Thermo Fisher Scientific Inc. (TMO) has reported a 4.46 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $629.50 million, or $1.59 a share in the quarter, compared with $602.60 million, or $1.50 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $956.50 million, or $2.41 a share compared with $852.90 million or $2.12 a share, a year ago.
Revenue during the quarter grew 6.46 percent to $4,953.20 million from $4,652.50 million in the previous year period. Gross margin for the quarter expanded 103 basis points over the previous year period to 48.59 percent. Total expenses were 84.81 percent of quarterly revenues, down from 85.16 percent for the same period last year. This has led to an improvement of 36 basis points in operating margin to 15.19 percent.
Operating income for the quarter was $752.60 million, compared with $690.20 million in the previous year period.
However, the adjusted operating income for the quarter stood at $1,227.10 million compared to $1,081.10 million in the prior year period. At the same time, adjusted operating margin improved 154 basis points in the quarter to 24.77 percent from 23.24 percent in the last year period.
"I’m pleased to report that we achieved the goals we laid out for 2016, and successfully executed our strategy to deliver another excellent year," said Marc N. Casper, president and chief executive officer of Thermo Fisher Scientific."
Operating cash flow improves
Thermo Fisher Scientific Inc. has generated cash of $3,156.30 million from operating activities during the year, up 12.05 percent or $339.40 million, when compared with the last year.
The company has spent $5,532.10 million cash to meet investing activities during the year as against cash outgo of $1,087.40 million in the last year. It has incurred net capital expenditure of $418.10 million on net basis during the year, up 3.29 percent or $13.30 million from year ago.
Cash flow from financing activities was $2,860.60 million for the year as against cash outgo of $2,491.30 million in the last year period.
Cash and cash equivalents stood at $786.20 million as on Dec. 31, 2016, up 73.90 percent or $334.10 million from $452.10 million on Dec. 31, 2015.
Debt increases substantially
Thermo Fisher Scientific Inc. has witnessed an increase in total debt over the last one year. It stood at $16,627.90 million as on Dec. 31, 2016, up 33.32 percent or $4,155.90 million from $12,472 million on Dec. 31, 2015. Total debt was 36.28 percent of total assets as on Dec. 31, 2016, compared with 30.50 percent on Dec. 31, 2015. Debt to equity ratio was at 0.77 as on Dec. 31, 2016, up from 0.58 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 5.73 for the quarter from 6.70 for the same period last year.
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