ST. LOUIS, July 26, 2011 /PRNewswire/ --
HIGHLIGHTS:
2011 Results (all percentages are to comparable periods in
2010)
- Q2 2011 reported sales increased 15% to $637 million, a new quarterly high. Q2 sales grew
organically by 6%, with Fine Chemicals ("SAFC") and Research
product sales growing organically by 10% and 4%, respectively.
Recently completed acquisitions contributed an additional 1% and
changes in foreign currency exchange rates contributed an
additional 8% to reported sales growth in the quarter.
- Q2 2011 reported diluted EPS was $0.91, up 15%. Excluding restructuring costs of
$0.02, diluted EPS was $0.93, a 15% increase over comparable Q2 2010
results.
- YTD 2011 net cash provided by operating activities and free
cash flow were $254 million and
$210 million, respectively.
2011 Outlook (all percentages are compared to full year 2010
results)
- Organic sales growth for the full year is expected to meet
the Company's previously forecast growth of mid-single digits.
At current exchange rates, currency is expected to increase
reportable sales for the full year by approximately 5%.
Acquisitions are expected to increase sales by another 1-2%,
resulting in reportable sales growth in the low double digits.
- Diluted adjusted EPS forecast for 2011 (excluding
restructuring charges) of $3.60 to
$3.75 is unchanged from our previous outlook, representing a
9 to 13% increase compared to 2010's adjusted diluted EPS of
$3.31. See 2011 Outlook
below.
- Net cash provided by operating activities and free cash flow
are expected to exceed $520 million
and $400 million, respectively, for
2011.
CEO's STATEMENT:
Commenting on second quarter 2011 performance, President and CEO
Rakesh Sachdev said: "Our
reported sales of $637 million set a
new quarterly high. Adjusted diluted EPS of $0.93 for the second quarter of 2011 was
consistent with our expectation. We have delivered solid
performance with organic sales growth in our expected mid single
digit range and a 15% increase in adjusted diluted EPS for the
first half of the year. Our SAFC sales remained strong with a
sequential increase over Q1 2011 levels that resulted in 10%
organic growth in this year's second quarter versus the prior year.
Strength in SAFC is being driven by continued strong demand for
chemicals and precursors for semi-conductor and L.E.D. applications
and for industrial cell culture media used for producing biological
drugs. All of our Research business units grew sales
organically in 2011's second quarter and in line with our first
quarter performance. We continue to benefit from our research
initiatives in analytical chemistry, biology, traditional chemistry
and materials science. This organic growth in research sales
coupled with a 2% acquisition benefit helped achieve currency
adjusted sales growth of 6% in our Research business in the second
quarter.
We are very pleased with our continued strong growth in the
emerging markets, as we posted a 20% organic sales growth in our
focus markets of India,
China and Brazil in the second quarter of 2011. In
addition, we expanded our research product offering with the
acquisition of Vetec Quimica Fina Ltda in Brazil. Vetec brings to Sigma-Aldrich
more than 3,000 products and 30 years of expertise in the
development, purification and packaging of high quality chemicals
for laboratory and manufacturing applications, and adds to our
ability to leverage the economies of producing and packaging
products where our customers reside."
Sachdev continued, "We have re-affirmed our organic sales growth
expectation for 2011 in the mid-single digits. This organic
growth, along with benefits from currency and acquisitions, are
expected to drive overall reported sales growth to low double
digits. We have also affirmed our diluted adjusted EPS
outlook for 2011 of $3.60 to $3.75.
As we integrate our new acquisitions, and continue to invest
in new sales and profit growth initiatives, we remain committed to
drive growth rates that outpace the underlying markets."
2011 RESULTS:
Reported sales for the second quarter of 2011 of $637 million increased 15% from the second
quarter of 2010. Excluding changes in foreign currency
exchange rates and acquisitions that contributed 8% and 1%,
respectively to sales growth, second quarter organic sales growth
was 6%. Second quarter sales for the Company's Research
business grew organically by 4%, led by the Asia Pacific-Latin
America region. Second quarter sales for the Company's
SAFC business achieved a new quarterly high, with an organic
increase of 10% compared to 2010, led by double-digit growth in our
Bioscience and Hitech products. A reconciliation of reported
to adjusted organic sales is on page 8.
