Agilent Technologies Profits Up Sharply on Slightly Higher Sales

Agilent Technologies has reported revenues of US$1.48 billion for the 4th fiscal quarter ended Oct. 31, 2008 - a rise of 2 percent compared to a year ago. Excluding non-cash amortization and impairment charges, and certain tax benefits, Agilent reported fourth quarter adjusted net income of US$223 million, compared to US$178 million a year ago.

"The world has clearly changed in the past three months," said Bill Sullivan, Agilent president and chief executive officer. "We are pleased to have performed well in a very dynamic and difficult economic environment. Fourth quarter revenues came in below the low end of our expectations because of weaker than expected Electronic Measurement markets. But, we were able to adjust to rapidly changing conditions, and our adjusted net income came in at the high end of our guidance."

Organic revenue growth in the Americas was about 4 percent, and local currency revenues were about flat in Asia due to continued weakness in Japan. In Europe, organic revenues were down about 5 percent from one year ago.

Electronic Measurement markets weakened throughout the quarter, with orders down 10 percent from one year ago and revenues off 3 percent. Semiconductor-related markets remained particularly weak. Bio-Analytical markets were more robust, with orders up 8 percent and revenues up 10 percent, and were particularly strong in Asia.

Looking to the first quarter of fiscal 2009, Sullivan noted that the full impact of the global financial meltdown on the world economy was far from clear. "Our planning is based on the assumption that an economic downturn in much of the world will continue through mid-2009, and that no geographies or markets will be entirely immune from its impact."

Given these trends, Sullivan said the company expected fiscal first quarter revenues in the range of $1.34 billion to $1.39 billion, down 4 percent to flat compared with last year.

Looking further ahead, Sullivan emphasized the uncertainty in the outlook, but said the company expected 2009 earnings to be roughly flat with 2008 results on revenues that are flat to down 5 percent from this year.

Posted to the site on 14th November 2008