Hitachi SMS Steady in Fiscal Third Quarter

Fiscal 2018 third quarter sales for Hitachi High-Technologies Science and Medical Systems (SMS) rose 0.5% to ¥42.4 billion ($378.6 million at ¥112 = $1).

Electron microscope sales remained flat at ¥6.8 billion ($60.7 million), representing 16% of total SMS sales. Sales of Scientific Instruments, delivering the fastest growth in the segment, vaulted 52.9% to ¥7.8 billion ($69.6 million). Scientific Instrument sales accounted for 18% of segment sales. Representing the largest amount of SMS revenue were Medical products sales at 55%. Medical Products sales, however, fell 9.7% to ¥23.2 billion ($207.1 million) for the quarter. Biotechnology Products & Other revenue also decreased, sliding 4.3% to ¥4.5 billion ($40.2 million).

For fiscal year 2018, Hitachi High-Technologies expects SMS sales to advance 1.0%, to ¥188.0 billion ($1.68 billion). This represents a decrease of ¥0.5 billion from the previous projection. Annual operating profit is expected to fall 17.3% to ¥22.4 billion ($200.0 million), unchanged from previous guidance.

Shimadzu AMI Up Double-Digits in Fiscal Third Quarter

Shimadzu’s Analytical and Measuring Instruments segment (AMI) delivered 12.0% sales growth in the fiscal 2018 third quarter, totaling ¥56.8 billion ($507.1 million at ¥112 = $1). Organically, AMI sales rose 8.8%, driven by strong MS and environmental measurement instrument sales, along with increased growth across most major regions.

By product line, LC sales increased 7.6% to ¥15.6 billion ($139.3 million). LC sales for the quarter represented 28% of AMI revenue. MS sales delivered significant growth, advancing 16.9% to ¥9.7 billion ($86.6 million). MS sales were driven by strengthened growth in the US, Japan and China. MS sales were also particularly strong in the food safety and environmental testing markets. GC sales remained flat, unchanged at ¥5.2 billion ($46.4 million). Other AMI products lifted segment sales as well, increasing 16.4% to ¥26.3 billion ($234.8 million)

Geographically, sales in Japan advanced 15.0% to ¥22.1 billion ($197.3 million), driven by increased demand for LC products. Sales to the pharmaceutical and chemical markets also lifted Japanese sales. North American sales amounted to ¥6.0 billion ($53.6 million), an increase of 16.3%. North American sales were primarily driven by strong MS and LC sales. Increased strength in the pharmaceutical and governmental markets supported North American sales even further. Sales in the European region grew 4.9% to ¥5.9 billion ($52.7 million), supported by moderate MS sales. Sales in China remained strong as growth reached 16.8%, lifting sales to ¥14.1 billion ($125.9 million). Chinese sales were driven by increased LC, GC and MS demand, along with strong food safety and government sales.

For the full year 2017, Shimadzu expects its total company revenue to increase 9.5%, 8.3% organically, to ¥375.0 billion ($3.35 billion). This represents an increase of ¥10.0 billion ($89.3 million) over the previously projected figure. The company also adjusted the expected operating income upwards, increasing it by ¥1.0 billion from the previous projection to ¥41.0 billion ($366.1 million).

As for the AMI segment, Shimadzu expects sales to be ¥232.0 billion ($2.07 billion), an increase of 10.9%. Operating income is projected to increase similarly as well, up 10.4% to ¥36.5 billion ($32.6 million). However, operating margin is expected to fall 10 basis points to 15.7%.

Strong Finish for Spectris in 2017

Struggling in the first half of the year, Spectris delivered a solid recovery in the second half to drive full-year sales growth over double digits. Second-half Materials Analysis (MA) sales advanced 9.1% to £265.4 million ($342.4 million at £0.77 = $1), driven by increased sales to the pharmaceutical and metals markets. MA adjusted operating profit for the half was up 9.5%, finishing at £60.2 million ($77.6 million).

As for the full year, MA sales advanced 11.0% to £464.9 million ($599.7 million). In constant currency, sales rose 7.0%. MA sales for the year was primarily driven by strength in Asia and sales to the pharmaceutical market. However, weak demand in the semiconductor and academic research markets partially offset growth.

Pharmaceutical and fine chemical sales increased for the year on a constant currency basis driven by strong growth in China and Japan. Sales to the metals, minerals and mining markets recovered from a weak 2016 and first half 2017 performance and delivered a significant growth in all major regions.

However, academic research sales were sluggish in 2017. With a slow start to the year, followed by just a moderate second half, academic sales declined in most major regions. India and the UK were the only exceptions, supported by improved funding levels.

Sales to the semiconductor, electronics and telecom market delivered strong growth, driven by China and South Korea. North America also added to the sales increase, driving semiconductor sales growth further. Demand for consumer electronics, along with rising IoT application usage significantly increased semiconductor spending and growth.

Partnering Sales Drives Tecan in Second Half

H2 2017

Second half 2017 sales for Tecan advanced 8.9% to CHF 295.1 million ($308.7 million at CHF 0.96 = $1). In constant currencies, sales rose 8.0%, driven by strong Partnering Business (PB) sales. PB sales for the half leaped 16.6% to CHF 126.4 million ($132.2 million), an increase of 16.4% in constant currencies. PB sales were driven by significant growth in components, services and consumables demand

Second-half Life Science Business (LSB) sales were moderate, increasing 3.8%, or 2.5% in constant currencies.

FYE 2017

Full-year 2017 sales for Tecan advanced 8.3% to CHF 548.4 million ($573.6 million), driven by strong LSB sales, along with improved PB demand in the second half. In constant currencies, Tecan sales were up 8.0%, surpassing the company’s expectations of 6% growth.

Sales for the LSB rose 9.5% to CHF 306.9 million ($321.0 million). In constant currencies, LSB sales were up 9.0%. LSB growth was driven by strong service and consumables sales. Operating profit for the segment increased 10.6% to CHF 50.5 million ($52.8 million). The segment’s strong operating performance was due to solid sales growth and increased gross margin. Segment operating margin advanced 30 basis points to 15.9%.

PB sales were up 6.9% for the year, amounting to CHF 241.5 million ($252.6 million). In constant currency, this was an increase of 6.7%. Segment growth was primarily driven by second-half strength in new instrument platforms and components sales. Recently acquired Pulssar Technologies also contributed to segment growth. Operating profit for the segment rose 26.2% to CHF 42.6 million ($44.6 million), driven by increased efficiency and gross margins. Segment operating profit rose 2.7 percentage points to 17.9%.

Geographically, sales in Europe fell 3.6%, 3.0% in constant currencies, to account for 38% of total company sales. The decrease in European sales was primarily due to a tough comparison to 2016, for which revenue was boosted by PB sales. North American sales accounted for 43% of total sales, driven by both LSB and PB. Sales in North America rose 19.6% both on a reported and constant currency basis. Sales in Asia remained strong as both LSB and PB segments delivered double-digit growth for the region. Asian sales advanced 12.4%, 12.6% in constant currencies, to account for 16% of total sales.

For 2018, Tecan expects sales growth to be in the mid-single digits, and projects operating margin to be over 19.0%.