- Email: [email protected]
Millipore Corp, USA
October 1999
Filtration Industry Analyst
Millipore Corp, USA Profile
Millipore Corp develops, manufactures and sells products used primarily for the analysis, identification. monitoring and purification of liquids and gasses. In addition, the company sells products to control critical aspects of the manufacturing process fol semiconductors. Analysis
For the year ended 3 1 December 1998, Millipore Corp posted net sales of US$699.3 million, which was 8% less than the figure reported in 1997. The ongoing economic difficulties in Asian markets and negative currency effects caused the decline in net sales. The higher sales growth rate in I997 compared with 1996 was primarily attributed to the acquisitions of the Amicon Separation Science Business of WR Grace CGCo. and Tylan General Inc. Millipore reported a profit of USSO. per share for 1998 compared with a loss of US$0.89 per share for 1997. Excluding restructuring charges and unusual items, the company would have reported diluted earnings per share from continuing operations of US$0.60 and US$l.65 for 1998 and 1997 respectively. Biopharmaceutical & Research sales, measured in local currency terms, increased by 7% in 1998, compared with 19% in 1997. Growth of this segment in 1998 reflects the combination of increased demand for consumable products and process equipment used in the production of sterile drugs and analytical and water filtration devices, used in research laboratories. The company’s Microelectronics segment sales growth, measured in local currency, declined 28% in 1998, compared with an increase of 64% for 1997. The decrease in 1998 sales was directly attributed to the continuation of the semiconductor industry slump. The reduction in Microelectronics segment revenues generated from the sale of
equipment was adversely impacted in Asia and the Americas by a significant reduction in the number of semiconductor plants constructed.
Fiscal 1998 was a tough year for Millipore Corp. The effects of the downturn worldwide in the microelectronics industry, the market softness in Asia, including Japan, and the continuing strength of the US dollar negatively impacted the revenue and profitability of the company. In the second quarter of 1998, Millipore announced a restructuring programme to improve the competitive position of the company by streamlining worldwide operations and reducing the overall cost structure. The programme was initiated to bring operating costs in line with lower revenues resulting from the financial difficulties in Asian economies, the strong US dollar and the continuation of the semiconductor industry slump. Millipore’s long-term strategy remains sound. The Biopharmaceutical & Research segment will continue its attractive growth, while the company’s Microelectronics segment is poised to gain market share as the industry shows signs of recovery. H
Key Figures (US$ million) Millipore Corp
Year ended
31 .12
1998
1997
1996
1995
1994
Net Sales
699.3
758.9
618.7
594.5
497.3
Cost of Sales
364.5
342.2
249.4
243.8
212.7
53.6
55.9
38.4
36.5
34.3
Research
and Development
Operating
Income/(Loss)
Expenses
60.4
119.1
90.7
4.0
(38.8)
43.6
85.4
56.2
762.4
772.8
682.9
530.9
537.0
95.5
90.3
100.6
(0.7)
Net Income/(Loss) Total Assets Working Contact
Capital
l
l
l
41 .o
Details
Chairman, Chief Executive Officer and President: Address:
Recent
6.1
1.1
C William Zadel 80 Ashby Road Bedford Massachusetts 017X-227 USA
1
Tel: +I 781 533 6000 Fax: +I 781 533 31 IO Web: www.millipore.com
Events
During 1998 Millipore consolidated its Microelectronics gas operations in Allen, Texas. USA. It also restructured its Microelectronics operations worldwide to size the business expenses to be consistent with current business conditions. Fiscal 1998 also saw the company embarking on restructuring actions in other parts of its business to reduce costs and improve efficiency. In May 1999, Millipore acquired Bioprocessing Corporation Limited. a private UK-based company that develops. mmufactures and sells chromatographic media for the purification of proteins.
Filtration Industry Analyst
Millipore Corp, USA Profile
Millipore Corp develops, manufactures and sells products used primarily for the analysis, identification. monitoring and purification of liquids and gasses. In addition, the company sells products to control critical aspects of the manufacturing process fol semiconductors. Analysis
For the year ended 3 1 December 1998, Millipore Corp posted net sales of US$699.3 million, which was 8% less than the figure reported in 1997. The ongoing economic difficulties in Asian markets and negative currency effects caused the decline in net sales. The higher sales growth rate in I997 compared with 1996 was primarily attributed to the acquisitions of the Amicon Separation Science Business of WR Grace CGCo. and Tylan General Inc. Millipore reported a profit of USSO. per share for 1998 compared with a loss of US$0.89 per share for 1997. Excluding restructuring charges and unusual items, the company would have reported diluted earnings per share from continuing operations of US$0.60 and US$l.65 for 1998 and 1997 respectively. Biopharmaceutical & Research sales, measured in local currency terms, increased by 7% in 1998, compared with 19% in 1997. Growth of this segment in 1998 reflects the combination of increased demand for consumable products and process equipment used in the production of sterile drugs and analytical and water filtration devices, used in research laboratories. The company’s Microelectronics segment sales growth, measured in local currency, declined 28% in 1998, compared with an increase of 64% for 1997. The decrease in 1998 sales was directly attributed to the continuation of the semiconductor industry slump. The reduction in Microelectronics segment revenues generated from the sale of
equipment was adversely impacted in Asia and the Americas by a significant reduction in the number of semiconductor plants constructed.
Fiscal 1998 was a tough year for Millipore Corp. The effects of the downturn worldwide in the microelectronics industry, the market softness in Asia, including Japan, and the continuing strength of the US dollar negatively impacted the revenue and profitability of the company. In the second quarter of 1998, Millipore announced a restructuring programme to improve the competitive position of the company by streamlining worldwide operations and reducing the overall cost structure. The programme was initiated to bring operating costs in line with lower revenues resulting from the financial difficulties in Asian economies, the strong US dollar and the continuation of the semiconductor industry slump. Millipore’s long-term strategy remains sound. The Biopharmaceutical & Research segment will continue its attractive growth, while the company’s Microelectronics segment is poised to gain market share as the industry shows signs of recovery. H
Key Figures (US$ million) Millipore Corp
Year ended
31 .12
1998
1997
1996
1995
1994
Net Sales
699.3
758.9
618.7
594.5
497.3
Cost of Sales
364.5
342.2
249.4
243.8
212.7
53.6
55.9
38.4
36.5
34.3
Research
and Development
Operating
Income/(Loss)
Expenses
60.4
119.1
90.7
4.0
(38.8)
43.6
85.4
56.2
762.4
772.8
682.9
530.9
537.0
95.5
90.3
100.6
(0.7)
Net Income/(Loss) Total Assets Working Contact
Capital
l
l
l
41 .o
Details
Chairman, Chief Executive Officer and President: Address:
Recent
6.1
1.1
C William Zadel 80 Ashby Road Bedford Massachusetts 017X-227 USA
1
Tel: +I 781 533 6000 Fax: +I 781 533 31 IO Web: www.millipore.com
Events
During 1998 Millipore consolidated its Microelectronics gas operations in Allen, Texas. USA. It also restructured its Microelectronics operations worldwide to size the business expenses to be consistent with current business conditions. Fiscal 1998 also saw the company embarking on restructuring actions in other parts of its business to reduce costs and improve efficiency. In May 1999, Millipore acquired Bioprocessing Corporation Limited. a private UK-based company that develops. mmufactures and sells chromatographic media for the purification of proteins.