Sigma-Aldrich delivers strong Q2 results
Led by its SAFC fine chemicals business
Sigma-Aldrich delivered a ‘solid’ performance in the second quarter of 2011, and will put continued emphasis on growth opportunities in fine chemicals, international markets and e-commerce going forward.
The St Louis, US-based life science and technology firm increased sales by 15% to US$637m, a new quarterly high. Pre-tax profit rose 12.8% to US$158m.
Q2 sales grew organically by 6%, with Fine Chemicals (SAFC) and Research product sales, led by the Asia Pacific-Latin America region, growing organically by 10% and 4%, respectively.
Recently completed acquisitions contributed an additional 1% and exchange rates an extra 8% to sales growth in the quarter.
For the six months to 30 June, sales increased by 12.7% to US$1.27bn. Pre-tax profit rose 13.3% to US$323m.
‘Strength in SAFC is being driven by continued strong demand for chemicals and precursors for semi-conductor and LED applications and for industrial cell culture media used for producing biological drugs,’ said president and ceo Rakesh Sachdev.
Sachdev added that the firm was ‘very pleased with continued strong growth in emerging markets’, posting 20% organic sales growth in India, China and Brazil in the second quarter.
Sigma-Aldrich also expanded its 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,’ added Sachdev.
‘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,’ he said.
Worldwide sales of research products through the firm’s website as a percentage of total research sales were 50% for the second quarter, consistent with the performance in the first quarter and up from 48% achieved for all of 2010.
Organic sales growth is expected to be in the mid-single digit range for 2011, unchanged from the firm’s previous outlook.