Thermo Fisher Scientific Appoints Marc N. Casper President and Chief Executive Officer
WALTHAM, Mass. -- Thermo Fisher Scientific Inc., the world leader in serving science, today announced that its board of directors has appointed Marc N. Casper president, chief executive officer and a director of the company, effective October 15, 2009. Casper currently serves as executive vice president and chief operating officer. This announcement follows the decision of Marijn E. Dekkers to resign as president, chief executive officer and a member of the board, in order to become chief executive officer of Bayer AG, a global leader in healthcare, nutrition and high-tech materials based in Germany.
Jim Manzi, chairman of the board, said, "Marc's strong leadership at Thermo Fisher over the past eight years and his achievements both here and in other companies make him the natural choice to lead the company going forward. We are delighted that he will take on this new role. With our industry-leading position, commitment to world-class innovation and the most talented employees in the industry, we believe that the company is well-prepared for this transition and well-positioned to capitalize on new opportunities for growth. On behalf of the entire board of directors, we thank Marijn for his dedication to Thermo Fisher over the last nine years. Marijn has led the company through a period of exciting growth and has built a strong foundation for future success."
"My years at Thermo Fisher have been some of the best in my career, and I thank our employees, the leadership team and the board for working with me so diligently to achieve our mutual goals for the company," said Mr. Dekkers. "Having accomplished so much together, it's now time for me to move on to a new role, and I'm looking forward to the challenges of the next phase of my career. I feel good about my move at this time because the company is very strong financially and, in Marc's capable hands and with the continued support of our employees, has more growth prospects than ever."
Casper said, "I have developed great respect for the knowledge and focus of our employees during my time at Thermo Fisher, and look forward to working with the leadership team and the board in my new role. Thanks to the successful execution of our strategy, demonstrated by our excellent financial track record, we have been able to deliver solid operating performance despite challenging economic conditions. We will work to continue to execute on our strategy for growth and success."
The company today reaffirmed its full year 2009 outlook, as last updated on July 23, 2009, and expects to achieve annual revenues of $9.80 to $10.10 billion and adjusted earnings per share (EPS) of $2.85 to $3.10 for the year.
Adjusted EPS is a non-GAAP measure that excludes certain items detailed later in this press release under the heading "Use of Non-GAAP Financial Measures."
Casper has served as executive vice president and chief operating officer of Thermo Fisher since May 2008. Prior to being named COO, Casper served as president of Thermo Fisher's analytical technologies businesses following the merger of Thermo Electron and Fisher Scientific in November 2006. Casper joined the company in December 2001 as president of its Life and Laboratory Sciences Sector. Previously, Casper served as president, chief executive officer and a director of Kendro Laboratory Products. Before Kendro, he was president-Americas for Dade Behring Inc. Casper began his career at Bain & Company as a strategy consultant and later joined Bain Capital, where he oversaw business development, strategy and business integration in select companies owned by Bain. Casper earned an MBA with high distinction from Harvard Business School, and is a graduate of Wesleyan University, where he received a bachelor's degree in economics.
Use of Non-GAAP Financial Measures
In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), we use certain non-GAAP financial measures, including adjusted earnings per share, which excludes restructuring and other costs/income and amortization of acquisition-related intangible assets, certain other gains and losses, tax provisions/benefits related to the previous items, benefits from tax credit carryforwards, the impact of significant tax audits or events and discontinued operations. We exclude the above items because they are outside of our normal operations and/or, in certain cases, are difficult to forecast accurately for future periods. We believe that the use of non-GAAP measures helps investors to gain a better understanding of our core operating results and future prospects, consistent with how management measures and forecasts the company's performance, especially when comparing such results to previous periods or forecasts.
We exclude costs and tax effects associated with restructuring activities, such as reducing overhead and consolidating facilities. We believe that the costs related to these restructuring activities are not indicative of our normal operating costs.
