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DHR · DANAHER CORP /DE/

50 filings

10-Q

DHR 10-Q Quarterly Reports

DANAHER CORP /DE/ - 50 quarterly reports

Filing record · 2016–202610-K1110-Q328-K138

DHR filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 138 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Mar ’18Mar ’18
  2. Deal closed8-K · May ’20May ’20
  3. Material agreement8-K · Dec ’21Dec ’21
  4. Leadership change8-K · Nov ’25Nov ’25
  1. 2026-Q2

    DANAHER CORP /DE/ Quarterly Report for Q2 Ended Jun 26, 2026

    Danaher's second quarter 2026 results were shaped by the closing of its roughly $9.8 billion cash acquisition of Masimo on June 10, 2026, which is now part of the Diagnostics segment. Reported sales rose 5.5% year over year to $6.27 billion, with core sales up 3.0% (4.5% excluding respiratory testing). Diluted EPS was $1.23 versus $0.77 a year earlier, but the comparison is flattered by a $432 million trade name impairment in Q2 2025. Operating margin expanded to 18.0% from 12.8%, though Q2 2026 absorbed about 175 basis points of Masimo-related charges (inventory step-up, transaction costs, and change-in-control and share-based payments). Gross margin contracted to 57.6% from 59.3%, reflecting product mix, the inventory fair value adjustment, and acquired businesses. The balance sheet changed materially. Total assets rose to $92.4 billion from $83.5 billion, goodwill increased to $47.4 billion, and intangibles to $21.4 billion. Total debt reached about $26.6 billion, up from $18.4 billion, funded by commercial paper and roughly $6.5 billion of new long-term notes in euros and Swiss francs. Cash fell to $4.3 billion. Operating cash flow was $2.9 billion for the first half, up 8%, while the company continued share repurchases ($903 million in Q2) and raised dividends. Management expects a full-year 2026 effective tax rate of about 17%, and disclosed a new core sales measure excluding respiratory testing, along with plans to exclude tariff refunds from core sales beginning in Q3. Key risks for investors include the leverage increase and resulting interest expense, the integration of Masimo including its ongoing litigation (Apple, DOJ investigation, Kiani disputes, and Willow arbitration), a securities class action settlement awaiting final approval on September 3, 2026, uncertainty around IEEPA tariff refunds, and Middle East conflict effects on logistics and energy costs. China pricing pressure in Diagnostics and a weaker respiratory season also weighed on segment core sales.

    Jul 21, 2026
  2. 2026-Q1

    DANAHER CORP /DE/ Quarterly Report for Q1 Ended Mar 27, 2026

    Danaher's first quarter 2026 (ended March 27, 2026) showed modest top-line growth with GAAP sales up 3.5% to $5.95 billion, but core sales grew only 0.5% after excluding a 3.0% currency tailwind. Net earnings rose 8% to $1.03 billion, and diluted EPS increased to $1.45 from $1.32, helped by a 40 basis point improvement in operating margin to 22.6%, lower net interest expense, and a share count that fell about 1.3% year over year. Growth was uneven across segments: Biotechnology core sales rose 7.0% led by bioprocessing consumables, Life Sciences rose 0.5%, and Diagnostics declined 4.0% on weaker respiratory testing and China volume-based procurement pricing. Balance sheet and cash flow shifted notably. Cash rose to $5.7 billion from $4.6 billion, largely funded by about $1.7 billion of net commercial paper issuance, while total debt was roughly flat at $18.5 billion. Operating cash flow was $1.32 billion, up 2%. Management disclosed a pending $9.9 billion cash acquisition of Masimo Corporation, to be placed in the Diagnostics segment and financed with cash on hand and new debt. Subsequent to quarter end, Danaher entered a $5.0 billion 364-day credit facility to backstop commercial paper used toward that purchase, which signals significant incremental leverage ahead. Investors should weigh the strong earnings and cash generation against the thin underlying organic growth, the Diagnostics weakness, and the leverage and integration risk from Masimo. The filing also flags tariff uncertainty following the Supreme Court IEEPA ruling, Middle East conflict cost pressures, and a pending securities class action settlement subject to court approval.

    Apr 21, 2026
  3. 2025-Q3

    DANAHER CORP /DE/ Quarterly Report for Q3 Ended Sep 26, 2025

    Danaher's Q3 2025 10-Q shows steady top-line momentum with third-quarter sales up 4.5% to $6.05 billion and core sales up 3.0%, led by Biotechnology (+6.5% core) and Diagnostics (+3.5% core), while Life Sciences declined about 1% in core sales. Diluted EPS rose to $1.27 from $1.12 in the prior-year quarter, and operating margin expanded to 19.1% from 16.5%, though the comparison is flattered by a $222 million impairment in Q3 2024. For the nine months, net earnings fell to $2.42 billion from $2.81 billion and diluted EPS to $3.37 from $3.80, driven mainly by $548 million of 2025 impairments (including a $432 million genomics trade name write-down in Life Sciences) and investment losses, partly offset by lower amortization and interest costs. Cash generation remained solid but softer: operating cash flow was $4.3 billion, down 8% year over year, and capital expenditures were $785 million. Danaher returned substantial capital to shareholders, repurchasing about $3.1 billion of stock in the nine months and paying $652 million in dividends, while also reducing treasury cash and cash equivalents to $1.5 billion. Total debt rose to about $16.9 billion, and management subsequently issued CHF 1.25 billion (about $1.6 billion) of Swiss franc bonds on October 10, 2025, which increases debt but adds liquidity for general corporate purposes including buybacks. Management flagged headwinds that investors should weigh: a cautious bioprocessing equipment environment, weaker academic and government funding, China volume-based procurement pressure in Diagnostics, several hundred million dollars of incremental 2025 tariff costs (largely offset so far), a U.S. government shutdown beginning in October 2025, and ongoing securities litigation (Hawkins Action) where the outcome cannot be estimated. The effective tax rate outlook for the remainder of 2025 is about 17%.

    Oct 21, 2025
  4. 2025-Q2

    DANAHER CORP /DE/ Quarterly Report for Q2 Ended Jun 27, 2025

    Danaher's second-quarter 2025 results were dominated by a non-cash impairment. Revenue rose 3.5% year over year to $5.94 billion, with core sales up 1.5% and currency adding 2.0%. Diagnostics and Biotechnology grew core sales, while Life Sciences declined. Net earnings fell 39% to $555 million, or $0.77 per diluted share, versus $1.22 a year earlier. The drop reflects a $432 million pretax ($328 million after-tax) impairment of a genomics consumables trade name in Life Sciences, which was SG&A-classified and drove the operating margin down to 12.8% from 20.3%. Excluding the charge, the underlying picture is steadier than the headline suggests, though SG&A and gross margin pressure from tariffs and currency are worth monitoring. Cash generation and the balance sheet remained solid. Operating cash flow for the first half was $2.6 billion, down 16%, largely reflecting lower earnings and working-capital timing. Management repurchased about $1.1 billion of stock in the first half, and cash rose to $3.0 billion. Total debt increased to $17.4 billion, and the company is shifting part of its commercial paper into long-term classification. Management expects enacted tariffs to add several hundred million dollars of incremental cost for 2025, which it expects to largely offset, while the effective tax rate for the remainder of 2025 is guided to about 17%. The filing also flags forward-looking risks: additional tariffs that have been delayed or threatened could be material, academic and government demand is expected to stay weak, and China volume-based procurement continues to weigh on Diagnostics. Goodwill headroom in the reorganized Life Sciences reporting units is narrower than before, with a hypothetical 10% fair-value decline still leaving cushion, so further impairments are possible if genomics demand does not recover.