The operating income margin in the second quarter of 2011,
excluding restructuring charges was 25.4% of sales compared to
26.2% of sales in the second quarter of 2010. Excluding the impact
of changes in foreign currency exchange rates and the higher
incremental amortization associated with our recent acquisitions,
the operating income margin in the second quarter would have been
26.3% of sales, a 10 basis point improvement over 2010.
During the quarter we spent an additional $3 million, or 50 basis points as a percentage of
sales, in strategic spending on growth initiatives. Restructuring
costs of $2 million were recorded in
2011's second quarter related to the previously announced
consolidation of certain manufacturing facilities in the U.S. and
Europe. These restructuring
actions reflect the Company's efforts to improve operating
efficiencies and lower our fixed cost structure as part of a longer
term goal to improve operating margins.
The effective tax rate for the second quarter of 2011 was 28.5%,
as forecast, compared to 30.7% in the second quarter of 2010.
The lower tax rate in the second quarter of 2011 resulted
from increased international tax benefits compared to the second
quarter of 2010. The effective tax rate for all of 2011 is
expected to be 29% to 30% of pretax income.
Free cash flow (defined on page 7) for the first half of 2011
was $210 million, comparable to that
achieved in the first half of 2010. Higher net income was largely
offset by a higher level of working capital and capital
expenditures to support growth in the business. A
reconciliation of net cash provided by operating activities to free
cash flow is on page 9.
Other highlights from global sales growth initiatives
include:
- Worldwide sales of research products through the Company's
award winning web site as a percentage of total research sales were
50% for the second quarter of 2011, consistent with the performance
in the first quarter of 2011 and up from 48% achieved for all of
2010.
- Sales in International markets (Asia
Pacific and Latin America)
continued to show strength with reported and organic growth of 24%
and 12%, respectively, in the second quarter of 2011. The
acquisition of Vetec increased reported international sales by 2%
for the quarter. In the Company's focus markets of China, India
and Brazil, sales collectively
grew 33% and 20% on a reported and organic basis, respectively, for
the second quarter of 2011. The acquisition of Vetec increased
reported sales in these focus markets by 7%.
- SAFC's booked orders for future delivery at June 30, 2011 reached another record level and
were 4% above the June 30, 2010
level.
2011 OUTLOOK:
- Organic sales growth is expected to be in the mid-single digit
range for 2011, unchanged from our previous outlook. Significant
factors in our sales outlook include:
- Accelerating programs to enhance and highlight the product
capabilities of our Research business in analytical chemistry,
biology, traditional chemistry and materials science.
- Continued emphasis on growth opportunities in fine chemicals,
in our international markets and via e-commerce.
- At current exchange rates, currency is expected to increase
reported sales growth by about 5% over the prior year.
- The recent acquisitions of Vetec, Resource Technology
Corporation and Cerilliant Corporation are expected to contribute
1-2% to reported sales growth.
- Market conditions are not expected to change significantly from
2010.
- Our forecast for diluted adjusted earnings per share for 2011
is expected to be $3.60 to $3.75,
unchanged from our previous outlook.
- Included in this outlook are pretax expenses equivalent to
$15 to $20 million, or approximately
$0.10 per share, for strategic
initiatives that are expected to boost our longer term organic
sales growth.
- The effective tax rate in 2011 is expected to be 29% to 30%,
including a benefit from the U.S. R & D tax credit comparable
to that realized in 2010.
- Recent acquisitions are expected to be neutral to mildly
accretive to our diluted earnings per share in 2011.
- This EPS outlook excludes the impact of restructuring and other
special charges.
- Management expects free cash flow for 2011 to be in excess of
$400 million.
- Net cash provided by operating activities is expected to exceed
$520 million.
