8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): April 22, 2010

SIGMA-ALDRICH CORPORATION

(Exact Name of Registrant as Specified in its Charter)

Delaware	000-8135	43-1050617
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification Number)

3050 Spruce Street

St. Louis, Missouri 63103

(Address of Principal Executive Offices)

Registrant’s telephone number, including area code: (314) 771-5765

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On April 22, 2010, Sigma-Aldrich issued a press release announcing its first quarter operating results for the period ended March 31, 2010. This press release and certain supplemental information are furnished as Exhibits 99.1 and 99.2, respectively.

Item 7.01 Regulation FD Disclosure.

On April 22, 2010, the Registrant issued a press release regarding the financial outlook for the first quarter ending March 31, 2010. This press release and certain supplemental information are furnished as Exhibits 99.1 and 99.2, respectively.

Item 9.01 Financial Statements and Exhibits.

(c) Exhibits

Exhibit Number	Description
99.1	Press Release issued April 22, 2010 - SIGMA-ALDRICH (NASDAQ:SIAL) REPORTS 10% INCREASE IN Q1 2010 SALES; FIRST QUARTER 2010 DILUTED EPS UP 19% TO $0.81; FULL YEAR 2010 DILUTED ADJUSTED EPS EXPECTATION RAISED TO $3.05-$3.20.
99.2	Certain supplemental information not included in the press release.

2

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: April 22, 2010

SIGMA-ALDRICH CORPORATION
By:	/s/    MICHAEL F. KANAN
	Michael F. Kanan, Vice President and
	Corporate Controller

3

EXHIBIT INDEX

Exhibit Number	Description
99.1	Press Release issued April 22, 2010 - SIGMA-ALDRICH (NASDAQ:SIAL) REPORTS 10% INCREASE IN Q1 2010 SALES; FIRST QUARTER 2010 DILUTED EPS UP 19% TO $0.81; FULL YEAR 2010 DILUTED ADJUSTED EPS EXPECTATION RAISED TO $3.05-$3.20.
99.2	Certain supplemental information not included in the press release.

4

EX-99.1

Exhibit 99.1

3050 Spruce Street, St. Louis, MO 63103 USA

Tel: (800) 521-8956 (314) 771-5765 Fax: (800) 325-5052 (314) 771-5757

From:	Jai P. Nagarkatti,	For questions, contact:
	Chairman, President and CEO	Kirk A. Richter,
		Vice President and Treasurer
		(314) 286-8004

FOR IMMEDIATE RELEASE -St. Louis, MO., April 22, 2010

SIGMA-ALDRICH (NASDAQ:SIAL) REPORTS 10% INCREASE IN Q1

2010 SALES; FIRST QUARTER 2010 DILUTED EPS UP 19% TO $0.81; FULL YEAR 2010

DILUTED ADJUSTED EPS EXPECTATION RAISED TO $3.05-$3.20.

HIGHLIGHTS:

2010 Results (all percentages are to comparable periods in 2009)

• Q1 2010 reported sales increased 10.2% to $572 million. Excluding the impact of changes in currency exchange rates, Q1 sales grew organically by 4.4% with SAFC and Research sales increases of 9.0% and 2.8%, respectively.

• Q1 2010 reported diluted EPS increased by 19.1% to $0.81. Excluding the impact of restructuring costs of $0.03 in 2010’s first quarter, diluted EPS increased 23.5% to $0.84.

• Q1 2010 net cash provided by operating activities and free cash flow were $151 million and $133 million, respectively.

2010 Outlook (all percentages are compared to full year 2009 results)

• Organic sales for the full year are expected to meet the Company’s previously forecast increase in a mid-single digit range. At current exchange rates, currency is not expected to have a significant impact on full year reported sales.

• Based on stronger performance, diluted adjusted EPS forecast for 2010 raised by $0.05 to $3.05-$3.20, a 9 to 14% increase compared to 2009. See 2010 Outlook below.

• Net cash provided by operating activities and free cash flow are expected to exceed $480 million and $350 million, respectively, for 2010.

