Bio-analytical segment orders of $493 million were down 14 percent from one year earlier, while revenues of $496 million were off 8 percent from last year. During the quarter, Chemical Analysis revenues were down 11 percent, with continued strength in food markets and weakness in all other applied markets. Life Sciences revenues were off 5 percent from one year ago.
Geographically, weakness continued to be most pronounced in Europe, which was off 22 percent from last year, while revenue in the Americas was down 13 percent. Asia remained an area of strength, with Japan up 8 percent from last year and other Asia up 19 percent. China was particularly robust, up 48 percent from one year ago. By product platform, Gas (GC) and Liquid Chromatography (LC) both remained weak, while microarrays remained strong, up nearly 20 percent.
Life Sciences revenues of $234 million were down 5 percent in the third quarter from one year ago, with spending by Pharma and Biotech customers down 6 percent, and sales to the academic and government markets off 2 percent from one year ago. Interest has been particularly strong for the new 1290 Infinity LC introduced in July, while the microarray business saw strong adoption of SurePrint arrays for Comparative Genomic Hybridization (CGH) applications.
Chemical Analysis revenues of $262 million were down 11 percent from last year. Food safety remained robust, with revenues up 14 percent from one year ago, while weakness was widespread in other applied markets. From a platform perspective, demand remained weak for GCs and relatively strong for LC/MS systems.
Third quarter segment income from operations of $91 million was $11 million below last year’s results on a $44 million decline in revenues. Gross margins were off less than 1 point from last year, while operating margins, at 18 percent, were also down less than 1 point from one year ago. Segment Return On Invested Capital(2) declined 2 points to 25 percent.
($ millions except where noted)
|Gross Margin, %||54||%||52||%||58||%|
|Income from Operations||(1||)||(7||)||123|
Return On Invested Capital (2) , %