ST. LOUIS, Feb. 9, 2012 /PRNewswire/ --
HIGHLIGHTS:
2011 Results (all percentages are to comparable periods in
2010)
Q4 Results
- Reported sales increased 5% to $610
million. Sales grew organically by 3% with Research
and Fine Chemicals ("SAFC") sales growing organically by 1% and 7%,
respectively. Acquisitions contributed 2% to sales
growth.
- Net income was $108 million,
up 15% from Q4 2010.
- Reported diluted EPS was $0.89, up 17% from Q4 2010. Excluding a
one-time tax item in 2011 adjusted EPS was $0.91 in Q4 2011.
Full Year 2011 Results
- Sales grew 10% to $2.5
billion. Sales grew organically by 5% with Research
and SAFC contributing 3% and 9% respectively to organic
growth.
- Net income was $457 million,
up 19% from 2010.
- Reported diluted EPS was $3.72, up 19% from 2010. Excluding
restructuring, diluted adjusted EPS was $3.76, up 14% over the prior year.
- 2011 net cash provided by operating activities and free cash
flow were $495 million and
$391 million, respectively.
2012 Outlook (all percentages are compared to full year 2011
results)
- Organic sales growth for the full year is expected to be in
the mid single digit range assuming market conditions similar to
late 2011, with lower sales growth in the first half of 2012 and
higher sales growth later in the year. The recently completed
acquisition of BioReliance Holdings, Inc. ("BioReliance") is
expected to increase 2012 sales growth by about 5%. At current
exchange rates, currency rate changes are expected to reduce
otherwise reportable sales growth for the full year by
approximately 2%.
- Diluted adjusted EPS forecast for 2012 (excluding any
restructuring, one time transaction costs associated with the
BioReliance acquisition or any other special charges) is
$3.90 to $4.05. At current exchange
rates, foreign currency rate changes are expected to reduce
otherwise reportable diluted EPS by approximately $0.15 which is included in the outlook.
This outlook also includes $0.10 of higher income tax provision resulting
from a higher effective tax rate of 30 - 31% compared to 29% in
2011 offset by a $0.05 - $0.07
benefit from the acquisition of BioReliance. See 2012
Outlook below.
- Net cash provided by operating activities and free cash flow
are expected to be in excess of $525
million and $400 million,
respectively, for 2012.
CEO's STATEMENT:
Commenting on 2011 performance, President and CEO Rakesh Sachdev said: "Our overall performance
for 2011 resulted in another record year for Sigma-Aldrich in sales
and earnings per share ("EPS") as we delivered EPS growth for our
37th consecutive year. The Research business in the U.S. was
impacted by challenging market conditions and funding uncertainties
in the early weeks of the fourth quarter. These conditions
reduced our Q4 growth rates in Research in the U.S. below those
realized in the first three quarters of the year. We
continued to invest a substantial amount of capital to drive growth
in our focus markets of China,
India and Brazil where we achieved organic sales growth
of 17%. Including our acquisition of Vetec, the sales growth
was 29% in these countries. We invested over $73 million in these countries in 2011.
SAFC had its strongest quarter of the year in Q4 with sales of
$185 million, a 7% organic gain.
We are pleased with SAFC's strong results with full year
organic sales growth of 9% in 2011 compared to 2010. We
continued to see strong growth from the Hitech business which
performed well throughout the year. The custom pharmaceutical
business had low double digit growth in Q4 to end the year stronger
than it has for several years. The industrial media business
sales for the quarter were equal to Q4 2010 and reflected the
impact of timing of customer purchases.
We recently announced the completion of the acquisition of
BioReliance, a global leader in the pharmaceutical and
biopharmaceutical quality assurance and quality control testing
market. This is a strong business with excellent
growth prospects which we feel we can enhance given the unique
position we have as a highly regarded global supplier to the same
customer base as BioReliance. I am pleased to welcome the
more than 650 BioReliance employees to the Sigma-Aldrich
family.
