Thermo Fisher Scientific (TMO)
Q4 2012 Earnings Call
January 31, 2013 8:30 am ET
Kenneth J. Apicerno - Vice President of Investor Relations and Treasurer
Marc N. Casper - Chief Executive Officer, President, Director, Member of Strategy & Finance Committee and Member of Science & Technology Committee
Peter M. Wilver - Chief Financial Officer and Senior Vice President
Ross Muken - ISI Group Inc., Research Division
Jonathan P. Groberg - Macquarie Research
Daniel Brennan - Morgan Stanley, Research Division
Tycho W. Peterson - JP Morgan Chase & Co, Research Division
Isaac Ro - Goldman Sachs Group Inc., Research Division
Daniel Arias - UBS Investment Bank, Research Division
Jon Davis Wood - Jefferies & Company, Inc., Research Division
Doug Schenkel - Cowen and Company, LLC, Research Division
Steve Willoughby - Cleveland Research Company
Jeffrey T. Elliott - Robert W. Baird & Co. Incorporated, Research Division
Derik De Bruin - BofA Merrill Lynch, Research Division
Previous Statements by TMO
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Kenneth J. Apicerno
Good morning, and thank you for joining us. On the call with me today is Marc Casper, our President and Chief Executive Officer; and Pete Wilver, Senior Vice President and Chief Financial Officer. Please note this call is being webcast live and will be archived on the Investors section of our website, thermofisher.com, under the heading Webcasts & Presentations until March 1 this year. A copy of the press release of our 2012 fourth quarter and full year earnings and future expectations is available on our website under the heading Financial Results.
So before we begin, let me briefly cover our Safe Harbor statement. Various remarks that we may make about the company's future expectations, plans and prospects constitute forward-looking statements for purposes of the Safe Harbor provisions under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including those discussed in the company's quarterly report on Form 10-Q for the quarter ended September 29, 2012, under the caption Risk Factors, which is on file with the Securities and Exchange Commission and available in the Investors section of our website under the heading SEC Filings. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our estimates change. Therefore, you should not rely on these forward-looking statements as representing our views as of any date subsequent to today.
Also, during the call today we'll be referring to certain financial measures not prepared in accordance with generally accepted accounting principles or GAAP. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures is available in the press release of our fourth quarter 2012 earnings and future expectations and also in the Investors section of our website under the heading Financial Information. So with that, I'll now turn the call over to Marc.
Marc N. Casper
Thanks, Ken, and good morning, everyone. I'm glad you could join us today for our 2012 fourth quarter, and year-end earnings call. I've been looking forward to this call because we're reporting another great quarter and a strong finish to what has turned out to be an outstanding year for us. I'm very proud of what our team has accomplished in 2012 in spite of the challenging environment. It reinforces to me that our team is second to none and our position as the global industry leader is only getting stronger. We have a proven strategy, a sound operating plan and a well-executed -- and we executed well to deliver record revenue and adjusted EPS performance. This morning, I'll cover the Q4 financial highlights first, discuss what we saw in our end markets, then get into what I consider to be our key takeaways for the year. I'll wrap up by setting the stage for 2013 with our annual guidance.
So turning to the quarter. As you read in our press release, we continued our trend of consistently delivering strong double-digit adjusted EPS growth. We set a Q4 record with a 14% increase in adjusted EPS. Revenue for the quarter was also a record, growing 6% year-over-year. And we achieved a 7% increase in our adjusted operating income and operating margin of 19.6%. So thanks to the strong execution by our teams, we were able to deliver another excellent quarter. Now let me take a few minutes to put our performance in the context of our 4 primary end markets.
I'll start with pharma and biotech, which continues to be our strongest end market. I'm pleased to report that the excellent momentum we've had all year carried into Q4, with growth in the high single digits. Our BioProcess Production and clinical trials logistics businesses stood out again this quarter. And in general, we're really executing well commercially to leverage our capabilities across the company for our biopharma customers. Our value proposition is making a difference for these customers, and it's pretty clear from our top line performance that we continue to gain share.
In health care and diagnostics, we delivered a good quarter, with our Specialty Diagnostics businesses generating mid-single-digit growth. We continued to see strong demand for our biomarker test and clinical diagnostic products as we have all year and we also benefited from the strong flu season. Another dynamic worth noting geographically, we're leveraging our extensive presence in the Asia-Pacific to meet the growing needs for the health care in that region, and we're starting to see the benefit there.