Financials for the IBO Laboratory Sales Index have been updated from the February 15 issue to include all the companies. Fourth quarter 2014 Laboratory Sales Index sales grew 3.8%, 6.1% organically, to $7,287 million. Operating profit climbed 7.7% to $1,748 million, and operating margin advanced 220 basis points to 21.3% of sales. For 2014, Index revenues grew 4.8%, 5.4% organically, to $26,062 million. Operating profit expanded 8.5% to $5,705 million. Operating margin advanced 110 basis points to 19.6% of sales.

Based on Analytik Jena’s new calendar-year reporting period, fourth quarter 2014 sales for Analytical Instrumentation (AI) fell 5.3% to €13.0 million ($16.3 million = €0.80 = $1) (see page 12) to account for 45% of revenues. Excluding the acquired ICP-MS business (see IBO 8/15/14), organic sales fell roughly 30% due to weakness in Japan, Russia and the Middle East, as well as slower demand for higher-priced items and soft Chinese sales. AI gross profit improved 260 basis points to 56.3% of sales as a result of restructuring efforts at its Japanese subsidiary. Segment adjusted operating profit fell 82.1% to €0.2 million ($0.2 million) as a result of lower-than-expected sales in Thailand, France and India, where the company had invested additional resources to expand its direct sales force. Life Science (LS) revenue contracted 3.5% to €10.3 million ($12.9 million) to account for 36% of sales. Pricing pressure for Biometra thermal cyclers and discontinued sepsis-diagnostics products offset higher CyBio sales. As a result, gross margin slumped 560 basis points to 40.7%. Adjusted operating loss was €2.7 million ($3.4 million), compared to a profit of €0.3 million ($0.5 million).

Fourth quarter 2014 sales for Harvard Bioscience grew 9.0%, roughly 2.5% organically, to $30.4 million (see page 12). Acquisitions added roughly 8%–9% to revenue growth. Currency lowered sales by 2%. Demand was driven by the US and Europe, while China remained soft. Backlog climbed more than 41% to $7.2 million. Gross profit margin expanded 330 basis points to 46.7% of sales due to restructuring efforts. Adjusted operating profit nearly doubled to $4.1 million.

Full-year 2014 Harvard Bioscience revenues grew 3.3% to $108.7 million, but were roughly flat excluding acquisition and currency contributions of 2% and 1%, respectively. Academic markets accounted for roughly 70% of revenues. US sales slipped 0.1% to account for 59%. Sales in the UK and Rest of the World grew 7.1% and 10.7% to make up 23% and 19%, respectively. Gross margin expanded 300 basis points to 45.8% of sales. Adjusted operating profit climbed 33.4% to $11.1 million. For 2015, sales are expected to grow 5%–7% to $114–$116 million. Excluding 11%–12% growth from acquisitions and currency headwinds of 5%–6%, organic sales are projected to grow roughly 1%.

For the fourth quarter 2014, HORIBA’s Process & Environmental Instruments & Systems (P&E) revenue declined 3.1% to ¥4,666 million ($40.7 million = ¥114.59= $1) to make up 9% of sales. Excluding currency, segment sales declined in the upper single digits due to weak demand in Europe and a strong year-over-year comparison. Japanese sales fell to account for 47% of P&E revenue. P&E operating income fell 14.3% to ¥558 million ($4.9 million). Sales for HORIBA Scientific Instruments & Systems (SI) advanced 7.1% to ¥8,264 million ($76.8 million) to account for 16% of revenues. Excluding the acquisition of Photon Technology (see IBO 2/15/14) and currency, SI sales fell in the low single digits. SI operating profit grew 12.4% to ¥1,227 million ($10.7 million).

Full-year 2014 HORIBA P&E sales rose 11.9% to ¥16,465 million ($155.5 million = ¥105.89 = $1) to account for 11% of total sales. Excluding currency and acquisitions, P&E revenue grew in the mid-single digits, led by demand for stack gas analyzers and water-quality analyzers in Asia, as well as higher sales of portable gas analyzers in Europe. Japanese sales grew 3.4% to make up 51% of P&E revenue. Sales in other Asian markets and Europe jumped 45.6% and 14.6% to account for 20% and 14%, respectively. Sales in the Americas grew 5.5% to make up 14%, but declined organically. P&E operating profit rose 58.9% to ¥2,007 million ($19.0 million).

For 2014, HORIBA SI sales grew 11.8% to ¥22,913 million ($234.6 million) to account for 17% of sales, but were roughly flat organically. Increased spending from governments and universities in Europe primarily drove organic sales. Japanese sales fell 2.3% to account for 27% of SI sales. Including acquisitions and currency, sales in Europe, the Americas and Asia grew 24.5%, 16.7% and 12.6% to make up 28%, 24% and 21%, respectively. SI operating profit grew 28.6% to ¥1,206 million ($11.4 million). For 2015, P&E sales are expected to grow 15% to ¥18,500 million ($150 million), and SI sales are projected to rise 9% to ¥28,000 million ($227 million).

For the second half of 2014, Spectris’s Materials Analysis (MA) sales grew 1.1% to £198.1 million ($319.5 million = £0.62 = $1) to account for 31% of revenues. Organic sales declined less than 1% excluding acquisition growth of 6% and currency headwinds of 4%. Academic revenue expanded because of strong demand in China for environmental applications and higher UK sales. Pharmaceutical sales maintained good growth, and semiconductor sales improved as a result of new products and the acquisition of a South Korean distributor. MA adjusted operating profit fell 6.1% to £40.1 million ($64.7 million).

Full-year 2014 Spectris MA sales fell 3.8%, roughly 3.0% organically, to £348.8 million ($571.8 million = £0.61 = $1) to account for 30% of revenues. Acquisitions added 4% to sales growth, but were offset by currency headwinds of 5%. Weak demand from the metals, minerals and mining industries, especially in Asia Pacific, and flat academic sales slowed growth. These two end-markets each accounted for roughly 30% of MA sales. Accounting for 37% of MA sales, pharmaceutical and fine chemicals revenue was led by demand from biopharmaceutical and generic drug customers, primarily in North America. Aftermarket sales grew roughly 7% to make up 31% of MA revenue. MA US sales grew 6.4%, but fell 3.6% in the Rest of North America to make up 19% and 3% of sales, respectively. European sales declined 5.7% to account for 30%, with a decline in Germany. Asia Pacific sales fell 7.7% to account for 37%, including a 7.2% decline in China. Rest of the World sales were roughly flat to make up 10%. MA adjusted operating profit contracted 15.8% to £53.3 million ($87.4 million).