Sigma-Aldrich Corp.'s (SIAL) third-quarter profit rose 8% on
improved revenue and margin.
As results topped analysts' expectations, the supplier of
chemicals for high-tech scientific research reiterated its revenue
target for the year and raised its earnings forecast to $3.20 to
$3.28 a share from $3.05 to $3.20 a share.
Chairman and Chief Executive Jai Nagarkatti said, "Each of our
research initiatives in analytical, biology and materials science
products also made a positive contribution to our sales growth" in
the third quarter.
The chemical industry has seen sharply increased demand this
year after slumping in early 2009. But comparisons are now getting
tougher as many have posted improved results the past several
periods.
Standard & Poor's Ratings Services in August lifted its
outlook on Sigma-Aldrich to positive, citing its "healthy" cash
levels and improved operating performance. Sigma-Aldrich's
operating performance has held up well as it focuses on a specific
niche market, which S&P described as "resilient in difficult
conditions."
The company reported a profit of $93 million, or 76 cents a
share, up from $86 million, or 70 cents a share, a year earlier.
The latest period included a 7-cent charge related to restructuring
costs and asset write-downs. Revenue increased 5% to $563
million.
Analysts polled by Thomson Reuters had most recently estimated
earnings of 73 cents a share and $540 million in revenue.
Gross margin widened to 52.9% from 49.6%.
Sales in its research chemicals segment--its biggest by revenue,
selling chemicals for research purposes--rose 3%. Sales in its
research specialties segment--its second-biggest, providing
analytical and biochemical products for lab scientists--increased
5%.
Shares closed at $61.41 Wednesday and were inactive
premarket.
-By Jodi Xu, Dow Jones Newswires; 212-416-3037; jodi.xu@dowjones.com