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Polypore Inc, USA
COMPANY WATCH
Millipore Inc, USA
Polypore Inc, USA
Key Figures (US$ million) First quarter ended 29.3.2008
31.3.2007
396.2
372.0
Bioscience
179.6
Bioprocess
Net Sales
Key Figures (US$ million) First quarter ended 29.3.2008
31.3.2007
145.3
129.0
157.7
Net Sales Of Which: Energy Storage Separations Media
104.0 41.3
93.1 35.9
216.6
214.3
Cost of Goods Sold
90.4
80.9
Cost of Sales
188.1
182.1
Gross Profit
55.4
48.1
Gross Profit
208.1
189.9
24.5
25.0
27.5
Operating Income
57.6
39.6
Operating Income Of Which: Energy Storage Separations Media
30.1
R&D Expenses
23.6 6.8
19.8 4.8
Income before Income Taxes
42.9
23.3
Income from Continuing Operations
10.6
2.1
Net Income
32.6
26.7
Net Income
12.9
2.1
Of Which:
COMMENT
COMMENT Millipore Corp, a provider of products and services for pharmaceutical laboratories, has posted a 7% year-on-year increase for its first quarter fiscal 2008 revenues that have reached US$396.2 million. Favourable currency exchange rates contributed approximately 8% to the revenue growth, without which sales declined 1%. Net income for the first quarter grew 22% on the year earlier to reach US$32.6 million. “The combination of solid performance from our Bioscience division and effective management of our spending enabled us to drive earnings growth and increase our free cash flow by approximately US$40 million in the first quarter,” said Martin Madaus, chair & CEO of Millipore. “Our Bioscience division performed well in all geographic regions, with growth driven by demand for our laboratory water and drug discovery products and services.” Madaus said the growth in its Bioscience operations was offset by a decline in revenues in the company’s Bioprocess division. “The same dynamic
10
Filtration Industry Analyst
that we first saw in the third quarter of 2007 continued this quarter: our Bioprocess business is being adversely affected by a handful of our largest North American biotech customers who are reducing their purchases,” he said. “Outside of revenues associated with these accounts, our other biotech customers are generating double-digit revenue growth and we expect the division’s revenue growth to improve in the second half of 2008.” Madaus said the strategic investments the company had made in its Bioscience division were providing important balance in its business portfolio. “Our broader portfolio enables us to make long-term investments and drive earnings and cash flow growth despite the headwinds we are currently facing from some of our largest Bioprocess customers,” he said. “We remain confident in the attractiveness of the global biotech industry and we are taking steps to further strengthen our organization and competitive position.” ■ www.millipore.com
Polypore has posted first quarter sales of US$145.3 million for fiscal 2008, a 13% increase on 2007, while operating income was 23% stronger at US$30.1 million. First quarter net sales in Polypore’s Energy Storage division net sales were US$104.0 million, up 12% on the previous year. Exchange rate effects were a significant contributor to the sales increase, with the growth falling back to 5% when adjusted for their impact. The division saw 12% growth in sales of lead-acid battery separators, driven by higher volume associated with its acquisition of Microporous during the quarter, price increases and positive exchange rate effects. There was also a 10% growth in sales of lithium battery separators associated with continued strong demand for consumer electronic products and expanding applications for lithium batteries. Operating income for the segment was up 19% at US$23.6 million. In the Separations Media division net sales were US$41.3 million, up 15% on the 2007 figure (4% net of
exchange effects). Within the division, healthcare products recorded sales growth of 18%, driven by strong growth in synthetic hemodialysis membranes and strength in the euro to dollar exchange rate, partially offset by the impact of the company’s exit from the cellulosic hemodialysis membrane market in 2007. Sales of filtration and specialty products were up by 10%, benefiting from good demand for high performance filtration applications and the positive exchange rate effects. Operating income for the Separations Media division was up 42% on the year earlier at US$6.8 million, equivalent to 17% of sales compared with 13% of sales for the prior-year period. Robert Toth, Polypore’s president and CEO said the company was pleased with the solid start to the year. “Our global presence, together with the breadth of markets and applications we serve, contributed to our good performance in the current economic environment,” he said. ■ www..polypore.net