CEO’s STATEMENT:

Commenting on first quarter 2010 performance, Chairman, President and CEO Jai Nagarkatti said: “The $0.81 diluted EPS reported for the first quarter of 2010 was the best reported quarterly result in our history. We are very pleased with this performance as we begin 2010 with improved conditions in several of our markets. In addition, our sales growth in SAFC and in our research focus initiative areas of analytical, biology and materials science all made positive contributions to our overall growth.

Each of our Research business units had positive volume growth in 2010’s first quarter, a marked change from what we experienced throughout 2009. And our SAFC business continued its strong sales performance with another double digit percentage increase in 2010’s first quarter. We continued to add to our product offering, including the acquisition of Ace Animals to enhance our offering of high quality rodents for biomedical research, the addition of 2,200 new antibodies to increase our overall

1

portfolio to over 30,000 antibodies and new offerings of products licensed from Highland Stable Isotopes Corp. We increased our capacity to produce high potency active pharmaceutical ingredients with the opening of a $30 million expansion of our manufacturing facility in Wisconsin and added capacity to produce key materials for high brightness light emitting diodes used in energy efficient lighting applications. We also launched a new life science initiative that we’re calling ‘Where Bio Begins’, a campaign to highlight our broad capabilities in biology, which include antibodies, Zinc Finger Nuclease gene editing technology, custom oligo services and novel animal models. About 45% of our sales are now currently derived from biology related products for research applications”.

Nagarkatti continued, “We’ve reaffirmed our organic sales growth expectation for 2010 of mid-single digit percentage growth and now believe that our diluted adjusted EPS for 2010 will be increased by $0.05 to $3.05 to $3.20. The analytical, biology and materials science growth initiatives, coupled with our cost management activities, are expected to continue to achieve desired results for 2010. We’re focused on improving our growth and returns longer term as we strive to boost our organic sales growth to a 7-8% range and drive operating profit margins to a 26% to 27% range over the next five years.”

2010 RESULTS:

Reported sales for the first quarter of 2010 were $572 million, an increase of 10.2% from the first quarter of 2009. Excluding a 5.8% benefit from favorable currency rates, first quarter organic sales growth was 4.4% driven largely by unit volume growth. Sales for the Company’s Research business grew 8.8% on a reported basis and 2.8% organically for the first quarter of 2010. Sales for SAFC continued the momentum that began in the second half of 2009, with first quarter reported growth of 14.3% and organic growth of 9.0% as sales of high potency active pharmaceutical ingredients and our Hitech products reflected strong demand from those markets. A reconciliation of reported to adjusted organic sales is on page 7.

The operating income margin in the first quarter of 2010 of 25.7% of sales reflects a 160 basis point improvement from 2009’s first quarter due to continued benefits from higher volumes, the Company’s supply chain initiative, favorable product mix and effective management of S,G&A costs. These items were partially offset by $6 million of restructuring costs to consolidate SAFC’s Biosciences manufacturing facilities and from a small workforce realignment. These previously announced restructuring actions are in line with the Company’s efforts to improve operating efficiencies and lower the fixed cost structure as part of its longer term program to improve operating margins to a 26% to 27% range over the next five years. Supply chain process improvements provided over $4 million of the Q1 2010 pretax enhancement.

Free cash flow (defined on page 6) for the first quarter of 2010 was $133 million, an increase of $47 million compared to the same period in 2009. Higher net income, a continued focus on inventory management and a lower level of capital expenditures were the primary contributors to this increase. A reconciliation of net cash provided by operating activities to free cash flow is on page 8.

Other highlights from global sales growth initiatives and profit enhancement activities include:

• Worldwide sales of research products through the Company’s award winning web site increased to 47% in the first quarter of 2010, up from 45% for the full year 2009.

• Sales in International markets (Asia Pacific and Latin America) continued to show strength with reported and organic growth of 23% and 11% for the first quarter of 2010, respectively. In the Company’s focus markets of China, India and Brazil, sales collectively grew 31% and 21% on a reported and organic basis for the first quarter of 2010, respectively.

• SAFC’s booked orders for future delivery at March 31, 2010 increased by 5% over the December 31, 2009 level.

