Sigma-Aldrich (NASDAQ: SIAL) Reports Q1 2013 Sales And EPS Of $675 Million And $1.01, Respectively, Both Record Quarterly Highs.

Sigma-Aldrich (NASDAQ: SIAL) Reports Q1 2013 Sales And EPS Of $675 Million And
  $1.01, Respectively, Both Record Quarterly Highs. Reaffirms Full Year 2013
               Diluted Adjusted EPS Outlook Of $4.10 To $4.20.

PR Newswire

ST. LOUIS, April 25, 2013

ST. LOUIS, April 25, 2013 /PRNewswire/ --

HIGHLIGHTS:

Q1 2013 Results (all percentages are to comparable periods in 2012)

  oQ1 2013 reported sales increased 2% to $675 million, a new quarterly
    high. Organic sales growth was 1% in the quarter. Organic sales growth
    by business unit was (1%) for Research, 3% for Applied and 3% for SAFC
    Commercial. Acquisitions completed in 2012 contributed 2% to overall
    sales growth and changes in foreign currency exchange rates reduced
    otherwise reportable sales by 1%. Organic growth was impacted due to
    approximately two fewer overall shipping days than the same period in the
    prior year.
  oQ1 2013 reported diluted EPS was $1.01, a new quarterly high, compared to
    Q1 2012 reported diluted EPS of $0.96 and Q1 2012 adjusted diluted EPS of
    $0.99. Excluding a $0.02 negative impact from changes in foreign currency
    exchange rates, Q1 2013 diluted EPS would have been $1.03.
  oQ1 2013 net cash provided by operating activities and free cash flow were
    $154 million and $129 million, respectively. Compared to Q1 2012, free
    cash flow increased by 15%.
  oOn February 12, the Company's Board of Directors approved an increase of
    8% in the quarterly cash dividend to $0.215 per share. This represents
    the 38^th consecutive year of dividend increases.

2013 Outlook (all percentages are to comparable periods in 2012)

  o2013 guidance is reaffirmed.
  oFull-year organic sales growth is expected to be in the low-to-mid single
    digit range.
  oAdjusted diluted EPS (excluding restructuring and other special charges)
    is expected to be in a range of $4.10 to $4.20. Full-year effective tax
    rate is expected to be 28% to 29%.
  oNet cash provided by operating activities and free cash flow is expected
    to exceed $560 million and $430 million, respectively.

CEO's STATEMENT:

Commenting on first quarter 2013 performance, President and CEO Rakesh Sachdev
said, "We reported record quarterly sales and diluted EPS of $675 million and
$1.01, respectively. Our overall end markets remain steady with improving
pharma trends offset by slower academic spending. We remain on track to
achieve our 2013 full-year organic sales growth and adjusted EPS guidance.

I am very pleased with the progress we are making in all three of our newly
formed market-facing business units – Research, Applied and SAFC Commercial.
Our teams are energized and focused on providing the best science, service and
solutions to address customers' needs in these markets.

In Research, we continue to see signs that headwinds are abating from the
large pharma site consolidations that occurred over the last several years.
We are gaining new business with our solutions-based initiatives such as The
Science Place^SM, a single source marketplace solution to simplify procurement
processes and channels. We also recently signed an agreement with a large
biotech customer to manage their medicinal chemistry and biologics portfolio.

Dealers continue to generate steady organic sales growth, and our Dealers as
Partners program has been successfully launched in Europe. As we anticipated,
sales to Academic/Government customers continue to be negatively impacted
primarily due to U.S. sequestration-related issues and European funding
uncertainties. We expect the Academic/Government market to remain soft for
the remainder of the year, which we have incorporated in our reaffirmed 2013
outlook.

Within our Applied business unit, our sales to Diagnostics and Testing labs
grew strongly in the high single digits. With a rich product portfolio of
analytical products, kits and solutions, our sales and marketing teams are
developing new accounts and expanding into new geographies.

Within SAFC Commercial, we experienced mid-single digit organic sales growth
of our Life Science Products and Services. We remain well positioned to
benefit from the therapeutic trend to biologics and high-potency compounds,
which was again evidenced by solid growth in our industrial cell culture media
business and strong double-digit growth in our custom pharma business.
BioReliance achieved a solid quarter with mid-single digit organic sales
growth. As expected, year-over-year price declines for chemical precursors to
the LED industry resulted in lower sales in our Hitech electronics segment.
We are launching new products for the semiconductor and electronic display
markets, which are not as price sensitive as the LED market, and are expected
to provide growth in the second half of the year.

