01—Abstract
Summary
Summary of the 10-K filed February 24, 2011. Cited figures are marked; the original filing is the authoritative source.
Danaher Corporation (DHR) reported a strong financial performance for the fiscal year ending December 31, 2010, marking a significant recovery from the economic downturn of 2009.
The company experienced substantial sales growth, driven by increased demand across its diverse segments and successful integration of recent acquisitions, particularly in the Life Sciences & Diagnostics sector. Danaher's focus on operational efficiency, through its Danaher Business System (DBS), continued to yield positive results, leading to improved operating profit margins. The company strategically deployed capital through acquisitions, enhancing its market positions and technological capabilities.
Looking ahead, Danaher anticipates continued sales growth, albeit at a moderating pace, and remains committed to its strategy of organic growth supplemented by targeted acquisitions. The company's financial health is robust, supported by strong operating cash flow and a well-managed balance sheet. Investors can find confidence in Danaher's diversified business model, its disciplined capital allocation, and its consistent execution of its strategic initiatives, positioning it for sustained shareholder value creation.
02—Key points
Key Highlights
- Danaher's sales increased significantly in 2010 compared to 2009, driven by a recovery in global economic conditions and the company's growth initiatives.
- Operating profit margins improved notably in 2010 due to higher sales volumes and the benefits of restructuring actions taken in prior years.
- The company actively pursued strategic acquisitions, notably in the Life Sciences & Diagnostics segment with the acquisitions of AB Sciex and Molecular Devices, expanding its capabilities in mass spectrometry.
- Danaher formed a significant joint venture, Apex Tool Group, LLC, with Cooper Industries, contributing its hand tool manufacturing and distribution businesses.
- The company's diversified business segments, including Test & Measurement, Environmental, Life Sciences & Diagnostics, Dental, and Industrial Technologies, all contributed to the overall positive performance.
- Danaher maintained a strong liquidity position, with substantial cash from operations and access to credit facilities, enabling continued investment and strategic acquisitions.
- Research and development expenditures increased in 2010, reflecting the company's commitment to innovation and new product development across its segments.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2010, Danaher Corp kept $0.14.
- Revenue$12.55B100.0%
- Cost of revenue−$6.15B49.0%
- Gross profit$6.40B51.0%
- Operating costs−$4.35B34.7%
- Operating income$2.05B16.3%
- Interest, other & tax−$256.6M2.0%
- Net income$1.79B14.3%
Where FY2010 revenue went
$12.55B- Cost of revenue: $6.15B, 49% of revenue
- SG&A: $3.60B, 29% of revenue
- Net income: $1.79B, 14% of revenue
- R&D: $774.0M, 6.2% of revenue
- Interest, other & tax: $256.6M, 2.0% of revenue
Kept 14% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2010filed February 24, 2011Financial Statements
FY2010 against FY2009
| Line item | FY2010FY2009 | Change |
|---|---|---|
| Revenue | $12.55B$10.52B | +19.3% |
| Cost of Revenue | $6.15B$5.45B | +12.8% |
| Gross Profit | $6.40B$5.07B | +26.3% |
| R&D Expenses | $774.00M$600.27M | +28.9% |
| SG&A Expenses | $3.60B$3.12B | +15.7% |
| Operating Income | $2.05B$1.44B | +42.4% |
| Interest Expense | $117.10M$118.65M | −1.3% |
| Net Income | $1.79B$1.15B | +55.7% |
| EPS (Basic) | $2.74$1.80 | +52.2% |
| EPS (Diluted) | $2.64$1.73 | +52.6% |
| Shares Outstanding (Basic) | 653.20M641.53M | +1.8% |
| Shares Outstanding (Diluted) | 683.30M671.48M | +1.8% |
05—Questions
Frequently Asked Questions
What was Danaher's overall financial performance in 2010?
Danaher experienced a strong recovery in 2010, with significant sales growth and improved operating profit margins compared to 2009. This performance was driven by increased demand across its business segments and successful integration of acquisitions.
Which segments performed particularly well in 2010?
Most segments showed improved performance. The Life Sciences & Diagnostics segment saw substantial growth due to key acquisitions. The Test & Measurement and Industrial Technologies segments also demonstrated robust performance, benefiting from increased demand and operational efficiencies.
How did Danaher's acquisition strategy impact its 2010 results?
Acquisitions played a significant role in Danaher's 2010 performance. The company completed several strategic acquisitions, notably in the Life Sciences & Diagnostics area (AB Sciex and Molecular Devices), which expanded its product offerings and market reach. These acquisitions contributed to revenue growth and diversification.
What is Danaher's outlook for 2011?
Danaher expects continued sales growth in 2011, though at a moderating rate compared to 2010. This outlook is based on a stable global economy and the company's ongoing strategic initiatives, including further investments in organic growth and potential acquisitions.
06—Continue