- Capital expenditures are expected to be approximately
$120 million.
- Initiatives to manage working capital are expected to continue
with inventory levels increased at select locations to support
anticipated growth and customer service.
OTHER INFORMATION:
Cash Flow and Debt: Net cash provided by operating
activities for the six months ended June 30,
2011 was $254 million compared
to $247 million for 2010's first
half. Higher net income and non-cash charges in the first six
months of 2011 compared to the same period in 2010 were largely
offset by increases in accounts receivable and inventory.
Capital expenditures in the first half of 2011 were
$44 million compared to $37 million in 2010. Inventory levels increased
to 6.5 months at June 30, 2011
compared to 6.0 months at June 30,
2010. This planned increase will enable us to enhance
service and support the higher sales growth rates in the
Asia Pacific-Latin America region. Free cash flow of
$210 million for the first six months
of 2011 was used primarily to return $65
million to shareholders through share repurchases and
dividends, repay $23 million in debt
and fund acquisitions of $75 million.
The Company's debt to capital ratio was 19% at June 30, 2011 compared to 21% at December 31, 2010. Total net debt (debt
less cash and cash equivalents) at June 30,
2011 declined $117 since
December 31, 2010.
Share Repurchases: 0.3 million shares were
acquired during the first six months of 2011, all of which were
repurchased in the first quarter of 2011. There were
122 million shares outstanding at June 30,
2011. The Company expects to continue to offset the dilutive
impact of issuing share based incentive compensation with future
repurchases. The Company may repurchase additional shares, but the
timing and amount will depend upon market conditions and other
factors.
Cautionary Statement: This release contains
forward-looking statements relating to future performance, goals,
strategic actions and initiatives and similar intentions and
beliefs, including phrases "is expected", "affirmed", "to drive",
"to boost", "to enhance" and other statements regarding the
Company's expectations, outlook, goals, beliefs, intentions and the
like regarding future sales, earnings, free cash flow, share
repurchases, acquisitions and other matters. These statements are
based on assumptions regarding Company operations, investments and
acquisitions and conditions in the markets the Company serves.
The Company believes these assumptions are reasonable and
well founded. The forward-looking statements in this release are
subject to risks and uncertainties, including, among others,
certain economic, political and technological factors. Actual
results could differ materially from those stated or implied in
this news release, due to, but not limited to, such factors as (1)
global economic conditions, (2) changes in pricing and the
competitive environment and the global demand for our products, (3)
fluctuations in foreign currency exchange rates, (4) changes in
research funding and the success of research and development
activities, (5) failure of planned sales initiatives in our
Research and SAFC businesses, (6) dependence on uninterrupted
manufacturing operations, (7) failure to achieve planned cost
reductions in global supply chain initiatives and restructuring
actions, (8) changes in the regulatory environment in which the
Company operates, (9) changes in worldwide tax rates or tax
benefits from domestic and international operations, including the
matters described in Note 10-Income Taxes-to the Consolidated
Financial Statements in the Company's Form 10-K report for the year
ended December 31, 2010, (10)
exposure to litigation, including product liability claims,
(11) the ability to maintain adequate quality standards, (12)
reliance on third party package delivery services, (13) an
unanticipated increase in interest rates, (14) other changes in the
business environment in which the Company operates, and (15)
the outcome of the outstanding matters described in Note
11-Contingent Liabilities and Commitments-to the Consolidated
Financial Statements in the Company's Form 10-K report for the year
ended December 31, 2010, (16)
acquisitions or divestitures of businesses. A further discussion of
the Company's risk factors can be found in Item 1A of Part 1 of the
Company's Form 10-K report for the year ended December 31, 2010. The Company does not
undertake any obligation to update these forward-looking
statements.
About Sigma-Aldrich: Sigma-Aldrich is a leading Life
Science and High Technology company. Our
biochemical and organic chemical products and kits are used in
scientific research, including genomic and proteomic research,
biotechnology, pharmaceutical development, and as key components in
pharmaceutical, diagnostic and other high technology manufacturing.