For 2012, we expect to grow sales organically in the mid single
digit range consistent with our 2011 performance. In
addition, the acquisition of BioReliance will add roughly 5% to
Sigma-Aldrich's sales growth in 2012. And, our acquisition
pipeline remains robust. Our long-term objective remains to
achieve above market rate organic sales growth and enhance that
through contributions from technology platforms and strategic
acquisitions. Our diluted EPS is expected to increase to a
range of $3.90 to $4.05 despite a
less favorable currency environment and a higher tax rate. We will
approach 2012 with the same passion and energy that drove success
in the past. Our plan to continue prudent control on costs
without sacrificing commitment to longer term growth initiatives
should help in mitigating market uncertainties."
2011 RESULTS:
Reported sales for the fourth quarter of 2011 of $610 million increased 5% over the fourth quarter
of 2010. Excluding acquisitions, which contributed 2% to
sales growth, fourth quarter organic sales growth was 3%.
Throughout the fourth quarter, weakening foreign currencies
reduced otherwise reportable sales in U.S. dollars. Fourth
quarter sales for the Company's Research business grew organically
by 1%, driven primarily by growth in the Asia Pacific–Latin
American region. Fourth quarter sales for the SAFC business
grew organically by 7% over the fourth quarter of 2010.
Sales in the focus markets of India, China
and Brazil grew organically 17%.
A reconciliation of reported to adjusted (organic) sales can
be found on page 10.
The adjusted operating income margin in the fourth quarter of
2011 was 26.2% of sales compared to 24.2% of sales, excluding
restructuring charges, in the fourth quarter of 2010.
Operating income margins benefited from changes in foreign
currency exchange rates and SG&A productivity initiatives.
A reconciliation of reported to adjusted operating income
margin is provided on page 11.
The effective tax rate for the fourth quarter of 2011 was 32%
compared to 27% in the fourth quarter of 2010. The higher tax
rate in the fourth quarter of 2011 is primarily attributable to a
reduced R&D tax credit benefit and a one-time tax charge in
2011 of $0.02 per diluted EPS related
to an ongoing tax audit in one of our international
subsidiaries.
Free cash flow (defined on page 9) for 2011 was $391 million, compared to $424 million for 2010. Higher net income
was largely offset by a higher level of working capital, primarily
due to planned inventory increases aimed at improving service
levels to our customers and slightly higher capital expenditures to
support planned strategic growth initiatives. A
reconciliation of net cash provided by operating activities to free
cash flow is provided on page 11.
Other highlights include:
- Worldwide sales of Research products through the Company's
website hit an all-time high of $860
million in 2011, a 10% incremental increase compared to 2010
in constant currency dollars.
- SAFC's booked orders for future delivery at December 31, 2011 increased by 4% from
September 30, 2011 and by 8% from
December 31, 2010.
2012 OUTLOOK:
- Organic sales growth is expected to be in the mid single digit
range for 2012. Significant factors in our sales outlook
include:
- Research Business: Uncertainties in the U.S. and Europe around the macroeconomic environment
and austerity measures are expected to maintain challenges for our
Research business in 2012. We believe that the programs initiated,
especially in the analytical chemistry, biology, traditional
chemistry and materials science sectors, will enable us to achieve
low to mid single digit organic sales growth for all of 2012.
We anticipate organic growth rates to be in the low single
digits in the first half of the year improving to mid single digits
in the second half of the year. Research growth rates are
expected to improve in the second half of 2012 led by stronger
growth in the Asia Pacific-Latin American region.
- SAFC Business: We expect low to mid single digit growth
in the first half of the year and low double digit growth in the
second half of the year as additional capacity comes on line in
China and Taiwan.
- At current exchange rates, changes in foreign currency are
expected to reduce otherwise reported sales growth by approximately
2% compared to the prior year.
- The recent acquisition of BioReliance is expected to increase
sales by approximately 5%.
- Diluted adjusted EPS forecast for 2012 (excluding restructuring
charges, transaction costs associated with the BioReliance
acquisition and other one time charges) is expected to be
$3.90 to $4.05.
- This outlook includes a $0.15
reduction in otherwise reportable diluted EPS when compared to 2011
due to changes in foreign currency exchange rates. Also
reflected in this outlook is a higher anticipated effective tax
rate of 30% to 31% in 2012 which will reduce otherwise reportable
diluted EPS by about $0.10 when
compared to 2011.