We generated strong free cash flow in the quarter and raised our cash dividend
for the 38^th consecutive year. We continue to look for growth investments,
both organic and inorganic, that fit our strategy of increasing our presence
in faster growing Applied and Commercial markets, broadening our Research
portfolio to leverage our worldwide sales and distribution channels,
increasing our presence in faster growing emerging countries and generating
opportunities to significantly increase shareholder value."

Q1 2013 RESULTS:

Reported sales for the first quarter of 2013 were $675 million, a 2% increase
from the first quarter of 2012. Organic sales growth in the quarter was 1%.
Acquisitions completed in 2012 increased sales by 2% and changes in foreign
currency exchange rates caused sales to decline by 1%.

Research ($361 million in sales, 53% of overall sales)

  oOrganic sales declined by 1%. Changes in foreign currency exchange rates
    reduced overall Research growth by 2%.
  oExcluding the impact from fewer shipping days, Research sales would have
    grown organically in the low-single digits.
  oAcademic/Government organic sales growth declined in the mid-single digits
    primarily due to U.S. sequestration-related issues, European funding
    uncertainty and fewer shipping days.
  oPharma organic sales growth was flat, which reversed a three-quarter
    negative trend.
  oOrganic sales growth through our dealer network was in the low-single
    digits. Our Dealers as Partners program was launched in the Europe,
    Middle East, and Africa (EMEA) region and is helping drive strong growth.

Applied ($159 million in sales, 24% of overall sales)

  oOrganic sales grew by 3%. Acquisitions contributed 2% to growth and
    changes in foreign currency exchange rates reduced growth by 1%.
  oExcluding the impact from fewer shipping days, Applied would have grown
    organically in the mid-single digits.
  oDiagnostics and Testing organic sales growth was in the high-single
    digits, driven primarily from sales of critical components for diagnostic
    kits and sales of standards and certified reference materials to clinical
    testing laboratories.
  oSales of products to industrial companies declined in the low-single
    digits. A large contributor to the decline was weakness in Asia Pacific
    (APAC) primarily due to spending reductions from a few large industrial
    customers.

SAFC Commercial ($155 million in sales, 23% of overall sales)

  oOrganic sales grew 3%. Acquisitions contributed 9% to growth and changes
    in foreign currency exchange rates reduced growth by 1%.
  oLife Science Products and Services organic sales growth was in the
    mid-single digits, led by strong double-digit growth in contract
    manufacturing. The industrial cell culture media business also continued
    to perform well. SAFC Commercial is expanding capacity at its Irvine,
    Scotland facility to further address opportunities in this business.
    BioReliance grew mid-single digits and continued its sequential
    improvement that began late last year.
  oHitech organic sales declined low double-digits. As expected, a
    year-over-year pricing decline in metal organic precursors for the LED
    market was the primary driver of the decline.

Operating income margin in the first quarter of 2013 was 24.6%. Compared with
the prior quarter (fourth quarter of 2012), adjusted operating income margin
declined by 60 basis points. The primary driver for the decline was higher
SG&A expense for incentive compensation and increased investments in the
realigned business units to better position for future growth. A
reconciliation of reported to adjusted operating income margin is provided on
page 11.

The effective tax rate for the first quarter of 2013 was 26% compared to 32%
in the same period last year. As anticipated, the first quarter of 2013
benefited from the full-year reinstatement of the 2012 US R&D tax credit.

Free cash flow for the first quarter of 2013 was a strong $129 million, an
increase of $17 million from the same period last year.

Other first quarter 2013 highlights include:

  oWorldwide sales of Research and Applied products through the Company's
    e-commerce channels grew 2% organically from the same period last year.
    Total visits increased by 15% as information content initiatives such as
    Pubget, a comprehensive online source for scientific publications, drove
    higher web traffic during the quarter.
  oOrganic sales to the Research and Applied markets in APAC grew in the
    mid-single digits when adjusted for shipping days. Growth in developed
    regions was flat while emerging regions grew low double-digits. China led
    growth with solid double-digit performance.
  oOrganic sales in the EMEA region were flat. Adjusting for shipping days,
    both Research and Applied organic sales growth in the region would have
    been in the mid-single digits. Academic/Government sales were slightly
    negative.
  oOrganic sales growth in the Americas was in the low-single digits.
  oThe Vetec® value brand was launched in the APAC region to expand the
    Company's consumables offerings to provide more complete solutions for
    Research and Applied customers in the region.

2013 OUTLOOK:

  o2013 outlook remains unchanged.
  oOverall organic sales growth is expected to be in the low-to-mid single
    digit range. 
  oAdjusted diluted EPS forecast, excluding any restructuring or other
    special charges, is expected to be in a range of $4.10 to $4.20.
  oThe full-year effective tax rate is expected to be in a range of 28% to
    29%.
  oFree cash flow is expected to exceed $430 million.

       oNet cash provided by operating activities is expected to exceed $560
         million.
       oCapital expenditures are expected to be approximately $130 million.

