ST. LOUIS, Oct. 25, 2011 /PRNewswire/ --
HIGHLIGHTS:
2011 Results (all percentages are to comparable periods in
2010)
- Q3 2011 reported sales increased 11% to $626 million. Q3 sales grew organically by 4%
with Research products and Fine Chemicals ("SAFC") sales growing
organically by 4% and 2%, respectively. Recently completed
acquisitions contributed an additional 2% and changes in foreign
currency exchange rates contributed an additional 5% to reported
sales growth in Q3.
- Q3 2011 net income was $117
million, up 26% from Q3 2010.
- Q3 2011 reported diluted EPS was $0.95, up 25%. Excluding restructuring costs of
$0.01, diluted adjusted EPS was
$0.96, a 16% increase over adjusted
Q3 2010 results.
- YTD 2011 net cash provided by operating activities and free
cash flow were $373 million and
$300 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 4%.
Acquisitions are expected to increase sales by another
1-2%.
- Diluted adjusted EPS forecast for 2011 (excluding
restructuring charges) is revised to $3.73
to $3.81 to reflect strong operating results through the
first nine months and a lower effective tax rate and represents a
13% to 15% 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 be about $520 million
and $400 million, respectively, for
2011, unchanged from our prior expectations.
CEO's STATEMENT:
Commenting on third quarter 2011 performance, President and CEO
Rakesh Sachdev said: "Our
reported sales of $626 million met
our expectations. Consistent with earlier quarters in 2011,
we delivered solid performance with organic sales growth in our
expected mid single digit range and a mid-teens percentage increase
in diluted adjusted EPS. Our organic sales growth for our
Research business in Q3 was right in-line with earlier quarters at
4%. Our overall dollar sales in Q3 for SAFC remained strong at
$180 million, consistent with prior
quarters of 2011. Diluted adjusted EPS of $0.96 for the third quarter of 2011 exceeded our
expectations due to a lower than expected effective tax rate and
stronger adjusted operating income margins.
While we are pleased with the 4% organic growth in our research
business in the third quarter, the economic and research funding
uncertainties in the U.S. and Europe are creating a cautious climate with
some of our customers. With our continued focus on the faster
growth segments in analytical chemistry, biology and material
science, coupled with our achievements in the emerging markets, we
remain cautiously optimistic in achieving organic growth in the low
to mid single digits in our research business in the fourth
quarter.
As expected, the growth rate for SAFC in the third quarter was
in the low single digits due to a strong comparable in the previous
year. We were pleased with the sales level we achieved particularly
from our Hitech and industrial media businesses. With the
investments we are making this year in these businesses, we are
well positioned to take advantage of the growth in these
markets.
In our focus markets of India,
China and Brazil in the third quarter of 2011, we
collectively grew by 25% - our best result in 2011. Currency
adjusted growth for these key markets including our May 2011 acquisition of Vetec Quimica Fina Ltda
in Brazil was a combined 41% in
Q3."
Sachdev concluded, "We have re-affirmed our organic sales growth
expectation for 2011 in the mid-single digits. We have
revised our diluted adjusted EPS outlook for 2011 to $3.73 to $3.81 to reflect stronger operating
results and a lower than expected annual effective tax rate for
2011 that should help offset the negative impact of recent moves in
currency exchange rates."
2011 RESULTS:
Reported sales for the third quarter of 2011 of $626 million increased 11% from the third quarter
of 2010. Excluding changes in foreign currency exchange rates
and acquisitions that contributed 5% and 2%, respectively, to sales
growth, third quarter organic sales growth was 4%. Third
quarter sales for the Company's Research business grew organically
by 4%, with reported sales of growth of 13%, led by the
Asia Pacific-Latin America region. Third quarter
sales for the Company's SAFC business was $180 million, in-line with the first two quarters
of 2011. This is an organic increase of 2% reflecting a very strong
2010 comparable base. Reported sales growth for SAFC for the
third quarter was 8% compared to Q3 of 2010. A reconciliation of
reported to adjusted organic sales is on page 8.