2

2010 OUTLOOK:

• Organic sales growth is expected to be in the mid-single digit range for 2010. Market conditions are expected to continue the modest improvement experienced in the first quarter of 2010. The ongoing implementation of programs already in place and the new product initiatives for analytical, biology and materials science together with continued emphasis on growth opportunities in international markets and in e-commerce are all expected to contribute to the growth. When compared to the prior year results, reported sales are not likely to be impacted by currency rate changes if exchange rates remain near current levels.

• Our forecast for diluted adjusted earnings per share for 2010 is increased by $0.05 to $3.05 to $3.20 compared to diluted earnings per share of $2.80 reported for 2009. This increase is driven by these sales expectations, continuation of supply chain process improvements, benefits from workforce changes and other cost improvement activities, current currency rates and a 30-31% tax rate. This EPS outlook excludes the impacts of restructuring charges of $0.03 in 2010’s first quarter, additional restructuring costs to be recorded during the balance of 2010, and the impact of any acquisitions.

• Management expects net cash provided by operating activities to exceed $480 million and capital expenditures of approximately $130 million, producing free cash flow for 2010 in excess of $350 million.

OTHER INFORMATION:

Cash Flow and Debt: Net cash provided by operating activities for the three months ended March 31, 2010 was $151 million compared to $114 million for 2009’s first quarter. This increase reflects the higher net income and continued reduction in cash required for inventory that enabled management to reduce inventory levels to 6.2 months at March 31, 2010 from 6.5 months at December 31, 2009. Capital expenditures for the first three months were $18 million in 2010 compared to $28 million in 2009. Overall free cash flow of $133 million for the first quarter of 2010 was used to repay $16 million in debt and return $55 million to shareholders through share repurchases and a 10.3% increase in the quarterly dividend rate. The Company’s debt to capital ratio was reduced to 24.8% at March 31, 2010 from 25.5% at December 31, 2009.

Share Repurchase: Another 0.7 million shares were acquired in the first quarter of 2010 at an average share price of $48.69. There were 121 million shares outstanding at March 31, 2010. The Company expects to continue to offset the dilutive impact of issuing share based incentive compensation by future repurchases. Further, the Company may repurchase additional shares, but the timing and amount will depend upon market conditions and other factors.

Cautionary Statement: This release contains forward-looking statements relating to future performance, goals, strategic actions and initiatives and similar intentions and beliefs, including phrases “are expected”, “is expected”, “we expect”, “enhance”, “improve”, “identified additional initiatives”, “we plan”, “our initial forecast”, and other statements regarding the Company’s expectations, goals, beliefs, intentions and the like regarding future sales, earnings, free cash flow, share repurchases, acquisitions and other matters. These statements are based on assumptions regarding Company operations, investments and acquisitions and conditions in the markets the Company serves. The Company believes these assumptions are reasonable and well founded. The forward looking statements in this release are subject to risks and uncertainties, including, among others, certain economic, political and technological factors. Actual results could differ materially from those stated or implied in this news release, due to, but not limited to, such factors as (1) global economic conditions, (2) changes in pricing and the competitive environment and the global demand

3

for our products, (3) fluctuations in foreign currency exchange rates, (4) changes in research funding and the success of research and development activities, (5) dependence on uninterrupted manufacturing operations, (6) changes in the regulatory environment in which the Company operates, (7) changes in worldwide tax rates or tax benefits from domestic and international operations, including the matters described in Note 10-Income Taxes-to the Consolidated Financial Statements in the Company’s Form 10-K report for the year ended December 31, 2009, (8) exposure to litigation, including product liability claims, (9) the ability to maintain adequate quality standards, (10) reliance on third party package delivery services, (11) failure to achieve planned cost reductions in global supply chain rationalization, (12) an unanticipated increase in interest rates, (13) failure of planned sales initiatives in our Research and SAFC businesses, (14) other changes in the business environment in which the Company operates, and (15) the outcome of the matters described in Note 11-Contingent Liabilities and Commitments-to the Consolidated Financial Statements in the Company’s Form 10-K report for the year ended December 31, 2009. A further discussion of the Company’s risk factors can be found in Item 1A of Part 1 of the Company’s Form 10-K report for the year ended December 31, 2009. The Company does not undertake any obligation to update these forward-looking statements.