    Jul 22, 2025
  5. 2025-Q1

    DANAHER CORP /DE/ Quarterly Report for Q1 Ended Mar 28, 2025

    Danaher's first quarter 2025 results (three months ended March 28, 2025) show a modest top-line softness with pressure on profitability and earnings. Sales were $5,741 million, down 1.0% year over year from $5,796 million. Core sales (excluding acquisitions and currency) were flat: Biotechnology grew 7.0%, while Life Sciences core sales fell 4.0% and Diagnostics fell 1.5%. Currency reduced reported sales by 1.5%, and acquisitions added 0.5%. Operating profit fell to $1,274 million from $1,312 million, with margin declining 40 basis points to 22.2%. Net earnings dropped 12% to $954 million, and diluted EPS fell to $1.32 from $1.45. The decline reflected higher SG&A (32.4% of sales versus 31.2%, driven by productivity-program costs), a $15 million facility impairment, a $90 million investment loss, and higher net interest expense. Cash generation and capital allocation were notable. Operating cash flow fell 25% to $1.3 billion, mainly due to lower earnings and working-capital timing. Danaher repurchased about $1.1 billion of stock (roughly 4.5 million shares at an average of about $239), leaving about 12 million shares authorized. Cash ended the quarter at $2.0 billion, and long-term debt rose to $16.0 billion. Comprehensive income of $2.56 billion was driven mainly by a $1.4 billion foreign currency translation gain, which is non-cash and reflects the weaker U.S. dollar. Balance sheet goodwill rose to $41.7 billion, largely from currency translation. Management flagged meaningful forward risk from new U.S. tariffs and retaliatory measures. The company expects several hundred million dollars of incremental tariff costs in 2025, which it intends to largely offset through sourcing changes, surcharges, and productivity actions. It expects end-market demand for the rest of 2025 to be roughly consistent with Q1, and projects a full-year-remaining effective tax rate of about 17%.

    Apr 22, 2025
  6. 2024-Q3

    DANAHER CORP /DE/ Quarterly Report for Q3 Ended Sep 27, 2024

    Danaher's third-quarter 2024 10-Q shows a quarter where top-line growth was modest but profitability fell sharply, driven largely by a non-cash impairment. Q3 sales rose 3.0% to $5.80 billion, with core sales up only 0.5% and acquisitions adding 2.5%. Operating profit fell 19% to $958 million, and operating margin compressed 460 basis points to 16.5%. Diluted EPS from continuing operations was $1.12, down from $1.26. The margin decline was driven primarily by a $222 million pretax trade name impairment in the Life Sciences genomics consumables business, plus dilution from acquisitions and weaker Life Sciences core sales. For the nine months, sales declined 1.0% to $17.34 billion and core sales fell 2.0%, led by a roughly 8.5% core decline in Biotechnology as customers worked down inventory. Diagnostics was the bright spot, with core sales up 5.0% and operating margin up 410 basis points to 28.0%. Net earnings from continuing operations were $2.81 billion, down from $3.10 billion. Operating cash flow was $4.67 billion, and the company returned substantial capital, repurchasing about $5.2 billion of common stock and paying $573 million in dividends. The balance sheet remains substantial but is less liquid. Cash fell to $2.6 billion from $5.9 billion at year-end 2023, and total debt declined to $17.5 billion. Management expects the bioprocessing business to return to high-single-digit core growth in Q4 2024 while full-year bioprocessing core sales decline at a low-single-digit rate. The company also flagged softness in genomics and weaker demand from smaller biopharma customers as ongoing risks.

    Oct 22, 2024
  7. 2024-Q2

    DANAHER CORP /DE/ Quarterly Report for Q2 Ended Jun 28, 2024

    Danaher's Q2 2024 10-Q shows a quarter of weaker organic performance and a heavy capital return. Sales fell 3.0% year over year to $5.74 billion, with core sales down 3.5%. Biotechnology was the main drag, with core sales down 7.0% in the quarter and 12.0% year to date, driven by customers destocking bioprocessing inventory. Diagnostics grew core sales 3.0%, and Life Sciences declined 5.5%. Diluted EPS from continuing operations was $1.22, versus $1.24 a year earlier, as higher SG&A (including Abcam-related amortization) and lower interest income offset a lower tax rate and improved gross margin. Balance sheet and capital allocation changed sharply. Cash fell from $5.9 billion at year-end 2023 to $2.4 billion, and total debt declined to $17.0 billion from $18.4 billion after the April repayment of the EUR 900 million 2024 Euronotes. In the quarter the company repurchased about 17.4 million shares for roughly $4.6 billion, and the board authorized an additional 20 million shares in July 2024. Goodwill and intangibles fell primarily due to foreign currency translation, and accumulated other comprehensive loss widened to $2.6 billion. Management expects bioprocessing core revenue to decline for full-year 2024 with gradual sequential improvement, and guided the remaining-2024 effective tax rate to about 17.5%. Investors will focus on whether Biotechnology stabilizes, whether Diagnostics growth continues, and how the much smaller cash position affects future M&A capacity.

    Jul 23, 2024
  8. 2024-Q1

    DANAHER CORP /DE/ Quarterly Report for Q1 Ended Mar 29, 2024

    Danaher's first quarter 2024 results (quarter ended March 29, 2024) show a clear top-line and margin slowdown, concentrated in its Biotechnology segment. Total sales fell 2.5% year-over-year to $5.80 billion, while core sales (excluding acquisitions and currency) declined 4.0%. Diluted EPS from continuing operations was $1.45, down from $1.65 a year earlier, and operating margin compressed 290 basis points to 22.6%. Management attributes the weakness mainly to a sharp decline in Biotechnology sales (down 18.0% reported, 17.0% core), driven by bioprocessing customers cutting inventory and emerging biotech customers conserving capital amid a tighter funding environment. Management expects bioprocessing core revenue to decline for full-year 2024, with gradual improvement through the year. Diagnostics was the bright spot, with sales up 6.5% and operating margin up 430 basis points to 32.8%, led by molecular diagnostics. The balance sheet and cash position look solid, though with some caveats. Cash and equivalents rose to $7.0 billion from $5.9 billion, and operating cash flow from continuing operations was $1.7 billion. However, the increase in cash was helped by a sizable foreign currency translation loss of $948 million that hit comprehensive income, which fell to $92 million from $1.56 billion. Total debt was $18.2 billion, and the company repaid a €900 million Euronote on April 2, 2024 using cash distributed by Veralto before the separation. Goodwill and intangibles remain large, at roughly $60.7 billion combined, and the company reported no impairment triggers. Quarterly results are also not directly comparable with the prior year, since they exclude Veralto (a discontinued operation) and include the Abcam acquisition.

    Apr 23, 2024
  9. 2023-Q3

    DANAHER CORP /DE/ Quarterly Report for Q3 Ended Sep 29, 2023

    Danaher's Q3 2023 10-Q shows a sharp top-line and profit decline driven by COVID-related demand normalization and softer bioprocessing and diagnostics demand. Third-quarter sales fell 10.5% to $6.87 billion (core sales down 11.5%), and nine-month sales fell 8.0% to $21.2 billion (core down 7.5%). Operating margin compressed to 20.9% in the quarter from 26.3% a year earlier, and diluted EPS fell to $1.51 from $2.10. Nine-month diluted EPS was $4.94 versus $6.67. Management attributes the weakness mainly to lower COVID-19 testing and therapeutics demand, reduced bioprocessing inventory at customers, and tighter funding for emerging biotech companies, with China Biotechnology core sales declining sharply. Balance sheet and capital structure changed materially in the quarter. Cash rose to $12.3 billion from $6.0 billion at year-end 2022, largely because Veralto, the spun-off Environmental & Applied Solutions business, issued about $2.6 billion of debt and distributed the proceeds to Danaher before the September 30 separation. Total debt rose to about $22.1 billion, including $2.6 billion of Veralto bonds that will leave the group in the fourth quarter. Operating cash flow was $5.5 billion for the nine months, down 7%. The filing also discloses a pending $5.7 billion cash acquisition of Abcam, expected to be funded with cash on hand and commercial paper, which will add to leverage and integration risk. Investors should weigh the cyclical trough in Biotechnology and Diagnostics against a still-strong liquidity position and a balance sheet that will be restated once Veralto is reported as a discontinued operation in Q4 2023. The company guided to a full-year 2023 effective tax rate near 18.5%, declared a $0.27 quarterly dividend, and made no share repurchases during the quarter.

