Thermo Fisher Scientific Reports Fourth Quarter and Full Year 2023 Results

Thermo Fisher Scientific Reports Fourth Quarter and Full Year 2023 Results




Thermo Fisher Scientific Reports Fourth Quarter and Full Year 2023 Results

WALTHAM, Mass.–(BUSINESS WIRE)–Thermo Fisher Scientific Inc. (NYSE: TMO), the world leader in serving science, today reported its financial results for the fourth quarter and full year ended December 31, 2023.


Fourth Quarter and Full Year 2023 Highlights

  • Fourth quarter revenue was $10.89 billion, 5% lower versus the same quarter last year. Core organic revenue growth declined 4%.
  • Fourth quarter GAAP diluted EPS was $4.20, 5% higher versus the same quarter last year, driven by 70 basis points of operating margin expansion.
  • Fourth quarter adjusted EPS was $5.67, 5% higher versus the same quarter last year, driven by 100 basis points of adjusted operating margin expansion.
  • Full year revenue was $42.86 billion, 5% lower versus prior year. Core organic revenue growth was 1%.
  • Full year GAAP diluted earnings per share (EPS) was $15.45.
  • Full year adjusted EPS was $21.55.
  • During the year, we strengthened our industry leadership, advanced our trusted partner status with our customers, and delivered differentiated financial performance for our shareholders due to strong execution by our global team enabled by our PPI Business System.
  • Continued to further strengthen our industry-leading commercial engine and deepen our trusted partner status during the year, as demonstrated by our differentiated performance in 2023. This included the addition of a new customer excellence center in Europe, partnering and collaborating with customers on innovative new medicines, and leveraging digital tools to further optimize commercial effectiveness and improve the customer experience. During the fourth quarter, we opened a customer experience center for battery manufacturing in Seoul to support our material science customers as they accelerate the development of the next generation of environmentally friendly energy solutions.
  • Strong year advancing our corporate social responsibility (CSR) priorities. We accelerated our net-zero roadmap with on-site solar projects and power purchase agreements across the Americas, Europe and Asia Pacific regions, advancing our progress toward our target of utilizing 80% renewable electricity globally by 2030. We also progressed our global health equity initiatives by offering expanded access to advanced genomic testing in low- and middle-income countries and launched new initiatives to continue bringing clinical trials to historically underserved patient populations. We further engaged in supporting local communities through our colleague-led STEM education programs.
  • Continued to successfully execute our capital deployment strategy in 2023. During the year we completed the acquisitions of The Binding Site, a leading provider for detection and monitoring of multiple myeloma, and CorEvitas, a leading provider of regulatory-grade, real-world evidence for approved medical treatments and therapies. We also announced an agreement to acquire Olink Holding AB (publ) (“Olink”) (Nasdaq: OLK), a leading solution for advanced proteomics discovery and development. Additionally, we returned $3.5 billion of capital to shareholders through stock buybacks and dividends.

“Thanks to the strong contributions from our team, we delivered differentiated performance in 2023 and enabled our customers’ success,” said Marc N. Casper, chairman, president and chief executive officer of Thermo Fisher Scientific. “We effectively navigated the challenging macroeconomic conditions by leveraging our PPI Business System to deliver strong financial results.”

Casper added, “Our proven growth strategy, capital deployment approach, and PPI Business System, continue to position our company for an even brighter future.”

Fourth Quarter 2023

Revenue for the quarter declined 5% to $10.89 billion in 2023, versus $11.45 billion in 2022. Organic revenue was 7% lower, Core organic revenue growth declined 4%, and COVID-19 testing revenue was $0.05 billion.

GAAP Earnings Results

GAAP diluted EPS in the fourth quarter of 2023 was $4.20, versus $4.01 in the same quarter last year. GAAP operating income for the fourth quarter of 2023 was $1.85 billion, compared with $1.86 billion in the year-ago quarter. GAAP operating margin was 17.0%, compared with 16.3% in the fourth quarter of 2022.

Non-GAAP Earnings Results

Adjusted EPS in the fourth quarter of 2023 was $5.67, versus $5.40 in the fourth quarter of 2022. Adjusted operating income for the fourth quarter of 2023 was $2.55 billion, compared with $2.56 billion in the year-ago quarter. Adjusted operating margin was 23.4%, compared with 22.4% in the fourth quarter of 2022.