About Sigma-Aldrich: Sigma-Aldrich is a leading Life Science and High Technology company. Our biochemical and organic chemical products and kits are used in scientific research, including genomic and proteomic research, biotechnology, pharmaceutical development, and as key components in pharmaceutical, diagnostic and other high technology manufacturing. We have customers in life science companies, university and government institutions, hospitals and in industry. Over one million scientists and technologists use our products. Sigma-Aldrich operates in 38 countries and has 7,600 employees providing excellent service worldwide. We are committed to accelerating our Customers’ success through leadership in Life Science, High Technology and Service. For more information about Sigma-Aldrich, please visit our award winning web site at www.sigma-aldrich.com.

Non-GAAP Financial Measures: The Company supplements its disclosures made in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) with certain non-GAAP financial measures. The Company does not, and does not suggest investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, GAAP financial information. These non-GAAP measures may not be consistent with the presentation by similar companies in the Company’s industry. Whenever the Company uses such non-GAAP measures, it provides a reconciliation of such measures to the most closely applicable GAAP measure. See the Supplemental Financial Information on pages 7 and 8 for these reconciliations.

With over 60% of sales denominated in currencies other than the U.S. dollar, management uses currency adjusted growth, and believes it is useful to investors, to judge the Company’s local currency performance. Organic sales growth data presented in this release excludes currency impacts. While we are able to report currency impacts after the fact, we are unable to estimate changes that may occur later in 2010 to applicable exchange rates. Any significant changes in currency exchange rates would likely have a significant impact on our reported growth rates due to the volume of our sales denominated in foreign currencies.

Management also uses proforma net income (reconciled on page 8) and free cash flow (defined on page 6), non-GAAP measures, to judge its performance and ability to pursue opportunities that enhance shareholder value. Due to the uncertain timing of the future restructuring charges, we are unable to include this in the 2010 diluted EPS forecast. Management believes this non-GAAP information is useful to investors as well.

4

SIGMA-ALDRICH CORPORATION

Consolidated Statements of Income (Unaudited)

(in millions except per share amounts)

	Three Months Ended March 31,
	2010		2009
Net sales	$	572	$	519
Cost of products sold		269		251
Gross profit		303		268
Selling, general and administrative expenses		134		127
Research and development expenses		16		16
Restructuring costs		6		—
Operating income		147		125
Interest, net		2		3
Income before income taxes		145		122
Provision for income taxes		45		38
Net income	$	100	$	84
Net income per share - Basic	$	0.82	$	0.69
Net income per share - Diluted	$	0.81	$	0.68
Weighted average number of shares outstanding - Basic		122		122
Weighted average number of shares outstanding - Diluted		123		123

SIGMA-ALDRICH CORPORATION

Consolidated Balance Sheets

(in millions)

	(Unaudited) March 31, 2010			December 31, 2009
Assets
Current assets:
Cash and cash equivalents	$	421		$	373
Accounts receivable, net		317			285
Inventories		585			609
Other current assets		131			117
Total current assets		1,454			1,384
Property, plant and equipment, net		699			709
Goodwill, net		394			401
Intangibles, net		129			129
Other assets		93			91
Total assets	$	2,769		$	2,714
Liabilities and Stockholders’ Equity
Current liabilities:
Notes payable and current maturities of long-term debt	$	461		$	477
Accounts payable		120			112
Other		196			153
Total current liabilities		777			742
Long-term debt		100			100
Pension and post-retirement benefits		95			94
Deferred taxes		30			23
Other liabilities		67			69
Total liabilities		1,069			1,028
Stockholders’ equity:
Common stock		202			202
Capital in excess of par value		161			153
Common stock in treasury		(2,013	)		(1,983	)
Retained earnings		3,310			3,230
Accumulated other comprehensive income		40			84
Total stockholders’ equity		1,700			1,686
Total liabilities and stockholders’ equity	$	2,769		$	2,714

5

SIGMA-ALDRICH CORPORATION

Consolidated Statements of Cash Flows (Unaudited)

(in millions)

