Sigma-Aldrich 1Q Profit Dips Slightly

ST. LOUIS (AP) — Biochemicals company Sigma-Aldrich Corp. said Thursday its first-quarter profit edged slightly lower as a stronger U.S. dollar cut into overseas sales.

The company earned $84.4, or 68 cents per share, compared with profit of $84.5 million, or 64 cents per share, during the same period a year prior. The rise in per-share profit is the result of fewer shares outstanding at the end of the first-quarter than in the prior year period.

Sales fell 9 percent to $519.3 million from $569.6 million, mainly due to the rise in the U.S. dollar. A stronger U.S. dollar hurts overseas sales because it cuts into the value of profits in those markets.

Analysts polled by Thomson Reuters expected profit of 64 cents per share on $532.2 million in revenue.

Lower costs helped offset the impact of the sales decline.

The company's chemical products and kits are used in scientific research, ranging from academia to the pharmaceutical industry.

"We are very pleased with our performance in the first quarter of 2009 and our ability to improve our profitability even with the challenges of current market conditions and the headwind from currency," said President and Chief Executive Jai Nagarkatti, in a statement.

The company expects currency exchange rates to continue having a negative impact on overseas sales. Sigma-Aldrich said it expects 2009 profit to "slightly" top its 2008 result, or $2.65 per share. Analysts expect profit of $2.66 per share.

Shares of Sigma-Aldrich gained 60 cents to $40 in morning trading.