Full Year 2023

Revenue for the full year declined 5% to $42.86 billion in 2023, versus $44.92 billion in 2022. Organic revenue was 5% lower, Core organic revenue growth was 1%, and COVID-19 testing revenue was $0.33 billion.

GAAP Earnings Results

GAAP diluted EPS for the full year was $15.45, versus $17.63 in 2022. GAAP operating income for 2023 was $6.86 billion, compared with $8.39 billion a year-ago. GAAP operating margin was 16.0%, compared with 18.7% in 2022.

Non-GAAP Earnings Results

Adjusted EPS for the full year was $21.55, versus $23.24 in 2022. Adjusted operating income for the full year was $9.81 billion, compared with $10.99 billion a year-ago. Adjusted operating margin was 22.9%, compared with 24.5% in 2022.

Annual Guidance for 2024

Thermo Fisher is initiating a guidance range for full year 2024 with revenue of $42.1 billion to $43.3 billion and adjusted EPS of $20.95 to $22.00.

Use of Non-GAAP Financial Measures

Adjusted EPS, adjusted net income, adjusted operating income, adjusted operating margin, free cash flow, organic revenue growth and Core organic revenue growth are non-GAAP measures that exclude certain items detailed after the tables that accompany this press release, under the heading “Supplemental Information Regarding Non-GAAP Financial Measures.” The reconciliations of GAAP to non-GAAP financial measures are provided in the tables that accompany this press release.

Conference Call

During the call, the company will discuss its financial performance, as well as future expectations. To listen, call (833) 470-1428 within the U.S. or (404) 975-4839 outside the U.S. The access code is 718426. You may also listen to the call live on the “Investors” section of our website, www.thermofisher.com. The earnings press release and related information can also be found in that section of our website under the heading “Financials”. A replay of the call will be available under “News, Events & Presentations” through Friday, February 16, 2024.

About Thermo Fisher Scientific

Thermo Fisher Scientific Inc. is the world leader in serving science, with annual revenue over $40 billion. Our Mission is to enable our customers to make the world healthier, cleaner and safer. Whether our customers are accelerating life sciences research, solving complex analytical challenges, increasing productivity in their laboratories, improving patient health through diagnostics or the development and manufacture of life-changing therapies, we are here to support them. Our global team delivers an unrivaled combination of innovative technologies, purchasing convenience and pharmaceutical services through our industry-leading brands, including Thermo Scientific, Applied Biosystems, Invitrogen, Fisher Scientific, Unity Lab Services, Patheon and PPD. For more information, please visit www.thermofisher.com.

Safe Harbor Statement

The following constitutes a “Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements that involve a number of risks and uncertainties. Important factors that could cause actual results to differ materially from those indicated by forward-looking statements include risks and uncertainties relating to: the COVID-19 pandemic; the need to develop new products and adapt to significant technological change; implementation of strategies for improving growth; general economic conditions and related uncertainties; dependence on customers’ capital spending policies and government funding policies; the effect of economic and political conditions and exchange rate fluctuations on international operations; use and protection of intellectual property; the effect of changes in governmental regulations; any natural disaster, public health crisis or other catastrophic event; and the effect of laws and regulations governing government contracts, as well as the possibility that expected benefits related to recent or pending acquisitions, including our pending acquisition of Olink, may not materialize as expected. Additional important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are set forth in our most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q, which are on file with the SEC 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 estimates change and, therefore, you should not rely on these forward-looking statements as representing our views as of any date subsequent to today.

Additional Information and Where to Find It

This communication is for informational purposes only and is neither an offer to purchase nor a solicitation of an offer to sell any common shares or American Depositary Shares of Olink or any other securities, nor is it a substitute for the tender offer materials that Thermo Fisher or Orion Acquisition AB (the “Buyer”) has filed with the SEC. The terms and conditions of the tender offer are published in, and the offer to purchase common shares and American Depositary Shares of Olink is made only pursuant to, the offer document and related offer materials prepared by Thermo Fisher and the Buyer and is filed with the SEC in a tender offer statement on Schedule TO. In addition, Olink has filed a solicitation/recommendation statement on Schedule 14D-9 with the SEC with respect to the tender offer.

