Qiagen sees more acquisitions in 2006
Tue Feb 14, 2006 6:23 AM ET
DUESSELDORF, Germany, Feb. 14 (Reuters) - Qiagen Inc. (QGEN.DE: Quote, Profile, Research) (QGEN.O: Quote, Profile, Research), which acquired 8 companies last year, plans to continue to buy in 2006, its chief executive said on Tuesday.
"We continue to aim for acquisitions in 2006," CEO Peer Schatz told a news conference, adding that Qiagen is keeping an eye out for buys in all areas of its business.
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The Netherlands-based company, whose genetic test kits are used by pharma and biotech firms and universities, said on Monday 2005 sales rose to $398.5 million.
Schatz said acquisitions in the past had contributed to profits after between 12 and 18 months of the purchase.
During 2005, Schatz said Qiagen's organic sales grew 9 percent. Organic sales exclude the impact of acquisitions and currency effects.
"That is nearly twice as much as the typical company in our industry," he said.
For 2005, Qiagen reported an 18 percent increase in earnings per share to $0.46. For 2006, its has forecast earnings per share of between $0.52 and $0.55 and sales of between $439 million and $451 million.
Asked about the possibility of a dividend considering the company's healthy cash position and growing profits, Schatz said plans for a dividend were not yet on the cards.
"We think that we can increase shareholder value in the short term through acquisitions," he said. "If there are no big targets out there, then we must look at what to do with the money."
Qiagen had about $192 million in cash at the end of 2005.
Shares of Qiagen traded 1.9 percent higher at 1100 GMT, outpacing the Frankfurt stock market's technology index <.TEXDAX>, which was 1.6 percent higher.
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