OTHER INFORMATION:

Cash Flow and Debt: Net cash provided by operating activities for the first
quarter of 2013 was $154 million compared to $144 million for the same period
in 2012. Capital expenditures were $25 million compared to $32 million for
the same period last year. Free cash flow of $129 million in the quarter was
used to return $53 million to shareholders through share repurchases and
dividends. The Company's debt to capital ratio was 13% at March 31, 2013 and
24% at March 31, 2012.

Share Repurchases: In the first quarter of 2013, the Company repurchased 0.3
million shares for $27 million. There were 120 million shares outstanding at
March 31, 2013. The Company expects to continue to offset the dilutive impact
of issuing share-based incentive compensation with future repurchases, the
timing and amount of which will depend upon market conditions and other
factors.

Cautionary Statement: This release contains forward-looking statements. Such
statements involve risk and uncertainty, including financial, business
environment and projections. Such statements are preceded by, followed by or
that include the words "expected," "expects," "expect," "forecast," "would,"
"estimate," "will," or similar expressions, and other statements contained
herein regarding matters that are not historical facts. Additionally, this
release contains forward-looking statements relating to future performance,
goals, strategic actions and initiatives and similar intentions and beliefs,
including, without limitation, statements with respect to the Company's
expectations, goals, beliefs, intentions, and the like regarding future sales,
earnings, return on equity, cost savings, process improvements, free cash
flow, share repurchases, capital expenditures, acquisitions and other
matters. These statements are based on assumptions regarding the Company
operations, investments, acquisitions and conditions in the markets the
Company serves. The Company believes these statements are reasonable and well
founded. Such statements in this release are subject to risks and
uncertainties, including, among others, certain economic, political and
technological factors. Actual results could differ materially from those
stated or implied in this release, due to, but not limited to, such factors as
(1) global economic conditions, particularly the uncertainties in the Eurozone
and other factors affecting the creditworthiness of our Eurozone customers,
(2) changes in pricing and the competitive environment and the global demand
for the Company's products, (3) changes in foreign currency exchange rates,
(4) changes in research funding and the success of research and development
activities, (5) failure of planned sales initiatives in our Research, Applied
and SAFC Commercial business units, (6) dependence on uninterrupted
manufacturing operations, global supply chain and security of our information
systems, (7) changes in the regulatory environment in which the Company
operates, (8) changes in worldwide tax rates or tax benefits from domestic and
international operations, including the matters described in Note 11 – Income
Taxes, to the Company's consolidated financial statements included in Item 8,
Part II of the Company's Annual Report on Form 10-K for the year ended
December 31, 2012 (the "10-K"), (9) exposure to litigation including product
liability claims, (10) the ability to maintain adequate quality standards,
(11) reliance on third party package delivery services, (12) an unanticipated
increase in interest rates, (13) other changes in the business environment in
which the Company operates, (14) acquisitions or divestitures of businesses,
and (15) the outcome of the outstanding matters described in Note 12 –
Contingent Liabilities and Commitments, to the Company's consolidated
financial statements included in Item 8, Part II of the 10-K. A further
discussion of the Company's risk factors can be found in Item 1A of Part I of
the 10-K. The Company does not undertake any obligation to update these
forward-looking statements.

About Sigma-Aldrich: Sigma-Aldrich is a leading Life Science and High
Technology company whose biochemical and organic chemical products, kits and
services are used in scientific research, including genomic and proteomic
research, biotechnology, pharmaceutical development, the diagnosis of disease
and as key components in pharmaceutical, diagnostics and high technology
manufacturing. Sigma-Aldrich customers include more than one million
scientists and technologists in life science companies, university and
government institutions, hospitals and industry. The Company operates in 37
countries and has approximately 9,000 employees whose objective is to provide
excellent service worldwide. Sigma-Aldrich is committed to accelerating
customer success through innovation and leadership in Life Science, High
Technology and Service. For more information about Sigma-Aldrich, please
visit the website at www.sigma-aldrich.com.

Non-GAAP Financial Measures: The Company supplements its disclosures made in
accordance with accounting principles generally accepted in the United States
(U.S. GAAP) with certain non-GAAP financial measures. The Company does not,
and does not suggest investors should, consider such non-GAAP financial
measures in isolation from, or as a substitute for, GAAP financial
information. These non-GAAP measures may not be consistent with the
presentation by other companies inside or outside of the Company's industry.
Whenever the Company uses such non-GAAP measures, it provides a reconciliation
of such measures to the most closely applicable GAAP measure. See the
Supplemental Financial Information on pages 10 and 11 for these
reconciliations.