    Oct 24, 2023
  10. 2023-Q2

    DANAHER CORP /DE/ Quarterly Report for Q2 Ended Jun 30, 2023

    Danaher's Q2 2023 10-Q shows a sharp top-line and profit decline driven by the post-pandemic unwind of COVID-19 demand. Second-quarter sales fell 7.5% to $7.16 billion (core sales down 7.0%), and diluted EPS dropped to $1.49 from $2.25. Operating margin compressed 840 basis points to 20.0%, reflecting lower volume, product mix, a $87 million excess inventory charge (mainly Biotechnology), and impairments. For the six-month period, sales declined 7.0% to $14.3 billion and diluted EPS fell to $3.42 from $4.56. The Biotechnology and Diagnostics segments bore most of the weakness, while Life Sciences grew core sales and Environmental & Applied Solutions posted modest growth. Balance sheet and cash flow remained strong. Cash and equivalents rose to $8.6 billion from $6.0 billion at year-end, operating cash flow was $3.9 billion for the half-year, and the company paid $422 million in dividends. Management flagged a tightening biotech funding environment, with reduced demand from emerging biotech customers and Chinese project delays expected to persist at least through the second half of 2023. The IRS settlement on self-insurance premium income (2016–2018) was not material. Danaher also reiterated its plan to spin off the Environmental & Applied Solutions business as Veralto in Q4 2023, with separation costs of $65 million booked in the first half. For investors, the key questions are the pace of the biotech demand recovery, whether margins can rebound as COVID-related volume normalizes, and how the Veralto separation reshapes the remaining Danaher portfolio. The filing shows solid liquidity, but near-term earnings momentum is clearly weaker.

    Jul 25, 2023
  11. 2023-Q1

    DANAHER CORP /DE/ Quarterly Report for Q1 Ended Mar 31, 2023

    Danaher's first quarter 2023 results (three months ended March 31, 2023) showed a clear year-over-year decline in top-line and profitability. Sales fell 7.0% to $7.17 billion from $7.69 billion, with core sales down 4.0% and currency translation a 3.0% headwind. The drop was driven mainly by lower demand for COVID-19-related vaccine, therapeutics and diagnostic testing products, with the Biotechnology and Diagnostics segments hit hardest. Operating profit fell to $1.79 billion from $2.17 billion, and operating margin compressed 330 basis points to 25.0%. Diluted EPS was $1.94 versus $2.31 a year earlier, and net earnings declined to $1.45 billion from $1.73 billion. The balance sheet and cash position strengthened. Cash and equivalents rose to $7.4 billion from $6.0 billion at year-end 2022, and operating cash flow was roughly stable at $1.95 billion. Total debt was about $19.8 billion, and the company remained in compliance with its debt covenants. Management expects full-year 2023 sales to be essentially flat with 2022 after currency effects, and it flagged continued COVID-related demand declines in the second half. The planned tax-free spin-off of the Environmental & Applied Solutions business as Veralto Corporation, targeted for Q4 2023, remains the most significant pending corporate event. The IRS settled its proposed adjustments for 2016 through 2018 self-insurance premium income with no material impact.

    Apr 25, 2023
  12. 2022-Q3

    DANAHER CORP /DE/ Quarterly Report for Q3 Ended Sep 30, 2022

    Danaher's Q3 2022 10-Q shows a strong operating quarter with core sales growth of 10.0% (9.5% reported growth of 6.0%, held back by a 5.5% currency headwind). Sales reached $7.66B and GAAP diluted EPS from continuing operations was $2.10, up from $1.54, though the prior-year comparison was distorted by a $547M Quidel contract settlement charge in Q3 2021. Excluding that one-time item, operating margin still expanded, with Q3 operating margin of 26.3% versus 18.1% a year earlier. Diagnostics led with 13.5% core growth on continued COVID-19 molecular testing demand, while Life Sciences grew core sales 8.0% and Environmental & Applied Solutions grew 10.5%. Balance sheet and cash flow picture: cash rose to $5.15B and total debt fell to $19.2B from $22.2B at year-end 2021, reflecting the repayment of commercial paper and the Floating Rate 2022 Euronotes. Nine-month operating cash flow from continuing operations was roughly flat at $5.98B, held back by a $1.0B working capital build in receivables, inventories and payables. Accumulated other comprehensive loss widened to $3.85B, driven by foreign currency translation losses of $2.8B for the nine months, which reduced book equity growth. Goodwill fell by about $2.9B, mostly from currency translation, and the MCPS Series A preferred converted to common stock in April 2022. Management announced its intention to separate the Environmental & Applied Solutions segment (about $4.7B of 2021 sales) into a publicly traded company, targeted for Q4 2023. Management expects the transaction to be tax-free and flags risks around timing, financing and IRS rulings. Management also guided to a 2022 full-year effective tax rate of about 19.3% and capital spending of about $1.5B, and estimated currency would reduce full-year sales by about 4.5%.

    Oct 20, 2022
  13. 2022-Q3

    DANAHER CORP /DE/ Quarterly Report for Q3 Ended Jul 1, 2022

    Danaher's Q2 2022 10-Q shows a quarter of solid top-line momentum offset by weaker reported earnings. Sales rose 7.5% to $7.75 billion, with core sales growth of 9.5% (price contributed about 4.0%), while currency translation cut reported sales by 4.5% and acquisitions added 2.5%. Diagnostics was the standout, with core sales up 12.5% on COVID-19 molecular testing demand and operating margin up 340 basis points to 31.2%. Life Sciences core sales grew 7.0% but margin fell 100 basis points on acquisition dilution from Aldevron and cost pressures. Operating profit rose 9.0% to $2.21 billion, and gross margin held at 60.9%. Net earnings attributable to common stockholders fell to $1.66 billion, or $2.25 per diluted share, from $2.40, driven by a $98 million investment loss in other income (expense), net, a higher tax rate of 18.8%, and the absence of a prior-year $86 million discontinued-operations tax benefit. The balance sheet and cash position improved in some respects but carry risks. Cash rose to $3.98 billion after Danaher repatriated about $2.5 billion of non-U.S. cash in June to repay U.S. commercial paper and the Floating Rate 2022 Euronotes. Total debt was about $20.1 billion, down from $22.2 billion at year-end 2021, and interest expense fell to $51 million for the quarter. Goodwill fell $1.9 billion, mainly from foreign currency translation. Accumulated other comprehensive loss widened to $2.7 billion because of a $1.8 billion translation loss in the first half. Operating cash flow was roughly flat at $3.97 billion for the six months. Working capital absorbed cash, with inventories up $668 million. Management expects a full-year 2022 effective tax rate of about 19.5% and capital spending of about $1.5 billion. It also warned that further U.S. dollar strength could weigh on sales, with currency expected to reduce full-year sales by about 3.5%. The filing also flags several ongoing risks. Russia-related charges totaled $43 million in the first half, and China COVID-19 shutdowns affected operations in the second quarter. The company has $4.8 billion in remaining performance obligations, and the Series B mandatory convertible preferred stock converts into common stock on April 15, 2023. Overall, the quarter shows strong underlying demand and a healthier cash position, but investors face headwinds from currency, input costs, a softer Life Sciences margin, and rising investment losses.

