(Reuters) - Thermo Fisher Scientific Inc (TMO.N), the world’s largest maker of scientific instruments, forecast 2015 sales and earnings below analysts’ expectations, becoming the latest U.S. healthcare company to warn about a strengthening dollar.
The strengthening of the dollar, particularly against the euro and the Japanese yen, would result in a 4 percent decline in Thermo Fisher’s revenue in 2015, CFO Peter Wilver said on a call with analysts.
Thermo Fisher expects full-year revenue of $16.80 billion to $17 billion. Analysts were expecting $17.25 billion, according to Thomson Reuters I/B/E/S.
The company expects profit to be hit by 58 cents in 2015. It forecast $7.22 to $7.40, excluding special items, below analysts’ average estimate of $7.62.
After hitting a 6-1/2 month low in May, the dollar .DXY has surged nearly 20 percent against a basket of major currencies, making overseas sales denominated in other currencies less valuable in dollar terms.
The stronger dollar can also make U.S.-made products more expensive for consumers in other currencies and thus cut demand.
CEO Marc Casper said the company plans to move more production of reagents to its Lithuanian site to cut costs and “get aggressive” on its operating plan to offset the impact from a strong dollar.
Thermo Fisher reported better-than-expected quarterly profit and sales on Thursday, boosted by the contribution from the Life Technologies acquisition.
With the addition of Life Tech business, Thermo Fisher’s life sciences business reported a surge in sales to $1.19 billion, compared with $192 million a year earlier.
The business, the company’s largest division, provides reagents, instruments and consumables used in biological and medical research.
The company’s other three businesses reported sales growth of 2 percent to 4 percent.
The purchase of Life Tech for more than $13 billion was completed in early 2014.
Thermo Fisher shares, which gained 13 percent in 2014, edged up 1 percent to $125.84 in morning trading on the New York Stock Exchange.
Reporting by Bill Berkrot, and Vidya L Nathan in Bengaluru; Editing by Don Sebastian