- The acquisition of BioReliance is expected to add approximately
$0.05 to $0.07 to our diluted EPS in
2012. This assumes a preliminary estimate of the amount of
amortization associated with intangible assets created as part of
the purchase price allocation.
- We continue to evaluate our markets and macroeconomic factors,
and will continue to evaluate ways to optimize our cost structure
to deliver on our commitments.
- Free cash flow for 2012 is expected to be in excess of
$400 million.
- Net cash provided by operating activities is expected to be
approximately $525 million.
- Capital expenditures are expected to be approximately
$125 million.
OTHER INFORMATION:
Cash Flow and Debt: Net cash provided by
operating activities for year ended December
31, 2011 was $495 million
compared to $523 million for the year
ended December 31, 2010. The
cash flow contribution from higher net income in 2011 compared to
the same period in 2010 was partially offset by increases in
working capital due to planned higher inventory to enhance service
levels and support the higher sales growth rates in the Asia
Pacific-Latin American region. Capital expenditures were
$104 million in 2011 compared to
$99 million in 2010. Free cash
flow of $391 million for 2011 was
used primarily to pay $86 million in
dividends, return $134 million to
shareholders through share repurchases, repay $100 million of long-term debt and fund
$75 million of acquisitions.
The Company's debt to capital ratio was 19% at December 31, 2011 and 21% at December 31, 2010.
Share Repurchases: No shares were repurchased in
the fourth quarter of 2011. In 2011 the Company repurchased
2.1 million shares at an average price of $62.07. There were 121 million
shares outstanding at December 31,
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 such as "anticipate," "believe,"
"enhance," "estimate," "expect," "forecast," "plan," "will" and
other similar statements, words or phrases regarding the Company's
expectations, outlook, plans, 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 release due 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 Annual Report on Form 10-K for the year ended
December 31, 2011 (the "10-K"), (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
10-K and (16) acquisitions or divestitures of businesses. A
further discussion of the Company's risk factors can be found in
Item 1A of Part I of the 10-K. 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 whose
biochemical, organic chemical products, kits and services are used
in scientific research, including genomic and proteomic research,
biotechnology, pharmaceutical development, the diagnosis of disease
and as key components in pharmaceutical, diagnostics and high
technology manufacturing. Sigma-Aldrich customers include
more than one million scientists and technologists in life science
companies, university and government institutions, hospitals and
industry. The Company operates in 40 countries and has nearly
9,000 employees whose objective is to provide excellent service
worldwide. Sigma-Aldrich is committed to accelerating
customer success through innovation and leadership in Life
Science, High Technology and
Service. For more information about
Sigma-Aldrich, please visit its website, 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 (i.e., 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 10 and 11 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 exchange 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 2012 to