    Jul 21, 2022
  14. 2022-Q2

    DANAHER CORP /DE/ Quarterly Report for Q2 Ended Apr 1, 2022

    Danaher's first quarter 2022 10-Q shows strong top-line momentum. Sales rose 12.0% year over year to $7,688 million, with core sales (excluding acquisitions and currency) also up 12.0%. Diagnostics led growth, with core sales up 22.5% on COVID-19 molecular testing demand, while Life Sciences core sales grew 7.5% and Environmental & Applied Solutions grew 6.5%. Net earnings rose modestly to $1,725 million, and diluted EPS was $2.31 versus $2.29. Gross margin contracted about 80 basis points to 61.2%, and operating margin fell from 29.1% to 28.3%, pressured by material, transportation and labor cost inflation, a $43 million pretax charge tied to the Russia-Ukraine conflict, and a stronger U.S. dollar that reduced reported sales by roughly 2%. Cash generation and balance sheet flexibility improved. Operating cash flow was $1,968 million, up 5%, and cash and equivalents rose to $3.7 billion from $2.6 billion at year-end 2021. Long-term debt declined to $21.8 billion, and the company repaid no material commercial paper beyond routine activity. Goodwill fell slightly on foreign currency translation, and the company repurchased no common shares during the quarter. Working capital absorbed about $482 million, mainly through inventory build, which rose 11% to $3.1 billion. Management warned that renewed COVID-19 restrictions in China, which began in late March, will weigh on Diagnostics patient volumes and China demand into the second quarter, with a more normalized activity level expected by end of June. The Mandatory Convertible Preferred Series A converted to common stock on April 15, 2022, adding 11.0 million shares. Management guided to a 19.5% effective tax rate for the remainder of 2022 and capital expenditures of about $1.5 billion for the full year.

    Apr 21, 2022
  15. 2021-Q3

    DANAHER CORP /DE/ Quarterly Report for Q3 Ended Oct 1, 2021

    Danaher's Q3 2021 10-Q shows a quarter of strong top-line momentum, with sales up 23.0% to $7.23 billion and core sales up 20.5%, driven by Life Sciences (including the Cytiva acquisition and COVID-19-related bioprocessing and testing demand) and a recovery in non-COVID businesses. Gross margin expanded to 60.3% from 54.8%, but GAAP operating margin fell 40 basis points to 18.1% because of a one-time $547 million other operating expense, which is mostly a non-cash $542 million contract settlement charge tied to the modification of the Beckman/Quidel BNP arrangement. Diluted EPS from continuing operations was $1.54, compared with $1.16 a year earlier, which is also affected by that charge. For the nine months, sales rose 37.0% to $21.3 billion and core sales rose 24.5%. Operating cash flow from continuing operations was $6.0 billion, up 51%, supporting heavy investment. Danaher spent $10.6 billion on acquisitions, most of it the $9.6 billion Aldevron purchase, and the balance sheet reflects this. Cash fell to $2.6 billion from $6.0 billion at year-end, while long-term debt rose to $23.6 billion and goodwill to $41.2 billion. Management expects Q4 core sales growth, though at a slower rate than the first nine months, and warns that COVID-19 resurgence and supply-chain or labor pressures remain risks. For investors, the key questions are how durable the pandemic-related demand is, whether the Aldevron and other acquisitions will earn returns on their substantial price, and how leverage and goodwill-heavy assets will be managed as cash balances normalize.

    Oct 21, 2021
  16. 2021-Q3

    DANAHER CORP /DE/ Quarterly Report for Q3 Ended Jul 2, 2021

    Danaher's Q2 2021 10-Q shows a very strong quarter driven by the Cytiva acquisition and robust demand tied to COVID-19 testing, vaccines, and therapeutics. Sales for the three months ended July 2, 2021 rose 36.5% to $7.2 billion, with core sales up 31.5%. Operating margin expanded to 27.8% from 15.9%, and diluted EPS from continuing operations reached $2.28, versus $1.24 a year earlier. Net earnings for the quarter were $1.8 billion including an $86 million discrete tax benefit tied to discontinued operations. Six-month sales grew 46.0% to $14.1 billion, with core sales up 26.5%. Cash generation remained strong, with operating cash flow from continuing operations of $4.0 billion for the first half, up about 76%. Cash and equivalents stood at $7.3 billion at quarter end, while long-term debt was $20.4 billion, down slightly from year-end. Management expects core sales growth in Q3 2021 but at lower rates than the first half, and warns that renewed COVID-19 restrictions or a decline in pandemic-related demand could materially affect results. The pending $9.6 billion Aldevron acquisition, which Danaher plans to fund with cash on hand and commercial paper, is the key forward-looking item for investors to monitor. Goodwill and intangibles total roughly $56 billion, or about 72% of total assets, which keeps impairment and integration risk a central consideration. The company repurchased no shares during the period and still has 20 million shares authorized under its program.

    Jul 22, 2021
  17. 2021-Q2

    DANAHER CORP /DE/ Quarterly Report for Q2 Ended Apr 2, 2021

    Danaher's first quarter 2021 10-Q shows a sharp top-line and profit rebound, driven mainly by the Cytiva acquisition (completed March 31, 2020) lapping into the reported period. Sales rose 58.0% to $6.86 billion, with Cytiva contributing 34.5 points of growth and currency adding 3.5 points. Core sales grew 20.0% on an existing-business basis and 30.0% including Cytiva, with COVID-19-related demand (management estimates roughly 20 points of core growth including Cytiva) a major tailwind. Gross margin expanded to 62.0% from 56.2%, and operating margin rose about 1,300 basis points to 29.1%. Net earnings attributable to common stockholders were $1.66 billion, or $2.29 per diluted share, versus $0.81 a year earlier. The balance sheet remains heavily leveraged from the Cytiva financing, though debt is declining. Long-term debt fell to $20.3 billion from $21.2 billion, and cash rose to $6.3 billion. Operating cash flow from continuing operations was $1.87 billion, up 127%. Free cash flow after $251 million of capex was roughly $1.6 billion. Accumulated other comprehensive loss widened to $1.32 billion, driven by a $922 million foreign currency translation loss, and goodwill fell on currency translation. Management expects core sales to grow in the second quarter of 2021 and forecasts full-year capex of about $1.5 billion. Investors should note that the headline growth is largely acquisition-driven and that the comparison base is distorted by the 2020 deal timing, so core growth and COVID-related demand durability are the key items to watch.

    Apr 22, 2021
  18. 2020-Q3

    DANAHER CORP /DE/ Quarterly Report for Q3 Ended Oct 2, 2020

    Danaher's Q3 2020 10-Q shows a company in transition after its $20.7 billion acquisition of GE's Biopharma business (now Cytiva), which closed March 31, 2020. Reported third-quarter sales rose 34.5% to $5.88 billion, with Cytiva contributing 24.5 points of growth. Core sales, which exclude acquisitions and currency, grew 9.0%, and core sales including Cytiva grew 14.0%. Diluted EPS from continuing operations was $1.16 versus $0.84 a year earlier, though the comparison is distorted by acquisition-related inventory step-up charges, amortization, and the prior-year tax items. Nine-month sales rose 19.0% to $15.5 billion, and operating margin was 16.9% versus 17.7% a year earlier, reflecting roughly 295 basis points of acquisition-related drag. The balance sheet changed substantially. Goodwill rose to $34.3 billion and other intangibles to $20.9 billion, so intangibles and goodwill now make up most of total assets of $72.9 billion. Total debt is about $21.8 billion, and cash fell from $19.9 billion at year-end 2019 to $5.7 billion. Management expects core sales growth in Q4 2020, but it attributes roughly 1,000 basis points of core growth in Q3 to COVID-19-related demand, such as diagnostics testing and bioprocessing for vaccines and treatments. That demand is expected to fade as the pandemic subsides, and the company warns that COVID-driven strength may not persist. For investors, the key questions are how durable the COVID tailwind is, whether Cytiva can deliver on its integration and synergy goals, and how the company will manage its leverage. The credit rating was downgraded two notches to BBB+/Baa1, and the company has been refinancing with euro and dollar notes. Other watch items include the Danish withholding-tax assessments, which total several hundred million dollars, and the IRS self-insurance premium matter, which could be revalued under a 35% rate.

