. Excluding the customer loss, organic segment sales would have increased. NAL operating income fell 6.1% to $35.4 million. Sales for the European Lab (EL) segment fell 4.7%, but grew 2.4% organically to represent 39% of revenue. Segment sales to pharmaceutical, industrial and other customers each grew in the mid-single digits. Sales to educational markets increased in the high single digits, while government sales declined in the low single digits. EL operating profit fell 1.4% to $29.2 million. Science Education sales improved 4.7% to make up 3%, and operating loss narrowed by 73.5% to $0.9 million.

 Column Chart: Quarterly Organic Sales Change
 January 2009–June 2012
 2009	-0.5%	0.8%	0.6%	6.1%
 2010	8.4%	4.7%	3.6%	1.0%
 2011	2.8%	3.9%	4.2%	3.9%
 2012	2.5%	2.0%		
 Column Chart: Quarterly Operating Profit Margins
 January 2009–June 2012
 Year	Q1	Q2	Q3	Q4
 2009	16.3%	16.7%	17.2%	16.8%
 2010	17.9%	17.9%	17.2%	17.2%
 2011	18.2%	17.1%	17.7%	18.1%
 2012	18.6%	17.9%		
 Laboratory Equipment/Distribution Index	 	 	 	 	% Change	 
 			 	2009 	2010 	2011 	2012 	09/10	10/11	11/12
 Total Annual Revenues ($M)	$14,719	$15,378	$16,218	-----	4.5%	5.5%	-----
 Annual Oper. Profits ($M)	$2,420	$2,681	$2,813	-----	10.8%	4.9%	-----
 2nd Quarter Revenues ($M)	$3,612	$3,772	$4,032	$4,061	4.4%	6.9%	0.7%
 2nd Quarter Oper. Profits ($M)	$599	$678	$708	$737	13.4%	4.4%	4.0%