Boardroom
Thermo Fisher Scientific

In the Boardroom With...
Mr. Thomas Loewald
President of Environmental Instruments
Thermo Fisher Scientific
www.thermofisher.com
(NYSE: TMO)

SecurityStockWatch.com: Thank you for joining us today, Tom. Please give us an overview of your background and your role at Thermo.

Thomas Loewald: I am President of Environmental Instruments for Thermo Fisher Scientific, which includes analytical instrumentation and services focused on the areas of air quality monitoring, radiation safety and water analysis. We consider our mission to be that of helping our customers make the world healthier, cleaner and safer by bringing advanced analytical technologies from laboratory applications to the environmental industry.

Prior to joining Thermo Fisher Scientific, I held a number of different management positions at General Electric over a nine-year time period. I received my B.A. in Economics from Middlebury College, and an M.B.A. from the Amos Tuck School of Business Administration.

SecurityStockWatch.com: Thermo Electron recently completed its $10.6 billion acquisition of Fisher Scientific International Inc. May we have a brief overview of the capabilities of the new entity.

Thomas Loewald: By merging and becoming Thermo Fisher Scientific, we have become the world leader in serving science, with expected 2007 revenue of over $9 billion and 30,000 employees worldwide. We enable our customers to make the world healthier, cleaner and safer by providing analytical instruments, equipment, reagents and consumables, software and services for research, analysis, discovery and diagnostics. We have combined Thermo Electron’s leading analytical technologies with world-class consumables from Fisher Scientific, and have become a single-source supplier to customers serving them through the world’s largest direct sales force and unparalleled e-commerce capabilities.

SecurityStockWatch.com: Please give our audience an overview of the market drivers for your businesses in Homeland Security and Environmental Monitoring.

Thomas Loewald: In the Homeland Security market, our business is driven primarily by government agencies whose task it is to first prevent a terrorist event, and second to be prepared to respond to an event. For example, we outfit first responders with handheld and mobile devices that would be used in response to a radiological terrorist event. There are a number of important trends that we see, including:

  • Commercialization and investment in second-generation security technologies that represent significant improvements over instruments purchased immediately after the attacks of September 11th.
  • Given the large installed base of devices necessary to achieve broad coverage in a country of our size, ease of training and cost of ownership have become primary concerns for large equipment users.
  • Lastly, all of our key customers are looking to improve decision making on a system-wide basis through more sophisticated data analysis and decision software, as well as interoperable reach-back capabilities.
In the field of Environmental Monitoring, regulations, whether in the United States or internationally, are the driving force for investments in new monitoring technologies. Key agencies like the EPA and SEPA (Chinese environmental protection agency) are constantly assessing the need for new monitoring capabilities, particularly in relation to gas emissions like carbon dioxide, sulfur dioxide and mercury, as well as the monitoring of airborne particulates. Another key trend is the growth of the Chinese industrial base, and the resulting environmental degradation which is now creating significant demand for the breadth of our instrumentation, to serve both air quality monitoring needs as well as to support the growth of the nuclear power industry in China.

SecurityStockWatch.com: Are there any particular success stories you care to mention?

Thomas Loewald: On the security front, our company was honored to be chosen to provide the latest generation of radiation detection systems, known as Advanced Spectroscopic Portals (ASPs), to the recently formed Domestic Nuclear Detection Office (DNDO), which is a department within the U.S. Department of Homeland Security. Over the next five years, deployment of these systems at U.S. port and border locations will provide the United States with an unparalleled capability to detect and deter the importation of elicit nuclear devices or radiological materials. Thermo Fisher Scientific’s ASPs allow U.S. Customs and other agencies to instantly detect and identify sources of radiation to a specific energy fingerprint, thus increasing the probability of deterring a threat, without a slowdown in commerce through the ports.

In the area of environmental protection, we are on the forefront of providing monitoring systems to U.S. power generation companies to measure mercury emissions, in order to meet the new EPA clean air mercury rule (CAMR) that sets a deadline of January 2009 for compliance. Concerns over the health effects of mercury from coal-fired power plants will mean a large investment in this field, and our advanced technologies and presence in both ambient and source gas monitoring put us in a great position to be the industry leader in an application important to the health of all U.S. citizens.

SecurityStockWatch.com: Thanks again for joining us.

Thomas Loewald: Thank you.