    Oct 22, 2020
  19. 2020-Q3

    DANAHER CORP /DE/ Quarterly Report for Q3 Ended Jul 3, 2020

    Danaher's Q2 2020 10-Q shows a transformative quarter driven by the $20.7 billion cash acquisition of Cytiva (formerly GE's Biopharma business), which closed March 31, 2020. Reported sales rose 19.0% to $5.30 billion and diluted EPS from continuing operations rose to $1.24 from $0.90, but the headline growth is largely acquisition-driven. Core sales (excluding acquisitions and currency) declined 0.5% in the quarter, while core sales including Cytiva grew 3.5%. The quarter also benefited from a $455 million pretax gain ($0.42 per diluted share) on the divestiture of certain product lines required for regulatory clearance of the deal. Operating margin fell to 15.9% from 18.3%, pressured by acquisition-related inventory and deferred revenue fair value adjustments, higher intangible amortization, and integration and transaction costs. The balance sheet changed substantially. Total assets rose to $71.3 billion from $62.1 billion, goodwill increased to $33.2 billion, and other intangibles to $20.4 billion. Long-term debt is now $22.4 billion, and cash fell from $19.9 billion at year-end 2019 to $5.5 billion. Financing was a mix of euro-denominated notes, bank borrowings under the Five-Year and 364-day facilities, and common and mandatory convertible preferred stock issued in May 2020. Management also disclosed that its long-term credit ratings were downgraded two notches to BBB+ (S&P) and Baa1 (Moody's), which may raise future borrowing costs. Management expects core sales to grow in Q3 2020, assuming the pandemic's impact continues to lessen. It flagged significant uncertainty from COVID-19, which has produced strong demand in diagnostics and bioprocessing but weaker demand in instruments, academic research, and certain industrial markets. Unresolved tax matters, including a potential $2.7 billion IRS adjustment and Danish withholding-tax assessments, remain material contingent risks. Investors will want to track core growth, integration of Cytiva, deleveraging, and the outcome of these tax disputes.

    Jul 23, 2020
  20. 2020-Q2

    DANAHER CORP /DE/ Quarterly Report for Q2 Ended Apr 3, 2020

    Danaher's first quarter 2020 10-Q (quarter ended April 3, 2020) is dominated by the March 31, 2020 closing of the approximately $20.7 billion cash acquisition of GE's Biopharma business, now Cytiva. Reported first-quarter sales rose 3.0% to $4,343.1 million, and core sales grew 4.5%, with developed markets up at a high-single-digit rate early in the quarter before COVID-19 hit late March and high-growth markets, led by China, down at a high-single-digit rate. Net earnings from continuing operations more than doubled to $595.1 million, but this was flattered by a year-ago $245 million discrete tax charge; operating margin actually fell 100 basis points to 16.1%, pressured by roughly 100 basis points of Cytiva transaction costs. Cytiva contributed no results in the quarter, so the deal's impact will show up from Q2 2020 onward. The balance sheet changed materially. Total assets rose to $68.9 billion from $62.1 billion, goodwill jumped to $33.7 billion and intangibles to $18.5 billion, and total debt climbed to about $26.0 billion from $21.7 billion. Cash fell to $4.4 billion from $19.9 billion. Management financed the deal with equity and mandatory convertible preferred raised in March 2019, roughly $10.8 billion of 2019 bond issuance, and then a $5.0 billion draw on credit facilities plus about EUR 2.5 billion of euro notes issued in March and April 2020 to replace disrupted commercial paper markets. Management warns that the credit rating was cut two notches to BBB+/Baa1 and that the company expects a greater COVID-19 hit in Q2 than in Q1, with demand for instruments already weak and April trends continuing. For investors, the key questions are the pace of Cytiva integration, the sustainability of consumables-driven growth (recurring revenue was 74% of sales), deleveraging from roughly $27.5 billion of debt, and the size of the pandemic drag on instrument demand. The filing also flags an unresolved IRS dispute, with a potential $2.7 billion taxable income adjustment, and Danish withholding tax assessments of roughly $524 million combined.

    May 6, 2020
  21. 2019-Q3

    DANAHER CORP /DE/ Quarterly Report for Q3 Ended Sep 27, 2019

    Danaher's Q3 2019 10-Q shows a company in the middle of a transformative financing and separation cycle. Third-quarter sales rose 4.0% to $5.04 billion (core growth 5.0%), and diluted EPS was $0.89 versus $0.93 a year ago, with the decline driven by GE Biopharma transaction costs, Envista IPO-related expenses, and margin pressure. Nine-month sales grew 3.5% to $15.07 billion (core growth 5.5%), but diluted EPS fell to $2.32 from $2.68, largely because of $227 million of discrete tax charges (about $0.31 per share) tied to prior-period uncertain tax positions and audit settlements. Operating profit margin slipped to 16.2% for the nine months from 16.8%, and the effective tax rate rose to 29.3%. The balance sheet changed dramatically. Cash and equivalents jumped to $14.25 billion from $0.79 billion, while total debt rose to $17.6 billion from $9.7 billion. This was driven by roughly $6.8 billion of euro notes, $1.4 billion of common stock and $1.6 billion of mandatory convertible preferred stock, and about $2.0 billion received from Envista. These proceeds are pre-funding the pending ~$21.0 billion acquisition of GE's Biopharma business, expected to close in Q1 2020 and to be included in Life Sciences. Management expects to take on roughly $7.0 billion more debt for the deal and anticipates a credit rating downgrade. Danaher also completed Envista's IPO in September 2019, keeping an 80.6% stake, and plans to distribute the remainder later. Investors should weigh the strong operating cash flow of $2.84 billion, the large pending acquisition's leverage and integration risk, the unresolved IRS and Danish tax assessments (the IRS matter could add a material charge if the company loses), and the ongoing Brexit and currency headwinds, which reduced sales by about 3.0% year to date.

    Oct 24, 2019
  22. 2019-Q2

    DANAHER CORP /DE/ Quarterly Report for Q2 Ended Jun 28, 2019

    Danaher's Q2 2019 10-Q shows steady operating performance, with sales up 3.5% to $5.16 billion (5.5% core growth, offset by roughly 3.0% currency headwind and 1.0% from acquisitions). Diluted EPS was $0.97 versus $0.95 a year earlier, but this understates the picture for the half-year: six-month diluted EPS fell to $1.43 from $1.75, driven by $227 million of net discrete tax charges (about $0.31 per share) and a $36 million legal provision. Operating margin compressed in the quarter to 17.1% from 17.4%, with Dental the main drag as pricing weakened, while Life Sciences and Environmental & Applied Solutions expanded margins. The filing's dominant story is the pending ~$21.0 billion cash acquisition of GE's Biopharma business, expected to close in Q4 2019. Danaher raised roughly $3.0 billion of equity in March 2019 (common stock and 4.75% mandatory convertible preferred) and held $5.4 billion of cash at quarter-end, but the company expects to incur up to about $18 billion of additional debt. Management warned that this will likely lead to a credit rating downgrade. The planned Envista (Dental) IPO and subsequent distribution of the remaining stake add further corporate-structure change. For investors, the key issues are the leverage step-up and integration execution on the GE deal, the unresolved IRS challenge on about $2.7 billion of taxable income for 2012-2015 (which could require a revaluation charge if the 35% rate applies), and Danish withholding tax assessments totaling roughly $500 million or more. Cash generation remains solid, with operating cash flow of $1.87 billion for the first half, flat year over year.