THE TENDER OFFER MATERIALS (INCLUDING AN OFFER TO PURCHASE, AN ADS LETTER OF TRANSMITTAL, ACCEPTANCE FORM FOR SHARES AND CERTAIN OTHER TENDER OFFER DOCUMENTS) AND THE SOLICITATION/RECOMMENDATION STATEMENT ON SCHEDULE 14D-9, AS THEY MAY BE AMENDED FROM TIME TO TIME, CONTAIN IMPORTANT INFORMATION. INVESTORS AND SHAREHOLDERS OF OLINK ARE URGED TO READ THESE DOCUMENTS CAREFULLY BECAUSE THEY, AND NOT THIS DOCUMENT, GOVERN THE TERMS AND CONDITIONS OF THE TENDER OFFER, AND BECAUSE THEY CONTAIN IMPORTANT INFORMATION THAT SUCH PERSONS SHOULD CONSIDER BEFORE MAKING ANY DECISION REGARDING TENDERING THEIR COMMON SHARES AND AMERICAN DEPOSITARY SHARES.

The tender offer materials, including the offer to purchase, the related ADS letter of transmittal and acceptance form for shares and certain other tender offer documents, and the solicitation/recommendation statement and other documents filed with the SEC by Thermo Fisher or Olink, may be obtained free of charge at the SEC’s website at www.sec.gov, at Olink’s website https://investors.olink.com/investor-relations, at Thermo Fisher’s website at www.thermofisher.com or by contacting Thermo Fisher’s investor relations department at 781-622-1111.

Condensed Consolidated Statements of Income (unaudited)

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

December 31,

 

% of

 

December 31,

 

% of

(Dollars in millions except per share amounts)

 

 

2023

 

 

Revenues

 

 

2022

 

 

Revenues

Revenues

 

$

10,886

 

 

 

 

$

11,450

 

 

 

Costs and operating expenses:

 

 

 

 

 

 

 

 

Cost of revenues (a)

 

 

6,390

 

 

58.7

%

 

 

6,715

 

 

58.6

%

Selling, general and administrative expenses (b)

 

 

1,672

 

 

15.4

%

 

 

1,836

 

 

16.0

%

Amortization of acquisition-related intangible assets

 

 

563

 

 

5.2

%

 

 

592

 

 

5.2

%

Research and development expenses

 

 

327

 

 

3.0

%

 

 

391

 

 

3.4

%

Restructuring and other costs (c)

 

 

80

 

 

0.7

%

 

 

55

 

 

0.5

%

Total costs and operating expenses

 

 

9,032

 

 

83.0

%

 

 

9,589

 

 

83.7

%

Operating income

 

 

1,854

 

 

17.0

%

 

 

1,861

 

 

16.3

%

Interest income

 

 

309

 

 

 

 

 

150

 

 

 

Interest expense

 

 

(390

)

 

 

 

 

(269

)

 

 

Other income/(expense) (d)

 

 

(33

)

 

 

 

 

35

 

 

 

Income before income taxes

 

 

1,740

 

 

 

 

 

1,777

 

 

 

Provision for income taxes (e)

 

 

(133

)

 

 

 

 

(173

)

 

 

Equity in earnings/(losses) of unconsolidated entities

 

 

(1

)

 

 

 

 

(30

)

 

 

Net income

 

 

1,606

 

 

 

 

 

1,574

 

 

 

Less: net income/(losses) attributable to noncontrolling interests and redeemable noncontrolling interest

 

 

(24

)

 

 

 

 

(2

)

 

 

Net income attributable to Thermo Fisher Scientific Inc.

 

$

1,630

 

 

15.0

%

 

$

1,576

 

 

13.8

%

 

 

 

 

 

 

 

 

 

Earnings per share attributable to Thermo Fisher Scientific Inc.:

 

 

 

 

 

 

 

 

Basic

 

$

4.22

 

 

 

 

$

4.03

 

 

 

Diluted

 

$

4.20

 

 

 

 

$

4.01

 

 

 

Weighted average shares:

 

 

 

 

 

 

 

 

Basic

 

 

387

 

 

 

 

 

391

 

 

 

Diluted

 

 

388

 

 

 

 

 

393

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of adjusted operating income and adjusted operating margin

 

 

 

 

 

 

 

 

GAAP operating income

 

$

1,854

 

 

17.0

%

 

