Calendar-year second quarter revenues for major, publicly held analytical instrument companies showed steady growth, despite purchase delays in China and uneven academic spending. Combined quarterly revenues for seven businesses whose quarterly results are profiled on pages 9–11 grew 4.8%, or 4.4% on an organic basis. Illumina recorded double-digit sales growth, while revenues for Bio-Rad Laboratories Life Sciences (LS) declined. All figures for Thermo Fisher Scientific are based on pro forma results.

Total quarterly operating profits for the six businesses (excluding Bio-Rad LS) increased 9.3%, led by Illumina and Agilent Chemical Analysis (CA), which reported increases of 37.3% and 16.9%, respectively. Several companies maintained cost controls. Despite restructuring efforts, operating income for Bruker Scientific Instruments (BSI) declined.

Purchase delays due to organizational changes and corruption investigations affected Chinese sales growth for nearly all businesses. The most significant impact was in the food safety market, as reported by Agilent Life Sciences & Diagnostics (LSD), Thermo Fisher Scientific and Waters. Other businesses affected by the slowdown in China included Agilent CA’s chemical and energy sales, PerkinElmer’s environmental and industrial sales, and Waters’s industrial chemical and chemical analysis revenues. Several companies indicated a strengthening of orders in China near the end of the quarter and do not expect a long-term impact.

Agilent LSD, Thermo and Waters each reported strong growth for sales to the pharmaceutical and biotechnology industry. Agilent LSD and Waters noted the strongest growth from specialty and mid-sized pharmaceutical firms. Government and academic spending was mixed. Several companies, including Bio-Rad LS and Thermo, noted an improvement in academic sales from the first quarter. However, due in part to year-over-year comparisons, academic sales were soft for PerkinElmer, and government and academic revenues declined for Waters. Industrial sales continued to be constrained, as noted by Bruker and Thermo.

On a regional basis, sales were strong in the US, with Bruker, Thermo and Waters each noting healthy growth. Bruker and Waters noted improved sales in India. Europe was mixed with Bruker and Thermo reporting strength, PerkinElmer recording a sales decline and Waters showing a sales increase outside of the academic market. Weakness in Japan was reported by Bruker and Illumina.

MS and next-generation sequencing (NGS) sales were once again highlights. Agilent LSD, Thermo and Waters each reported strong MS sales during the quarter. NGS-related sales were high points for Agilent LSD, Illumina and Thermo. Healthy service revenues growth was reported by PerkinElmer and Thermo. Product lines for which sales declined included Illumina arrays due to slower genotyping revenues and Bruker’s Detection sales continued to suffer as a result of export restrictions.

The information presented on pages 9–11 is based on companies’ earnings reports, conference calls and SEC filings for the calendar year second quarter.