    Jul 18, 2019
  23. 2019-Q1

    DANAHER CORP /DE/ Quarterly Report for Q1 Ended Mar 29, 2019

    Danaher's first quarter 2019 results show continued top-line momentum, with sales up 4.0% year-over-year to $4,879.9 million and core revenue growth of 5.5%, led by high-growth markets and a high-single-digit core rise in high-growth geographies. Diluted EPS fell to $0.46 from $0.80, primarily because of a discrete tax charge of $242 million ($0.34 per diluted share) that pushed the effective tax rate to 53.7% from 20.5%. Operating profit margin declined 100 basis points to 14.8%, and was also pressured by a $36 million legal provision, GE Biopharma deal transaction costs, and Dental IPO preparation costs. The balance sheet changed significantly ahead of the pending GE Biopharma acquisition, which Danaher agreed to buy for approximately $21.0 billion in cash. In March 2019 the company raised about $1.4 billion in common equity and $1.6 billion in mandatory convertible preferred stock, lifting cash to $3.9 billion from $788 million at year-end. Total debt stood at roughly $9.5 billion, and management expects to incur up to about $18 billion of additional debt to fund the deal, which it anticipates will lead to a credit rating downgrade. Operating cash flow fell 15% to $703 million, and the company also disclosed an IRS proposed adjustment of about $2.7 billion to 2012-2015 taxable income plus Danish withholding tax assessments, which represent material contingent exposures. Danaher also plans a Dental IPO in the second half of 2019 followed by a potential distribution of its remaining stake. The company reported no share repurchases in the quarter and maintained its quarterly dividend at $0.17 per share, a 6% increase. Management expects overall sales growth for the rest of 2019 but remains cautious about trade, tariffs, and macroeconomic conditions, and guided to an effective tax rate of about 20% for the remainder of the year.

    Apr 18, 2019
  24. 2018-Q3

    DANAHER CORP /DE/ Quarterly Report for Q3 Ended Sep 28, 2018

    Danaher's Q3 2018 10-Q shows continued strong top-line momentum, with third-quarter sales up 7.0% to $4.85 billion and core sales growth of 6.5%, led by double-digit core growth in high-growth markets (especially China) and mid-single-digit growth in developed markets. Diluted EPS from continuing operations rose 15% to $0.93 for the quarter and to $2.68 for the nine months, while the operating margin expanded 30 basis points in the quarter and 130 basis points year-to-date. Gross margin for the nine months improved to 56.1% from 55.5%, though third-quarter gross margin dipped to 55.4% due largely to foreign currency transaction losses. The balance sheet was reshaped by the April 2018 acquisition of Integrated DNA Technologies (IDT) for about $2.1 billion net of cash, plus a $95 million smaller deal. Goodwill rose to $26.0 billion and intangibles to $11.8 billion, so the company now carries substantial acquisition-related balance sheet risk. Total debt climbed to roughly $10.6 billion, largely through euro commercial paper, and the company reported no share repurchases in the period. Operating cash flow was $2.78 billion for the nine months, up about 5%, with capital expenditures forecast near $675 million for the full year. Investors should also weigh the announced spin-off of the Dental business, targeted for the second half of 2019, which is a significant structural event. Dental showed core revenue declines and margin compression of 310 basis points year-to-date, driven by weak North American demand and distributor inventory reductions. The filing also flags an unresolved Danish tax dispute with potential exposure of roughly $393 million, plus the ongoing impact of the Tax Cuts and Jobs Act.

    Oct 18, 2018
  25. 2018-Q2

    DANAHER CORP /DE/ Quarterly Report for Q2 Ended Jun 29, 2018

    Danaher Corporation's Q2 2018 10-Q shows a quarter of strong top-line and profit growth, with GAAP sales up 10.5% to $4.98 billion and core (organic, ex-FX and acquisitions) revenue growth of 6.0%. Operating profit rose to $867.5 million from $676.7 million, and diluted EPS from continuing operations reached $0.95 versus $0.79 a year earlier. Gross margin expanded to 56.6% from 55.0%, aided by volume leverage, productivity actions and a weaker U.S. dollar. Six-month results were similarly strong, with diluted EPS of $1.75 versus $1.48. Net earnings from continuing operations were $673.8 million for the quarter, and operating cash flow for the first half rose about 19% to $1.86 billion. The balance sheet changed meaningfully because of the April 2018 acquisition of Integrated DNA Technologies (IDT) for about $2.07 billion in net cash. Goodwill rose to $25.9 billion and intangibles to $12.2 billion, and total debt climbed to $11.3 billion, financed largely by euro commercial paper and a new $1.0 billion 364-day facility. Accumulated other comprehensive loss widened to $2.48 billion, mainly from a $641 million foreign currency translation loss in the quarter as the dollar strengthened. Management also disclosed a planned tax-free spin-off of the Dental business by the second half of 2019, subject to approvals and rulings, and a dividend increase of 14% to $0.16 per share. The company repurchased no shares in the first half, and 20 million shares remain authorized. Key watch items include the pending Dental separation, the Denmark withholding tax dispute (assessments totaling roughly DKK 1.6 billion, about $245 million, plus a potential additional roughly $145 million), the outcome of the TCJA provisional accounting, and the company's cautious outlook on trade and tariffs. Management expects continued year-over-year sales growth for the rest of 2018 but warned that a stronger dollar could reduce second-half sales by about 1.0%. Dental core revenue growth was weak at 2.0% in the quarter and was negative for the first half, which the company attributed partly to distributor inventory reduction.

    Jul 19, 2018
  26. 2018-Q1

    DANAHER CORP /DE/ Quarterly Report for Q1 Ended Mar 30, 2018

    Danaher's first quarter 2018 results (quarter ended March 30, 2018) show strong top-line momentum and margin expansion. Sales rose 11.5% year over year to $4.70 billion, with core sales growth of 5.5% after adjusting for a 5.0% currency tailwind and 1.0% from acquisitions. Operating profit rose to $743.0 million from $617.0 million, and operating margin expanded roughly 110 basis points. Diluted EPS from continuing operations was $0.80, up from $0.69, and net earnings from continuing operations were $566.6 million versus $483.8 million. Diagnostics (core growth of 9.5%) and Life Sciences (core growth of 5.5%) led performance, while Dental was the weak spot, with core revenue down 3.0% and operating margin down 600 basis points on lower North American equipment and consumables sales and distributor inventory reduction. Cash generation and liquidity improved. Operating cash flow from continuing operations was $828.9 million, up about 48% year over year, and cash and equivalents rose to $1,045.7 million from $630.3 million. Total debt was $10.5 billion, and the company used a new $1.0 billion 364-day credit facility and commercial paper to help fund the April 2018 acquisition of Integrated DNA Technologies (IDT), a roughly $2.0 billion all-cash deal that adds genomics consumables to Life Sciences. Management expects continued year-over-year sales growth for 2018 but flags macroeconomic and trade-policy uncertainty, and it forecasts full-year 2018 currency tailwinds of about 3.5%. Investors should also note several items. The Tax Cuts and Jobs Act lowered the effective tax rate, which the company guides to about 20.5% for the rest of 2018, and a Transition Tax liability of roughly $1.2 billion is payable over eight years. Danish tax assessments remain a contingent risk of about $254 million plus a further anticipated assessment of about $150 million. No shares were repurchased during the quarter, leaving 20 million shares authorized, and the company paid a $0.16 quarterly dividend.

