SigmaAldrich Corp. Reports Operating Results (10-K)

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Feb 13, 2012
SigmaAldrich Corp. (SIAL, Financial) filed Annual Report for the period ended 2011-12-31.

Sigmaaldrich Corp. has a market cap of $8.37 billion; its shares were traded at around $71.07 with a P/E ratio of 18.59 and P/S ratio of 3.34. The dividend yield of Sigmaaldrich Corp. stocks is 1.04%. Sigmaaldrich Corp. had an annual average earning growth of 13% over the past 10 years. GuruFocus rated Sigmaaldrich Corp. the business predictability rank of 5-star.

Highlight of Business Operations:

Research Specialties total sales were $924 for the year ended December 31, 2011 compared to $845 for 2010. Organic sales increased by $20 or 2.3 percent. The increase was concentrated primarily in our analytical, biochemistry and traditional chemistry products which increased $10, $4 and $3, respectively. All geographic regions experienced improved demand over the prior year.

SAFC total sales were $728 for the year ended December 31, 2011 compared to $647 for 2010. Organic sales increased by $56 or 8.6 percent. The primary drivers for this increase were higher sales of industrial cell culture media of $22, growth in the sale of bulk chemical products for manufacturing in our supply solutions business of $18 and higher demand of materials and precursors for semi-conductor and light emitting diode applications in our Hitech business of $14.

Research Specialties total sales were $845 for the year ended December 31, 2010 compared to $796 for 2009. Organic sales increased by $44 or 5.6 percent. The increase was largely driven by higher demand for our analytical chemistry products amounting to $17 of the organic increase and higher demand for our traditional chemistry and biochemistry products increasing by $14 and $8, respectively as compared to the prior year. All geographic regions experienced improved demand over the prior year.

SAFC total sales were $647 for the year ended December 31, 2010 compared to $593 for 2009. Excluding the effects of changes in foreign currency exchange rates, sales increased by $55 or 9.3 percent. The primary drivers for this increase were strong growth of materials and precursors for semi-conductor and light emitting diode applications in our Hitech business which added $28, growth in our industrial cell culture media business for biological drugs which added $18 and growth in the sale of bulk chemical products for manufacturing in our supply solutions business which added $18. These increases were partially offset by a decrease of $20 due to the non-repeating nature of the H1N1 vaccine adjuvant business in 2009.

Cost of products sold represents materials, labor, distribution and overhead costs associated with the Companys products, services and facilities. Cost of sales for the year ended December 31, 2011 was $1,181 compared to $1,075 in 2010, an increase of $106 or 9.9 percent. For the year ended December 31, 2011, when compared to the prior year, the increase in cost of sales primarily related to higher material, manufacturing and distribution expenses resulting from higher sales volume and mix of $46, changes in foreign currency exchange rates which increased cost of sales by $38 and acquisitions which added $22 to cost of sales. Cost of sales for the year ended December 31, 2010 was $1,075 compared to $1,058 in 2009, an increase of $17 or 1.6 percent. For the year ended December 31, 2010, when compared to the prior year, changes in foreign currency exchange rates lowered cost of sales by $11, but these decreases were more than fully offset by increases in the cost of sales due primarily to higher material, manufacturing and distribution expenses resulting from higher sales volumes and product mix.

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