Sigma-Aldrich Corp.'s (SIAL) fourth-quarter earnings rose 9.8%,
beating analysts' estimates, as the company's revenue climbed by
double digits.
The supplier of chemicals for high-tech scientific research also
announced a 10% dividend increase and forecast 2010 earnings of $3
to $3.15 a share on revenue growth in the midsingle-digit range.
Analysts surveyed by Thomson Reuters expected a profit of $3.14 on
8% revenue growth to $2.31 billion.
"We expect some improvement in the markets we serve in 2010,
with a contribution from increased pharma spending and a modest
benefit from the stimulus funds provided to the academic sector,"
said Chairman and Chief Executive Jai Nagarkatti.
The chemical business in general saw improving demand as the
year came to a close. But because of Sigma-Aldrich's focus, it has
been able to continue profit growth.
The company reported a profit of $92.6 million, or 75 cents a
share, up from $84.3 million, or 68 cents, a year earlier. Revenue
jumped 12.3% to $572.5 million.
Analysts had forecast earnings of 72 cents a share on $561
million in revenue.
Gross margin fell to 50% from 52%.
The company said it saw 10% sales growth in its research
chemicals segment--its biggest by sales--and growth of 9.2% in its
research specialties segment, its second-biggest.
Shares closed at $48.25 Tuesday and were inactive premarket.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855; nathan.becker@dowjones.com