Fourth-quarter sales for the IBO Lab Equipment/Consumables Index climbed 8.3% to $922.96 million, including 2.4% growth from currency. Median growth was 6.3%. Operating profit grew 14.7% to $305.37 million. Operating margins improved 190 basis points to 33.1% of sales. The median operating profit margin was 17.5%. For the year, Index sales slipped 1.6% to $3,478.49 million, including a loss of 2.4% from currency. Operating profits rose 3.7% to $1,127.66 million. Operating margin improved 190 basis points to 33.1% of total annual sales. The median operating profit margin was 17.5%.

For the third quarter, the Index declined 1.8% to $864.45 million, including a loss of 2.0% from currency. The median change was a 1.1% decline. Operating profit improved 4.2% to $285.32 million. Operating margins gained 190 basis points to 33.0% of sales. However, the median operating profit margin was 17.0%

Biohit Oyj’s fourth-quarter sales climbed 6% to €10.2 million ($15.0 million = €0.68 = $1) (see page 12) due to strong demand for Liquid Handling products and Diagnostics test kits, particularly in Asia. Operating profit soared 150% to €0.8 million ($1.2 million). Year-end sales grew 1% to €35.4 million ($49.2 million = €0.72 = $1), and operating profit declined 9% to €1.2 million ($1.7 million) due to higher sales and marketing expenses. Liquid Handling sales grew 1% at constant exchange rates due to increased demand for disposable products and maintenance services, but were partially offset by lower pipette sales, primarily in Europe and the US. Liquid Handling operating profit fell 12% to €3.2 million ($4.4 million). Diagnostics product sales grew 20% to make up 6% of revenues, while segment operating profit narrowed by 13% to a loss of €2.0 ($2.8 million). Sales of test kits grew 34%, 44% excluding currency, to account for 89% of Diagnostics sales. The company anticipates improved profitability for 2010.

Kewaunee Scientific’s revenues for the fiscal third quarter ended January 31 slumped 16.2% to $21.8 million due to lower demand for lab furniture and weak international sales. Domestic and international sales declined 15.2% and 22.5% to account for 87% and 13% of sales, respectively. Operating profit fell 31.6% to $1.0 million, but gross margins improved 250 basis points to 21.5% of sales as a result of operating efficiencies and lower raw material costs. Following strong quotation activity and record backlog orders, which climbed 7.9% to $65.5 million, the company anticipates a recovery for fiscal fourth-quarter revenues.

Fiscal second-quarter sales ended January 31 for Pall’s BioPharmaceuticals unit grew 14.7%, 8.2% on a currency-neutral basis, to $147.0 million. Within BioPharmaceuticals, consumables revenue climbed 15.3% in local currency to account for 85% of segment sales due to demand from the vaccine market, while systems sales fell 35.7% in local currency to account for 15% of sales. BioPharmaceuticals sales accounted for 59% of Life Sciences revenue, which grew 10.0%, 4.2% excluding currency, to $247.4 million. Life Sciences orders climbed roughly 10%. In local currency, Life Sciences sales to Europe, the Western Hemisphere and Asia grew 0.4%, 7.6% and 7.8% to account for 48%, 37% and 15% of segment sales, respectively. Life Sciences operating income jumped 26.6% to $61.6 million, and gross margins improved 680 basis points to 58.0% of sales due to product mix and manufacturing efficiencies.

For the fourth quarter, Thermo Fisher Scientific’s Laboratory Products and Services revenue improved 9.5%, 5% organically, to $1,773.0 million to account for 62% of revenues. Currency and acquisitions contributed 2% and 3% to revenue growth, respectively. Organic revenue growth benefited from strong sales for lab consumables, biopharma services and the catalogue business. Organic sales to Europe declined in the mid-single digits. North American and Asian Pacific sales grew in the low single digits and high-single digits, respectively. Sales to the rest of the world grew in double digits, driven by the Middle East. Adjusted operating profit grew 5.0% to $250.1 million. Operating profit margins slipped 60 basis points to 14.1% of sales.

