Two companies in IBO’s Laboratory Instrument Sales Index reported fiscal year-end March 31 results after the publication of the 2008 and first-quarter Index numbers (see IBO 2/15/09, 4/30/09, 5/15/09). Including year-end results for Shimadzu and Oxford Instruments (Analytical), Index revenues rose 12.1% in 2008 and operating profits increased 14.5%. For the first quarter, Index sales declined 2.6% and operating profits fell 3.9%, including the companies’ results.

Shimadzu’s Analytical and Measuring Instrument division reported fiscal 2009 sales declined 7.3% to ¥152,402 billion ($1,516 million = ¥100.50 = $1) to represent 56% of total sales. Currency changes negatively affected revenues as the dollar and euro strengthened against the yen. By product line, sales of General Analytical Instruments fell 0.4% to account for 62% of division revenue. Among these products, chromatograph sales expanded 3.3% to ¥65.1 billion ($647.8 million) and MS revenue grew. Sales of Surface Analyzers, including scanning electron microscopes, declined 25.0%, while Environmental Analyzers revenue fell 0.5%, as each segment made up 7% of division sales. Sales of Testing Machines and Non-Destructive Inspection Machines, including particle analyzers and products for physical testing, fell 6.3% to account for 11% of division sales. Sales of Other products dropped 24.8% to represent 13% of division revenue.

Analytical and Measuring Instrument sales declined in all regions. Japanese sales, which made up 54% of division sales, fell 9.0%. Sales to Europe fell 4.5% to 11% of division sales. North and South American sales declined 4.8%, including an 8.4% decline in North America to ¥10.7 billion ($106.5 million), to make up 10% of division revenue. Asia-Oceania sales declined 5.6% to 26% of division sales, but were highlighted by an 11.5% increase in Chinese sales to ¥21.0 billion ($209.0 million). Helping to increase sales in China were a new office in Wuhan, the opening of the Shenyang Analysis Center and expanded functions at the company’s Shanghai Analysis Center. Among Shimadzu’s growth strategies is the introduction of systems developed specifically for the Chinese market, which are expected to debut later this year.

For fiscal 2010, Shimadzu expects domestic and foreign demand to improve. Analytical and Measuring Instrument revenue is estimated to decline only 3.9%. Operating income is expected to drop 15.0%. The company also reported that it has taken “emergency measures” to improve profitability.

In June, Oxford Instruments reported annual revenues of £206.5 million ($350.0 million = £0.59 = $1) (see IBO 6/15/09), up 17.0%, including 19% and 6% growth from currency effects and acquisitions, respectively, offset by an 8% decline in industrial sales. By region, Europe, North America and Asia accounted for 39%, 27% and 29% of revenues, respectively. Orders for China and Latin America each increased 17%.

Within the Analytical segment, revenue from the Industrial Analysis business declined, and orders fell 26% versus expectations. Sales also declined for the X-Ray Technology business (small X-ray sources) due to slower industrial demand. NanoAnalysis (detectors for electron microscopes) sales performed “well,” lead by sales of electron backscatter diffraction instruments. Plasma Technology (fabrication tools for compound semiconductor devices) sales did “well,” and orders rose 25%. Sales in both the NanoAnalysis and Plasma Technology businesses were fueled in part by R&D of photovoltaic devices.

Oxford Instruments (Analytical) (FY09)

(£M) ($M) % Growth (£M)

Revenue £134.7 $228.3 16.4%

Op. Profit £11.1 $18.8 0.9%

Orders £129.5 $219.5 11.8%

Shimadzu Analyt. & Measur. Instr. (FY09)

Sales (¥B) Sales ($M) % Growth (¥B)

Revenue ¥152,402 $1,516 -7.3%

Op. Profit ¥21,171 $210.7 -19.2%