Fourth-quarter 2011 IBO Lab Equipment/Consumables Sales Index revenues grew 4.8%, 3.9% excluding currency, to $4,226.97 million. Operating profit expanded 6.1% to $732.54 million, and operating margin improved 90 basis points to 18.1% of sales. Full-year 2011 Index sales increased 5.5%, 3.7% on a currency-neutral basis, to $1,6221.51 million. Adjusted operating profits rose 5.0% to $2,813.79 million, and operating margin improved 30 basis points to 17.8% of sales.

For the fiscal fourth quarter ending November 31, 2011, revenue for Gerresheimer Life Science Research fell 6.0% to € 23.6 million ($31.9 million = € 0.74 = $1) to account for 8% of sales (see page 12). Segment sales were impaired by slower demand for lab glassware in the US. Adjusted earnings before interest, taxes and amortization (EBITA) slumped 51.5% to €1.6 million ($2.2 million). Full-year fiscal 2011 Life Science Research sales declined 3.4%, but were roughly flat on a currency-neutral basis, to €91.7 million ($127.4 million = € 0.72 = $1). Adjusted EBITA fell 12.5% to € 7.7 million ($10.7 million).

For the fiscal first quarter ending February 29, 2012, sales for Gerresheimer’s Life Science Research segment grew 8.5%, 6.8% on a currency-neutral basis, to €23.0 million ($30.1 million = €0.76 = $1) to account for 9% of company sales. Adjusted EBITA climbed 21.4% to €1.7 million ($2.2 million).

Kewaunee Scientific’s revenues for the fiscal third quarter ending January 31 fell 4.4% to $21.6 million due to the timing of shipments and lower academic sales in the US. Had orders shipped on time, revenues would have declined only 1.2%. Backlog increased 17.4% to $77.1 million. Despite competitive pricing, overall bidding activity was stable during the quarter. Domestic revenue contracted 10.3% to make up 79% of sales, and international sales climbed 28.1% to account for 21%. Operating loss was $0.2 million, compared with a profit of $0.2 million due to a declining gross margin, which fell 90 basis points to 17.4% of sales as a result of pricing pressure and higher raw material costs. In the near term, international demand is expected to remain robust while domestic sales continue to face economic pressure.

Fiscal second-quarter sales ending January 31 for Pall’s BioPharmaceuticals unit improved 12.3% on a reported and currency-neutral basis to $201.6 million to account for 29% of company sales. Orders grew 13.1% excluding currency to $202 million. Unit sales were driven by strong demand from biotechnology and plasma customers and for research-related lab products, especially in emerging markets. Sales to Europe and Asia each grew 18%. Pharmaceuticals revenue grew 13.1% excluding currency to account for roughly 86% of BioPharmaceuticals sales. Consumables revenue expanded 10% to make up 90% of BioPharmaceuticals sales, and systems revenue climbed 47%. Sales for the Laboratory submarket grew 7.4% on a currency-neutral basis to make up roughly 16% of BioPharmaceuticals sales.

Fiscal second-quarter revenue for Techne’s Biotechnology segment climbed 10.7%, 1.5% organically, to $69.8 million to account for 93% of sales. Acquisitions and currency contributed 8.7% and 0.4% to revenue growth, respectively. Within Biotechnology’s R&D Systems Division, US sales to industrial/pharmaceutical/biotechnology customers grew 4.6%, sales to Pacific Rim distributors improved 11.2% and academic sales declined 4.1%. Organically, R&D Europe sales decreased 0.8% and R&D China sales jumped 32.8%. Adjusted operating profit grew 3.1% to $38.5 million, but growth was restrained by higher selling expenses and lower gross margin. Gross margin declined 330 basis points to 76.9% of segment sales due to accounting inventory adjustments from acquisitions.