applicable exchange rates. Any significant changes in
currency exchange rates would likely have a significant impact on
reported growth rates due to the volume of sales denominated in
foreign currencies.
Management also uses the following non-GAAP measures to judge
its performance and ability to pursue opportunities that
enhance shareholder value: adjusted net income and EPS;
adjusted operating income margin (reconciled on page 11); free cash
flow (defined on page 9). Due to the uncertain timing of
future restructuring and other special charges, we are unable to
include these charges in the 2012 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
|
|
Twelve
Months
|
|
|
|
|
|
Ended
December 31,
|
|
Ended
December 31,
|
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
Net sales
|
|
|
|
$
610
|
|
$
582
|
|
$
2,505
|
|
$
2,271
|
|
Cost of products
sold
|
|
|
|
286
|
|
281
|
|
1,181
|
|
1,075
|
|
Gross profit
|
|
|
|
324
|
|
301
|
|
1,324
|
|
1,196
|
|
Selling, general and
administrative expenses
|
|
146
|
|
143
|
|
597
|
|
548
|
|
Research and development
expenses
|
|
18
|
|
17
|
|
72
|
|
66
|
|
Restructuring
costs
|
|
|
|
-
|
|
11
|
|
8
|
|
24
|
|
Impairment
charge
|
|
|
|
-
|
|
-
|
|
-
|
|
7
|
|
Operating income
|
|
|
|
160
|
|
130
|
|
647
|
|
551
|
|
Interest, net
|
|
|
|
1
|
|
2
|
|
7
|
|
7
|
|
Income before income
taxes
|
|
|
|
159
|
|
128
|
|
640
|
|
544
|
|
Provision for income
taxes
|
|
|
|
51
|
|
34
|
|
183
|
|
160
|
|
Net income
|
|
|
|
$
108
|
|
$
94
|
|
$
457
|
|
$
384
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share -
Basic
|
|
|
|
$
0.89
|
|
$
0.78
|
|
$
3.78
|
|
$
3.17
|
|
Net income per share -
Diluted
|
|
|
|
$
0.89
|
|
$
0.76
|
|
$
3.72
|
|
$
3.12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of
shares outstanding - Basic
|
121
|
|
121
|
|
121
|
|
121
|
|
Weighted average number of
shares outstanding - Diluted
|
122
|
|
123
|
|
123
|
|
123
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SIGMA-ALDRICH
CORPORATION
|
|
Consolidated
Balance Sheets
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
|
|
$
665
|
|
$
569
|
|
Accounts receivable,
net
|
|
|
|
|
|
319
|
|
287
|
|
Inventories
|
|
|
|
|
|
668
|
|
606
|
|
Deferred taxes
|
|
|
|
|
|
55
|
|
62
|
|
Other
|
|
|
|
|
|
86
|
|
77
|
|
Total current
assets
|
|
|
|
|
|
1,793
|
|
1,601
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment:
|
|
|
|
|
|
|
|
|
|
Land
|
|
|
|
|
|
$
51
|
|
$
50
|
|
Buildings and
improvements
|
|
|
|
|
|
764
|
|
754
|
|
Machinery and
equipment
|
|
|
|
|
|
888
|
|
867
|
|
Construction in
progress
|
|
|
|
|
|
120
|
|
68
|
|
Less - accumulated
depreciation
|
|
|
|
|
(1,060)
|
|
(1,006)
|
|
Property, plant and
equipment, net
|
|
|
|
763
|
|
733
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill, net
|
|
|
|
|
|
466
|
|
438
|
|
Intangibles, net
|
|
|
|
|
|
159
|
|
157
|
|
Other
|
|
|
|
|
|
100
|
|
98
|
|
Total assets
|
|
|
|
|
|
$
3,281
|
|
$
3,027
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders'
Equity
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
Notes payable and current
maturities of long-term debt
|
|
$
221
|
|
$
239
|
|
Accounts
payable
|
|
|
|
|
|
143
|
|
121
|
|
Payroll
|
|
|
|
|
|
67
|
|
71
|
|
Income taxes
|
|
|
|
|
|
34
|
|
31
|
|
Other
|
|
|
|
|
|
73
|
|
69
|
|
Total current
liabilities
|
|
|
|
|
|
538
|
|
531
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
|
|
|
300
|
|
300
|
|
Pension and post-retirement
benefits
|
|
|
|
143
|
|
110
|
|
Deferred taxes
|
|
|
|
|
|
22
|
|
41
|
|
Other
|