	Three Months Ended March 31,
	2010			2009
Cash flows from operating activities:
Net income	$	100		$	84
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		23			23
Deferred income taxes		3			1
Stock-based compensation expense		4			3
Restructuring costs, net of payments		3			—
Other		—			(1	)
Changes in operating assets and liabilities:
Accounts receivable		(39	)		(40	)
Inventories		11			(5	)
Accounts payable		10			7
Income taxes		29			31
Other, net		7			11
Net cash provided by operating activities		151			114
Cash flows from investing activities:
Capital expenditures		(18	)		(28	)
Purchases of investments		(11	)		(1	)
Proceeds from sale of property, plant and equipment		—			2
Acquisitions of businesses, net of cash acquired		(5	)		(2	)
Other, net		(1	)		—
Net cash used in investing activities		(35	)		(29	)
Cash flows from financing activities:
Net issuance/(repayment) of short-term debt		(16	)		(74	)
Repayment of long-term debt		—			(7	)
Payment of dividends		(20	)		(18	)
Treasury stock purchases		(35	)		(7	)
Exercise of stock options		9			2
Excess tax benefits from stock-based payments		2			1
Net cash used in financing activities		(60	)		(103	)
Effect of exchange rate changes on cash		(8	)		(7	)
Net change in cash and cash equivalents		48			(25	)
Cash and cash equivalents at January 1		373			252
Cash and cash equivalents at March 31	$	421		$	227
Free cash flow(1)	$	133		$	86

⁽¹⁾ Net cash provided by operating activities less capital expenditures.

6

SIGMA-ALDRICH CORPORATION

Supplemental Financial Information - (Unaudited)

Sales Growth by Business Unit

	Three Months Ended March 31, 2010
	Reported		Currency Impact		Adjusted (Organic)
Research Essentials	4.7	%	5.6	%	(0.9	%)
Research Specialties	10.2	%	6.1	%	4.1	%
Research Biotech	11.0	%	6.1	%	4.9	%
Research Chemicals	8.8	%	6.0	%	2.8	%
SAFC	14.3	%	5.3	%	9.0	%
Total Customer Sales	10.2	%	5.8	%	4.4	%

Business Unit Sales

(in millions)

	First Quarter 2009		Second Quarter 2009		Third Quarter 2009		Fourth Quarter 2009		Total 2009
Research Essentials	$	107	$	106	$	104	$	107	$	424
Research Specialties		197		194		199		209		799
Research Biotech		82		79		82		89		332
Research Chemicals		386		379		385		405		1,555
SAFC		133		143		149		168		593
Total Customer Sales	$	519	$	522	$	534	$	573	$	2,148
	First Quarter 2010		Second Quarter 2010		Third Quarter 2010		Fourth Quarter 2010		Total 2010
Research Essentials	$	112	$	—	$	—	$	—	$	112
Research Specialties		217		—		—		—		217
Research Biotech		91		—		—		—		91
Research Chemicals		420		—		—		—		420
SAFC		152		—		—		—		152
Total Customer Sales	$	572	$	—	$	—	$	—	$	572

7

SIGMA-ALDRICH CORPORATION

Supplemental Financial Information - (Unaudited)

Reconciliation of Proforma to Reported Net Income

	Net Income (in millions)					Diluted Earnings Per Share
	Three Months Ended March 31,					Three Months Ended March 31,
	2010			2009		2010			2009
Proforma net income before currency impact and restructuring	$	98		$	84	$	0.78		$	0.68
Currency impact		8			—		0.06			—
Proforma net income before restructuring		106			84		0.84			0.68
Restructuring costs		(6	)		—		(0.03	)		—
Total reported net income	$	100		$	84	$	0.81		$	0.68

Income Statement Ratios

	Three Months Ended March 31,
	2010		2009
Gross profit	53.0	%	51.6	%
S,G&A expenses	23.4	%	24.5	%
Operating income	25.7	%	24.1	%
Pretax income	25.3	%	23.5	%
Net income	17.5	%	16.2	%
Effective tax rate	31.0	%	31.1	%

Reconciliation of Free cash flow

(in millions)

	Three Months Ended March 31,
	2010			2009
Net cash provided by operating activities	$	151		$	114
Less: Capital expenditures		(18	)		(28	)
Free cash flow	$	133		$	86

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EX-99.2

Sigma-Aldrich Corporation

Q1 2010 Earnings Review & 2010 Outlook

Enabling Science to

Improve the Quality of Life

Exhibit 99.2

2

Cautionary Statements

Our

presentation

today

will

include

forward

looking

statements

relating

to

the

Company’s

future

performance,

goals,

strategic

actions

and

initiatives

and

similar

intentions

and

beliefs,

including

expectations,

goals,

beliefs,

intentions

and

the

like

regarding

future

sales,

earnings,

free

cash

flow,

share

repurchases

and

other

matters.

