Waters sales rise 3%, E.P.S. grows 5% in fourth quarter

Waters Corporation (NYSE/WAT) reported fourth quarter 2009 sales of $429 million, an increase of 3% from sales of $418 million in the fourth quarter of 2008. In the quarter, foreign currency translation increased sales growth rate by 4% and on a currency neutral basis, sales decreased by 1% in comparison to the prior year’s fourth quarter sales. On a GAAP basis, earnings per diluted share (E.P.S.) for the fourth quarter were $1.08, compared to $1.01 for the fourth quarter of 2008. On a non-GAAP basis, including the adjustments in the attached reconciliation, E.P.S. grew 5% to $1.12 from $1.07 in the fourth quarter of 2008.

For the full year, sales for the Company were $1.50 billion, a decrease of 5% from sales of $1.58 billion in 2008. This decrease in sales includes the effects of foreign currency translation which reduced sales by 2%. E.P.S. for 2009 were $3.34 compared to $3.21 in 2008. On a non-GAAP basis, including adjustments in the attached reconciliation, E.P.S. grew 5% to $3.45 from $3.30 in 2008.

Commenting on the Company’s performance, Douglas Berthiaume, Chairman, President and Chief Executive Officer said, “In 2009, Waters faced a most challenging market environment as a steep economic slowdown and volatile capital markets combined to depress demand for laboratory instrumentation and supplies. However, through this difficult time, we continued to invest in new product development, support our customer base and manage our expenses prudently. As a result of these efforts, we were able to grow our earnings and generate strong cash flow while bringing exciting new products to market.”

As communicated in a prior press release, Waters Corporation will webcast its fourth quarter 2009 financial results conference call this morning, January 26, 2010 at 8:30 a.m. eastern time. To listen to the call, connect to www.waters.com, choose “Investor Relations” and click on the “Live Webcast”. A replay will be available through February 2, 2010 at midnight eastern time, similarly by webcast and also by phone at 203-369-1023.