We have customers in life science companies, university and
government institutions, hospitals and in industry. Over one
million scientists and technologists use our products.
Sigma-Aldrich operates in 40 countries and has 8,300
employees providing excellent service worldwide. We are
committed to accelerating our Customers' success through leadership
in Life Science, High Technology and
Service. For more information about
Sigma-Aldrich, please visit our award winning web site at
www.sigma-aldrich.com.
Non-GAAP Financial Measures: The Company supplements its
disclosures made in accordance with accounting principles generally
accepted in the United States
("U.S. GAAP") with certain non-GAAP financial measures. The
Company does not, and does not suggest investors should, consider
such non-GAAP financial measures in isolation from, or as a
substitute for, GAAP financial information. These non-GAAP
measures may not be consistent with the presentation by similar
companies in the Company's industry. Whenever the Company
uses such non-GAAP measures, it provides a reconciliation of such
measures to the most closely applicable GAAP measure. See the
Supplemental Financial Information on pages 8 and 9 for these
reconciliations.
With over 60% of sales denominated in currencies other than the
U.S. dollar, management uses currency adjusted sales growth when
analyzing Company performance, and believes it is useful as well to
investors, to judge the Company's performance. Organic sales
growth data presented in this release excludes currency and
acquisitions impacts. The Company calculates the impact of changes
in foreign currency rates by multiplying current period activity by
the difference between current period exchange rates and prior
period exchange rates, the result is the defined impact of "changes
in foreign currency exchange rates". While we are able to report
currency impacts after the fact, we are unable to estimate changes
that may occur later in 2011 to applicable exchange rates.
Any significant changes in currency exchange rates would
likely have a significant impact on our reported growth rates due
to the volume of our sales denominated in foreign currencies.
Management also uses adjusted net income and EPS and adjusted
operating income and operating income margins (reconciled on page
9) and free cash flow (defined on page 7), non-GAAP measures, to
judge its performance and ability to pursue opportunities that
enhance shareholder value. Due to the uncertain timing of future
restructuring and other special charges, we are unable to include
these charges in the 2011 diluted adjusted EPS forecast or provide
a reconciliation to the corresponding GAAP measures. Management
believes this non-GAAP information is useful to investors as well.
SIGMA-ALDRICH
CORPORATION
|
|
Consolidated
Statements of Income (Unaudited)
|
|
(in millions
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months
|
|
Six
Months
|
|
|
|
|
|
|
|
|
Ended June
30,
|
|
Ended June
30,
|
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
Net sales
|
|
|
|
|
|
$
637
|
|
$
554
|
|
$
1,269
|
|
$
1,126
|
|
|
Cost of products
sold
|
|
|
|
|
|
306
|
|
260
|
|
602
|
|
529
|
|
|
Gross profit
|
|
|
|
|
|
331
|
|
294
|
|
667
|
|
597
|
|
|
Selling, general and
administrative expenses
|
|
|
|
|
|
151
|
|
132
|
|
299
|
|
266
|
|
|
Research and development
expenses
|
|
|
|
|
|
18
|
|
17
|
|
36
|
|
33
|
|
|
Restructuring
costs
|
|
|
|
|
|
2
|
|
3
|
|
5
|
|
9
|
|
|
Operating income
|
|
|
|
|
|
160
|
|
142
|
|
327
|
|
289
|
|
|
Interest, net
|
|
|
|
|
|
2
|
|
2
|
|
4
|
|
4
|
|
|
Income before income
taxes
|
|
|
|
|
|
158
|
|
140
|
|
323
|
|
285
|
|
|
Provision for income
taxes
|
|
|
|
|
|
45
|
|
43
|
|
91
|
|
88
|
|
|
Net income
|
|
|
|
|
|
$
113
|
|
$
97
|
|
$
232
|
|
$
197
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share -
Basic
|
|
|
|
|
|
$
0.93
|
|
$
0.80
|
|
$
1.90
|
|
$
1.62
|
|
|
Net income per share -
Diluted
|
|
|
|
|
|
$
0.91