With over 60% of sales denominated in currencies other than the U.S. dollar,
management uses currency adjusted sales growth when analyzing Company
performance, and believes it is useful as well to investors to judge the
Company's performance. Organic sales growth data presented in this release
excludes currency and acquisitions impacts. The Company calculates the impact
of changes in foreign currency exchange rates by multiplying current period
activity by the difference between current period exchange rates and prior
period exchange rates. The result is the defined impact of "changes in
foreign currency exchange rates." While we are able to report past currency
impacts, we are unable to estimate changes that may occur later in 2013 to
applicable exchange rates. Any significant changes in currency exchange rates
would likely have a significant impact on reported growth rates due to the
volume of sales denominated in foreign currencies.

Management also uses the following non-GAAP measures to judge its performance
and ability topursue opportunities that enhance shareholder value: adjusted
net income and EPS; adjusted operating income margin (reconciled on page 11);
and free cash flow (defined on page 9). Management believes this non-GAAP
information is useful to investors as well.

Pubget is a registered trademark of Pubget Corporation.





SIGMA-ALDRICH CORPORATION
Consolidated Statements of Income (Unaudited)
(in millions except per share amounts)
                                                  Three Months Ended
                                                  March 31,
                                                  2013           2012
Net sales                                         $        $      
                                                   675           665
Cost of products and services sold                331            310
Gross profit                                      344            355
Selling, general and administrative               161            160
expenses
Research and development expenses                 17             18
Acquisition transaction costs                     -              5
Operating income                                  166            172
Interest, net                                     1              1
Income before income taxes                        165            171
Provision for income taxes                        43             54
Net income                                        $        $      
                                                   122           117
Net income per share - Basic                      $        $      
                                                  1.02          0.97
Net income per share - Diluted                    $        $      
                                                  1.01          0.96
Weighted average number of shares                 120            121
outstanding - Basic
Weighted average number of shares                 121            122
outstanding - Diluted





SIGMA-ALDRICH CORPORATION
Consolidated Balance Sheets (Unaudited)
(in millions)
                                          (Unaudited)
                                          March 31,            December 31,
                                          2013                 2012
ASSETS
Current assets:
Cash and cash equivalents                 $        471  $       
                                                               724
Accounts receivable, net                  398                  356
Inventories                               711                  722
Deferred taxes                            30                   32
Other                                    90                   95
Total current assets                      1,700                1,929
Property, plant and equipment:
Property, plant and equipment             2,001                2,011
Less - accumulated depreciation           (1,190)              (1,182)
Property, plant and equipment, net        811                  829
Goodwill, net                             675                  691
Intangibles, net                          270                  282
Other                                     125                  89
Total assets                              $      3,581    $     
                                                               3,820
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Notes payable                             $            $       
                                          89                   383
Accounts payable                          154                  160
Payroll                                  52                   55
Income taxes                             45                   26
Other                                     74                   77
Total current liabilities                 414                  701
Long-term debt                            300                  300
Pension and post-retirement               132                  135
benefits
Deferred taxes                            66                   64
Other                                     72                   74
Total liabilities                         984                  1,274
Stockholders' equity:
Common stock                              202                  202
Capital in excess of par value            294                  276
Common stock in treasury                  (2,294)              (2,271)
Retained earnings                         4,366                4,270
Accumulated other comprehensive           29                   69
income
Total stockholders' equity                2,597                2,546
Total liabilities and                     $      3,581    $     
stockholders' equity                                           3,820





SIGMA-ALDRICH CORPORATION
Consolidated Statements of Cash Flows (Unaudited)
(in millions)
                                                          Three Months Ended
                                                          March 31,
                                                          2013       2012
Cash flows from operating activities:
Net income                                                $      $    
                                                             122     117
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization                             35         32
Deferred income taxes                                     6          20
Stock-based compensation expense                          8          6
Other                                                     (2)        (3)
Changes in operating assets and liabilities:
Accounts receivable                                       (51)       (46)
Inventories                                               4          (16)
Accounts payable                                          (4)        6
Income taxes                                              21         13
Other, net                                                15         15
Net cash provided by operating activities                 154        144
Cash flows from investing activities:
Capital expenditures                                      (25)       (32)
Purchases of short-term investments                       (51)       (16)
Proceeds from sales of short-term investments             20         21
Acquisitions of businesses, net of cash acquired          -          (389)
Other, net                                                (3)        (3)
Net cash used in investing activities                     (59)       (419)
Cash flows from financing activities:
Net issuance of short-term debt                           (294)      193
Dividends                                                 (26)       (24)
Share repurchases                                         (27)       (25)
Proceeds from exercise of stock options                   10         14
Excess tax benefits from stock-based payments             3          7
Net cash used in financing activities                     (334)      165
Effect of exchange rate changes on cash                   (14)       3
Net change in cash and cash equivalents                   (253)      (107)
Cash and cash equivalents at January 1                    724        665
Cash and cash equivalents at March 31                     $      $    
                                                             471     558
Free cash flow^(1)                                        $      $    
                                                             129     112

^(1) Net cash provided by operating activities less capital expenditures.