We exclude certain acquisition-related costs, including charges for the sale of inventories revalued at the date of acquisition and significant transaction costs. We exclude these costs because we do not believe they are indicative of our normal operating costs.
We exclude the expense and tax effects associated with the amortization of acquisition-related intangible assets because a significant portion of the purchase price for acquisitions may be allocated to intangible assets that have lives of 5 to 20 years. Our adjusted EPS estimate for 2009 excludes approximately $.89 of expense for the amortization of acquisition-related intangible assets for acquisitions completed through the second quarter of 2009. Exclusion of the amortization expense allows comparisons of operating results that are consistent over time for both our newly acquired and long-held businesses and with both acquisitive and non-acquisitive peer companies.
We also exclude certain gains/losses and related tax effects, benefits from tax credit carryforwards and the impact of significant tax audits or events (such as the one-time effect on deferred tax balances of enacted changes in tax rates), which are either isolated or cannot be expected to occur again with any regularity or predictability and that we believe are not indicative of our normal operating gains and losses. For example, we exclude gains/losses from items such as the sale of a business or real estate, gains or losses on significant litigation-related matters, gains on curtailments of pension plans, the early retirement of debt and debt facilities, and discontinued operations.
Thermo Fisher's management uses these non-GAAP measures, in addition to GAAP financial measures, as the basis for measuring the company's core operating performance and comparing such performance to that of prior periods and to the performance of our competitors. Such measures are also used by management in their financial and operating decision-making and for compensation purposes.
The non-GAAP financial measure included in this press release is not meant to be considered superior to or a substitute for a financial measure prepared in accordance with GAAP. Thermo Fisher's earnings guidance, however, is only provided on an adjusted basis. It is not feasible to provide GAAP EPS guidance because the items excluded, other than the amortization expense, are difficult to predict and estimate and are primarily dependent on future events, such as acquisitions and decisions concerning the location and timing of facility consolidations.
About Thermo Fisher Scientific
Thermo Fisher Scientific Inc. (NYSE: TMO - News) is the world leader in serving science, enabling our customers to make the world healthier, cleaner and safer. With 2008 revenues of $10.5 billion, we have approximately 34,000 employees and serve over 350,000 customers within pharmaceutical and biotech companies, hospitals and clinical diagnostic labs, universities, research institutions and government agencies, as well as environmental and industrial process control settings. Serving customers through two premier brands, Thermo Scientific and Fisher Scientific, we help solve analytical challenges from routine testing to complex research and discovery. The Thermo Scientific brand represents a complete range of high-end analytical instruments as well as laboratory equipment, software, services, consumables and reagents to enable integrated laboratory workflow solutions. Fisher Scientific provides a complete portfolio of laboratory equipment, chemicals, supplies and services used in healthcare, scientific research, safety and education. Together, we offer the most convenient purchasing options to customers and continuously advance our technologies to accelerate the pace of scientific discovery, enhance value for customers and fuel growth for shareholders and employees alike. Visit www.thermofisher.com.
The following constitutes a "Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements that involve a number of risks and uncertainties. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are set forth in the Company's Quarterly Report on Form 10-Q for the period ended June 27, 2009, under the caption "Risk Factors," which is on file with the Securities and Exchange Commission and available in the "Investors" section of our Website under the heading "SEC Filings." Important factors that could cause actual results to differ materially from those indicated by forward-looking statements include risks and uncertainties relating to: competition and its effect on pricing, spending, third-party relationships and revenues; the need to develop new products and adapt to significant technological change; implementation of strategies for improving internal growth; general worldwide economic conditions and related uncertainties; dependence on customers' capital spending policies and government funding policies; the effect of exchange rate fluctuations on international operations; use and protection of intellectual property; the effect of changes in governmental regulations; the effect of laws and regulations governing government contracts; the effect of competing with certain of our customers and suppliers; and the effect of rapid changes in the healthcare industry. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our estimates change and, therefore, you should not rely on these forward-looking statements as representing our views as of any date subsequent to today.