|
|
$
0.79
|
|
$
1.87
|
|
$
1.60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of
shares outstanding - Basic
|
|
|
|
|
122
|
|
121
|
|
122
|
|
122
|
|
|
Weighted average number of
shares outstanding - Diluted
|
|
|
|
|
124
|
|
123
|
|
124
|
|
123
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SIGMA-ALDRICH
CORPORATION
|
|
Consolidated
Balance Sheets
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
|
|
2011
|
|
2010
|
|
|
Assets
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
663
|
|
$
569
|
|
|
Accounts receivable,
net
|
356
|
|
287
|
|
|
Inventories
|
670
|
|
606
|
|
|
Other current
assets
|
144
|
|
139
|
|
|
Total current
assets
|
1,833
|
|
1,601
|
|
|
|
|
|
|
|
|
Property, plant and equipment,
net
|
760
|
|
733
|
|
|
Goodwill, net
|
484
|
|
438
|
|
|
Intangibles, net
|
165
|
|
157
|
|
|
Other assets
|
97
|
|
98
|
|
|
Total assets
|
$
3,339
|
|
$
3,027
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders'
Equity
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Notes payable and current
maturities of long-term debt
|
$
216
|
|
$
239
|
|
|
Accounts
payable
|
148
|
|
121
|
|
|
Other
|
182
|
|
171
|
|
|
Total current
liabilities
|
546
|
|
531
|
|
|
|
|
|
|
|
|
Long-term debt
|
300
|
|
300
|
|
|
Pension and post-retirement
benefits
|
117
|
|
110
|
|
|
Deferred taxes
|
39
|
|
41
|
|
|
Other liabilities
|
66
|
|
69
|
|
|
Total
liabilities
|
1,068
|
|
1,051
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
Common stock
|
202
|
|
202
|
|
|
Capital in excess of par
value
|
210
|
|
194
|
|
|
Common stock in
treasury
|
(2,059)
|
|
(2,051)
|
|
|
Retained
earnings
|
3,725
|
|
3,536
|
|
|
Accumulated other
comprehensive income
|
193
|
|
95
|
|
|
Total stockholders'
equity
|
2,271
|
|
1,976
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
3,339
|
|
$
3,027
|
|
|
|
|
|
|
|
SIGMA-ALDRICH
CORPORATION
Consolidated
Statements of Cash Flows (Unaudited)
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
Six
Months
|
|
|
|
|
Ended June
30,
|
|
|
|
|
2011
|
|
2010
|
|
|
Cash flows from operating
activities:
|
|
|
|
|
|
|
Net income
|
|
$
232
|
|
$
197
|
|
|
Adjustments to reconcile
net income to net cash provided by operating activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
52
|
|
47
|
|
|
Deferred income
taxes
|
|
6
|
|
5
|
|
|
Stock-based compensation
expense
|
|
10
|
|
10
|
|
|
Restructuring costs, net
of payments
|
|
3
|
|
5
|
|
|
Other
|
|
-
|
|
(3)
|
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
Accounts
receivable
|
|
(52)
|
|
(29)
|
|
|
Inventories
|
|
(26)
|
|
4
|
|
|
Accounts
payable
|
|
21
|
|
8
|
|
|
Income taxes
|
|
(2)
|
|
(3)
|
|
|
Other, net
|
|
10
|
|
6
|
|
|
Net cash provided by
operating activities
|
|
254
|
|
247
|
|
|
|
|
|
|
|
|
|
Cash flows from investing
activities:
|
|
|
|
|
|
|
Capital
expenditures
|
|
(44)
|
|
(37)
|
|
|
Purchases of short-term
investments
|
|
(20)
|
|
(12)
|
|
|
Proceeds from sales of
short-term investments
|
|
20
|
|
14
|
|
|
Acquisitions of
businesses, net of cash acquired
|
|
(75)
|
|
(5)
|
|
|
Other, net
|
|
(3)
|
|
(1)
|
|
|
Net cash used in investing
activities
|
|
(122)
|
|
(41)
|
|
|
|
|
|
|
|
|
|
Cash flows from financing
activities:
|
|
|
|
|
|
|
Repayment of short-term
debt
|
|
(23)
|
|
(34)
|
|
|
Payment of
dividends
|
|
(43)
|
|
(39)
|
|
|
Share
repurchases
|
|
(22)
|
|
(56)
|
|
|
Exercise of stock
options
|
|
22
|
|
16
|
|
|
Excess tax benefits from
stock-based payments
|
|
3
|
|
3
|
|
|
Net cash used in financing
activities
|
|
(63)
|
|
(110)
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes
on cash
|
|
25
|
|
(16)
|
|
|
Net change in cash and cash
equivalents
|
|
94
|
|
80
|
|
|
Cash and cash equivalents at
January 1
|
|
569
|
|
373
|
|
|
Cash and cash equivalents at
June 30
|
|
$
663
|
|
$
453
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow(1)
|
|
$
210
|
|
$
210
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Net cash
provided by operating activities less capital
expenditures.
