Biopharma holds back PE

PerkinElmer today reported third-quarter revenues of $367.1 million (€311m), at around the same level as the same period of 2002, but cost-cutting helped net income rise 45 per cent to $14.4 million.

The company, which provides instruments, reagents and consumables for the life sciences industry as well as optoelectronics and fluid handling systems, said that its earnings per share were $0.15 for the quarter, a cent ahead of analysts' expectations.

The Life & Analytical Sciences division, which covers its pharmaceutical manufacturing and drug discovery operations, saw its revenues rise 1 per cent to $235.1 million, with growth in reagents, consumables and service was partially offset by declines in instruments sales compared to the third quarter of 2002.

Sales into the biopharmaceutical markets were down, and the division was propped up by demand in the environmental and chemical market segments. However, the company suggested that demand for its high-end instruments showed signs of improvement.

Genetic screening revenue during the quarter of was down, due to the timing of customer order patterns compared to third-quarter 2002. The company expects its genetic screening revenues will continue to track to double-digit growth for the full year.

Operating profit in life sciences improved to $21.1 million from $9.6 million, helped by a period of restructuring and cost cutting at the division and a shift in emphasis towards higher-margin product lines.

The Optoelectronics division put in a 4 per cent increase in revenues to $88.1 million, while Fluid Sciences' sales declined 10 per cent to $43.9 million because of softness in its key semiconductor and aerospace markets.

PE said it is on track to achieve the upper end of its original forecast for full-year 2003 net earnings per share of $0.37 -$0.43.