The operating income margin in the third quarter of 2011,
excluding restructuring charges was 26.0% of sales compared to
25.4% of sales in the third quarter of 2010. Operating margins
benefited from strong gross margins as well as containment of
operating expenses. Reported operating income margin for the
third quarter of 2011 was 25.6% compared to 23.4% in 2010.
The operating income margin in 2010 was impacted by both
restructuring and impairment charges. A reconciliation is
provided on page 9.
The effective tax rate for the third quarter of 2011 was
approximately 26%, compared to 29% in the third quarter of 2010.
The lower tax rate in 2011 compared to the same period in
2010 is attributable to a benefit from certain net operating losses
and an increased benefit from the release of tax contingencies
resulting from statute of limitation closures. These benefits
were partially offset by a reduction of the proportion of income in
foreign jurisdictions with lower tax rates.
Free cash flow (defined on page 7) for the first nine months of
2011 was $300 million, compared to
$332 million achieved in the same
period in 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
website as a percentage of total research sales were 50% for the
third quarter of 2011, consistent with the performance in the first
half 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 22%
and 9%, respectively, in the third quarter of 2011. The
acquisition of Vetec increased reported international sales by 5%
for the quarter. In the Company's focus markets of China, India
and Brazil, sales collectively
grew 46% and 25% on a reported and organic basis, respectively, for
the third quarter of 2011. The acquisition of Vetec increased
reported sales in these focus markets by 16%.
- SAFC's booked orders for future delivery at September 30, 2011 were up 3% from the
June 30, 2011 level and up 6% from
the September 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:
- Continued uncertainty in the U.S. and Europe around the macro economic environment
and austerity measures is adding a layer of instability to our end
markets. We are cautiously optimistic that our programs to
enhance and highlight the product capabilities of our Research
business in analytical chemistry, biology, traditional chemistry
and materials science will enable us to achieve low to mid single
digit organic sales growth in our Research business in the 4th
quarter.
- Continued emphasis on growth opportunities in fine chemicals;
in our international markets; and via e-commerce channels.
- At current exchange rates, currency is expected to increase
reported sales growth by about 4% 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.
- Our outlook for the fourth quarter for diluted adjusted
earnings per share is a range of $0.85 to
$0.93. Our reported diluted EPS, excluding
restructuring costs, for the nine months ended September 30, 2011 is $2.88, implying a full year outlook to be in a
range from $3.73 to $3.81.
- Changes in foreign currency exchange rates are expected to
lower Q4 diluted EPS by $0.02 -$0.03
compared to our previous outlook. A higher effective tax rate
of 30% to 31% in Q4 will reduce otherwise reportable diluted EPS by
$0.02 to $0.03 in Q4 compared to our
previous outlook. Both of these factors have been considered
in our guidance for Q4.
- The effective tax rate for full year 2011 is now expected to be
28% to 29%, reduced from 29% to 30% in our previous outlook.
- 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 about
$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 optimize working capital to support anticipated
growth and customer service are expected to continue with inventory
levels at roughly the same levels.
OTHER INFORMATION:
Cash Flow and Debt: Net cash provided by operating
activities for the nine months ended September 30, 2011 was $373 million compared to $397 million for 2010's first nine months.
The contributions from higher net income and non-cash charges
in the first nine months of 2011 compared to the same period in
2010 were exceeded by increases in working capital due to planned
inventory increases to enhance service levels and support the
higher sales growth rates in the Asia
Pacific-Latin America
region. Inventory levels were 6.3 months at September 30, 2011 and 2010. Capital
expenditures for the first nine months of 2011 were $73 million compared to $65 million in the same period in 2010.
Free cash flow of $300 million
for the first nine months of 2011 was used primarily to pay
$65 million to shareholders in the
form of dividends and return another $134
million through share repurchases and $75 million to fund acquisitions. The
Company's debt to capital ratio was 21% at September 30, 2011 and at December 31, 2010.