|
|
|
|
|
79
|
|
69
|
|
Total
liabilities
|
|
|
|
|
|
1,082
|
|
1,051
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
|
|
Common stock
|
|
|
|
|
|
202
|
|
202
|
|
Capital in excess of par
value
|
|
|
|
|
|
225
|
|
194
|
|
Common stock in
treasury
|
|
|
|
|
|
(2,165)
|
|
(2,051)
|
|
Retained
earnings
|
|
|
|
|
|
3,907
|
|
3,536
|
|
Accumulated other
comprehensive income
|
|
|
|
30
|
|
95
|
|
Total stockholders'
equity
|
|
|
|
|
|
2,199
|
|
1,976
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
|
|
$
3,281
|
|
$
3,027
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SIGMA-ALDRICH
CORPORATION
|
|
Consolidated
Statements of Cash Flows (Unaudited)
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve
Months
|
|
|
|
|
|
|
|
|
|
Ended
December 31,
|
|
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
Cash flows from operating
activities:
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
|
|
|
$
457
|
|
$
384
|
|
Adjustments to reconcile
net income to net cash provided by operating activities:
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
106
|
|
93
|
|
Deferred income
taxes
|
|
|
|
|
|
|
|
6
|
|
(2)
|
|
Stock-based compensation
expense
|
|
|
|
|
|
18
|
|
22
|
|
Restructuring costs, net
of payments
|
|
|
|
|
|
-
|
|
15
|
|
Impairment
charge
|
|
|
|
|
|
|
|
-
|
|
7
|
|
Other
|
|
|
|
|
|
|
|
(1)
|
|
(7)
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
|
|
|
|
|
(35)
|
|
1
|
|
Inventories
|
|
|
|
|
|
|
|
(63)
|
|
8
|
|
Accounts
payable
|
|
|
|
|
|
|
|
23
|
|
8
|
|
Income taxes
|
|
|
|
|
|
|
|
5
|
|
(12)
|
|
Other, net
|
|
|
|
|
|
|
|
(21)
|
|
6
|
|
Net cash provided by
operating activities
|
|
|
|
495
|
|
523
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing
activities:
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
|
|
|
|
|
(104)
|
|
(99)
|
|
Purchases of short-term
investments
|
|
|
|
|
|
(65)
|
|
(43)
|
|
Proceeds from sales of
short-term investments
|
|
|
|
|
|
55
|
|
41
|
|
Acquisitions of
businesses, net of cash acquired
|
|
|
|
|
(75)
|
|
(80)
|
|
Other, net
|
|
|
|
|
|
|
|
(2)
|
|
(1)
|
|
Net cash used in investing
activities
|
|
|
|
|
|
(191)
|
|
(182)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing
activities:
|
|
|
|
|
|
|
|
|
|
Net issuance (repayment)
of short-term debt
|
|
|
|
|
|
81
|
|
(238)
|
|
Issuance of long-term
debt
|
|
|
|
|
|
|
|
-
|
|
298
|
|
Repayment of long-term
debt
|
|
|
|
|
|
|
|
(100)
|
|
(100)
|
|
Dividends
|
|
|
|
|
|
|
|
(86)
|
|
(78)
|
|
Share
repurchases
|
|
|
|
|
|
|
|
(134)
|
|
(99)
|
|
Proceeds from exercise of
stock options
|
|
|
|
|
|
34
|
|
45
|
|
Excess tax benefits from
stock-based payments
|
|
|
|
|
5
|
|
11
|
|
Net cash used in financing
activities
|
|
|
|
|
|
(200)
|
|
(161)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes
on cash
|
|
|
|
|
|
(8)
|
|
16
|
|
Net change in cash and cash
equivalents
|
|
|
|
|
|
96
|
|
196
|
|
Cash and cash equivalents at
January 1
|
|
|
|
|
|
569
|
|
373
|
|
Cash and cash equivalents at
December 31
|
|
|
|
|
|
$
665
|
|
$
569
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow(1)
|
|
|
|
|
|
|
|
$
391
|
|
$
424
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
December 31, 2011
|
|
|
|
|
|
Currency
|
|
Acquisition
|
|
Adjusted
|
|
|
|
Reported
|
|
Benefit
|
|
Benefit
|
|
(Organic)
|
|
|
|
|
|
|
|
|
|
|
|
Research
Essentials
|
|
3%
|
|
-
|
|
3%
|
|
-
|
|
Research
Specialties
|
|
3%
|
|
-
|
|
2%
|
|
1%
|
|
Research
Biotech
|
|
5%
|
|
-
|
|
-
|
|
5%
|
|
Research Chemicals
|
|
3%
|
|
-
|
|
2%
|
|
1%
|
|
SAFC
|
|
