Trickle happy it didn't try to chase SIAL:
>>VANCOUVER, B.C.--(INTERNET WIRE)--Oct 24, 2001-- Deutsche Banc AB analyst Robert Koort has downgraded Sigma-Aldrich (NASDAQ: SIAL - news) from "strong buy" to "market perform", commenting that while the specialty chemicals company's growth trends remain far superior to the industry, he is disappointed with the projected 10% growth rate for 2002.
Reporting third quarter results, Sigma-Aldrich missed estimates by $0.05, with shares continuing to slip lower on heavy trading volume.<<
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>>ST. LOUIS, Oct 23 (Reuters) - Specialty chemical company Sigma-Aldrich Corp. (NasdaqNM:SIAL - news) on Tuesday posted third-quarter profits that were up 7.1 percent from a year ago but slightly short of Wall Street forecasts, amid lower sales in its diagnostics division and the effect of the Sept. 11 attacks.
For the year, the company expects lower 2001 earnings per share of $1.85 to $1.90, as well as a 10 percent increase in 2002 earnings per share, excluding any new acquisitions. The EPS consensus estimate is $1.93 for 2001 and $2.19 for 2002, according to research firm Thomson Financial/First Call.
Sigma-Aldrich also noted that it is ``committed'' to 12 percent sales and EPS growth, excluding currency effects, by 2004.
The St. Louis-based company said income from operations before a one-time charge rose to $33.8 million, or 45 cents a share, from $33.5 million, or 42 cents a share, in the same quarter a year ago. Wall Street expected earnings of 47 cents to 49 cents a share, with a consensus estimate of 48 cents a share, according to First Call.
Net sales rose 6.6 percent to $287.7 million in the quarter from $269.8 million in the year-ago period, before adjusting for converting to U.S. dollars from foreign currencies. However, the attacks shaved overall sales growth by 1.5 percent or $4 million in sales, an amount it does not expect to recoup. For the year, it expects sales gains to be in line with current year-to-date results.
Sales in the diagnostics division rose only 2 percent, lower than expected. Meanwhile, scientific research sales increased by 6.5 percent, biotechnology sales by 7.5 percent and fine chemicals sales by 7.8 percent.
``While encouraged by the continuing growth of our diagnostics business, we are focused on boosting its sales to reap expected returns from recent acquisitions and to improve the overall profitability of the company,'' said Chairman and Chief Executive David Harvey in a statement.
Shares of Sigma-Aldrich closed Tuesday trading on Nasdaq at $46.52. During the third quarter, the stock jumped 17.04 percent, far outperforming the Standard & Poor's Chemical index (^SPCHM - news), which dropped 12.94 percent in the same period.<<
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Cheers, Tuck |
