Charles River sees FY18 free cash flow $250M-$260M
Says increasing DSA long-term target to the mid-20% range, from more than 20% previously, driven by higher revenue growth and continuing efficiency initiatives. Says believe trends will continue, so reaffirming long-term target of low-double-digit organic revenue growth for manufacturing segment. Says believes the Microbial business will be able to continue to deliver low-double digit organic revenue growth for the foreseeable future. Says plans to expand into new facility near existing Pennsylvania site for Biologics. Says increasing Manufacturing operating margin target to the mid-30% range, from more then 30% previously. Sees RMS 2018 reported revenue growth low-single digits, organic growth low-single digits, sees DSA reported revenue growth high-single digits, organic growth in same range as 2017. Sees 2018 manufacturing reported revenue growth above 10%, sees organic revenue growth above 10%. Says will continue to add staff to support growth across many of businesses to keep pace with demand in 2018. Expects to generate efficiency savings of $60M-$65M before the benefit of expected MPI synergies in 2018. Expects net interest expense to be $29M-$31M in 2018. Expects 2018 tax rate to be 25%-26%, excluding MPI. Sees 2018 CapEx approximately $100M before factoring in MPI capital requirements.