    Apr 19, 2018
  27. 2017-Q3

    DANAHER CORP /DE/ Quarterly Report for Q3 Ended Sep 29, 2017

    Danaher's Q3 2017 10-Q shows a company growing reported revenue and earnings while carrying a heavier balance sheet after acquisitions and debt-funded growth. Third-quarter sales rose 9.5% to $4,528.2M, with core (organic, ex-acquisitions and FX) growth of 3.0%. Diagnostics was the standout, with reported sales up 19.5% (largely Cepheid) and core growth of 4.0%, while Dental was the weakest segment, with core growth of just 1.0%. Diluted EPS from continuing operations was $0.81, up from $0.57 a year earlier, aided by a lower effective tax rate of 21.6% versus 15.5% (the rate was actually higher this year; the earnings lift comes mainly from the absence of the prior-year $179M debt extinguishment loss and stronger operating profit). Operating profit rose 9.7% to $767.5M, though the operating margin was flat at 16.9%. The nine-month picture is more mixed. Operating margin contracted to 15.7% from 16.4%, weighed by a $76M restructuring and impairment charge tied to discontinuing a Diagnostics molecular product line, and by dilution from acquisitions. Operating cash flow from continuing operations rose about 8% to $2.64B, and free cash flow (operating cash flow less capex of $446M) was roughly $2.2B. Management reduced commercial paper by about $3.3B, with long-term debt rising to $10.7B from $9.7B, because it refinanced maturing borrowings with yen and euro notes. Goodwill increased to $24.8B, and total assets reached $45.9B. Cash fell to $649M, and the company repurchased no shares. Liquidity remains solid, but the 364-day facility commitment has been cut to $1.0B, expiring October 23, 2017. For investors, the key questions are whether Diagnostics can absorb Cepheid and generate synergies, whether Dental can recover from its destocking-driven slowdown, and whether management can keep organic growth improving as guided. A pending Danish tax assessment (roughly $374M across two periods) and the upcoming ASC 606 revenue standard are also worth monitoring.

    Oct 19, 2017
  28. 2017-Q2

    DANAHER CORP /DE/ Quarterly Report for Q2 Ended Jun 30, 2017

    Danaher's Q2 2017 10-Q shows steady top-line growth but margin compression driven by a one-time charge. Sales rose 6.5% year over year to $4.51 billion for the quarter (6.5% for the six months to $8.72 billion), with core (existing-business) sales up 2.0% in the quarter and 2.5% year to date, acquisitions adding about 6%, and currency subtracting 1.5%. Operating profit fell 3.7% to $683.7 million, and operating margin dropped to 15.2% from 16.7%. The decline reflects a $76 million pretax charge to discontinue a molecular diagnostic product line in the Diagnostics segment, of which $49 million was noncash impairment, plus dilution from acquisitions, mainly Cepheid. Excluding the charge, the underlying business performed reasonably well, and management expects about $40 million of annual savings in 2018. GAAP diluted EPS from continuing operations was $0.79, up from $0.60 a year earlier. The year-over-year comparison is distorted by a lower effective tax rate of 13.6% (versus 36.1%) and by the prior-year period's tax charges tied to the Fortive separation. Net earnings were $557.3 million for the quarter. Six-month net earnings were $1.06 billion, down from $1.42 billion, because the prior year included discontinued operations (Fortive) and a $223 million pretax gain on the sale of equity securities. Continuing-operations earnings rose 3.7% for the six months, to $1.04 billion. The balance sheet and cash flow show a few pressure points. Cash fell to $726 million from $964 million at year-end, and operating cash flow was flat at $1.57 billion. Total debt was $11.6 billion, down from $12.3 billion, after a $2.4 billion net reduction in short-term commercial paper funded by new yen and euro notes. Management reported no share repurchases in the first half, leaving 20 million shares authorized, and a 2017 capex plan of about $700 million. Goodwill and intangibles now total roughly $36 billion, about 79% of total assets, which keeps impairment risk in focus.

    Jul 20, 2017
  29. 2017-Q1

    DANAHER CORP /DE/ Quarterly Report for Q1 Ended Mar 31, 2017

    Danaher's first-quarter 2017 results show solid top-line momentum, with sales rising 7.0% year over year to $4,205.7 million. Growth was driven mainly by acquisitions (+6.0 points, largely Cepheid, acquired November 2016), while sales from existing businesses rose 2.5%, and currency subtracted 1.5 points. High-growth markets, about 28% of sales, grew at a mid-single-digit rate, led by China, while developed markets grew at a low-single-digit rate. Reported net earnings fell to $506.1 million from $758.4 million, but the prior-year quarter included a $223 million pretax gain on the sale of marketable equity securities and a larger contribution from discontinued operations (Fortive). Earnings from continuing operations declined 17.4% to $483.8 million, and diluted EPS from continuing operations fell to $0.69 from $0.84. Operating profit margin compressed to 14.8% from 15.6%, pressured by the dilutive effect of acquisitions, higher R&D (6.4% of sales versus 5.8%), and SG&A investments. The effective tax rate dropped to 17.3% from 25.2%, which helped results and was aided by ASU 2016-09 adoption and a $22 million discontinued-operations tax benefit. The balance sheet and cash flow profile remain strong but show some softening. Operating cash flow from continuing operations declined 8% to $560.2 million, reflecting higher tax payments and working-capital outflows, including a $343 million reduction in accrued liabilities. Cash fell to $803.9 million and total debt declined to $11.95 billion from $12.27 billion as commercial paper was repaid by $435 million. Goodwill and intangibles total roughly $35.8 billion against $23.8 billion of equity, so acquisition accounting remains a major balance sheet item. Management maintained its cautious outlook, expects continued sales growth, and guided to a 20.5% effective tax rate for the rest of 2017. The company also flagged an ongoing Danish tax dispute with potential exposure of roughly $323 million, which could affect its effective tax rate in future periods.

    Apr 20, 2017
  30. 2016-Q3

    DANAHER CORP /DE/ Quarterly Report for Q3 Ended Sep 30, 2016

    Danaher's Q3 2016 10-Q shows a company in transition. Continuing-operations sales rose 17.5% to $4.13B in the quarter and 21.5% to $12.30B year-to-date, but growth was mostly acquisition-driven (Pall contributed about 20 points year-to-date), while sales from existing businesses grew only 3.0% in Q3 and 2.5% for the nine months. Operating margin expanded to 16.9% in the quarter from 13.7%, helped by 2015 Pall deal costs rolling off and restructuring savings, and gross margin reached 55.3%. Reported GAAP earnings were weaker than the operating picture: Q3 diluted EPS from continuing operations was $0.57 versus $0.54, but net earnings fell to $391.6M from $1,403.3M because the prior-year period included a large communications-business gain, and the nine-month figure benefited from a $223M pretax gain on equity securities sales. The balance sheet and capital structure changed materially after the July 2, 2016 Fortive separation. Danaher received roughly $3.0B in cash from Fortive, used it to repay $500M of notes and redeem about $1.9B of higher-coupon debt (incurring $188M in make-whole premiums), and reduced commercial paper by about $2.3B. Total debt fell to $8.3B from $12.9B, and cash ended at $971M. Operating cash flow from continuing operations rose 29% to $2.44B for the nine months. The company also has a pending $4.0B enterprise-value acquisition of Cepheid at $53.00 per share, expected to close by year-end 2016, with about $4.8B of total acquisition purchase commitments, which will likely require new commercial paper and a planned $3.0B 364-day credit facility. Investors should weigh strong reported growth and margin expansion against modest organic growth, a sizable goodwill and intangibles base ($31.9B combined, about 77% of total assets), the Denmark tax dispute (up to roughly $323M in assessments), and the integration load from Pall and Cepheid. The dividend was cut 21.9% per share after the separation.

