01—Abstract
Summary
Summary of the 10-K filed February 24, 2012. Cited figures are marked; the original filing is the authoritative source.
Danaher Corporation reported robust growth in its 2011 fiscal year, driven by strong performance across its diverse segments, particularly the Life Sciences & Diagnostics division, which was significantly bolstered by the acquisition of Beckman Coulter.
The company's strategic focus on the Danaher Business System (DBS) continues to be a key driver of operational efficiency and value creation. Danaher maintained a strong financial position, evidenced by healthy operating cash flow and a diverse revenue stream across its five reportable segments: Test & Measurement, Environmental, Life Sciences & Diagnostics, Dental, and Industrial Technologies. The company's acquisition strategy remains active, with continued investment in businesses that align with its strategic goals and enhance its market positions, alongside the divestiture of non-core assets.
Looking ahead, Danaher anticipates continued sales growth from existing businesses, albeit at a moderating pace, supported by ongoing investments in innovation and market expansion, particularly in emerging markets. The integration of Beckman Coulter is expected to yield significant synergies and contribute to future growth. The company's financial health is supported by a well-managed debt structure and ample liquidity, positioning it to pursue strategic opportunities while navigating the evolving economic landscape.
02—Key points
Key Highlights
- Danaher Corporation experienced significant sales growth in 2011, driven by both organic growth (7.0%) and strategic acquisitions, with the Life Sciences & Diagnostics segment showing substantial expansion.
- The acquisition of Beckman Coulter, Inc. for approximately $5.5 billion was a major event, significantly expanding Danaher's presence in clinical diagnostics and life sciences research.
- The company generated strong operating cash flow, indicating operational efficiency and financial health, supporting its ability to invest in growth and manage its capital structure.
- Danaher continued to invest in research and development, with R&D expenses increasing to $1.02 billion, reflecting a commitment to innovation across its product lines.
- The company strategically divested certain non-core assets, including the Pacific Scientific Aerospace business, to streamline operations and focus on core growth areas.
- Danaher's diversified business model, spanning five segments (Test & Measurement, Environmental, Life Sciences & Diagnostics, Dental, Industrial Technologies), provided resilience and broad market exposure.
- The Danaher Business System (DBS) continues to be central to the company's strategy for driving continuous improvement in quality, delivery, cost, and innovation.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2011, Danaher Corp kept $0.14.
- Revenue$16.09B100.0%
- Cost of revenue−$7.91B49.2%
- Gross profit$8.18B50.8%
- Operating costs−$5.56B34.6%
- Operating income$2.62B16.3%
- Interest, other & tax−$444.9M2.8%
- Net income$2.17B13.5%
Where FY2011 revenue went
$16.09B- Cost of revenue: $7.91B, 49% of revenue
- SG&A: $4.61B, 29% of revenue
- Net income: $2.17B, 14% of revenue
- R&D: $1.02B, 6.3% of revenue
- Interest, other & tax: $444.9M, 2.8% of revenue
Kept 14% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2011filed February 24, 2012Financial Statements
FY2011 against FY2010
| Line item | FY2011FY2010 | Change |
|---|---|---|
| Revenue | $16.09B$12.55B | +28.2% |
| Cost of Revenue | $7.91B$6.15B | +28.8% |
| Gross Profit | $8.18B$6.40B | +27.7% |
| R&D Expenses | $1.02B$774.00M | +31.6% |
| SG&A Expenses | $4.61B$3.60B | +27.9% |
| Operating Income | $2.62B$2.05B | +27.7% |
| Interest Expense | $141.60M$117.10M | +20.9% |
| Net Income | $2.17B$1.79B | +21.2% |
| EPS (Basic) | $3.21$2.74 | +17.2% |
| EPS (Diluted) | $3.11$2.64 | +17.8% |
| Shares Outstanding (Basic) | 676.20M653.20M | +3.5% |
| Shares Outstanding (Diluted) | 701.20M683.30M | +2.6% |
05—Questions
Frequently Asked Questions
What was Danaher's primary growth driver in 2011?
Danaher's primary growth driver in 2011 was the acquisition of Beckman Coulter, Inc., which significantly expanded its Life Sciences & Diagnostics segment. Organic growth across its other segments also contributed positively.
How did Danaher finance the acquisition of Beckman Coulter?
Danaher financed the acquisition of Beckman Coulter using a combination of available cash, proceeds from public offerings of its common stock and senior unsecured notes, and net proceeds from its commercial paper program.
What is the Danaher Business System (DBS) and how does it impact the company?
The Danaher Business System (DBS) is a set of tools and processes designed by Danaher to continuously improve business performance in areas like quality, delivery, cost, and innovation. It is a core element of Danaher's strategy to create shareholder value and is applied across all its businesses, including driving operational efficiencies and integrating acquisitions like Beckman Coulter.
Did Danaher engage in any significant divestitures in 2011?
Yes, Danaher completed the sale of its Pacific Scientific Aerospace business in April 2011. Additionally, agreements were entered into for the sale of its integrated scanning system business (Accu-Sort) and its Kollmorgen Electro-Optical business, with closings expected in early 2012.
06—Continue