Full-year revenue for Thermo’s Laboratory Products and Services slipped 0.4% to $6,426.6 million, but were flat organically, to represent 64% of sales. Currency reduced revenue growth by 2.0%, while acquisitions contributed 1.9% growth. Sales were negatively impacted by lower demand for lab equipment and a revised agreement with a significant supplier to the healthcare-market channel. However, the company reported strong demand for research and healthcare products, particularly for consumables. Organic sales to North American and Europe each declined in the single digits. Sales to Asia Pacific and the rest of the world each grew in the low single digits. Adjusted operating income declined 4.0% to $877.6 million, and operating profit margins fell 50 basis points to 13.7% of sales. For 2010, the company anticipates total revenue growth of 5%–7% to $10.6–$10.8 billion, including organic growth of 2%–4%. Laboratory Products and Services is expected to grow at a higher rate.

VWR International’s fourth-quarter revenues improved 5.7%, but were flat on an organic basis, to $941.9 million. Currency and acquisitions contributed 5.3% and 0.5% to revenue growth, respectively. North American Lab and European Lab sales grew 1.1% and 13.3% to account for 54% and 43% of revenues, respectively, primarily due to currency. Science Education revenue declined 7.6%, 15.5% organically. Overall, consumables revenue was slightly higher, while capital goods sales declined in the mid- to high single digits. Demand from government and pharmaceutical customers rose modestly, but was offset by a mid-single digit decline in industrial markets. Adjusted operating profit jumped 17.6% to $59.4 million. Gross margins declined 20 basis points to 28.3% of sales.

For the year, VWR’s revenues declined 5.3%, 3.1% organically, to $3,561.2 million. Currency lowered revenue growth by 2.9%, and acquisitions contributed 0.7% growth. North American Lab sales fell 3.6%, 2.6% organically, to account for 57% of sales. European Lab sales slid 6.4% to make up 40%, including a loss of 5.8% from currency and a 1.5% gain from acquisitions. Science Education revenue fell 16.3%, 17.9% organically. Sales of capital goods declined in the mid- to high single digits, and consumables revenue was flat. Sales to pharmaceutical and biotech customers declined in the low single digits and industrial market sales were down in the mid-single digits. Academic sales grew in the low single digits and government revenue was flat. Adjusted operating profit grew 2.5% to $208.8 million, while gross profit margins improved 20 basis points to 28.5% of sales.

Chart: Quarterly Sales Performance January 2006—December 2009

Q1 Q2 Q3 Q4

2006 711.8 731.3 728.5 787.8

2007 802.5 808.5 820.9 876.1

2008 891.9 912.3 879.9 852.1

2009 827.2 863.9 864.4 923.0

Chart: Quarterly Operating Profit Margins January 2006—December 2009

Q1 Q2 Q3 Q4

2006 25.9% 25.7% 26.4% 27.4%

2007 29.3% 28.6% 29.5% 28.9%

2008 30.5% 30.2% 31.1% 31.2%

2009 31.0% 32.4% 33.0% 33.1%

Laboratory Equipment/Distribution Index, Total % Change

2006 2007 2008 2009 06/07 07/08 08/09

Total Annual Revenues ($M) 2959 3308 3536 3478 11.8 6.9 -1.6

4th Quarter Revenues ($M) 788 876 852 923 11.2 -2.7 8.3

Annual Oper. Profits ($M) 780 961 1088 1128 23.2 13.2 3.7

Annual Oper. Profits (%) 26.4 29.1 30.8 32.4 —– —– —–

4th Quarter Oper. Profits ($M) 216 253 266 305 17.2 5.3 14.7

4th Quarter Oper. Profits (%) 27.4 28.9 31.2 33.1 —– —– —–

IBO Laboratory Equipment/Consumables Sales Index companies: Biohit Oyj, Diploma (Life Sciences), Gerresheimer (Life Science), Kewaunee Scientific, Life Technologies, Millipore* (Bioscience), New Brunswick Scientific, Pall (BioPharmaceuticals), Sigma-Aldrich* (Research Essentials, Research Specialties, Research Biotech), Techne (Biotechnology, R&D Europe), Thermo Fisher Scientific (Laboratory Products and Services), and VWR Funding. *Segment operating profit based on company operating margin.