Summary
Danaher Corporation reported robust performance for the fiscal year ending December 31, 2014, demonstrating sales growth driven by both existing businesses and strategic acquisitions. The company's diversified five-segment structure, encompassing Test & Measurement, Environmental, Life Sciences & Diagnostics, Dental, and Industrial Technologies, contributed to its stable global performance. Danaher's commitment to its "Danaher Business System" (DBS) continues to be a key driver for operational efficiency and innovation across its diverse product and service offerings. Financially, the company saw an increase in consolidated sales of 4.0% compared to the prior year. Management highlighted a strategic acquisition of Nobel Biocare in the Dental segment, alongside sixteen other acquisitions across various segments, reinforcing its growth-through-acquisition strategy. The company also announced plans to spin off or split off its communications business from the Test & Measurement segment and merge it with NetScout Systems, Inc., a significant strategic move expected to be completed in 2015. Danaher's financial health appears solid, with substantial cash from operations and manageable debt levels.
Financial Highlights
54 data points| Revenue | $12.87B |
| Cost of Revenue | $6.02B |
| Gross Profit | $6.85B |
| R&D Expenses | $769.40M |
| SG&A Expenses | $4.04B |
| Operating Income | $2.04B |
| Interest Expense | $94.70M |
| Net Income | $2.60B |
| EPS (Basic) | $3.70 |
| EPS (Diluted) | $3.63 |
| Shares Outstanding (Basic) | 702.20M |
| Shares Outstanding (Diluted) | 716.10M |
Key Highlights
- 1Danaher reported a 4.0% increase in consolidated sales for 2014, reaching $19.9 billion, with existing businesses contributing 3.5% growth.
- 2The company completed a significant acquisition of Nobel Biocare in the Dental segment for approximately $1.9 billion, alongside sixteen other acquisitions totaling $1.3 billion.
- 3A major strategic initiative was announced to combine the majority of Danaher's Test & Measurement segment's communications business with NetScout Systems, Inc., expected to be completed in 2015.
- 4The Life Sciences & Diagnostics segment continued to be the largest revenue contributor, showing mid-single digit growth from existing businesses.
- 5The company maintained strong operating profit margins, with the Industrial Technologies segment showing the highest operating profit margin at 22.7%.
- 6Danaher's R&D expenditures increased to $1.314 billion, reflecting a commitment to innovation across its segments.
- 7The company generated substantial operating cash flow of $3.76 billion, supporting its investing activities, including acquisitions and capital expenditures.