$

1,861

 

 

16.3

%

Cost of revenues adjustments (a)

 

 

22

 

 

0.2

%

 

 

5

 

 

0.0

%

Selling, general and administrative expenses adjustments (b)

 

 

31

 

 

0.3

%

 

 

47

 

 

0.4

%

Restructuring and other costs (c)

 

 

80

 

 

0.7

%

 

 

55

 

 

0.5

%

Amortization of acquisition-related intangible assets

 

 

563

 

 

5.2

%

 

 

592

 

 

5.2

%

Adjusted operating income (non-GAAP measure)

 

$

2,550

 

 

23.4

%

 

$

2,560

 

 

22.4

%

 

 

 

 

 

 

 

 

 

Reconciliation of adjusted net income

 

 

 

 

 

 

 

 

GAAP net income attributable to Thermo Fisher Scientific Inc.

 

$

1,630

 

 

 

 

$

1,576

 

 

 

Cost of revenues adjustments (a)

 

 

22

 

 

 

 

 

5

 

 

 

Selling, general and administrative expenses adjustments (b)

 

 

31

 

 

 

 

 

47

 

 

 

Restructuring and other costs (c)

 

 

80

 

 

 

 

 

55

 

 

 

Amortization of acquisition-related intangible assets

 

 

563

 

 

 

 

 

592

 

 

 

Other income/expense adjustments (d)

 

 

14

 

 

 

 

 

(46

)

 

 

Provision for income taxes adjustments (e)

 

 

(111

)

 

 

 

 

(138

)

 

 

Equity in earnings/losses of unconsolidated entities

 

 

1

 

 

 

 

 

30

 

 

 

Noncontrolling interests adjustments (f)

 

 

(27

)

 

 

 

 

 

 

 

Adjusted net income (non-GAAP measure)

 

$

2,203

 

 

 

 

$

2,121

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of adjusted earnings per share

 

 

 

 

 

 

 

 

GAAP diluted EPS attributable to Thermo Fisher Scientific Inc.

 

$

4.20

 

 

 

 

$

4.01

 

 

 

Cost of revenues adjustments (a)

 

 

0.06

 

 

 

 

 

0.01

 

 

 

Selling, general and administrative expenses adjustments (b)

 

 

0.08

 

 

 

 

 

0.12

 

 

 

Restructuring and other costs (c)

 

 

0.20

 

 

 

 

 

0.14

 

 

 

Amortization of acquisition-related intangible assets

 

 

1.45

 

 

 

 

 

1.50

 

 

 

Other income/expense adjustments (d)

 

 

0.04

 

 

 

 

 

(0.11

)

 

 

Provision for income taxes adjustments (e)

 

 

(0.29

)

 

 

 

 

(0.35

)

 

 

Equity in earnings/losses of unconsolidated entities

 

 

0.00

 

 

 

 

 

0.08

 

 

 

Noncontrolling interests adjustments (f)

 

 

(0.07

)

 

 

 

 

0.00

 

 

 

Adjusted EPS (non-GAAP measure)

 

$

5.67

 

 

 

 

$

5.40

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of free cash flow

 

 

 

 

 

 

 

 

GAAP net cash provided by operating activities

 

$

3,723

 

 

 

 

$

3,487

 

 

 

Purchases of property, plant and equipment

 

 

(405

)

 

 

 

 

(550

)

 

 

Proceeds from sale of property, plant and equipment

 

 

11

 

 

 

 

 

6

 

 

 

Free cash flow (non-GAAP measure)

 

$

3,329

 

 

 

 

$

2,943

 

 

 

Business Segment Information

 

Three months ended

 

 

December 31,

 

% of

 

December 31,

 

% of

(Dollars in millions)

 

 

2023

 

 

Revenues

 

 

2022

 

 

Revenues

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

Life Sciences Solutions

 

$

2,469

 

 

22.7

%

 

$

3,046

 

 

26.6

%

Analytical Instruments

 

 

2,037

 

 

18.7

%

 

 

1,878

 

 

16.4

%

Specialty Diagnostics

 

 

1,105

 

 

10.2

%

 

 

1,115

 

 

9.7

%

Laboratory Products and Biopharma Services

 

 

5,719

 

 

52.5

%

 

 

5,947

 

 

51.9

%

Eliminations

 

