December 11, 2008 / 10:24 PM / 10 years ago

UPDATE 1-Waters cuts Q4 view on lower orders for new instruments

* Cuts both revenue and earnings view for Q4

* Sees Q4 rev of $410 mln - $420 mln

* Sees non-GAAP Q4 EPS of $0.94 - $0.99

* Shares fall 12 percent

Dec 11 (Reuters) - Drug research tools maker Waters Corp (WAT.N) cut its fourth-quarter outlook, citing weaker than expected orders for new instruments due to the deteriorating global economy, sending shares down 12 percent.

The company, which is considered a bellwether for the research tools industry, had seen a 12 percent increase in sales in the first nine months of 2008 from the year-ago period.

However, for the fourth quarter, the company said it expects sales to fall 4 percent to 6 percent compared to the prior year. [ID:nWNAB2026]

Waters said it now sees a “generally more difficult business environment ahead” as customers are more cautious on capital spending. Foreign exchange impacts are unfavorably affecting its business growth and profitability, it added.

Waters, which competes with Thermo Fisher Scientific Inc (TMO.N) and Illumina (ILMN.O), said it was assessing its spending plans to align with lower sales expectations.

Earlier this week, Deutsche Bank cut its estimate for several life science tool makers, including Waters, citing deteriorating industry conditions.

Shares of Waters, which closed at $41.88 Thursday, were trading down at $36.77 after the bell. (Reporting by Jennifer Robin Raj in Bangalore; Editing by Anil D’Silva)

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