|
|
|
|
|
|
|
|
|
|
|
|
|
SIGMA-ALDRICH
CORPORATION
|
|
Supplemental
Financial Information - (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales Growth by Business
Unit
|
|
|
|
|
|
|
|
Three
Months
|
|
|
|
|
|
Ended June
30, 2011
|
|
|
|
|
|
|
|
Currency
|
|
Acquisition
|
|
Adjusted
|
|
|
|
|
|
|
|
|
Reported
|
|
Benefit
|
|
Benefit
|
|
(Organic)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research
Essentials
|
|
16%
|
|
8%
|
|
2%
|
|
6%
|
|
|
|
|
|
|
Research
Specialties
|
|
14%
|
|
8%
|
|
3%
|
|
3%
|
|
|
|
|
|
|
Research
Biotech
|
|
13%
|
|
8%
|
|
-
|
|
5%
|
|
|
|
|
|
|
Research
Chemicals
|
|
14%
|
|
8%
|
|
2%
|
|
4%
|
|
|
|
|
|
|
SAFC
|
|
17%
|
|
6%
|
|
1%
|
|
10%
|
|
|
|
|
|
|
Total Customer
Sales
|
|
15%
|
|
8%
|
|
1%
|
|
6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six
Months
|
|
|
|
|
|
Ended June
30, 2011
|
|
|
|
|
|
|
|
Currency
|
|
Acquisition
|
|
Adjusted
|
|
|
|
|
|
|
|
|
Reported
|
|
Benefit
|
|
Benefit
|
|
(Organic)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research
Essentials
|
|
11%
|
|
4%
|
|
1%
|
|
6%
|
|
|
|
|
|
|
Research
Specialties
|
|
11%
|
|
5%
|
|
3%
|
|
3%
|
|
|
|
|
|
|
Research
Biotech
|
|
9%
|
|
5%
|
|
-
|
|
4%
|
|
|
|
|
|
|
Research
Chemicals
|
|
11%
|
|
5%
|
|
2%
|
|
4%
|
|
|
|
|
|
|
SAFC
|
|
18%
|
|
5%
|
|
-
|
|
13%
|
|
|
|
|
|
|
Total Customer
Sales
|
|
13%
|
|
5%
|
|
1%
|
|
7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business Unit
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First
Quarter 2010
|
|
Second
Quarter 2010
|
|
Third
Quarter 2010
|
|
Fourth
Quarter 2010
|
|
Total
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research
Essentials
|
|
|
|
$
112
|
|
$
107
|
|
$
105
|
|
$
110
|
|
$
434
|
|
Research
Specialties
|
|
|
|
217
|
|
207
|
|
207
|
|
214
|
|
845
|
|
Research
Biotech
|
|
|
|
91
|
|
83
|
|
84
|
|
87
|
|
345
|
|
Research
Chemicals
|
|
|
|
420
|
|
397
|
|
396
|
|
411
|
|
1,624
|
|
SAFC
|
|
|
|
152
|
|
157
|
|
167
|
|
171
|
|
647
|
|
Total Customer
Sales
|
|
|
|
$
572
|
|
$
554
|
|
$
563
|
|
$
582
|
|
$
2,271
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First
Quarter 2011
|
|
Second
Quarter 2011
|
|
Third
Quarter 2011
|
|
Fourth
Quarter 2011
|
|
Total
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research
Essentials
|
|
|
|
$
120
|
|
$
124
|
|
$
-
|
|
$
-
|
|
$
244
|
|
Research
Specialties
|
|
|
|
236
|
|
236
|
|
-
|
|
-
|
|
472
|
|
Research
Biotech
|
|
|
|
96
|
|
94
|
|
-
|
|
-
|
|
190
|
|
Research
Chemicals
|
|
|
|
452
|
|
454
|
|
-
|