Share Repurchases: In the third quarter of
2011, 1.8 million shares were repurchased at an average per share
price of $61.90, bringing the total
year-to-date acquisition to 2.1 million shares. There
were 120 million shares outstanding at September 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 "expects", "affirmed", "forecast", "to
drive", "to enhance", "remain committed", "our emphasis" 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, (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, and (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 over 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
|
|
Nine
Months
|
|
|
Ended
September 30,
|
|
Ended
September 30,
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
Net sales
|
$
626
|
|
$
563
|
|
$
1,895
|
|
$
1,689
|
|
Cost of products
sold
|
293
|
|
265
|
|
895
|
|
794
|
|
Gross profit
|
333
|
|
298
|
|
1,000
|
|
895
|
|
Selling, general and
administrative expenses
|
152
|
|
139
|
|
451
|
|
405
|
|
Research and development
expenses
|
18
|
|
16
|
|
54
|
|
49
|
|
Restructuring
costs
|
3
|
|
4
|
|
8
|
|
13
|
|
Impairment cost
|
-
|
|
7
|
|
-
|
|
7
|
|
Operating income
|
160
|
|
132
|
|
487
|
|
421
|
|
Interest, net
|
2
|
|
1
|
|
6
|
|
5
|
|
Income before income
taxes
|
158
|
|
131
|
|
481
|
|
416
|
|
Provision for income
taxes
|
41
|
|
38
|
|
132
|
|
126
|
|
Net income
|
$
117
|
|
$
93
|
|
$
349
|
|
$
290
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share -
Basic
|
$
0.97
|
|
$
0.77
|
|
$
2.86
|
|
$
2.40
|
|
Net income per share -
Diluted
|
$
0.95
|
|
$
0.76
|
|
$
2.84
|
|
$
2.36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of
shares outstanding - Basic
|
121
|
|
121
|
|
122
|
|
121
|
|
Weighted average number of
shares outstanding - Diluted
|
123
|
|
123
|
|
123
|
|
123
|
|
|
|
|
|
|
|
|
|
SIGMA-ALDRICH
CORPORATION
|
|
Consolidated
Balance Sheets
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
|
|
|
|
2011
|
|
2010
|
|
Assets
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
|
$
643
|
|
$
569
|
|
Accounts receivable,
net
|
|
|
|
|
335
|
|
287
|
|
Inventories
|
|
|
|
|
658
|
|
606
|
|
Other current
assets
|
|
|
|
|
143
|
|
139
|
|
Total current
assets
|
|
|
|
|
1,779
|
|
1,601
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment,
net
|
|
|
|
|
750
|
|
733
|
|
Goodwill, net
|
|
|
|
|
470
|
|
438
|
|
Intangibles, net
|
|
|
|
|
159
|
|
157
|
|
Other assets
|
|
|
|
|
92
|
|
98
|
|
Total assets
|
|
|
|
|
$
3,250
|
|
$
3,027
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders'
Equity
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
Notes payable and current
maturities of long-term debt
|
|
|
|
|
$
269
|
|
$
239
|
|
Accounts
payable
|
|
|
|
|
128
|
|
121
|
|
Other
|
|
|
|
|
193
|
|
171
|
|
Total current
liabilities
|
|
|
|
|
590
|
|
531
|
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
|
|
300
|
|
300
|
|
Pension and post-retirement
benefits
|
|
|
|
|
108
|
|
110
|
|
Deferred taxes
|
|
|
|
|
32
|
|
41
|
|
Other liabilities
|
|
|
|
|
65
|
|
69
|
|
Total
liabilities
|
|
|
|
|
1,095
|
|
1,051
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
|
Common stock
|
|
|
|
|
202
|
|
202
|
|
Capital in excess of par
value
|
|
|
|
|
217
|
|