July 2008
Millipore Inc, USA
Polypore Inc, USA
Key Figures (US$ million) First quarter ended 29.3.2008
31.3.2007
396.2
372.0
Bioscience
179.6
Bioprocess
Net Sales
Key Figures (US$ million) First quarter ended 29.3.2008
31.3.2007
145.3
129.0
157.7
Net Sales Of Which: Energy Storage Separations Media
104.0 41.3
93.1 35.9
216.6
214.3
Cost of Goods Sold
90.4
80.9
Cost of Sales
188.1
182.1
Gross Profit
55.4
48.1
Gross Profit
208.1
189.9
24.5
25.0
27.5
Operating Income
57.6
39.6
Operating Income Of Which: Energy Storage Separations Media
30.1
R&D Expenses
23.6 6.8
19.8 4.8
Income before Income Taxes
42.9
23.3
Income from Continuing Operations
10.6
2.1
Net Income
32.6
26.7
Net Income
12.9
2.1
Of Which:
COMMENT
COMMENT Millipore Corp, a provider of products and services for pharmaceutical laboratories, has posted a 7% year-on-year increase for its first quarter fiscal 2008 revenues that have reached US$396.2 million. Favourable currency exchange rates contributed approximately 8% to the revenue growth, without which sales declined 1%. Net income for the first quarter grew 22% on the year earlier to reach US$32.6 million. “The combination of solid performance from our Bioscience division and effective management of our spending enabled us to drive earnings growth and increase our free cash flow by approximately US$40 million in the first quarter,” said Martin Madaus, chair & CEO of Millipore. “Our Bioscience division performed well in all geographic regions, with growth driven by demand for our laboratory water and drug discovery products and services.” Madaus said the growth in its Bioscience operations was offset by a decline in revenues in the company’s Bioprocess division. “The same dynamic
10
Filtration Industry Analyst
that we first saw in the third quarter of 2007 continued this quarter: our Bioprocess business is being adversely affected by a handful of our largest North American biotech customers who are reducing their purchases,” he said. “Outside of revenues associated with these accounts, our other biotech customers are generating double-digit revenue growth and we expect the division’s revenue growth to improve in the second half of 2008.” Madaus said the strategic investments the company had made in its Bioscience division were providing important balance in its business portfolio. “Our broader portfolio enables us to make long-term investments and drive earnings and cash flow growth despite the headwinds we are currently facing from some of our largest Bioprocess customers,” he said. “We remain confident in the attractiveness of the global biotech industry and we are taking steps to further strengthen our organization and competitive position.” ■ www.millipore.com
Polypore has posted first quarter sales of US$145.3 million for fiscal 2008, a 13% increase on 2007, while operating income was 23% stronger at US$30.1 million. First quarter net sales in Polypore’s Energy Storage division net sales were US$104.0 million, up 12% on the previous year. Exchange rate effects were a significant contributor to the sales increase, with the growth falling back to 5% when adjusted for their impact. The division saw 12% growth in sales of lead-acid battery separators, driven by higher volume associated with its acquisition of Microporous during the quarter, price increases and positive exchange rate effects. There was also a 10% growth in sales of lithium battery separators associated with continued strong demand for consumer electronic products and expanding applications for lithium batteries. Operating income for the segment was up 19% at US$23.6 million. In the Separations Media division net sales were US$41.3 million, up 15% on the 2007 figure (4% net of
exchange effects). Within the division, healthcare products recorded sales growth of 18%, driven by strong growth in synthetic hemodialysis membranes and strength in the euro to dollar exchange rate, partially offset by the impact of the company’s exit from the cellulosic hemodialysis membrane market in 2007. Sales of filtration and specialty products were up by 10%, benefiting from good demand for high performance filtration applications and the positive exchange rate effects. Operating income for the Separations Media division was up 42% on the year earlier at US$6.8 million, equivalent to 17% of sales compared with 13% of sales for the prior-year period. Robert Toth, Polypore’s president and CEO said the company was pleased with the solid start to the year. “Our global presence, together with the breadth of markets and applications we serve, contributed to our good performance in the current economic environment,” he said. ■ www..polypore.net
July 2008