Due to IBO’s annual January 15 forecast issue, third-quarter results for the Lab Equipment/Consumables Index are presented in this issue. Third-quarter revenues for the Index grew 0.4%, 2.2% excluding currency, to $4,007 million. Operating profits rose 1.1% to $672 million. Based on continuing operations, operating margin slipped 10 basis points to 17.8% of sales.

Kewaunee Scientific’s fiscal second-quarter sales ending October 31 grew 20.1% to $31.2 million. Backlog advanced 16.4% to a record $90.8 million. Orders benefited from an expanded dealer network in Asia and the Middle East. International sales soared 157.6% to make up 18% of sales due to timing of several large projects. Domestic sales improved for the first time in a year, rising 7.8% to account for 82% of revenues due to steady demand from the private sector. However, demand from US publicly funded projects continued to be weak. Operating profit jumped to $1.2 million, compared to a loss of $0.2 million. Gross margin improved 195 basis points to 16.8% of sales as a result of lower manufacturing and overhead expenses.

For the fiscal first quarter ending October 31, revenue for Pall’s BioPharmaceuticals segment increased 3.3%, 4.7% organically, to $202.6 million to account for 32% of total sales. The acquisition of ForteBio (see IBO 12/31/11) contributed 3.2% to revenue growth, and currency lowered sales growth by 4.6%. Excluding currency, consumables and system sales grew 7.0% and 21.0% to make up 92% and 8% of BioPharmaceuticals revenue, respectively. Sales growth benefited from increased demand for single-use processing products from biotechnology customers and higher domestic sales. The acquisition added 4% to consumables sales growth. Excluding currency, sales for the Pharmaceuticals subsegment grew 9.5%, 6% organically, including 8.6% growth in consumables revenues to account for roughly 86% of segment sales. Sales for the Laboratory subsegment slipped 1.6% on a currency-neutral basis to make up roughly 14% of segment sales. The company expects fiscal 2013 BioPharmaceuticals sales to grow in the high single digits excluding currency.

Third-quarter sales for Sartorius’s Lab Products & Services (LPS) segment grew 27.3%, 0.5% organically, to €69.5 million ($86.9 million = €0.80 = $1) to account for 32% of total sales. The acquisition of Biohit’s liquid handling business (see IBO 10/31/11) and currency contributed 21% and 6% to sales growth, respectively. Organic sales to Asia/Pacific and North America each grew roughly 3%–4% to account for 29% and 16% of LPS sales, respectively. European organic sales were about flat to make up 50%. LPS adjusted EBITA jumped 30.3% to €9.9 million ($12.4 million).

Third-quarter Sigma-Aldrich’s Research Chemicals sales declined 4.0% to $428 million but grew 0.6% organically to make up 68% of company revenues. Currency lowered sales growth by 5.6%, while acquisitions added 1.1%. Analytical product sales grew in the high single digits organically to make up roughly 22% of Research Chemicals sales due to strong demand from applied markets, especially in Asia Pacific and Latin America. Sales for Lab Essentials products also contributed to revenue growth, but were partially offset by a mid-single digit organic decline for Chemistry products because of weak demand from large pharmaceutical customers. Organic sales for the Biology and Labware businesses were marginally lower. Academic sales for Research Chemicals grew in the low single digits, while demand from industrial and chemical markets was also higher. Sales to the US were roughly flat, and European sales grew in the low single digits. Research Chemicals sales to other international markets were strong, including double-digit growth in India and China. Fourth-quarter organic Research Chemicals sales are projected to grow in the low single digits.

For the fiscal first quarter ending September 30, revenue for Techne’s Biotechnology segment fell 3.9%, 1.3% excluding currency, to $69.5 million to account for 93% of company sales. New products contributed 0.4% to revenue growth. Segment sales to the US fell 5.2% to account for 57% of revenue. Within the US, sales to industrial, pharmaceutical and biotechnology customers fell 5.0% to make up 30% of segment revenue. Academic sales declined 4.0% to account for 14%. Excluding currency, segment sales to Europe and China grew 3.1% and 25.1% to make up 27% and 4%, respectively. Currency-neutral sales to Pacific Rim distributors (excluding China) were unchanged to account for 9%. Adjusted earnings for the segment contracted 3.7% to $41.6 million as a result of higher R&D spending. Adjusted gross margin fell 230 basis points to 79.0% of sales primarily due to currency.

Third-quarter sales for Thermo Fisher Scientific Laboratory Products and Services (LPS) grew 4.8%, 5.4% organically, to $1,510.1 million to account for 49% of revenues. Acquisitions contributed 1.8% to revenue growth, and currency reduced sales growth by 2.4%. Organic sales were driven by strong demand for consumables and higher revenue from clinical trial services. However, sales were partially offset by lower spending on capital equipment by academic and government markets. LPS adjusted operating income improved 6.5% to $214.0 million. Despite inflationary pressure, adjusted operating margin expanded 30 basis points to 14.2% of sales due to improved productivity.

VWR’s third-quarter revenues declined 3.5%, 2.3% organically, to $1,029.2 million. Acquisitions added 3.0% to revenue growth. Currency lowered sales growth by 4.1%. Excluding the loss of a major customer, sales would have slipped 1.5% organically. Adjusted operating profit fell 13.0% to $59.7 million, including headwinds of 2.8% from currency. Gross profit margin slipped 50 basis points to 27.8% of sales due to product mix. North American Lab (NAL) organic sales fell 3.6% to account for 59% of sales following the loss of a major pharmaceutical customer. Excluding the lost customer, sales would have fallen 2.0%. NAL sales to pharmaceutical and government customers each declined in the mid-single digits. Sales to Asia-Pacific, which are included in NAL, grew in double digits. European Lab (EL) sales improved 0.8% organically to make up 38% of revenues, including low to mid-single digit sales growth from pharmaceutical and industrial markets. EL sales to government and education customers were flat. Science Education revenue fell 14.5% to account for 4% of sales. Adjusted operating income for NAL and EL fell 22.3% and 13.7% to $26.5 million and $28.4 million, respectively. The Science Education segment’s adjusted operating income tripled to $4.8 million.