In the Laboratory Products and Services Segment, revenues grew 10% in the fourth quarter of 2007 to $1.55 billion, compared with pro forma 2006 revenues of $1.40 billion. Operating income increased 19% in the fourth quarter of 2007, and operating margin rose to 13.4%, versus pro forma 2006 results of 12.4%.
For the full year, pro forma segment revenues grew 7% to $5.84 billion in 2007, compared with $5.44 billion in 2006. Pro forma adjusted operating income for the segment grew 20% in 2007, and pro forma adjusted operating margin increased to 13.6%, versus 12.2% a year ago.
Use of Non-GAAP Financial Measures
In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), we use certain non-GAAP financial measures, including adjusted EPS, adjusted operating income and adjusted operating margin, which exclude restructuring and other costs/income and amortization of acquisition-related intangible assets. Adjusted EPS also excludes certain other gains and losses, tax provisions/benefits related to the previous items, benefits from tax credit carryforwards, the impact of significant tax audits or events and discontinued operations. We exclude the above items because they are outside of our normal operations and/or, in certain cases, are difficult to forecast accurately for future periods. We believe that the use of non-GAAP measures helps investors to gain a better understanding of our core operating results and future prospects, consistent with how management measures and forecasts the company's performance, especially when comparing such results to previous periods or forecasts.
We exclude costs and tax effects associated with restructuring
activities, such as reducing overhead and consolidating facilities in
connection with the Fisher merger and our Kendro acquisition. We believe
that the costs related to these restructuring activities are
|SOURCE Thermo Fisher Scientific Inc.|
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