Second-quarter revenues for the IBO Lab Equipment/Consumables Sales Index expanded 7.5%, 4.5% excluding currency, to $4,056.00 million. Operating profits for the Index climbed 6.3% to $721.23 million, but adjusted operating margin declined 80 basis points to 17.1% of sales.

Biohit’s second-quarter sales grew 2.4% to €10.2 million ($14.8 million = €0.69 = $1) due to strong sales of mechanical pipettes and increased demand from Europe, Russia and China. Overall, European and Other sales grew 4.8% and 16.8% to account for 53% and 16% of sales, respectively. Sales to America and Asia contracted 7.6% and 6.1% to make up 19% and 12% of revenues, respectively. Operating profit was €0.1 million ($0.1 million), compared with a loss of €0.1 million ($0.1 million = €0.79 = $1) a year ago. Liquid Handling sales grew 2.7% to account for 95% of sales, and segment operating profit climbed 14.5% to €0.7 million ($1.0 million). Diagnostics sales slipped 1.5% to €0.5 million ($0.7 million), but segment operating loss narrowed 8.9% to €0.6 million ($0.9 million). Full-year sales are expected to grow by more than 10% to €44 million ($62 million).

For the fiscal third quarter ending August 31, revenue for Gerresheimer Life Science Research fell 9.2% but grew 1.6% on a currency-neutral basis to €23.4 million ($33.4 million = €0.70 = $1) to account for 8% of sales. Adjusted EBITA grew 4.3% to €2.4 million ($3.4 million) due to sourcing activities. Given the company’s weak US economic outlook, fourth-quarter division sales are expected to be restrained.

Kewaunee Scientific’s fiscal first-quarter sales ending July 31 grew 5.9% to $26.3 million. Back orders increased 4.2% from a year ago and 6.1% from fiscal year end to $69.7 million. Domestic sales climbed 11.7% to account for 89% of revenues due to increased spending for larger lab projects and a weak year-over-year comparison. International sales fell 25.2% to make up 11% of sales due to construction delays for a large project and a strong comparison from a year ago. Despite weak quarterly sales, the company’s full-year International outlook remains upbeat following increased bidding activity in Asia and the Middle East. Operating profit slumped 78.8% to $0.2 million, and gross margin fell 420 basis points to 15.9% of sales due to inflated costs of raw materials. The company expanded cost saving measures to offset higher costs of goods sold. These savings are expected to lower annual expenses by $3 million.

For the fiscal fourth quarter ending July 31, revenue for Pall’s BioPharmaceuticals segment climbed 19.3%, 9.3% on a currency-neutral basis, to $199.9 million. Organic segment revenue was driven by higher sales of consumables and strong European demand, which grew roughly 12% each. Full-year BioPharmaceuticals revenue grew 19.0%, 15.6% excluding currency, to $738.0 million to account for 27% of sales. Back orders for the segment increased 19.6% to $155.3 million. In local currency, Pharmaceuticals revenue grew 16.3% to represent 86% of segment sales, including 15.2% and 27.4% growth in consumables and systems revenues, respectively. Consumable sales were driven by increased demand for biologicals and single-use processing technologies, as well as direct-marketing efforts. Sales to emerging markets were strong, especially in Korea, Singapore and Japan. Sales for the Laboratory subsegment grew 12.2% to account for roughly 14% of BioPharmaceuticals sales due to strong growth in China and India. Fiscal 2012 sales for BioPharmaceuticals are projected to grow in the high single digits.

For the fiscal fourth quarter ending June 30, revenue for Techne’s Biotechnology segment grew 17.3%, 6.1% organically, to $73.0 million to account for 94% of sales. Acquisitions and currency added 7.6% and 3.7% to revenue growth, respectively. Segment sales to US industrial, pharmaceutical and biotechnology customers grew 2.3%. US academic sales improved 3.0%, and sales to Pacific Rim distributors rose 10.2%. R&D Europe and R&D China sales grew 3.2% and 22.2% in local currencies, respectively. Earnings before taxes (EBT) for the segment expanded 12.3% to $43.0 million.

For the year, Techne’s Biotechnology sales improved 7.8%, 5.8% organically, to $270.2 million to account for 93% of sales. Acquisitions and currency contributed 1.9% and 0.1% to revenue growth, respectively. New protein-based biotechnology products contributed 1% to sales growth. Segment sales to US industrial, pharmaceutical and biotechnology customers improved 4.8%. Sales to US academic customers and Pacific Rim distributors expanded 6.4% and 4.1%, respectively. R&D Europe and R&D China revenues grew 4.1% and 22.6% in constant currency, respectively. Biotechnology EBT improved 5.3% to $164.3 million, but gross margin fell 210 basis points due to acquisition-related expenses.

Second-quarter sales for Thermo Fisher Scientific’s Laboratory Products and Services (LPS) grew 6.2%, 2.0% organically, to $1,756.9 million to account for 61% of company revenues. Acquisitions and currency contributed 0.8% and 3.4% to revenue growth, respectively. Organic sales were driven by increased biopharmaceutical outsourcing services revenue, but were reduced 1.4% due to a cancelled supply contract. LPS adjusted operating income improved 2.4% to $239.1 million. Despite improved productivity, adjusted operating margin slipped 50 basis points to 13.6% of sales due to product shift and higher raw material costs. The company’s increased sourcing activities are expected to offset inflationary pressure in the second half of the year.

VWR’s second-quarter revenues jumped 18.2%, 7.9% organically, to $1,042.1 million. Currency and acquisitions combined to increase sales 10.3%. Within the laboratory distribution businesses, consumables and capital goods sales each grew in the mid- to high single digits. From a market standpoint, pharmaceutical and biotechnology sales grew in the low double digits. Industrial sales grew in the high single digits, and sales to education and governmental entities grew in the mid-single digits. Adjusted operating profit grew 32.0% to $63.9 million, including 6.6% growth from currency and acquisitions combined. Gross profit margin slipped 30 basis points to 28.2% of sales due to product mix.Sales for VWR’s North American Lab segment grew 14.6%, 7.9% organically, to account for 58% of total sales. European Lab sales climbed 26.4%, 9.4% organically, to make up 40% of revenues. Science Education revenue fell 10.5% to account for 2% of sales. Adjusted operating income for the North American Lab and European Lab segments grew 27.4% and 48.0% to $37.7 million and $29.6 million, respectively. The Science Education segment’s operating loss widened by nearly threefold to $3.4 million.

 Column Graph: Quarterly Organic Sales Change

 January 2008–June 2011   

 Year    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%  4.5%

 Column Graph: Quarterly Operating Profit Margins

 January 2008–June 2011   

 Year     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%  17.1%

 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%      ---      ---      ---      ---

 2nd Quarter Revenues ($M)       $3,783   $3,612   $3,772   $4,056    -4.5%     4.4%     7.5%

 2nd Quarter Oper. Profits ($M)    $585     $599     $678     $721     2.3%    13.4%     6.3%

 2nd Quarter Oper. Profits (%)    15.7%    16.7%    17.9%    17.1%      ---      ---      ---