This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Waters Management Discusses Q2 2012 Results - Earnings Call Transcript

The second quarter started up positively for us, as most orders that we had identified as delayed in the first quarter were booked in April and as business momentum initially improved in India with the issuance of new capital budgets.

In May, we had a strong presence at ASMS, where our new products were well received and where we felt encouraged that demand for research-focused instrumentation might hold up better than expected, this despite heavily publicized concerns that academic and government budgets were under pressure.

On the other hand, as the quarter unfolded, we began to see general economic conditions weaken in Europe and in some Asian countries. The value of the euro and the rupee fell from levels that we saw in April. And it seems as if the approval processes for instrument purchases in nearly all of our larger accounts were dragging on a little longer than anticipated. In general, a greater level of conservatism was marginally impacting demand across almost all of our end markets.

Consequently, our orders and shipments in the second quarter came in a little lighter than we had hoped, and our current outlook for sales growth in the remainder of the year is accordingly tempered to account for market uncertainties.

Fortunately, we ended the quarter with a conservative spending plan and throughout the quarter, tightly controlled our spending while maintaining disciplined pricing policies. Flexibility of our business model allowed us to deliver operating leverage despite a foreign exchange headwind and lower-than-anticipated shipment volume.

All in, we managed to deliver adjusted 8% EPS growth on sales that grew organically at about 4.5% and at 1% after foreign currency translation.

For the Waters division and geographically, Asian markets outside of China and Japan were weaker than we had expected, as industrial chemical and applied market segments declined in the quarter.

3 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,812.19 +19.51 0.11%
S&P 500 2,089.14 +2.55 0.12%
NASDAQ 5,102.8080 +0.33 0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs