First-quarter revenues for the IBO Lab Equipment/Consumables Index jumped 12.0% to $4,162.38 million, including 3.7% growth from currency. Organic revenues grew 8.4% and benefited from declining inventories, improved pricing and higher demand, as well as a weak year-over-year comparison. Operating profits soared 25.7% to $746.18 million due to increased sales volumes and favorable currency transactions. Operating margin improved 190 basis points to 17.9% of sales. Millipore was removed from the Index due to its acquisition by Merck KGaA (see page 2). In addition, the Index divisor was reset to one, following numerous changes to the Index over the years.

Biohit Oy’s first-quarter sales grew 14.0% to €9.4 million ($13.1 million = €0.72 = $1), while operating profit was €0.1 million ($0.1 million), compared to breakeven a year ago (see page 12). Sales improved across all product groups and geographic segments, with particular strength in Asia and North America. Liquid Handling sales climbed 13% to €8.9 million ($12.4 million) to account for 95% of company sales, driven by strong demand for disposable tips and maintenance services. Segment profit climbed 11% to €0.7 million ($1.0 million). Diagnostics sales jumped 34% to €0.5 million ($0.7 million), including 26% revenue growth for test kits to €0.4 million ($0.6 million). Diagnostics operating loss was relatively unchanged at €0.6 million ($0.8 million). The company projected 2010 revenues to outperform the previous year, including strong Diagnostics sales and potential contributions from the new Acetium capsule used to reduce carcinogenic acetaldehyde.

For the fiscal second quarter ended May 31, revenue for Gerresheimer’s Life Science Research segment improved 8.3%, 6.2% on a currency-neutral basis, to €23.6 million ($31.1 million = €0.76 = $1) to account for 9% of company sales. The company benefited from reduced inventory levels by dealers and customers alike. Operating income soared 87.5% to €1.5 million ($2.0 million) due to revenue growth and a weak year-over-year comparison.

Kewaunee Scientific’s fiscal fourth-quarter sales ended April 30 declined 3.6% to $23.9 million (see page 12). Domestic sales fell 11.1% to account for 85% of company sales, while international revenue jumped 88.5% to make up 15% of sales. Operating profit slumped 53.5% to $0.8 million. Fiscal year-end revenues fell 4.7% to $99.1 million due to delayed orders for small and mid-size projects, including weak international demand for laboratory furniture. However, the company reported higher sales for larger domestic laboratory projects and a 9.9% jump in backlog orders to a record $68.9 million.

Domestic and international sales declined 3.0% and 16.0% to account for 88% and 12% of sales, respectively. Full-year operating profit contracted 17.7% to $5.8 million as fluctuating orders disrupted production efficiency.

Fiscal third-quarter sales ended April 30 for Pall’s BioPharmaceuticals unit climbed 17.6%, 12.4% on a currency-neutral basis, to $162.6 million to account for 26% of company sales. Excluding currency, Pharmaceuticals revenue climbed 8.6% to make up 84% of BioPharmaceuticals sales, including consumables and systems revenue growth of 8.9% and 6.0%, respectively. Sales of consumables benefited from strong demand for vaccine products and single-use processing technologies, increased prices, wider acceptance of FDA manufacturing standards in China and a shift to direct marketing in the Western Hemisphere. Sales for the Laboratory submarket grew in double digits to represent roughly 16% of BioPharmaceuticals sales.

Combined fiscal third-quarter revenues ended March 31 for Techne’s Biotechnology and R&D Europe segments grew 3.0%, 1.1% excluding currency, to $65.3 million to represent 93% of company sales. Combined operating income improved 0.9% to $40.9 million. Biotechnology segment sales grew 2.3% to account for 66% of company sales. Segment revenues from pharmaceutical/biotechnology and academic markets grew 2.0% and 3.5%, respectively, while sales to Pacific Rim distributors and China jumped 12.6% and 10.3%, respectively. Biotechnology operating profit slipped 0.6% to $33.1 million, while gross margins were unchanged at 79.4% of sales. Revenue for the R&D Europe segment grew 4.7%, but declined 1.9% on a currency-neutral basis to make up 27% of sales. The decline in segment revenue growth was attributed to lower demand from pharmaceutical customers. Segment operating income climbed 8.0% to $7.9 million, while gross margins jumped 410 basis points to 52.7% of sales due to favorable exchange rates.

First-quarter sales for Thermo Fisher Scientific Laboratory Products and Services soared 19.1%, 14.8% organically, to $1,695.2 million to account for 63% of company sales. Currency and acquisitions contributed 2.5% and 1.8% to revenue growth, respectively. Organic revenue growth was driven by strong sales of laboratory equipment and consumables, as well as high single-digit growth for the BioPharma services business. Segment sales also benefited from a weak year-over-year comparison, higher prices and four additional business days, which boosted total company revenues by 4%–5%.

Adjusted operating income jumped 34.1% to $235.3 million, and adjusted operating margin improved 160 basis points to 13.9% of sales.

VWR’s first-quarter revenues grew 3.9% to $874.3 million, but declined 0.7% organically. Currency and acquisitions contributed 3.9% and 0.7% to revenue growth, respectively. Operating profits jumped 27.6% to $54.1 million, while gross profit margins improved 31 basis points to 29.4% of sales due to favorable currency transactions and acquisitions. Sales of consumable products and capital goods were flat. From a market perspective, pharmaceutical and biotechnology revenue declined in the mid-single digits, while industrial, academic and government sales each grew in the mid-single digits. Sales for the North American Lab segment improved 0.4%, but fell 1.5% on a currency-neutral basis, to represent 56% of company sales. Segment sales were negatively impacted by increased consolidation of pharmaceutical companies and outsourcing. European Lab sales climbed 10.3%, 1.5% organically, to account for 41% of sales. Currency and acquisitions contributed 7.3% and 1.5% to segment revenue growth, respectively. Science Education revenue fell 8.6%, including 3.3% growth from acquisitions, to make up 3% of sales due to reduced discretionary spending by schools. Adjusted operating income for the North American Lab and European Lab segments grew 15.7% and 40.4% to $29.4 million and $27.1 million, respectively, while the Science Education segment’s loss widened 4.3% to $2.4 million.

Chart: Quarterly Operating Profit Margins January 2007—March 2010

Q1 Q2 Q3 Q4

2007 15.2% 14.6% 15.2% 14.4%

2008 15.8% 15.4% 16.1% 15.7%

2009 16.0% 16.5% 17.1% 16.6%

2010 17.9%

Chart: Quarterly Sales Performance January 2007—March 2010

Q1 Q2 Q3 Q4

2007 3618.9 3723.8 3822.0 4069.8

2008 4007.5 4207.7 4109.1 3941.0

2009 3716.7 3985.1 4022.7 4289.0

2010 4162.4