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Becton, Dickinson Finishes Strong for FY17

Fiscal 2017 fourth quarter revenue for Becton, Dickinson’s Bioscience segment (BD Bioscience) advanced 6.1% to $314.0 million, driven by increased sales to developed markets. On a constant currency basis, BD Bioscience sales rose 5.8%, to which currency effects added 0.3% to segment sales growth. Fourth quarter organic sales growth for the segment was strongly driven by continued strength in research reagents. BD Bioscience’s newer research instruments, the FACSMelody and FACSymphony, also added to segment sales growth. Overall, BD Bioscience sales accounted for 10% of total company revenues.

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For fiscal year 2017, BD Bioscience sales increased 1.8% to $1,139.0 million. In constant currencies, segment sales grew 2.4%, driven by a solid second-half performance. The strong sales of the segment’s newer research and clinical instruments added to the total revenue as well.

Geographically, fiscal 2017 BD Bioscience sales in the US increased 4.9% to $455.0 million. Segment sales were largely driven by strong growth in research instruments, along with robust sales for reagents.

For fiscal year 2018, the company expects revenues to increase around 5.0%–6.0%. On a constant currency basis, sales are projected to grow 4.0%–5.0%.

Third Quarter LS Sales Persistent for Bio-Rad Laboratories

Third quarter sales for Bio-Rad Laboratories’ Life Science segment (LS) rose 8.7% to $193.6 million. Currency effects added 1.1 percentage points to segment sales. On a constant currency basis, segment sales increased 7.6%.

LS sales for the quarter were strongly driven by growth for the Droplet Digital PCR and gene expression products. Sales from recently acquired RainDance Technologies also added to LS sales by around $5 million. Cell biology and food safety products faced particularly strong demand, as both experienced double-digit growth. Geographically, LS sales grew in all regions, with particular strength in North America, Europe and Asia Pacific.

Segment sales, however, were partially offset by a decline in process chromatography demand. Specifically, unfavorable ordering patterns. Furthermore, lower sales of process media, for which sales were estimated to be $6 million less than last year, also adversely affected LS sales. However, process media sales are expected to turn around in the fourth quarter.

For the fourth quarter, total company sales are expected to be between $615 million and $625 million, signifying a 4% currency-neutral growth rate.

Biotage Continues to Prosper with Solid Third Quarter

Biotage delivered SEK 177.7 million ($22.5 million at SEK 7.9 = $1) in sales for the third quarter, an increase of 6.4%. Currency effects negatively impacted sales growth by 3.4%. On a constant currency basis, sales for the quarter grew 9.8%. Strong sales growth was driven by larger sales volumes, along with increased demand in Asia.

Operating profit for the quarter rose 7.5% to SEK 29.3 million ($3.7 million), partially offset by the adverse currency effects. Operating margin grew slightly, up 20 basis points to 16.5%. Biotage’s strong operating results for the quarter was primarily driven by efficiency improvements in production. On a trailing three-year basis, operating margin lies at 14.4%, nearing the company’s long-term goal of 15.0%.

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Geographically, sales in Asia continued to be strong, as South Korea and Japan both delivered significant sales growth. Strong sales in China also contributed to overall Asian sales. However, in India, sales development weakened due to a lack of demand. Revenue in the Americas still remains the largest portion of total Biotage sales, at 45%. Sales in the European region, however, fell 2 percentage points to account for 26% of total company revenues. Similarly, Japanese sales also fell 2 percentage points, now representing 11% of total company revenues. China’s share of sales remained steady, accounting for 9%.

Shimadzu AMI on Top for First Half of Fiscal Year

First-half sales for Shimadzu’s Analytical & Measuring Instruments segment (AMI) grew double digits, up 11.0% to ¥104.0 billion ($956 million at ¥109 = $1). On a constant currency basis, AMI sales increased 7.7%. Operating income for the segment amounted to ¥14.4 billion ($132 million), a slight increase of 1.3%. The small increase in operating income was due to Shimadzu’s accelerated strategic investments. Operating margin for the first half decreased 1.3 percentage points to 13.8%.

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By product, LC, MS and GC sales all delivered double-digit growth for the first half. LC sales increased 12.0%, 7.6% in constant currencies, to ¥30.2 billion ($280 million), driven by sales in Europe and China. MS sales leaped 15.3% to ¥18.1 billion ($170 million), primarily due to overall growth in all regions. Organically, MS sales rose double digits as well, up 11.3%. GC sales advanced 10.6% to ¥10.3 billion ($90 million), and were up 6.8% in constant currencies. Within the segment, instrument sales grew double digits, rising 10.5% to ¥74.4 billion ($680 million). Aftermarket sales also rose double digits, gaining 12.2% to ¥29.7 billion ($270 million). Instrument sales accounted for 72% of AMI sales, while aftermarket sales represented the remaining 28%.

Geographically, sales in Japan accounted for 39% of AMI sales, the most of all regions. AMI sales in Japan grew 4.7% to ¥40.7 billion ($370 million), driven primarily by LC sales. LC sales in Japan rose significantly due to strong sales to the pharmaceutical and chemical end-markets. Similarly, sales for testing machine products in the automotive end-market further added to AMI sales growth in Japan. Increased GC sales, especially to the public sector, also contributed.

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In North America, AMI sales were up 3.8% to ¥10.8 billion ($100 million). On a constant currency basis, North American AMI sales fell 0.7%. Sales for the region were particularly strong for MS products. MS sales were driven by increased demand in the clinical, chemical and government end-markets. Overall, North American sales accounted for 10% of AMI sales.

Sales in Europe advanced double digits, up 15.3% to ¥10.4 billion ($96 million). The strong performance in the region was driven by increased sales for both LC and MS products. Furthermore, demand for both products accelerated in the pharmaceutical and food end-markets. In China, sales amounted to ¥25.2 billion ($23 million), vaulting 23.2%, primarily driven by double-digit gains for all three product lines, LC, MS and GC.

For the fiscal year ending in March, Shimadzu expects total company revenues to be ¥365.0 billion ($3,355 million), an increase of ¥10.0 billion ($92 million) over the previously projected revenue guidance. Operating income was similarly revised upwards to ¥40.0 billion ($37 million) from ¥38.0 billion ($35 million). Shimadzu upgraded both its financial figures due to its expectations of continued economic improvement in the US, along with overall economic strength in Southeast Asia.