First-quarter revenues for the IBO Lab Equipment/Consumables Index grew 3.9%, 2.9% organically, to $3,970.74 million. Operating profit improved 4.0% to $707.69 million, and operating margin added 30 basis points to 18.2% of sales. Diploma was removed from the Index, and Merck Millipore was added.

Biohit’s first-quarter sales grew 9.9%, 7.5% excluding currency, to €10.4 million ($14.2 million = €0.73 = $1) (see page 12). Operating profit jumped 552.3% to €0.6 million ($0.8 million) due to reduced expenditures. Geographically, sales were particularly strong in Europe, Russia and China. Sales to Europe, America and Other regions expanded 4.1%, 2.4% and 24.7% to account for 55%, 18% and 15%, respectively. Asian sales fell 3.9% to make up 15% of revenues. Liquid Handling sales climbed 11.3% to account for 96% of sales, driven by strong demand for mechanical pipettes. Segment profit rose 71.6% to €1.2 million ($1.6 million). Due to lower demand for analysis systems, Diagnostics revenue declined 15.3%. Excluding analysis instrument sales, Diagnostics revenue grew 13.6%. Segment operating loss widened by 3.4% to €0.6 million ($0.8 million). The company expects 2011 revenues to grow more than 10%, with an operating profit of around 5% of sales.

For the fiscal second quarter ending May 31, revenue for Gerresheimer’s Life Science Research segment slipped 0.7%, but grew 7.0% on a currency-neutral basis, to €23.4 million ($33.0 million = €0.71 = $1) to account for 8% of company sales. Operating income expanded 15.0% to €2.3 million ($3.2 million).

Kewaunee Scientific’s fiscal fourth-quarter sales ending April 30 increased 12.6% to $27.0 million. Domestic and international sales grew 6.8% and 45.9% to account for 81% and 19% of sales, respectively. Operating profit slumped 31.3% to $0.5 million on account of pricing pressure, higher cost of goods and unfavorable product mix. Operating margin fell 236 basis points to 17.5% of sales. Fiscal year-end revenues improved 0.9% to $100.0 million. Revenue growth benefited from strong international lab furniture sales and increased demand for larger domestic projects. However, this growth was mostly offset by lower US spending for small and midsize laboratory projects. Domestic sales declined 3.9% to account for 84% of sales, and international sales grew 37.7% to make up 16%. Full-year operating income contracted 45.8% to $3.2 million, and gross profit dropped 232 basis points to 19.3% of sales.

Fiscal third-quarter sales ending April 30 for Pall’s BioPharmaceuticals unit grew 21.3%, 16.0% on a currency-neutral basis, to $197.2 million to account for 28% of company sales. Excluding currency, Pharmaceuticals revenue climbed 17.0% to make up 84% of BioPharmaceuticals sales, including 15.5% and 34.5% growth in consumables and systems revenue, respectively. Customer demand was strong across all geographic regions but especially in emerging territories due to new drug developments, increased production and continued acceptance of FDA manufacturing standards in China. Sales for the Laboratory submarket grew 10.5% to make up 16% of BioPharmaceuticals sales.

For the first quarter, revenues for Sigma-Aldrich’s total Research business grew 7.6%, 4.1% organically, to $452 million to make up 72% of sales. Acquisitions and currency increased sales by 2.1% and 1.4%, respectively. Sales for the Research Essentials business unit climbed 7.1%, 5.3% excluding currency, to $120 million. Research Specialties sales improved 8.8%, 3.7% organically, to $236 million. Acquisitions and currency contributed 2.8% and 2.3% to Research Specialties revenue growth, respectively, with organic sales driven by international demand for analytical and chemistry products. Research Biotech sales grew 5.5%, 3.3% excluding currency, to $96 million, driven by higher sales of genomics products. Company operating income climbed 11.1% to $170 million, and gross profit rallied 20 basis points to 53.2% of sales. Total 2011 organic sales are projected to grow in the mid-single digits.

