For the third quarter, the IBO Lab Equipment/Consumables Index grew 2.4%, or 3.6% excluding currency. Operating profit improved 3.2%, and operating margins gained 10 basis points to 17.3% of sales. Fourth-quarter Index sales were flat, but grew 1.0% excluding currency to $4,030.02 million. Operating profit increased 3.6% to $691.05 million, and operating margins improved 40 basis points to 17.2% of sales. For the year, Index sales increased 4.5% to $15,376.06 million, including 0.2% growth from currency. Operating profit rose 10.8% to $2,681.81 million, and operating margin improved 80 basis points to 17.6% of sales.

Biohit’s fourth-quarter 2010 sales climbed 8.6% to €11.1 million ($15.0 million = €0.74 = $1), but operating profit fell 85.9% to €0.1 million ($0.1 million) (see page 12). Year-end sales grew 13.2%, 9.6% excluding currency, to €40.0 million ($52.6 million = €0.76 = $1) due to the economic recovery and demand in Asia. Operating profit fell 57.3% to €0.5 million ($0.7 million) as the company bolstered product development and expanded its marketing and distribution networks. Liquid Handling sales increased 12.7% to account for 94% of revenues, including 7.6% growth for the maintenance and calibration services business. Liquid Handling operating profit improved 6.3% to €3.4 million ($4.5 million). Diagnostics sales grew 23.7% to make up 6% of revenues. Segment operating profit widened 40.1% to a loss of €2.9 million ($3.8 million). Overall, sales to Europe, America and Asia grew 7.2%, 23.4% and 31.6% to account for 52%, 19% and 16% of revenues, respectively. Chinese sales grew nearly 40%. Sales to Other countries improved 6.5% to make up 14% of sales. The company projected sales of €70 million ($94 million) in 2013 for annual growth of more than 10%. Diagnostics sales are expected to grow 80% annually to €20 million ($27 million) by 2013.

Kewaunee Scientific’s revenues for the fiscal third quarter grew 3.5% to $22.6 million (see page 12), despite order delays and weak demand for small and midsize lab projects. Domestic revenue edged higher by 0.1% to make up 85% of sales, and international sales jumped 26.6% to account for 15%. Operating profit fell 84.7% to $0.2 million, and gross margins declined 300 basis points to 18.5% of sales due to manufacturing and shipment delays, product mix and higher raw material costs. Backlog orders improved 3.3% to $68.2 million. The company lowered its account receivables and, as a result, boosted its cash position by 51% to $2.7 million. Fourth-quarter sales are projected to parallel results from the first two fiscal quarters, which averaged $25.2 million.

Fiscal second-quarter sales for Pall’s BioPharmaceuticals unit grew 22.2%, 23.6% excluding currency, to $179.6 million to account for 28% of sales (see page 12). Pharmaceuticals revenue grew 25.1% to account for 84% of BioPharmaceuticals sales, including consumables and systems revenue growth of 20.2% and 123.8%, respectively. Segment sales were boosted by new products and pharmaceutical manufacturers’ higher production levels, as well as by demand from biotech and plasma customers. Growth was particularly strong in India, Korea, Japan, Singapore and China. Sales for the Laboratory submarket grew 14.8% to make up roughly 16% of BioPharmaceuticals sales.

Fiscal second-quarter revenues for Techne’s Biotechnology segment sales grew 4.7% to account for 66% of company sales (see page 12), including 3.9% and 6.7% growth of sales to pharmaceutical/biotechnology and academic customers, respectively. Chinese sales climbed 19.2%, while sales to the Pacific Rim declined 4.5%. Biotechnology operating profit grew 3.7% to $30.4 million, but gross margins declined 220 basis points to 77.8% of sales. Revenue for the R&D Europe segment slipped 0.7% but improved 5.5% on a currency-neutral basis to make up 28% of sales. Segment operating income contracted 5.6% to $7.5 million, and gross margins declined 270 basis points to 51.2% of sales.

For the fourth quarter 2010, Thermo Fisher Scientific’s Laboratory Products and Services (LPS) revenue contracted 6.0%, 5.3% organically, to $1,666.5 million to account for 60% of sales. Currency reduced revenue growth by 0.8%. Strong demand for lab equipment was offset by lower H1N1-related consumables sales, a cancelled supply contract and four fewer days in the quarter, which reduced sales growth 1.1%, 2.0% and 4.0%, respectively. Adjusted operating profit declined 5.5% to $236.4 million. Operating profit margins rose 10 basis points to 14.2% of sales due to cost productivity.

Full-year Thermo Fisher Scientific LPS revenue grew 4.1%, 3.6% organically, to $6,693.0 million to represent 62% of company sales. Acquisitions contributed 0.5% to revenue growth. Currency had a minimal negative impact. Organic revenue growth was driven by demand for consumables and lab equipment from academia and was offset 1.6% from a terminated supply contract, as well as lower flu-related sales. Adjusted operating income grew 6.2% to $31.8 million, and operating profit margin improved 20 basis points to 13.9% of sales. The cancelled supply contract is expected to lower revenue growth by $55 million in the first half of 2011.

VWR International’s fourth-quarter sales rose 4.0%, 4.8% organically, to $979.3 million. Acquisitions contributed 1% to revenue growth. Currency lowered sales by 2%. Adjusted operating profit climbed 18.0% to $70.1 million. Gross margin declined 24 basis points to 28.0% of sales. North American Lab and European Lab sales grew 6.9% and 1.2% to make up 55% and 42% of revenues, respectively. Science Education revenue fell 6.7%. Adjusted operating incomes for North American Lab and European Lab grew 16.3% and 20.7% to $32.1 and $40.2 million, respectively. Operating loss for Science Education widened 46.7% to $2.2 million.

For 2010, VWR’s revenues improved 2.2%, 2.0% organically, to $3,638.7 million. Acquisitions contributed 1.0% to revenue growth, and currency lowered sales by 0.9%. Adjusted operating profit climbed 11.8% to $233.5 million. Gross profit margin improved 10 basis points to 28.6% of sales. North American Lab and European Lab sales grew 1.4% and 3.8% organically to account for 57% and 39% of sales, respectively. Within lab distribution, sales of consumables grew in the low single digits, and capital goods revenues grew in the mid-single digits. Pharmaceutical and biotech sales were flat, industrial revenue grew in the mid-single digits, academic sales increased in the low to mid-single digits, and government sales grew in the low single digits. Science Education revenue declined 8.0% organically to make up 4% of sales. Adjusted operating incomes for the North American Lab and European Lab segments grew 7.6% and 20.0% to $122.3 and $111.7 million, respectively. Science Education reported a loss of $0.5 million, compared with a profit of $2.0 million.

 Column Graph: Quarterly Sales Performance, January 2007–December 2010			

 	Q1	Q2	Q3	Q4

 2007	3358	3408	3466	3699

 2008	3647	3783	3717	3715

 2009	3416	3612	3662	4029

 2010	3823	3772	3751	4030

 Column Graph: Quarterly Operating Profit Margins, January 2007–December 2010			

 	Q1	Q2	Q3	Q4

 2007	14.5%	14.5%	14.9%	14.6%

 2008	15.9%	15.7%	15.9%	15.4%

 2009	16.3%	16.7%	17.2%	16.8%

 2010	17.9%	17.9%	17.3%	17.2%