Thermo Fisher says profit fell due to debt retirement and amortization costs, but sales grew

Thermo Fisher 4Q profit falls 5 percent on charges

WALTHAM, Mass. — Thermo Fisher Scientific said Wednesday that its profit fell 5 percent in the fourth quarter due to a spate of charges related to cost cuts the company says are needed for long-term growth.

The scientific instrument maker’s products can be very expensive and thus, items that some of its customers have put off during the recession.

There are some signs that spending has begun to pick up, and CEO Marc Casper said “prudent cost-cutting” and expansion in Asia will help the company going forward.

Thermo Fisher’s profit for the quarter was $273.3 million, or 65 cents per share, down from $287 million, or 67 cents per share a year ago. The results included higher amortization costs, restructuring expenses, and charges from early retirement of debt. Excluding those and other items, Thermo Fisher said it earned 91 cents per share. Revenue grew 7 percent, to $2.84 billion from $2.65 billion.

Analysts expected a profit of 88 cents per share and $2.74 billion in revenue, according to a Thomson Reuters survey.

Thermo Fisher Scientific Inc. said revenue from its analytical technologies business rose 5 percent, to $1.19 billion from $1.14 billion, and laboratory products and services revenue grew 10 percent, to $1.77 billion from $1.62 billion.

The total includes $126.8 million in revenue that overlaps the two segments.

For the full year 2009, Thermo Fisher’s profit fell 13 percent, to $850.3 million, or $2.01 per share, from $980.9 million, or $2.25 per share. Excluding one-time charges the company said its profit slipped to $3.05 per share from $3.13 per share. Revenue fell 4 percent, to $10.11 billion from $10.5 billion.

The company forecast a profit of $3.30 to $3.45 per share in 2010, and said revenue will grow 5 to 7 percent, to $10.6 billion to $10.8 billion. Analysts are expecting $3.38 per share on revenue of $10.6 billion.