Fiscal third-quarter revenues ending March 31 for Techne’s Biotechnology segment improved 8.1% to $49.9 million to account for 65% of company sales. Biotechnology revenues from pharmaceutical/biotechnology and academic customers grew 9.9% and 6.4%, respectively. Sales to Pacific Rim distributors and sales in China climbed 3.3% and 46.0%, respectively. Segment operating profit improved 8.7% to $35.9 million, and gross margin increased 60 basis points to 80.0% of sales. Revenue for the R&D Europe segment rose 10.5%, 8.4% on a currency-neutral basis, to $21.2 million to make up 28% of sales. Segment operating income jumped 14.3% to $9.0 million, but gross margin fell 170 basis points to 51.0% of sales due to currency.

First-quarter sales for Thermo Fisher Scientific Laboratory Products and Services grew 0.9%, but slipped 0.8% organically, to $1,685.3 million to account for 62% of company sales. Currency and acquisitions contributed 0.9% and 0.8% to revenue growth, respectively. Organic sales were diminished 1.9% by a cancelled supply contract. Sales were also negatively impacted by budget delays from academic and government customers and by a strong year-over-year comparison. This decline was partially offset by strong growth for the BioPharma services business, primarily for clinical trial outsourcing, and good demand for flu-related products. Adjusted operating income declined 0.4% to $230.6 million, and adjusted operating margin dropped 20 basis points to 13.7% of sales due to infrastructure expansion in Asia-Pacific and higher IT investments in Europe.

VWR’s first-quarter revenues improved 13.4%, 9.7% organically, to $991.2 million. Sales of consumable products grew in the high single digits to account for roughly 75% of revenues, and capital goods sales grew in the low double digits. From a market perspective, pharmaceutical and biotechnology revenues expanded in the low double digits, industrial sales grew in the high single digits, and sales to academic and government customers improved in the mid-single digits.

VWR North American Lab sales climbed 15.7%, 10.6% organically, to represent 57% of company sales. European Lab sales rose 11.7%, 9.8% organically, to account for 40% of sales. Science Education revenue fell 8.9% to make up 2% of sales due to reduced discretionary spending of schools. Adjusted operating income for the North American Lab and European Lab segments grew 6.0% and 7.6% to $35.7 and $33.4 million, respectively, while the Science Education segment’s loss widened 9.8% to $4.4 million. Total operating profits improved 6.2% to $64.7 million, but gross profit margin declined 70 basis points to 28.7% of sales due to product mix.

 Column Graph: Quarterly Organic Sales Change

 January 2008–March 2011   

         Q1     Q2     Q3     Q4

 2008  4.6%   7.0%   5.6%   4.1%

 2009 -0.5%   0.8%   0.6%   6.1%

 2010  8.4%   4.7%   3.6%   1.0%

 2011  2.9%

 Column Graph: Quarterly Operating Profit Margins

 January 2008–March 2011

         Q1     Q2     Q3     Q4

 2008 15.9%  15.7%  15.9%  15.4%

 2009 16.3%  16.7%  17.2%  16.8%

 2010 17.9%  17.9%  17.3%  17.2%

 2011 18.2%

 Laboratory Equipment/Distribution Index, Total                             % Change  

                                2008      2009      2010      2011    08/09   09/10   10/11

 Total Annual Revenues ($M)  $14,861   $14,719   $15,376     -----    -1.0%    4.5%   -----

 Annual Oper. Profits ($M)    $2,316    $2,420    $2,682     -----     4.4%   10.8%   -----

 Annual Oper. Profits (%)      15.7%     16.8%     17.6%     -----    -----   -----   -----

 1st Quarter Revenues ($M)    $3,647    $3,416    $3,823    $3,971    -6.3%   11.9%    3.9%

 1st Quarter Oper. Profits ($M) $569      $542      $680      $708    -4.7%   25.6%    4.0%

 1st Quarter Oper. Profits (%) 15.9%     16.3%     17.9%     18.2%    -----   -----  -----