For the fourth quarter 2011, Thermo Fisher Scientific’s Laboratory Products and Services (LPS) revenue advanced 4.7%, 3% organically, to $1,481.0 million to account for 47% of company sales. Acquisitions added 2% to revenue growth, and currency was neutral. A rise in biopharmaceutical outsourcing services revenue was partially offset by lower demand from academic and government customers. Adjusted operating profit declined 3.8% to $195.1 million. Despite improved productivity, adjusted operating profit margin contracted 110 basis points to 13.2% of sales due to pricing pressure, higher raw material costs and increased investments in Asia Pacific.

Full-year 2011 Thermo LPS revenue grew 5.0%, 1.9% organically, to $5,935.4 million to represent 51% of company sales. Acquisitions and currency contributed 1.2% and 1.9% to revenue growth, respectively. Revenue for the Unity Lab Services brand grew in the high single digits to make up 7%–8% of company sales, and outsourcing services grew at a similar rate. Adjusted operating income improved 1.1% to $810.8 million, but adjusted operating profit margin declined 50 basis points to 13.7% of sales.

VWR International’s fourth-quarter 2011 revenues rose 8.4%, 3.1% organically, to $1,061.8 million. Adjusted operating profit improved 2.7% to $72.0 million. Gross margin rose 13 basis points to 28.2% of sales. Organic North American Lab and European Lab sales grew 1.9% and 5.0% to make up 56% and 41% of revenues, respectively. Science Education revenue improved 1.0% to represent 3% of sales. Operating incomes for the North American Lab and European Lab segments grew 4.7% and 12.9% to $33.6 million and $45.4 million, respectively. Adjusted operating loss for the Science Education segment widened 218.2% to $7.0 million.

For 2011, VWR’s revenues climbed 14.4%, 6.9% organically, to $4,161.1 million. Acquisitions and currency contributed 4.7% and 2.7% to revenue growth, respectively. Adjusted operating profit improved 15.3% to $269.2 million, including 1.8% growth and 2.1% growth from acquisitions and currency, respectively. Gross profit margin slipped 30 basis points to 28.3% of sales due to product mix and declining gross margin for the Science Education segment. North American Lab and European Lab sales grew 6.7% and 8.5% organically to account for 57% and 40% of sales, respectively. Within the lab distribution segments, sales of consumables grew in the high single digits and capital goods revenue grew in the low to mid-single digits. From a market perspective, pharmaceutical and biotechnology sales grew in the high single digits, industrial and educational revenue grew in the mid- to high single digits, and government sales grew in the low to mid-single digits. Science Education revenue declined 6.0% to make up 3% of sales. North American Lab and European Lab operating incomes climbed 15.4% and 26.5% to $141.1 million and $141.3 million, respectively. Adjusted operating loss for Science Education was $13.2 million, compared with a loss of $0.5 million a year ago.

 Bar Graph: Quarterly Organic Sales Change

 January 2008–December 2011

 Year     Q1     Q2     Q3     Q4

 2008   4.6%   7.0%   5.6%   4.1%

 2009  -0.5%   0.8%   0.6%   6.1%

 2010   8.4%   4.7%   3.6%   1.0%

 2011   2.9%   3.9%   4.2%

 Bar Graph: Quarterly Operating Profit Margins

 January 2008–December 2011

 Year    Q1     Q2    Q3    Q4

 2008 15.9%  15.7% 15.9% 15.4%

 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%

 Laboratory Equipment/Distribution Index       % Change

                                         2008     2009     2010     2011    2008–09   2009–10   2010–11

 Total Annual Revenues ($M)           $14,861  $14,719  $15,378  $16,222      -1.0%      4.5%      5.5%

 Annual Operating Profits ($M)         $2,316   $2,420   $2,681   $2,814       4.4%     10.8%      5.0%

 Annual Operating Profit Margins        15.7%    16.8%    17.5%    17.8%      -----     -----     -----

 4th Quarter Revenues ($M)             $3,715   $4,029   $4,032   $4,227       8.5%      0.1%      4.8%

 4th Quarter Operating Profits ($M)      $579     $667     $690     $733      15.2%      3.5%      6.1%

 4th Quarter Operating Profit Margins   15.4%    16.8%    17.2%    18.1%      -----     -----     -----