 

(444

)

 

-4.1

%

 

 

(536

)

 

-4.6

%

Consolidated revenues

 

$

10,886

 

 

100.0

%

 

$

11,450

 

 

100.0

%

 

 

 

 

 

 

 

 

 

Segment income and segment income margin

 

 

 

 

 

 

 

 

Life Sciences Solutions

 

$

895

 

 

36.2

%

 

$

1,040

 

 

34.1

%

Analytical Instruments

 

 

587

 

 

28.8

%

 

 

476

 

 

25.4

%

Specialty Diagnostics

 

 

264

 

 

23.9

%

 

 

208

 

 

18.6

%

Laboratory Products and Biopharma Services

 

 

804

 

 

14.0

%

 

 

836

 

 

14.1

%

Subtotal reportable segments

 

 

2,550

 

 

23.4

%

 

 

2,560

 

 

22.4

%

Cost of revenues adjustments (a)

 

 

(22

)

 

-0.2

%

 

 

(5

)

 

0.0

%

Selling, general and administrative expenses adjustments (b)

 

 

(31

)

 

-0.3

%

 

 

(47

)

 

-0.4

%

Restructuring and other costs (c)

 

 

(80

)

 

-0.7

%

 

 

(55

)

 

-0.5

%

Amortization of acquisition-related intangible assets

 

 

(563

)

 

-5.2

%

 

 

(592

)

 

-5.2

%

Consolidated GAAP operating income

 

$

1,854

 

 

17.0

%

 

$

1,861

 

 

16.3

%

(a) Adjusted results in 2023 exclude $19 of charges for the sale of inventory revalued at the date of acquisition. Adjusted results in 2023 also exclude $3 of accelerated depreciation on manufacturing assets to be abandoned due to facility consolidations. Adjusted results in 2022 exclude charges for inventory write-downs associated with large-scale abandonment of product lines.

(b) Adjusted results in 2023 and 2022 exclude certain third-party expenses, principally transaction/integration costs related to recent acquisitions, charges/credits for changes in estimates of contingent acquisition consideration, and charges associated with product liability litigation.

(c) Adjusted results in 2023 and 2022 exclude restructuring and other costs consisting principally of severance, impairments of long-lived assets, charges for environmental-related matters, abandoned facility, and other expenses of headcount reductions and real estate consolidations. Adjusted results in 2023 also exclude $3 of gains on the sale of real estate. Adjusted results in 2022 also exclude $14 of gain on the sale of intellectual property.

(d) Adjusted results in 2023 and 2022 exclude net gains/losses on investments. Adjusted results in 2022 also exclude $67 of net gains on derivative instruments to address certain foreign currency risks.

(e) Adjusted results in 2023 and 2022 exclude incremental tax impacts for the reconciling items between GAAP and adjusted net income, incremental tax impacts as a result of tax rate/law changes, and the tax impacts from audit settlements. Adjusted results in 2023 also exclude $14 of charges for pre-acquisition matters.

(f) Adjusted results exclude the incremental impacts for the reconciling items between GAAP and adjusted net income attributable to noncontrolling interests.

Note:

Consolidated depreciation expense is $276 and $256 in 2023 and 2022, respectively.

Organic and Core organic revenue growth

 

Three months ended

 

 

December 31, 2023

Revenue growth

 

-5%

Acquisitions

 

1%

Currency translation

 

1%

Organic revenue growth (non-GAAP measure) *

 

-7%

COVID-19 testing revenue

 

-3%

Core organic revenue growth (non-GAAP measure) *

 

-4%

* Results may not sum due to rounding.

 

 

Note:

For more information related to non-GAAP financial measures, refer to the section titled “Supplemental Information Regarding Non-GAAP Financial Measures” of this release.