194
|
|
Common stock in
treasury
|
|
|
|
|
(2,168)
|
|
(2,051)
|
|
Retained
earnings
|
|
|
|
|
3,820
|
|
3,536
|
|
Accumulated other
comprehensive income
|
|
|
|
|
84
|
|
95
|
|
Total stockholders'
equity
|
|
|
|
|
2,155
|
|
1,976
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
|
|
|
$
3,250
|
|
$
3,027
|
|
|
|
|
|
|
|
|
|
SIGMA-ALDRICH
CORPORATION
|
|
Consolidated
Statements of Cash Flows (Unaudited)
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
Months
|
|
|
|
|
|
|
Ended
September 30,
|
|
|
|
|
|
|
2011
|
|
2010
|
|
Cash flows from operating
activities:
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
$
349
|
|
$
290
|
|
Adjustments to reconcile
net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
79
|
|
69
|
|
Deferred income
taxes
|
|
|
|
|
4
|
|
5
|
|
Stock-based compensation
expense
|
|
|
|
|
13
|
|
15
|
|
Restructuring costs, net
of payments
|
|
|
|
|
5
|
|
6
|
|
Impairment cost
|
|
|
|
|
-
|
|
7
|
|
Other
|
|
|
|
|
-
|
|
(4)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
|
|
(46)
|
|
(29)
|
|
Inventories
|
|
|
|
|
(45)
|
|
1
|
|
Accounts
payable
|
|
|
|
|
6
|
|
4
|
|
Income taxes
|
|
|
|
|
(2)
|
|
(3)
|
|
Other, net
|
|
|
|
|
10
|
|
36
|
|
Net cash provided by
operating activities
|
|
|
|
|
373
|
|
397
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing
activities:
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
|
|
(73)
|
|
(65)
|
|
Purchases of short-term
investments
|
|
|
|
|
(29)
|
|
(27)
|
|
Proceeds from sales of
short-term investments
|
|
|
|
|
20
|
|
25
|
|
Proceeds from sale of
property, plant and equipment
|
|
|
|
|
2
|
|
-
|
|
Acquisitions of
businesses, net of cash acquired
|
|
|
|
|
(75)
|
|
(5)
|
|
Other, net
|
|
|
|
|
(3)
|
|
(2)
|
|
Net cash used in investing
activities
|
|
|
|
|
(158)
|
|
(74)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing
activities:
|
|
|
|
|
|
|
|
|
Net issuance / (repayment)
of short-term debt
|
|
|
|
|
29
|
|
1
|
|
Repayment of long-term
debt
|
|
|
|
|
-
|
|
(100)
|
|
Payment of
dividends
|
|
|
|
|
(65)
|
|
(58)
|
|
Share
repurchases
|
|
|
|
|
(134)
|
|
(76)
|
|
Exercise of stock
options
|
|
|
|
|
27
|
|
24
|
|
Excess tax benefits from
stock-based payments
|
|
|
|
|
5
|
|
5
|
|
Net cash used in financing
activities
|
|
|
|
|
(138)
|
|
(204)
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes
on cash
|
|
|
|
|
(3)
|
|
8
|
|
Net change in cash and cash
equivalents
|
|
|
|
|
74
|
|
127
|
|
Cash and cash equivalents at
January 1
|
|
|
|
|
569
|
|
373
|
|
Cash and cash equivalents at
September 30
|
|
|
|
|
$
643
|
|
$
500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow(1)
|
|
|
|
|
$
300
|
|
$
332
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
September 30, 2011
|
|
|
|
|
|
|
Currency
|
|
Acquisition
|
|
Adjusted
|
|
|
|
|
|
|
|
Reported
|
|
Benefit
|
|
Benefit
|
|
(Organic)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research
Essentials
|
|
15%
|
|
6%
|
|
3%
|
|
6%
|
|
|
|
|
|
Research
Specialties
|
|
12%
|
|
6%
|
|
4%
|
|
2%
|
|
|
|
|
|
Research
Biotech
|
|
12%
|
|
6%
|
|
-
|
|
6%
|
|
|
|
|
|
Research
Chemicals
|
|
13%
|
|
6%
|
|
3%
|
|
4%
|
|
|
|
|
|
SAFC
|
|
8%
|
|
4%
|
|
2%
|
|
2%
|
|
|
|
|
|
Total Customer
Sales
|
|
11%
|
|