8%
|
|
-
|
|
1%
|
|
7%
|
|
Total Customer
Sales
|
|
5%
|
|
-
|
|
2%
|
|
3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve
Months
|
|
|
|
Ended
December 31, 2011
|
|
|
|
|
|
Currency
|
|
Acquisition
|
|
Adjusted
|
|
|
|
Reported
|
|
Benefit
|
|
Benefit
|
|
(Organic)
|
|
|
|
|
|
|
|
|
|
|
|
Research
Essentials
|
|
10%
|
|
4%
|
|
2%
|
|
4%
|
|
Research
Specialties
|
|
9%
|
|
4%
|
|
3%
|
|
2%
|
|
Research
Biotech
|
|
9%
|
|
4%
|
|
-
|
|
5%
|
|
Research Chemicals
|
|
9%
|
|
4%
|
|
2%
|
|
3%
|
|
SAFC
|
|
13%
|
|
3%
|
|
1%
|
|
9%
|
|
Total Customer
Sales
|
|
10%
|
|
4%
|
|
1%
|
|
5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business Unit
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First
Quarter 2011
|
|
Second
Quarter 2011
|
|
Third
Quarter 2011
|
|
Fourth
Quarter 2011
|
|
Total
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research
Essentials
|
|
|
|
$
120
|
|
$
124
|
|
$
121
|
|
$
113
|
|
$
478
|
|
Research
Specialties
|
|
|
|
236
|
|
236
|
|
231
|
|
221
|
|
924
|
|
Research
Biotech
|
|
|
|
96
|
|
94
|
|
94
|
|
91
|
|
375
|
|
Research Chemicals
|
|
|
|
452
|
|
454
|
|
446
|
|
425
|
|
1,777
|
|
SAFC
|
|
|
|
180
|
|
183
|
|
180
|
|
185
|
|
728
|
|
Total Customer
Sales
|
|
|
|
$
632
|
|
$
637
|
|
$
626
|
|
$
610
|
|
$
2,505
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported net
income
|
|
|
|
|
|
$
108
|
|
$
94
|
|
$
0.89
|
|
$
0.76
|
|
Restructuring
costs
|
|
|
|
|
|
-
|
|
8
|
|
-
|
|
0.07
|
|
Extraordinary tax
charge
|
|
|
|
|
|
2
|
|
-
|
|
0.02
|
|
-
|
|
Adjusted net
income
|
|
|
|
|
|
$
110
|
|
$
102
|
|
$
0.91
|
|
$
0.83
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
|
Diluted
Earnings
|
|
|
|
|
|
|
|
(in
millions)
|
|
Per
Share
|
|
|
|
|
|
|
|
Twelve
Months Ended
|
|
Twelve
Months Ended
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported net
income
|
|
|
|
|
|
$
457
|
|
$
384
|
|
$
3.72
|
|
$
3.12
|
|
Restructuring
costs
|
|
|
|
|
|
5
|
|
17
|
|
0.04
|
|
0.14
|
|
Impairment
costs
|
|
|
|
|
|
-
|
|
7
|
|
-
|
|
0.05
|
|
Adjusted net
income
|
|
|
|
|
|
$
462
|
|
$
408
|
|
$
3.76
|
|
$
3.31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Statement
Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve
Months Ended
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
|
|
53.1%
|
|
51.7%
|
|
52.9%
|
|
52.7%
|
|
S,G&A
expenses
|
|
|
|
|
|
23.9%
|
|
24.6%
|
|
23.8%
|
|
24.1%
|
|
Operating
income
|
|
|
|
|
|
26.2%
|
|
22.3%
|
|
25.8%
|
|
24.3%
|
|
Net income
|
|
|
|
|
|
17.7%
|
|
16.2%
|
|
18.2%
|
|
16.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax
rate
|
|
|
|
|
|
32.1%
|
|
26.6%
|
|
28.6%
|
|
29.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Reported
Operating Income Margin to Adjusted Operating Income
Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve
Months Ended
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported operating income
margin
|
|
|
|
26.2%
|
|
22.3%
|
|
25.8%
|
|
24.3%
|
|
Restructuring
costs
|
|
|
|
|
|
-
|
|
1.9%
|
|
0.3%
|
|
1.0%
|
|
Impairment
costs
|
|
|
|
|
|
-
|
|
-
|
|
-
|
|
0.3%
|
|
Adjusted operating income
margin
|
|
|
|
|
|
26.2%
|
|
24.2%
|
|
26.1%
|
|
25.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Free Cash
Flow
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve
Months Ended
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
|
|
$
495
|
|
$
523
|
|
|
|
|
|
Less: Capital
expenditures
|
|
|
|
|
|
(104)
|
|
(99)
|
|
|
|
|
|
Free cash
flow
|
|
|
|
|
|
$
391
|
|
$
424
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Sigma-Aldrich