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Exhibit 99.1
 
FOR IMMEDIATE RELEASE
 
 
Media Contact Information:
Vaughn Harring
Investor Contact Information:
Ken Apicerno
 
Phone: 781-622-1242
Phone: 781-622-1294
 
E-mail: vaughn.harring@thermofisher.com
E-mail: ken.apicerno@thermofisher.com
 
Website: www.thermofisher.com
 


Thermo Fisher Scientific Reports Record 2008 Fourth Quarter Results from Continuing Operations; Provides Guidance for 2009


WALTHAM, Mass. (February 4, 2009) – Thermo Fisher Scientific Inc. (NYSE: TMO), the world leader in serving science, reported that revenues increased 1% to a record $2.65 billion in the fourth quarter of 2008, compared with $2.62 billion in the 2007 quarter. The quarterly revenue growth reflects the negative impact of currency translation, which lowered revenues by 4%, offset by the positive effect of acquisitions, net of divestitures, which increased revenues by 1%. GAAP diluted earnings per share (EPS) were $0.68 in 2008, versus $0.54 in the year-ago period. GAAP operating income for the 2008 quarter was $322.5 million, compared with $285.0 million in 2007, and GAAP operating margin was 12.2%, compared with 10.9% a year ago.

Adjusted EPS grew 16% to $0.88 in the fourth quarter of 2008, versus $0.76 in the 2007 quarter. Adjusted operating income for the 2008 quarter increased 9% versus 2007 results, and adjusted operating margin expanded 140 basis points to 18.6%, compared with adjusted operating margin of 17.2% in the 2007 period.

For the full year, revenues grew 8% to a record $10.50 billion in 2008, compared with 2007 revenues of $9.75 billion. Currency translation increased revenues by 1%, and acquisitions, net of divestitures, increased revenues by 2%. GAAP diluted EPS was $2.29 in 2008, versus $1.72 in 2007. GAAP operating income in 2008 was $1.23 billion, compared with $974.4 million a year ago, and GAAP operating margin was 11.7% in 2008, compared with 10.0% in 2007. Full-year adjusted EPS grew 19% to $3.16 in 2008, versus $2.65 in 2007. Adjusted operating income for 2008 increased 14% over 2007 results, and adjusted operating margin expanded 100 basis points to 17.8%, compared with adjusted operating margin of 16.8% in 2007.

Adjusted EPS, adjusted operating income, adjusted operating margin and free cash flow are non-GAAP measures that exclude certain items detailed later in this press release under the heading “Use of Non-GAAP Financial Measures.”

Full-Year Highlights
·  
Revenues grew 8% to a record $10.50 billion
·  
Adjusted EPS rose 19%
·  
Adjusted operating income increased 14%
·  
Adjusted operating margin expanded 100 basis points
·  
Generated $1.2 billion of free cash flow
·  
Leveraged approximately $250 million in R&D spending to launch innovative new products
·  
Continued significant investment in Asia to expand offerings for analytical, environmental and biopharma markets
·  
Completed strategic acquisitions that added approximately $120 million in annualized revenues

“We are pleased to report very solid financial results for both the fourth quarter and the full year in spite of the economic headwinds that continue to put pressure on capital spending in some of our end markets,” said Marijn E. Dekkers, president and chief executive officer of Thermo Fisher Scientific. “Our performance is largely the result of our favorable product mix, with two-thirds of our revenues coming from recurring sales of consumables and services that tend to hold up better in an uncertain environment. I also applaud the tremendous effort of our employees – their intensity in achieving our goals allowed us to deliver a strong 2008 across the board. We finished the year with 8% revenue growth, for record top-line results. At the same time, we were able to expand adjusted operating margins by 100 basis points, which led to 19% growth in our adjusted EPS. In addition, we strengthened our balance sheet and generated $1.2 billion of free cash flow for the year.”

Dekkers added, “Looking to 2009, the economic climate will likely continue to restrain capital budgets, especially through the first half of the year. Based on that assumption, and a negative impact of approximately 4% from foreign exchange, we expect to achieve 2009 revenues of $10.0 to $10.3 billion, or a 2 to 5 % decline compared with 2008.

“We expect adjusted EPS for 2009 to be in the range of $3.00 to $3.30. This factors in a $.15 foreign exchange headwind and a $.03 reduction resulting from non-cash interest expense associated with the new convertible debt accounting rule that takes effect in the first quarter. Our 2009 adjusted EPS estimate would lead to a growth range of negative 4% to positive 5% versus 2008 after applying a $.03 reduction to 2008 for the new accounting rule. Our estimates for 2009 reflect our continued investment in opportunities that will drive growth and position us to emerge from this recession an even stronger industry leader.” (The 2009 guidance does not include any future acquisitions or divestitures, and is based on present currency exchange rates. In addition, the adjusted EPS estimate excludes amortization expense for acquisition-related intangible assets and certain other items detailed later in this press release under the heading “Use of Non-GAAP Financial Measures.”)

Management uses adjusted operating results to monitor and evaluate performance of the company’s business segments.

Analytical Technologies Segment

Revenues in the Analytical Technologies Segment declined 1% in the fourth quarter of 2008 to $1.14 billion, compared with 2007 revenues of $1.15 billion. Adjusted operating income increased 6% in the fourth quarter of 2008, and adjusted operating margin rose to 22.4%, versus 2007 results of 20.9%.

For the full year, revenues grew 7% in the Analytical Technologies Segment to $4.47 billion in 2008, compared with $4.18 billion in 2007. Adjusted operating income for the segment grew 16% in 2008, and adjusted operating margin increased to 21.4%, versus 19.7% a year ago.

Laboratory Products and Services Segment

In the Laboratory Products and Services Segment, revenues grew 3% in the fourth quarter of 2008 to $1.62 billion, compared with 2007 revenues of $1.57 billion. Adjusted operating income increased 12% in the fourth quarter of 2008, and adjusted operating margin rose to 14.7%, versus 2007 results of 13.6%.

For the full year, the Laboratory Products and Services Segment reported a 9% increase in revenues to $6.45 billion in 2008, compared with $5.91 billion in 2007. Adjusted operating income for the segment grew 12% in 2008, and adjusted operating margin increased to 14.1%, versus 13.7% a year ago.

The following information was filed by Thermo Fisher Scientific Inc. (TMO) on Wednesday, February 4, 2009 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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