5%
|
|
2%
|
|
4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
Months
|
|
|
|
|
Ended
September 30, 2011
|
|
|
|
|
|
|
Currency
|
|
Acquisition
|
|
Adjusted
|
|
|
|
|
|
|
|
Reported
|
|
Benefit
|
|
Benefit
|
|
(Organic)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research
Essentials
|
|
13%
|
|
5%
|
|
2%
|
|
6%
|
|
|
|
|
|
Research
Specialties
|
|
11%
|
|
5%
|
|
3%
|
|
3%
|
|
|
|
|
|
Research
Biotech
|
|
10%
|
|
5%
|
|
-
|
|
5%
|
|
|
|
|
|
Research
Chemicals
|
|
12%
|
|
5%
|
|
3%
|
|
4%
|
|
|
|
|
|
SAFC
|
|
14%
|
|
4%
|
|
1%
|
|
9%
|
|
|
|
|
|
Total Customer
Sales
|
|
12%
|
|
5%
|
|
1%
|
|
6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
$
121
|
|
$
-
|
|
$
365
|
|
Research
Specialties
|
|
|
|
236
|
|
236
|
|
231
|
|
-
|
|
703
|
|
Research
Biotech
|
|
|
|
96
|
|
94
|
|
94
|
|
-
|
|
284
|
|
Research
Chemicals
|
|
|
|
452
|
|
454
|
|
446
|
|
-
|
|
1,352
|
|
SAFC
|
|
|
|
180
|
|
183
|
|
180
|
|
-
|
|
543
|
|
Total Customer
Sales
|
|
|
|
$
632
|
|
$
637
|
|
$
626
|
|
$
-
|
|
$
1,895
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
September
30,
|
|
September
30,
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported net
income
|
$
117
|
|
$
93
|
|
$
0.95
|
|
$
0.76
|
|
Restructuring
costs
|
1
|
|
3
|
|
0.01
|
|
0.02
|
|
Impairment
costs
|
-
|
|
7
|
|
-
|
|
0.05
|
|
Adjusted net
income
|
$
118
|
|
$
103
|
|
$
0.96
|
|
$
0.83
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
|
Diluted
Earnings
|
|
|
(in
millions)
|
|
Per
Share
|
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported net
income
|
$
349
|
|
$
290
|
|
$
2.84
|
|
$
2.36
|
|
Restructuring
costs
|
5
|
|
9
|
|
0.04
|
|
0.07
|
|
Impairment
costs
|
-
|
|
7
|
|
-
|
|
0.05
|
|
Adjusted net
income
|
$
354
|
|
$
306
|
|
$
2.88
|
|
$
2.48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Statement
Ratios
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
53.2%
|
|
52.9%
|
|
52.8%
|
|
53.0%
|
|
S,G&A
expenses
|
24.3%
|
|
24.7%
|
|
23.8%
|
|
24.0%
|
|
Operating
income
|
25.6%
|
|
23.4%
|
|
25.7%
|
|
24.9%
|
|
Pretax income
|
25.2%
|
|
23.3%
|
|
25.4%
|
|
24.6%
|
|
Net income
|
18.7%
|
|
16.5%
|
|
18.4%
|
|
17.2%
|
|
|
|
|
|
|
|
|
|
|
Effective tax
rate
|
25.9%
|
|
29.0%
|
|
27.4%
|
|
30.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Reported
Operating Income Margin to Adjusted Operating Income
Margin
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
Reported operating income
margin
|
25.6%
|
|
23.4%
|
|
25.7%
|
|
24.9%
|
|
Restructuring
costs
|
0.4%
|
|
0.7%
|
|
0.4%
|
|
0.8%
|
|
Impairment
Costs
|
-
|
|
1.3%
|
|
-
|
|
0.4%
|
|
Operating income margin
excluding restructuring
|
26.0%
|
|
25.4%
|
|
26.1%
|
|
26.1%
|
|
and impairment costs
|
|
|
|
|
|
|
|
|
Acquisitions
|
0.4%
|
|
|
|
0.4%
|
|
|
|
Adjusted operating income
margin
|
26.4%
|
|
25.4%
|
|
26.5%
|
|
26.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Free Cash
Flow
|
|
|
|
|
|
|
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
|
September
30,
|
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
$
373
|
|
$
397
|
|
|
|
|
|
Less: Capital
expenditures
|
(73)
|
|
(65)
|
|
|
|
|
|
Free cash
flow
|
$
300
|
|
$
332
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Sigma-Aldrich