Fifth Third Bancorp FITB
Q2 2010 Earnings Call Transcript

Transcript Call Date 07/22/2010

Operator: Good morning, everyone. My name is, Sarah, and I will be your conference operator today. At this time, I would like to welcome everyone to the Sigma-Aldrich Second Quarter 2010 Results Conference. Just as a reminder, today's call is being recorded. All lines have been placed on mute to prevent any background noise. However, after the speakers' remarks, there will be a question-and-answer session. (Operator Instructions). I would now like to turn the call over to Mr. Kirk Richter, Treasurer and Investor Relations contact. Please go ahead, sir.

Kirk Richter - Vice President and Treasurer: Thank you. Also let me say good morning and welcome each of you to our Second Quarter 2010 earnings conference call. With me today are Jai Nagarkatti, our Chairman, President and CEO; and Rakesh Sachdev, our Senior Vice President, Chief Financial Officer, and Chief Administrative Officer.

After my introductory comments, Rakesh will review our second quarter 2010 performance and our outlook for all of 2010. Jai will follow that with an update on the activities that have and are expected to drive our performance in 2010 and in the future. He will also give comments on what we have achieved on those activities in the second quarter. After completing those reviews, we'll open up the call for your questions and comments. We will be using a slide presentation as part of today's call. That presentation can be viewed by accessing our Investor Relations website on

Before we begin these reviews, I do need to remind you that today's comments will include forward-looking statements about future activities and our expectations for sales, earnings, cash flow, and other possible future results. While we believe that these expectations are based on reasonable assumptions, actual results may differ materially due to any number of factors including the risk factors listed in our Annual Report on Form 10-K for the year ended December 31, 2009, and in the cautionary statement that is included in today's release and in our slides. We have no plans to update these forward-looking statements after this conference.

Also we do provide information on non-GAAP financial measures covered in today's conference. That information which consists of currency-adjusted sales growth, profit, and EPS results on both a pro forma and reported basis and pre-cash flow reconciled to net cash provided by operating activity is also contained in today's release which is posted on our website.

Now I'll ask Rakesh to begin our review. Rakesh?

Rakesh Sachdev - SVP, CFO and CAO: Thanks, Kirk, and good morning, everyone. Our second quarter sales were $554 million, a reported increase of 6% over last year's second quarter. Excluding a small currency headwind, our organic growth was 7%, improving on the 4% organic growth we reported for 2010's first quarter. This increased growth rate came from improved performance of both our research and fine chemicals businesses.

Our net income, which hit the $100 million mark for the first time in the Company's history just one quarter ago, remained strong at $97 million for the second quarter. This is a 16% increase on a reported basis and an 11% gain on a currency-adjusted basis from last year's second quarter. Diluted earnings per share for the second quarter was $0.79. This EPS includes a $0.04 benefit from currency that was partially offset by a $0.02 restructuring charge. Excluding those items, our net income and diluted EPS for the second quarter both grew by 13%.

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