|
-
|
|
906
|
|
SAFC
|
|
|
|
180
|
|
183
|
|
-
|
|
-
|
|
363
|
|
Total Customer
Sales
|
|
|
|
$
632
|
|
$
637
|
|
$
-
|
|
$
-
|
|
$
1,269
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SIGMA-ALDRICH
CORPORATION
|
|
Supplemental
Financial Information - (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Reported Net
Income to Adjusted Net Income
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
|
Diluted
Earnings
|
|
|
|
|
(in
millions)
|
|
Per
Share
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported net
income
|
|
$
113
|
|
$
97
|
|
$
0.91
|
|
$
0.79
|
|
|
Restructuring
costs
|
|
2
|
|
2
|
|
0.02
|
|
0.02
|
|
|
Adjusted net
income
|
|
$
115
|
|
$
99
|
|
$
0.93
|
|
$
0.81
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
|
Diluted
Earnings
|
|
|
|
|
(in
millions)
|
|
Per
Share
|
|
|
|
|
Six Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported net
income
|
|
$
232
|
|
$
197
|
|
$
1.87
|
|
$
1.60
|
|
|
Restructuring
costs
|
|
4
|
|
6
|
|
0.03
|
|
0.05
|
|
|
Adjusted net
income
|
|
$
236
|
|
$
203
|
|
$
1.90
|
|
$
1.65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Statement
Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
52.0%
|
|
53.1%
|
|
52.6%
|
|
53.0%
|
|
|
S,G&A
expenses
|
|
23.7%
|
|
23.8%
|
|
23.6%
|
|
23.6%
|
|
|
Operating
income
|
|
25.1%
|
|
25.6%
|
|
25.8%
|
|
25.7%
|
|
|
Pretax income
|
|
24.8%
|
|
25.3%
|
|
25.5%
|
|
25.3%
|
|
|
Net income
|
|
17.7%
|
|
17.5%
|
|
18.3%
|
|
17.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax
rate
|
|
28.5%
|
|
30.7%
|
|
28.2%
|
|
30.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Reported Operating Income Margin
to Adjusted Operating Income Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
Reported operating income
margin
|
|
25.1%
|
|
25.6%
|
|
25.8%
|
|
25.7%
|
|
Restructuring
costs
|
|
0.3%
|
|
0.6%
|
|
0.4%
|
|
0.8%
|
|
Operating income margin
excluding restructuring costs
|
|
25.4%
|
|
26.2%
|
|
26.2%
|
|
26.5%
|
|
Currency
|
|
0.7%
|
|
|
|
0.6%
|
|
|
|
Acquisitions
|
|
0.2%
|
|
|
|
0.2%
|
|
|
|
Adjusted operating income
margin
|
|
26.3%
|
|
26.2%
|
|
27.0%
|
|
26.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Free Cash
Flow
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
|
|
|
June
30,
|
|
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
254
|
|
$
247
|
|
|
|
|
|
Less: Capital
expenditures
|
|
(44)
|
|
(37)
|
|
|
|
|
|
Free cash
flow
|
|
$
210
|
|
$
210
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Sigma-Aldrich Corporation