Bruker Corporation Announces Foreign Exchange Losses in First Quarter of 2008
April 21 2008 - 3:22PM
Business Wire
Bruker Corporation (NASDAQ: BRKR) today pre-announced selected
preliminary financial results for its first quarter ended March 31,
2008. Based on preliminary financial data that has not yet been
finalized and also has not yet been fully reviewed by the Company�s
auditors, Bruker has incurred approximately ($12 million) pre-tax
of foreign exchange losses in the first quarter of 2008, which
after tax are expected to result in a reduction in EPS by
approximately ($0.06). These foreign exchange losses were primarily
driven by the continuing weakening of the U.S. Dollar (USD), as
well as by an unexpected strengthening of the Swiss Franc (CHF)
relative to both the USD and the Euro (EUR) by approximately 11%
and 3%, respectively, during the five weeks between the closing of
the acquisition of the Bruker BioSpin Group on February 26, 2008
and the end of the first quarter of 2008. The foreign exchange
losses in the first quarter of 2008 relate primarily to the
revaluation of inter-company receivables within the Bruker group,
to large cash balances held by Swiss Bruker BioSpin subsidiaries in
various non-CHF currencies, as well as to a CHF-denominated,
short-term inter-company loan from a Swiss to a German Bruker
subsidiary which was used to finance a portion of the acquisition
of the Bruker BioSpin Group by Bruker Corporation. The Company
intends to reduce the future effects of currency fluctuations by
enhancing its treasury activities and capabilities, which included
the hiring of a Treasurer in March 2008 with global oversight and
responsibility. Specific activities that Bruker is targeting to
reduce the effects of currency fluctuations on its financial
results include programs (i) to more effectively hedge or settle
inter-company balances, (ii) to reduce non-functional currency
holdings, and (iii) to accelerate the pay-down of the initial $183
million of CHF- and EUR-denominated portions of Bruker�s Senior
Credit Facility. After the end of the first quarter, on April 17,
2008 the Company already repaid approximately $55 million of the
CHF-portion of its revolving credit line. For the first quarter
2008, Bruker expects to report revenue in the range of $235 to $240
million, compared to $207.6 million in the first quarter of 2007,
including the revenues of the Bruker BioSpin Group in both periods.
In addition to the after-tax foreign exchange losses of
approximately ($0.06) per diluted share reported above, the
Company�s first quarter 2008 US GAAP results will also include
after-tax charges of approximately ($0.04) per diluted share
related to the acquisition of the Bruker BioSpin Group in February
2008. Bruker Corporation expects to release its first quarter 2008
financial results and host a financial results conference call in
early May 2008. At the present time, the Company has not yet
finalized its financial results for the first quarter of fiscal
2008. As a result, all financial results described in this press
release should be considered preliminary, and are subject to change
to reflect any necessary corrections or adjustments, or changes in
accounting estimates, that are identified prior to the completion
of the Company�s normal quarterly closing and review procedures.
ABOUT BRUKER CORPORATION (NASDAQ: BRKR) As of February 26, 2008,
Bruker Corporation has become the parent company of the entire
Bruker group of companies. Bruker Corporation now operates in two
segments, the Life Science and Analytical (LSA) systems segment and
the Advanced Supercon segment. For more information, please visit
www.bruker.com CAUTIONARY STATEMENT Any statements contained in
this press release that do not describe historical facts may
constitute forward-looking statements as that term is defined in
the Private Securities Litigation Reform Act of 1995. Any
forward-looking statements contained herein are based on current
expectations, but are subject to a number of risks and
uncertainties. The factors that could cause actual future results
to differ materially from current expectations include, but are not
limited to, risks and uncertainties relating to the integration of
businesses we have acquired or may acquire in the future, changing
technologies, product development and market acceptance of our
products, the cost and pricing of our products, manufacturing,
competition, dependence on collaborative partners and key
suppliers, capital spending and government funding policies,
changes in governmental regulations, intellectual property rights,
litigation, and exposure to foreign currency fluctuations. These
and other factors are identified and described in more detail in
our filings with the SEC, including, without limitation, our annual
report on Form 10-K for the year ended December 31, 2007, our most
recent quarterly reports on Form 10-Q and our current reports on
Form 8-K. We disclaim any intent or obligation to update these
forward-looking statements other than as required by law.
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