After achieving record sales levels in each of the last two quarters, SAFC is expected to once again set a new record for sales during the final quarter of 2007, just as it did in the final quarter of 2006. SAFC expects organic growth exceeding 7% for both the fourth quarter and the full year. As noted above, the acquisition of Epichem Group, an innovator in developing and supplying high performance semiconductor materials, is expected to add two percentage points to total Company organic sales growth for full year 2007. The Q2 2007 addition of Molecular Medicine Biosciences, which has been largely integrated into the SAFC Pharma business, will not be separately reported.
Ongoing efforts to identify and pursue other desirable acquisition candidates may further enhance growth in 2007 and 2008 as we continue to expect roughly 3% in overall additional annual revenue growth through the acquisition of strategically important products, services, platform technologies, businesses and facilities. If exchange rates remain at September 30, 2007 levels, currency would contribute in excess of four percentage points to overall reported sales growth for 2007.
Based on results for the first nine months of 2007, the sales
expectations described above, currency rates remaining at September 30,
2007 levels, the expected pretax margin and tax rate described below, and
other expectations for our business, we have increased our previously
reported diluted earnings per share forecast by $.05 to a new range of
$2.25 to $2.35, a 10% to 15% increase over 2006's $2.05. This newest upward
revision is largely the result of our expectations for modest improvements
in pretax margins and currency contributions and a more favorable full year
tax rate from our prior forecast. Pretax income margins for the full year
should be largely in line with the 21.5% achieved in the first nine months
of 2007, improving on our earlier forecast to match the 21.1% achieved in
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