Thermo Profit Tops Street; '09 Revenue Decline Seen

NEW YORK — Scientific instrument maker Thermo Fisher Scientific reported higher-than-expected fourth-quarter profit, but forecast declining revenue for 2009 as it expects tough economic conditions to hold back customer spending.

"The economic climate will likely continue to restrain capital budgets, especially through the first half of the year," Chief Executive Marijn Dekkers said in a statement.

Thermo forecast 2009 revenue of $10 billion to $10.3 billion, a 2 percent to 5 percent decline from 2008.

The company expects adjusted 2009 earnings of $3 to $3.30 per share, with unfavorable foreign exchange rates due to a stronger dollar potentially sapping 15 cents a share from profits.

Analysts were expecting 2009 adjusted earnings of $3.32 per share on revenue of $10.46 billion, according to Reuters Estimates.

But Thermo shares rose more than 3 percent as the stronger-than-expected fourth quarter and more clarity about what to expect this year gave investors confidence.

"What we saw was the fourth quarter was OK, and the outlook, while things have slowed a bit they are not falling off a cliff," said Quintin Lai, an analyst with Robert Baird.

"So it's the lifting of uncertainty and putting an updated number on what the FX (foreign exchange) negative impact is that has allowed investors to say 'OK I can buy the stock because I don't need to fear that another uncertainty shoe is going to drop on me,'" Lai said, adding that Wall Street sees potential for revenue growth in the second half of the year.

Source: Reuters