|Thermo Fisher CEO Marc Casper|
Thermo Fisher ($TMO) raked in $3.24 billion in sales, a second quarter record, on the way to an estimate-beating $277.4 million in profits. And, as CEO Marc Casper has been saying since April, things will only improve once the company can bring Life Technologies ($LIFE) into the fold.
The record revenue is a 4% jump over the $3.1 billion Thermo made in 2012's second quarter, and net income rose about 18.6% over the same period last year. Lab products, Thermo's largest business, grew about 3% to $1.58 billion on the quarter, while analytical technologies jumped 4% to $1.01 billion. Diagnostics, Thermo's smallest but fastest-growing segment, leapt 8% to $794 million.
Despite the strong sales, Thermo is lowering its projected full-year revenue by less than 1% thanks to unfavorable currency, now expecting between $12.83 to $12.95 billion, which would be between 3% and 4% over 2012.
But the bigger target is 2014, when Thermo expects to close out its $13.6 billion buyout of Life Technologies, a deal that, as Casper has said, "will take our leadership position to a new level, creating an unrivaled leader in our industry." Thermo is still putting together the financing, raising $2.2 billion in a stock sale and planning to use $10 billion of cash and debt and another $4 billion in equity to finish the process.
Thermo expects the deal to spur 30% annual revenue growth and save about $275 million by year three, and Casper said his company remains on track to reap those rewards by early 2014.
"In terms of our pending acquisition of Life Technologies, I'm pleased to report that the integration planning teams are making great progress," Casper said in a statement.
- read Thermo's full results