SIGMA-ALDRICH CORPORATION
Supplemental Financial Information - (Unaudited)
Sales Growth by Business
Unit
                 Three Months Ended
                 March 31, 2013
                                         Acquisition    Adjusted
                 Reported    Currency    Benefit        (Organic)
 Research    (3)%        (2)%        —%             (1)%
 Applied &   4 %         (1)%        2 %            3 %
Industrial
 SAFC        11 %        (1)%        9 %            3 %
 Total         2 %         (1)%        2 %            1 %
Customer Sales
Business Unit Sales
(in millions)
                 First       Second      Third          Fourth       Total
                 Quarter     Quarter     Quarter 2013   Quarter      2013
                 2013        2013                       2013
                 $                                               $   
 Research       361   —           —              —               
                                                                     361
 Applied &   159         —           —              —            159
Industrial
 SAFC        155         —           —              —            155
 Total         $                                               $   
Customer Sales      675   —           —              —               
                                                                     675
                 First       Second      Third          Fourth       Total
                 Quarter     Quarter     Quarter 2012   Quarter      2012
                 2012        2012                       2012
                 $       $       $        $       $   
 Research       372     348   335           343       
                                                                     1,398
 Applied &   153         151         148            146          598
Industrial
 SAFC        140         165         156            166          627
 Total         $       $       $        $       $   
Customer Sales      665     664   639           655       
                                                                     2,623
Income Statement Ratios
                 Three Months Ended
                 March 31,
                 2013        2012
Gross profit     51.0 %      53.4 %
S,G&A expenses   23.9 %      24.1 %
Acquisition
transaction      —%          0.7 %
costs
Operating        24.6 %      25.9 %
income
Net income       18.1 %      17.6 %
Effective tax    26.1 %      31.6 %
rate





SIGMA-ALDRICH CORPORATION
Supplemental Financial Information - (Unaudited)
Reconciliation of Reported Net Income to Adjusted Net
Income
                                   Net Income            Diluted Earnings
                                   (in millions)         Per Share
                                   Three Months Ended    Three Months Ended
                                   March 31,             March 31,
                                   2013     2012         2013         2012
                                   $     $       $       $   
Reported net income                       117      1.01        
                                   122                                0.96
Acquisition transaction            —        4            —            0.03
costs
                                   $     $       $       $   
Adjusted net income                       121      1.01        
                                   122                                0.99
Reconciliation of Reported Operating
Income to Adjusted Operating Income
(in millions)
                                   Three Months Ended
                                   March 31,
                                   2013     2012
Reported operating                 $     $     
income                                    172
                                   166
Acquisition transaction            —        5
costs
Adjusted operating                 $     $     
income                                    177
                                   166
Reconciliation of Reported Operating
Income Margin to Adjusted Operating Income
Margin
                                   Three Months Ended
                                   March    December     September    June 30,
                                   31,      31,          30,
                                   2013     2012         2012         2012
Reported Operating Income          24.6%    25.0%        24.4%        25.2%
Margin
Restructuring cost                 —%       0.2%         0.6%         0.6%
Adjusted Operating Income          24.6%    25.2%        25.0%        25.8%
Margin
Reconciliation of Reported Earnings Per
Share to Adjusted Earnings Per Share
                                   Three Months Ended
                                   March 31,
                                   2013     2012
Reported Earnings Per              $     $     
Share                                      0.96
                                   1.01
Currency                           0.02     n/a
Adjusted Earnings Per              $     $     
Share                                      0.96
                                   1.03
Reconciliation of Free
Cash Flow
(in millions)
                                   Three Months Ended
                                   March 31,
                                   2013     2012
Net cash provided by               $     $     
operating activities                      144
                                   154
Less: Capital                      (25)     (32)
expenditures
                                   $     $     
Free cash flow                            112
                                   129



SOURCE Sigma-Aldrich

Website: http://www.sigma-aldrich.com
Contact: Quintin Lai, Vice President, Investor Relations, (314) 898-4643