Condensed Consolidated Statements of Income (unaudited)

 

 

 

 

 

 

 

 

 

 

Year ended

 

 

December 31,

 

% of

 

December 31,

 

% of

(Dollars in millions except per share amounts)

 

 

2023

 

 

Revenues

 

 

2022

 

 

Revenues

Revenues

 

$

42,857

 

 

 

 

$

44,915

 

 

 

Costs and operating expenses:

 

 

 

 

 

 

 

 

Cost of revenues (a)

 

 

25,295

 

 

59.0

%

 

 

25,415

 

 

56.6

%

Selling, general and administrative expenses (b)

 

 

6,569

 

 

15.3

%

 

 

7,127

 

 

15.9

%

Amortization of acquisition-related intangible assets

 

 

2,338

 

 

5.5

%

 

 

2,395

 

 

5.3

%

Research and development expenses

 

 

1,337

 

 

3.1

%

 

 

1,471

 

 

3.3

%

Restructuring and other costs (c)

 

 

459

 

 

1.1

%

 

 

114

 

 

0.3

%

Total costs and operating expenses

 

 

35,998

 

 

84.0

%

 

 

36,522

 

 

81.3

%

Operating income

 

 

6,859

 

 

16.0

%

 

 

8,393

 

 

18.7

%

Interest income

 

 

879

 

 

 

 

 

272

 

 

 

Interest expense

 

 

(1,375

)

 

 

 

 

(726

)

 

 

Other income/(expense) (d)

 

 

(65

)

 

 

 

 

(104

)

 

 

Income before income taxes

 

 

6,298

 

 

 

 

 

7,835

 

 

 

Provision for income taxes (e)

 

 

(284

)

 

 

 

 

(703

)

 

 

Equity in earnings/(losses) of unconsolidated entities

 

 

(59

)

 

 

 

 

(172

)

 

 

Net income

 

 

5,955

 

 

 

 

 

6,960

 

 

 

Less: net income/(losses) attributable to noncontrolling interests and redeemable noncontrolling interest

 

 

(40

)

 

 

 

 

10

 

 

 

Net income attributable to Thermo Fisher Scientific Inc.

 

$

5,995

 

 

14.0

%

 

$

6,950

 

 

15.5

%

 

 

 

 

 

 

 

 

 

Earnings per share attributable to Thermo Fisher Scientific Inc.:

 

 

 

 

 

 

 

 

Basic

 

$

15.52

 

 

 

 

$

17.75

 

 

 

Diluted

 

$

15.45

 

 

 

 

$

17.63

 

 

 

Weighted average shares:

 

 

 

 

 

 

 

 

Basic

 

 

386

 

 

 

 

 

392

 

 

 

Diluted

 

 

388

 

 

 

 

 

394

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of adjusted operating income and adjusted operating margin

 

 

 

 

 

 

 

 

GAAP operating income

 

$

6,859

 

 

16.0

%

 

$

8,393

 

 

18.7

%

Cost of revenues adjustments (a)

 

 

95

 

 

0.2

%

 

 

46

 

 

0.1

%

Selling, general and administrative expenses adjustments (b)

 

 

59

 

 

0.1

%

 

 

37

 

 

0.1

%

Restructuring and other costs (c)

 

 

459

 

 

1.1

%

 

 

114

 

 

0.3

%

Amortization of acquisition-related intangible assets

 

 

2,338

 

 

5.5

%

 

 

2,395

 

 

5.3

%

Adjusted operating income (non-GAAP measure)

 

$

9,810

 

 

22.9

%

 

$

10,985

 

 

24.5

%

 

 

 

 

 

 

 

 

 

Reconciliation of adjusted net income

 

 

 

 

 

 

 

 

GAAP net income attributable to Thermo Fisher Scientific Inc.

 

$

5,995

 

 

 

 

$

6,950

 

 

 

Cost of revenues adjustments (a)

 

 

95

 

 

 

 

 

46

 

 

 

Selling, general and administrative expenses adjustments (b)

 

 

59

 

 

 

 

 

37

 

 

 

Restructuring and other costs (c)

 

 

459

 

 

 

 

 

114

 

 

 

Amortization of acquisition-related intangible assets

 

 

2,338

 

 

 

 

 

2,395

 

 

 

Other income/expense adjustments (d)

 

 

50

 

 

 

 

 

117

 

 

 

Provision for income taxes adjustments (e)

 

 

(645

)

 

 

 

 

(672

)

 

 

Equity in earnings/losses of unconsolidated entities

 

 

59

 

 

 

 

 

172

 

 

 

Noncontrolling interests adjustments (f)

 

 

(46

)

 

 

 

 

 

 

 

Adjusted net income (non-GAAP measure)

 

$

8,364

 

 

 

 

$

9,159

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of adjusted earnings per share

 

 

 

 

 

 

 

 

GAAP diluted EPS attributable to Thermo Fisher Scientific Inc.

