With the updated financials from Oxford Instruments, HORIBA and Shimadzu, the IBO Laboratory Sales Index has been slightly revised from the numbers that appeared in IBO’s May 15 issue. First-quarter Index sales grew 1.9% organically to $5,752 million. Operating profit climbed 8.6% to $1,253 million, and operating margin was 18.5% of sales.

For the fiscal year 2012 ending March 31, Oxford Instruments’ sales grew 28.6%, 15.1% organically, to £337.3 million ($535.4 million = £0.63 = $1). Acquisitions, net of divestitures, contributed 13.5% to revenue growth. Currency lowered sales growth by 0.3% but was offset by higher copper prices. Orders grew 23.5% to £337.8 million ($536.2 million). Revenue growth was driven by new products and strong demand from emerging markets. Revenue from new products introduced in the last three years accounted for 44% of sales compared with 34% a year ago. Adjusted operating income jumped 48.9%, 39% excluding acquisitions, to £42.1 million ($66.8 million). Gross margin improved 150 basis points to 44.2% of sales as a result of product mix.

Revenue for the Nanotechnology Tools (NT) segment climbed 26.4%, 2.1% organically, to represent 46% of sales. Excluding weak demand for high-brightness LED products, NT organic sales grew 11.0%. The NanoAnalysis business reported good growth, led by strong demand for the new AZtec materials characterization system and acquired nano-manipulation products used for sample preparation (see IBO 6/15/11). The NanoScience business benefited from higher sales of the Triton cryogen-free dilution refrigerator. The newly acquired Omicron NanoTechnology business (see IBO 6/15/11) reported strong demand. NT adjusted operating profit grew 18.5% to £17.3 million ($27.5 million).

Sales for Industrial Products (IP) climbed 28.5%, 23.3% excluding acquisitions, to make up 38% of sales. Industrial Analysis sales were particularly strong, driven by the new XMET7500 handheld analyzer and higher sales of optical emissions spectroscopy analyzers in Asia. Sales for the Austin business rose due to a large contract from the solar industry. The Magnetic Resonance business performed well due to the launch of the AffirmoEX system. IP adjusted operating profit jumped 126.2% to £13.8 million ($27.5 million) due to product mix. The Service business grew 32.2% to account for 17% of sales as a result of the acquisition of Platinum Medical Imaging (see IBO 11/15/11) and higher system placements in Asia. Adjusted operating profit for the Service business climbed 48.6% to £11.0 million ($17.5 million).

Fiscal full-year sales for Shimadzu’s Analytical and Measuring Instruments (AMI) division for the year ending March 31 grew 8.9% to ¥153,249 million ($1,941 million = ¥78.95 = $1) to represent 58% of total revenues. Japanese sales improved 7.3% to account for 53% of segment sales due to new high-end products and strong demand for LC products from pharmaceutical and chemical markets. Japanese sales also benefited from higher demand for GC products from the chemical markets along with steady demand for LC and MS products from academic and government customers. AMI sales to the Americas, Europe and China grew 9.1%, 6.3% and 18.2% to account for 9%, 10% and 17% of segment sales, respectively. Within China, demand was particularly strong for LC and MS products from food safety markets and for GC from petrochemical markets. North American sales rose 13.7%, led by strong shipments of high-end MS systems and increased demand for LC products from pharmaceutical markets. Despite difficult market conditions, European sales advanced due to higher sales of microorganism-inspection products. Sales to other Asian countries grew 7.6% to make up 9%. Sales to the Middle East, Oceania and Africa slipped 2.7% to represent 2%. For fiscal 2013, AMI revenue is estimated to grow 6.7% to ¥163.5 billion ($2,044 million = ¥80.00= $1). Operating income is expected to climb 19.0% to ¥18.0 billion ($238 million).

For the first quarter, HORIBA’s Process and Environmental Instruments & Systems (P&E) revenue grew 40.7% to ¥4,106 million ($51.8 million = ¥79.21 = $1) to make up 14% of sales. Sales were driven by demand for air-pollution and stack-gas analyzers in Japan and higher international sales of environmental radiation monitors. P&E operating income grew 262.3% to ¥893 million ($11.4 million). Sales for the Scientific Instruments & Systems (SI) segment declined 3.7% to ¥5,178 million ($65.4 million) to make up 18% of sales. Sales declined due to lower European demand and the stronger yen, but were partially offset by higher sales of pH meters and optical analyzers in Japan. SI operating income improved 14.1% to ¥215 million ($2.7 million) due to favorable product mix. The company raised its full-year P&E revenue and operating income forecasts by 4% and 46% to ¥14,000 million ($175 million) and ¥1,900 million ($24 million), respectively. SI full-year sales and operating income are forecast to increase 2% and 1% to ¥21,500 million ($269 million) and ¥1,600 million ($20 million), respectively.

 Pie Chart: Oxford Instruments FY12

 Sales by Market Segment

 Research and Academia      43%

 Life Sciences              18%

 Metals & Construction      12%

 Environment                 6%

 Semicon./IT                11%

 Energy                     10%

 Shimadzu Analytical & Measuring Instruments FY12

                                                              Rev. (¥B)              % Rev. Growth

 General Analytical Instruments                                 ¥92.1                     9.3%

 Surface Analyzers                                              ¥9.5                     -4.0%

 Environmental Monitors                                         ¥8.4                      2.3%

 Testing Machines & Non-Destructive Inspection Machines         ¥16.5                     8.7%

 Other                                                          ¥26.8                     15.1%

 HORIBA 1Q FY12

                                           Process & Env.                                    Scientific

                                     Sales (¥M)      % Rev. Grow.                  Sales (¥M)        % Rev. Grow.

 Japan                                 ¥2,980           46.9%                        ¥2,286             1.9%

 Asia                                  ¥361             36.0%                        ¥830             -12.4%

 Americas                              ¥302             54.6%                        ¥868              -4.2%

 Europe                                ¥461              8.0%                        ¥1,193            -6.6%