Bruker Q3 Profit Falls, Cuts Full-year View - Update

(RTTNews) - Scientific equipment maker Bruker Corp. (BRKR) Friday said its third-quarter profit more than halved from last year, reflecting lower revenues and higher operating expenses. Both earnings per share, and revenues missed analysts' expectations. The company also lowered its adjusted earnings per share outlook, and revenue growth view for full year 2013, citing a weaker fourth quarter.

Looking ahead, Bruker said it is taking additional near-term actions to reduce its headcount and to lower expense base. It is also analyzing restructuring opportunities for 2014 and beyond.

In addition to its earlier announced restructuring activities for 2013, Bruker is in the process of reducing headcount in its Bruker Materials or BMAT Group by about 150 employees.

As a result, the firm now expects to generate about $15 to $20 million in annual savings in 2014 from its 2013 restructuring activities.

For the third quarter, net income attributable to the company declined to $16.6 million or $0.10 per share, from $39.7 million or $0.24 per share in prior year.

On an adjusted basis, earnings were $0.20 per share, while the company posted $0.28 per share in the third quarter of 2012.

On average, 15 analysts polled by Thomson Reuters expected the company to report earnings of $0.22 per share for the quarter. Analysts' estimates typically exclude special items.

Quarterly revenues declined 2 percent to $439 million from $447.8 million reported last year. Fifteen analysts estimated revenues of $452.40 million for the quarter.

Excluding a 0.5 percent positive effect from changes in foreign exchange rates and a 0.1 percent net negative effect from acquisitions and divestitures, Bruker reported a year-over-year decline in organic revenues of 2.4 percent in the third quarter of 2013.

"Our third quarter performance reflected continued weak demand from industrial markets, a double-digit decline in our Preclinical Imaging Division's revenues, and a difficult year-over-year comparison for BEST due to a license transaction that was recorded in Q3 2012," said Frank Laukien, president and CEO of Bruker.

Total operating expenses advanced to $161.7 million from $149.8 million a year earlier.

For full-year 2013, the company now expects adjusted earnings per share to be in the range of $0.72 to $0.76, down from the prior outlook of $0.80 to $0.83 per share.

The firm currently expects its full year 2013 reported revenues to decrease between -1 percent and 0 percent, compared to 2012.

According to the company, the revised guidance implies full year 2013 organic revenue growth to be between 0 and 1 percent. Previously, the company projected revenue growth of 2 to 3 percent for 2013.

Analysts expect the company to report earnings of $0.81 per share, on revenues of $1.84 billion for fiscal 2013.

BRKR closed Thursday's regular trading at $20.45 on the Nasdaq.