10-KPeriod: FY2012

DANAHER CORP /DE/ Annual Report, Year Ended Dec 31, 2012

Filed February 22, 2013For Securities:DHR

Summary

Danaher Corporation's 2012 10-K filing reveals a company focused on diversified growth through its five key segments: Test & Measurement, Environmental, Life Sciences & Diagnostics, Dental, and Industrial Technologies. The company emphasizes its Danaher Business System (DBS) as a core driver for continuous improvement in quality, delivery, cost, and innovation. Strategic acquisitions played a significant role in expanding its portfolio, notably the substantial acquisition of Beckman Coulter in 2011, which bolstered the Life Sciences & Diagnostics segment. The company also actively manages its portfolio through divestitures of non-core assets. The report highlights consistent sales growth, driven by both organic improvements and strategic acquisitions, with a notable presence in high-growth markets. Danaher demonstrates a commitment to shareholder value through consistent dividend payments and a share repurchase program, alongside a robust approach to managing its financial resources and operational efficiencies.

Financial Highlights

52 data points
Beta

Revenue

$18.26B

51.6% Gross Margin

Net Income

$2.39B

13.1% Net Margin

EPS (Diluted)

$3.36

Total Assets

$32.94B

Cash & Equivalents

$1.68B

Free Cash Flow

$2.96B

Financial Statements
Beta
Revenue$18.26B
Cost of Revenue$8.85B
Gross Profit$9.41B
R&D Expenses$1.14B
SG&A Expenses$5.18B
Operating Income$3.17B
Interest Expense$157.50M
Net Income$2.39B
EPS (Basic)$3.45
EPS (Diluted)$3.36
Shares Outstanding (Basic)693.40M
Shares Outstanding (Diluted)713.10M

Key Highlights

  • 1Danaher operates across five distinct segments: Test & Measurement, Environmental, Life Sciences & Diagnostics, Dental, and Industrial Technologies, showcasing a diversified business model.
  • 2The Danaher Business System (DBS) is identified as a key strategic tool for driving continuous improvement in operational performance across all segments.
  • 3Significant strategic acquisitions, particularly the acquisition of Beckman Coulter in 2011, were a major growth driver, substantially expanding the Life Sciences & Diagnostics segment.
  • 4The company actively manages its portfolio by divesting non-core businesses, such as the Accu-Sort and Kollmorgen Electro-Optical businesses in 2012.
  • 5Sales growth in 2012 was 13.5% year-over-year, with existing businesses contributing 2.5% and acquired businesses contributing 13.0%, offset by a 2.0% negative impact from currency translation.
  • 6Research and development expenditures increased across all segments, reflecting a commitment to innovation and product development.
  • 7The company maintained a strong liquidity position, with $1.7 billion in cash and cash equivalents as of December 31, 2012, and a $2.5 billion revolving credit facility.

Frequently Asked Questions

Danaher's growth strategy is multi-faceted, focusing on delivering sales growth from existing businesses that outpaces the overall market, achieving upper quartile financial performance compared to peers, and generating strong cash flow. This is achieved through the application of the Danaher Business System (DBS), strategic acquisitions of complementary businesses, continuous portfolio assessment including divestitures of non-strategic assets, and investment in innovation and product development.

Acquisitions were a significant driver of Danaher's performance in 2012. The company acquired fourteen businesses for a total consideration of $1.8 billion, which contributed 13.0% to the year-over-year sales growth. The impact of the 2011 acquisition of Beckman Coulter was particularly substantial, significantly expanding the Life Sciences & Diagnostics segment and contributing to overall revenue and earnings growth.

Danaher demonstrated strong financial health and liquidity at the end of 2012. The company reported $1.7 billion in cash and cash equivalents. It also maintained a $2.5 billion unsecured revolving credit facility, indicating robust access to capital. The company's operating cash flows from continuing operations increased by approximately 28% in 2012 compared to 2011, highlighting its ability to generate substantial cash from its operations.

Currency exchange rates had a negative impact on Danaher's sales in 2012. The U.S. dollar was, on average, stronger against other major currencies compared to 2011, which decreased sales by 2.0%. The company noted that any strengthening of the U.S. dollar would continue to adversely impact sales and results of operations.