These

statements

are

based

on

assumptions

regarding

Company

operations,

investments

and

acquisitions

and

conditions

in

the

markets

the

Company

serves.

We

believe

that

these

expectations

are

reasonable

and

well-founded.

The

forward-looking

statements

in

this

release

are

subject

to

risks

and

uncertainties

including,

among

others,

certain

economic,

political

and

technological

factors.

Actual

results

could

differ

materially

from

those

stated

or

implied

during

this

review

or

contained

in

other

Company

communications

due

to,

but

not

limited

to,

such

factors

as

(1)

global

economic

conditions,

(2)

changes

in

pricing

and

the

competitive

environment

and

the

global

demand

for

our

products,

(3)

fluctuations

in

foreign

currency

exchange

rates,

(4)

changes

in

research

funding

and

the

success

of

research

and

development

activities,

(5)

dependence

on

uninterrupted

manufacturing

operations,

(6)

changes

in

the

regulatory

environment

in

which

the

Company

operates,

(7)

changes

in

worldwide

tax

rates

or

tax

benefits

from

domestic

and

international

operations,

including

the

matter

described

in

Note

10–Income

Taxes–

to

the

Consolidated

Financial

Statements

in

the

Company’s

Form

10-K

report

for

the

year

ended

December

31,

2009,

(8)

exposure

to

litigation,

including

product

liability

claims,

(9)

the

ability

to

maintain

adequate

quality

standards,

(10)

reliance

on

third

party

package

delivery

services,

(11)

failure

to

achieve

planned

cost

reductions

in

global

supply

chain

rationalization,

(12)

an

unanticipated

increase

in

interest

rates,

(13)

failure

of

sales

initiatives

in

our

Research

and

SAFC

businesses,

(14)

ot

her

changes

in

the

business

environment

in

which

the

Company

operates,

and

(15)

the

outcome

of

the

matters

described

in

Note

11-

Contingent

Liabilities

and

Commitments-in

the

Company’s

Form

10-K

report

for

the

year

ended

December

31,

2009.

A

further

discussion

of

risk

factors

can

be

found

in

Item

1A

of

the

Company’s

Form

10-K

report

for

the

year

ended

December

31,

2009.

The

Company

does

not

undertake

any

obligation

to

publicly

update

the

matters

covered

in

this

presentation.

With

over

60%

of

sales

denominated

in

currencies

other

than

the

U.S.

dollar,

management

uses

currency-adjusted

growth,

and

believes

it

is

useful

to

investors,

to

judge

the

Company’s

controllable,

local

currency

performance.

Organic

sales

growth

data

presented

in

this

review

is

proforma

data

and

excludes

currency

impacts.

While

able

to

report

historical

currency

impacts

after

the

fact,

we

are

unable

to

estimate

changes

that

may

occur

later

in

2010

to

applicable

rates

of

exchange

and

thus

will

be

unable

to

reconcile

the

projected

non-GAAP

currency

adjusted

internal

growth

rates

to

reported

GAAP

growth

rates

for

2010.

Any

significant

changes

in

currency

exchange

rates

would

likely

have

a

significant

impact

on

our

reported

growth

rates

due

to

the

volume

of

our

sales

denominated

in

foreign

currencies.

Management

also

uses

proforma

net

income

and

free

cash

flow,

non-GAAP

measures,

to

judge

its

performance

and

ability

to

pursue

opportunities

that

enhance

shareholder

value.

Due

to

the

uncertain

timing

of

the

future

restructuring charges,

we

are

unable

to

include

this

in

the

2010

diluted

EPS

forecast.

