Summary
Danaher Corporation's 2016 10-K report highlights a year of significant strategic moves and growth, driven by its "Danaher Business System" (DBS) and a focus on enhancing its portfolio in science and technology markets. The company successfully executed the separation of its former Test & Measurement and Industrial Technologies segments into Fortive Corporation, a move that streamlined its operations and allowed for a more concentrated focus on its core segments: Life Sciences, Diagnostics, Dental, and Environmental & Applied Solutions. Financially, Danaher demonstrated robust sales growth, driven by both existing businesses and strategic acquisitions, notably the significant acquisition of Cepheid. The company also managed its debt effectively, utilizing proceeds from the Fortive separation to repay existing notes. Danaher's commitment to innovation and operational efficiency through DBS appears to be a key driver of its performance, positioning it for continued growth in its specialized markets. The report underscores the company's diversified business model and global reach as strengths in navigating economic uncertainties.
Financial Highlights
53 data points| Revenue | $16.88B |
| Cost of Revenue | $7.55B |
| Gross Profit | $9.33B |
| R&D Expenses | $975.10M |
| SG&A Expenses | $5.62B |
| Operating Income | $2.74B |
| Interest Expense | $184.40M |
| Net Income | $2.55B |
| EPS (Basic) | $3.69 |
| EPS (Diluted) | $3.65 |
| Shares Outstanding (Basic) | 691.20M |
| Shares Outstanding (Diluted) | 699.80M |
Key Highlights
- 1Completed the separation of its Test & Measurement and Industrial Technologies segments into a new public company, Fortive Corporation, to focus on core life sciences, diagnostics, dental, and environmental & applied solutions businesses.
- 2Reported consolidated sales growth of 17.0% year-over-year, driven by a 3.0% increase in sales from existing businesses and a substantial 15.0% contribution from acquisitions.
- 3Acquired Cepheid for approximately $4.0 billion, significantly expanding its Diagnostics segment with a leading molecular diagnostics platform.
- 4Life Sciences segment sales grew by 62.0% due to the acquisition of Pall Corporation in the prior year, with existing businesses showing a 3.5% increase.
- 5Diagnostics segment sales grew by 4.5%, supported by the acquisition of Cepheid and organic growth in its clinical lab and pathology businesses.
- 6Operating profit margins improved to 16.3% from 15.0% in the prior year, reflecting operational efficiencies and benefits from acquired businesses, despite acquisition-related charges.
- 7Generated $3.1 billion in operating cash flow from continuing operations, demonstrating strong cash generation capabilities to support strategic initiatives.