Sigma-Aldrich Q3 Profit Rises, Tops Estimates; Lifts FY13 Profit View

(RTTNews) - Sigma-Aldrich Corp. (SIAL) reported that its third-quarter net income improved to $119 million or $0.98 per share, from $112 million or $0.92 per share in the same quarter last year.

Adjusted net income for the quarter was $127 million or $1.05 per share, up from $115 million or $0.94 per share last year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.99 per share for the quarter. Analysts' estimates typically exclude special items.

The latest-quarter included $4 million of non-recurring tax benefits, which positively impacted adjusted earnings per share by $0.03.

Sales for the quarter grew to $664 million from $639 million in the prior year quarter. Thirteen analysts had consensus revenue estimate of $661.29 million for the quarter.

The third-quarter of 2013 reported sales increased 4% to $664 million, and overall organic sales growth was 5%. By business unit, organic sales growth was 3% for Research, 4% for Applied and 8% for SAFC Commercial. Changes in foreign currency exchange rates reduced otherwise reportable overall sales by 1%.

For the fourth quarter 2013, the company anticipates adjusted earnings to be in the range of $0.97 to $1.04. Based on current foreign exchange rates and net hedging positions, the company does not expect any material changes in adjusted earnings per share or reported sales in the fourth quarter as compared to previous expectations. Analysts expect the company to report earnings of $1.02 per share for the fourth-quarter.

The company now expects Full-year 2013 adjusted earnings per share to be in a range of $4.08 to $4.15 versus a prior range of $4.05 to $4.15. The lower end of the previous guidance range is being raised due to the favorable tax benefit in the third quarter of 2013. The upper end of the range is being maintained, which includes the impact of the US government shutdown in the fourth quarter of 2013 offset by the favorable tax benefit in the third quarter of 2013. Analysts expect the company to report earnings of $4.08 per share for fiscal 2013.

The company said that Full-year organic sales growth guidance is unchanged and expected to be in the low-to-mid single digit range.