Management

believes

this

non

GAAP

information

is

useful to investors as well.  Reconciliations of GAAP to

non-GAAP information are included in the Company’s April 22, 2010 earnings release posted on its website, www.sigma-aldrich.com

3

First Quarter 2010

Financial Results

Diluted EPS

Net Income

Sales

$572

$100

$0.81

Q1 2010

(in millions, except EPS)

10%

19%

19%

As Reported

Free Cash Flow

$133

55%

4%

10%

10%

Excluding

Currency Impact

55%

YEAR-OVER-YEAR

Q1 performance reflects improved sales growth for research and

SAFC businesses and record quarterly EPS

4

Demand for research products continued to show growth.

SAFC sales show progressive quarterly increases

2010 Sales Growth

(Adjusted for Currency)

Sales Mix (YTD)

Total

Company

SAFC

Research

RESEARCH

73%

27%

SAFC

2.8%       

9.0%     

4.4%

Q1 2010/Q1 2009

5

Margin Analysis

PERCENTAGE OF SALES

S,G&A and R & D Expenses

Price

Volume/Mix/Productivity

2009: Operating Income Margin

Impact of Currency

2010: Operating Income Margin

Restructuring Costs

24.1%

0.6%

1.2%

0.2%

(0.7%)

25.7%    

Q1

(1.1%)

Operating margins improved by 160 basis points

6

Q1 Free cash flow sets new quarterly record

Free Cash Flow

(in millions)

Net Cash from Operations

Less Capital Expenditures

Changes in Performance Working Capital*

*Accounts Receivable + Inventory –

Accounts Payable

2010

$ 100

23 

(18)  

46

151

(18)

$ 133

Net Income

Free Cash Flow

Other

Depreciation & Amortization

2009

$ 84

23 

(38)    

45

114

(28)

$ 86 

3 MONTHS ENDED MARCH 31

7

2010 Guidance

Organic Revenue Growth

Diluted Adjusted EPS

Free Cash Flow

Mid single digits

$3.05 to $3.20

>$350M

8

Organic sales growth improved in 2010

First Quarter 2010 Highlights

•Financial Performance

•

Organic Sales Growth

+ 4%

•

Diluted EPS Growth (excluding currency)

+10%

•Customer Sectors

•

Chemical and related

+

•

Diagnostic

+

•

Academic

+

•

Pharmaceutical

-

•Product Highlights

•

New antibodies added

•

Zinc Finger Nuclease adoption growing

•

Expanded Analytical product offering

•

Now

offer

Pfizer

and

Boehringer

Ingelheim

products                                                         

for research applications

•

Strong SAFC Sales

9

Plan to Achieve Objective

Impact of Top Line Growth Initiatives

4% Incremental contribution to top line growth

0.5%

Expand Web and B2B capabilities

Realign sales effort

Optimize

Go-to-Market

1.0%

Apply our technologies to customers’

unique and evolving

supply chains

SAFC/Unique

Mfg. Capabilities

1.0%

Increase presence and assets in faster growth economies

Emerging Market

Expansion

Leverage chemistry knowledge to offer

products for materials research and

manufacturing

Chemistry

Increase focus on biology

Expand traditional product portfolio and build

new targeted platform technologies

Biology

1.5%

Expand into attractive areas of detection

and analysis

Analytical

Innovation

ABC

M

Focus

(U.S. and Europe)

Incremental Impact

Initiatives

10

Q1 2010 Performance

•Innovation

Reported

Organic

•

Analytical, Biology, Materials Science Sales Growth

10-17%

4-10%

•Geographic Expansion

•

Growth in Asia Pacific/Latin America

23%

11%

•

Growth in focus markets –

India, China, Brazil

31%

21%

•SAFC Sales

•

Q1 Performance

14%

9%

•eCommerce

Sales                                   %

of

Research

Sales

•

Research Sales via eCommerce

channels

47%

Initiatives collectively on track with expectations

11

2010 Guidance

Organic Revenue Growth

Diluted Adjusted EPS

Free Cash Flow

Mid single digits

$3.05 to $3.20

>$350M

12

QUESTIONS?

Sigma-Aldrich Corporation

Q1 2010 Earnings Review