 

$

15.45

 

 

 

 

$

17.63

 

 

 

Cost of revenues adjustments (a)

 

 

0.24

 

 

 

 

 

0.12

 

 

 

Selling, general and administrative expenses adjustments (b)

 

 

0.15

 

 

 

 

 

0.09

 

 

 

Restructuring and other costs (c)

 

 

1.18

 

 

 

 

 

0.29

 

 

 

Amortization of acquisition-related intangible assets

 

 

6.03

 

 

 

 

 

6.07

 

 

 

Other income/expense adjustments (d)

 

 

0.13

 

 

 

 

 

0.30

 

 

 

Provision for income taxes adjustments (e)

 

 

(1.66

)

 

 

 

 

(1.70

)

 

 

Equity in earnings/losses of unconsolidated entities

 

 

0.15

 

 

 

 

 

0.44

 

 

 

Noncontrolling interests adjustments (f)

 

 

(0.12

)

 

 

 

 

0.00

 

 

 

Adjusted EPS (non-GAAP measure)

 

$

21.55

 

 

 

 

$

23.24

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of free cash flow

 

 

 

 

 

 

 

 

GAAP net cash provided by operating activities

 

$

8,406

 

 

 

 

$

9,154

 

 

 

Purchases of property, plant and equipment

 

 

(1,479

)

 

 

 

 

(2,243

)

 

 

Proceeds from sale of property, plant and equipment

 

 

87

 

 

 

 

 

24

 

 

 

Free cash flow (non-GAAP measure)

 

$

7,014

 

 

 

 

$

6,935

 

 

 

Business Segment Information

 

Year ended

 

 

December 31,

 

% of

 

December 31,

 

% of

(Dollars in millions)

 

 

2023

 

 

Revenues

 

 

2022

 

 

Revenues

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

Life Sciences Solutions

 

$

9,977

 

 

23.3

%

 

$

13,532

 

 

30.1

%

Analytical Instruments

 

 

7,263

 

 

16.9

%

 

 

6,624

 

 

14.7

%

Specialty Diagnostics

 

 

4,405

 

 

10.3

%

 

 

4,763

 

 

10.6

%

Laboratory Products and Biopharma Services

 

 

23,041

 

 

53.8

%

 

 

22,511

 

 

50.1

%

Eliminations

 

 

(1,829

)

 

-4.3

%

 

 

(2,515

)

 

-5.5

%

Consolidated revenues

 

$

42,857

 

 

100.0

%

 

$

44,915

 

 

100.0

%

 

 

 

 

 

 

 

 

 

Segment income and segment income margin

 

 

 

 

 

 

 

 

Life Sciences Solutions

 

$

3,420

 

 

34.3

%

 

$

5,582

 

 

41.2

%

Analytical Instruments

 

 

1,908

 

 

26.3

%

 

 

1,507

 

 

22.8

%

Specialty Diagnostics

 

 

1,124

 

 

25.5

%

 

 

1,024

 

 

21.5

%

Laboratory Products and Biopharma Services

 

 

3,358

 

 

14.6

%

 

 

2,872

 

 

12.8

%

Subtotal reportable segments

 

 

9,810

 

 

22.9

%

 

 

10,985

 

 

24.5

%

Cost of revenues adjustments (a)

 

 

(95

)

 

-0.2

%

 

 

(46

)

 

-0.1

%

Selling, general and administrative expenses adjustments (b)

 

 

(59

)

 

-0.1

%

 

 

(37

)

 

-0.1

%

Restructuring and other costs (c)

 

 

(459

)

 

-1.1

%

 

 

(114

)

 

-0.3

%

Amortization of acquisition-related intangible assets

 

 

(2,338

)

 

-5.5

%

 

 

(2,395

)

 

-5.3

%

Consolidated GAAP operating income

 

$

6,859

 

 

16.0

%

 

$

8,393

 

 

18.7

%

Contacts

Media Contact Information:

Sandy Pound

Thermo Fisher Scientific

Phone: 781-622-1223

E-mail: sandy.pound@thermofisher.com

Investor Contact Information:

Rafael Tejada

Thermo Fisher Scientific

Phone: 781-622-1356

E-mail: rafael.tejada@thermofisher.com

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