Whoa! Mass spectrometry finally succumbs to the capex slowdown. Waters warns, taking BDAL and others with it.
>>Waters Corporation Updates Second Quarter 2001 Earnings Outlook
MILFORD, Mass., Jun 18, 2001 (BUSINESS WIRE) -- Waters Corporation (NYSE: WAT chart, msgs) updated its earnings outlook for the second quarter of 2001 today. The Company last addressed its expectations during its April 27, 2001 conference call held to discuss first quarter 2001 financial results. Estimates for the second quarter of 2001 at that time were for sales growth before currency effects of between 14% and 16% compared to the second quarter of 2000, sales growth of between 10% and 12% after currency effects, and earnings per diluted share of $0.33, subject to normal tolerances of $0.01 to $0.02.
It now appears that sales growth will be slower and, therefore, earnings lower for the second quarter of 2001. This slower sales growth largely relates to the Company's mass spectrometry product line. Douglas A. Berthiaume, Chairman and Chief Executive Officer, said: "Following a sustained period of dramatic growth, the Company's mass spectrometry business is currently experiencing a slowdown in sales. This slowdown is believed to be attributed partially to delayed purchases within large pharmaceutical customer accounts deciding between a multitude of new products recently introduced by the Company and its competitors." For the second quarter of 2001, possible sales growth before currency effects is now estimated between 7% and 10%, sales growth after currency effects is estimated between 2% and 5% (assuming that today's exchange rates remain unchanged through quarter end), and earnings per diluted share are estimated at $0.29, subject to normal tolerances of $0.01 to $0.02.
The Company's ability to estimate results for the second half of 2001 is somewhat limited currently. The Company plans to provide information regarding the second half in conjunction with its second quarter 2001 earnings release scheduled for July 24, 2001.
The Company will webcast its conference call to discuss this update on Tuesday, June 19, 2001, at 8:00 a.m. eastern time. To listen to the call, connect to www.waters.com and access the investor relations section. A replay will be available through June 22, 2001 similarly by webcast, and also by phone at 402-998-1479.<<
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I'll listen to the CC soon and report. I guess we're down to consumables being the safe haven for the next quarter. IVGN is off, too, but they haven't said anything. Contrarian that I am, I think the MS companies may be a buy over the summer. They were among the last to warn, and thus might be among the first to lead the sector out of the doldrums when the pharma capex spigot gets turned on again.
Cheers, Tuck |