    Oct 20, 2016
  31. 2016-Q3

    DANAHER CORP /DE/ Quarterly Report for Q3 Ended Jul 1, 2016

    Danaher's Q2 2016 10-Q shows sales from continuing operations up 16.5% year over year to $5.79 billion for the quarter, with 2.0% growth from existing businesses and 15.0% from acquisitions (principally Pall, acquired in 2015). Diluted EPS from continuing operations was $0.94 versus $0.99 a year earlier, and operating margin compressed to 17.9% from 18.8%, reflecting heavier SG&A investment (SG&A rose to 30.7% of sales from 28.3%), the dilution from acquisitions, and roughly $30 million of separation costs. Six-month results were similar in shape: sales rose 15.7%-equivalent to $11.17 billion with existing-business growth of only 1.5%, and diluted EPS from continuing operations was $2.03 versus $1.77, helped by a $223 million pretax gain ($0.20 per diluted share) on the sale of marketable equity securities. The most important development is the July 2, 2016 spin-off of Fortive, which contained the Test & Measurement, Industrial Technologies (ex-product identification) and retail/commercial petroleum businesses. Danaher received about $3.0 billion of net cash distributions from Fortive, funded by roughly $3.4 billion of new Fortive debt, and will reclassify Fortive as a discontinued operation beginning in Q3 2016. Because the balance sheet at July 1, 2016 still consolidates Fortive, cash rose to $4.1 billion and total debt to $14.7 billion, and the company expects to use the proceeds to redeem about $1.85 billion of higher-coupon notes at a make-whole cost of roughly $190 million in Q3 and to fund dividends. Management expects annual interest expense to fall by about $92 million from these redemptions and guides to an approximately 22% effective tax rate for the remainder of 2016. Investors should weigh continued strong growth in Life Sciences & Diagnostics (sales up 41.5%, driven by acquisitions) against weakness in the remaining Test & Measurement and Industrial Technologies segments and against the lower-margin mix and integration burden. Watch for the Q3 presentation of Fortive as discontinued operations, the Danish SKAT tax dispute (about $197 million in assessments plus roughly $116 million in potential further exposure), and the Section 385 proposed regulations that could affect future tax rates.

    Jul 25, 2016
  32. 2016-Q2

    DANAHER CORP /DE/ Quarterly Report for Q2 Ended Apr 1, 2016

    Danaher's first-quarter 2016 10-Q shows a 15.0% year-over-year increase in consolidated sales to $5,387.2 million, driven mainly by acquisitions (contributing 16.5 points, largely the Pall acquisition within Life Sciences & Diagnostics) while existing businesses grew only 0.5% and currency translation subtracted 2.0%. Operating profit rose to $882.1 million, with operating margin expanding to 16.4% from 16.1%. Diluted EPS from continuing operations was $1.09 versus $0.78, but this was flattered by a $223 million pretax ($0.20 per diluted share after tax) gain on the sale of marketable equity securities recorded in other income. Excluding that gain, earnings growth was considerably more modest, and organic sales growth was essentially flat. Balance sheet and cash flow picture: operating cash flow from continuing operations rose 46% to $772.8 million, and the company repaid roughly $1.1 billion of net commercial paper, reducing cash to $664.3 million. Total debt was about $12.4 billion, with long-term debt of $12.2 billion, and goodwill grew to $25.5 billion, reflecting the company's acquisition-heavy strategy. Interest expense rose to $61.7 million from $29.3 million, reflecting debt taken on for Pall. Management reiterated that the planned spin-off of Fortive is targeted for the third quarter of 2016, with Danaher expecting a roughly $3.0 billion cash dividend from Fortive to repay debt. Investors should weigh the strong reported EPS against weak underlying organic growth, rising goodwill and intangibles, and an open Danish tax dispute with potential exposure of roughly $312 million (DKK 2.06 billion including interest, approximately $196 million plus $116 million). The Separation and the Pall integration, which management expects to yield about $300 million in annual cost savings, are the key items to monitor.

    Apr 21, 2016
  33. 2015-Q3

    DANAHER CORP /DE/ Quarterly Report for Q3 Ended Oct 2, 2015

    Danaher's third quarter 2015 10-Q shows a company in transition. Continuing-operations sales rose 6.5% to $5.02 billion, with 3.0% growth from existing businesses, 10.5% from acquisitions and a 7.0% drag from currency. Operating margin fell to 15.9% from 18.4%, mainly due to Pall acquisition costs, dilution from acquired businesses and separation charges. Reported net earnings of $1.40 billion were inflated by an $813 million after-tax gain on the split-off of the communications business to NetScout, so underlying earnings from continuing operations fell about 13% year over year to $590 million. The balance sheet changed sharply. The $13.6 billion Pall Corporation acquisition, closed August 31, 2015, was funded largely with commercial paper and euro and dollar notes. Total debt rose from about $3.5 billion at year-end 2014 to roughly $15.0 billion, and goodwill increased to $25.1 billion. Cash fell to $1.8 billion, and the company is targeting a 2016 separation into two public companies, New Danaher and NewCo. Management also reports that the $4.0 billion 364-day facility has been reduced and that the company has no material changes in risk factors. For investors, the key questions are whether Pall's roughly $2.8 billion in revenue and anticipated synergies can offset higher leverage and interest costs, and how the planned separation will be executed. Operating cash flow from continuing operations was steady at $2.5 billion for the nine months, and a Danish tax dispute with potential exposure of about $276 million remains unresolved.

    Oct 22, 2015
  34. 2015-Q3

    DANAHER CORP /DE/ Quarterly Report for Q3 Ended Jul 3, 2015

    Danaher's Q2 2015 10-Q shows sales of $5,127.1M for the quarter (up 3.3% reported, +3.5% from existing businesses plus 6.5% from acquisitions, offset by a 6.5% currency headwind) and diluted EPS of $0.97 (vs. $0.95 a year earlier). Operating margin expanded to 18.2% from 17.9%, driven by volume and restructuring savings, partly offset by dilution from acquisitions. Net earnings were $695.6M. Six-month sales rose 4.0% to $10.0B and net earnings were essentially flat at $1,265.4M, with a stronger U.S. dollar weighing on translation (a $635M foreign currency translation loss in OCI). Balance sheet liquidity remains solid, with $3.3B of cash and $3.05B of long-term debt. The dominant forward-looking items are two transformational transactions. The pending $13.8B enterprise-value acquisition of Pall Corporation ($127.20/share cash) is expected to close in the second half of 2015 and will be financed largely with commercial paper and about €2.7B of Euronotes issued in July 2015. Separately, Danaher announced a plan to split into two public companies (a science and technology company retaining the Danaher name and a diversified industrial company, NewCo) targeted for completion by end-2016. On July 14, 2015, Danaher also split off most of its communications business to NetScout in exchange for shares, which will be reported as discontinued operations from Q3 2015 and is expected to generate a non-cash gain. Key risks flagged in the filing include Pall deal completion and integration risk, the Danish SKAT withholding tax assessments (about $178M plus a potential additional $100M), the strong U.S. dollar's continuing drag on reported results (management estimates a roughly 5.5% full-year sales headwind at July 2015 rates), and softness in Russia, Brazil, and channel destocking in North American dental distribution.

    Jul 23, 2015
  35. 2015-Q2

    DANAHER CORP /DE/ Quarterly Report for Q2 Ended Apr 3, 2015

    Danaher's first-quarter 2015 10-Q (three months ended April 3, 2015) shows top-line growth that was largely offset by currency headwinds and margin pressure. Sales rose 4.5% to $4,873.3 million, with existing businesses contributing 5.0% growth and acquisitions adding 6.0%, while a 6.5% currency translation drag reduced reported sales. Operating profit fell about 2% to $774.2 million, and operating margin compressed from 16.9% to 15.9%, driven by acquisition-related inventory fair value charges from Nobel Biocare, higher SG&A (up 150 basis points as a share of sales), and a sharp drop in communications-business sales in Test & Measurement. Diluted EPS was $0.79 versus $0.81 a year earlier, and net earnings declined to $569.8 million from $579.7 million. Balance sheet and cash flow data show a company still generating strong operating cash flow ($523.6 million) but deploying much of it into acquisitions ($487.6 million for three businesses). Cash fell to $2.5 billion from $3.0 billion, and commercial paper was paid down by $248 million. Total equity declined by roughly $59 million, largely because a $674 million other comprehensive loss, driven almost entirely by foreign currency translation, offset net earnings. Goodwill decreased to $16.7 billion, mainly from currency effects, and no impairment triggers were identified. Shareholders also received a 35% higher quarterly dividend ($0.135 per share). The main investor watch items are the pending distribution and merger of the communications business with NetScout (expected to close mid-2015, with Danaher shareholders receiving about 60% of NetScout), the continued strong U.S. dollar, which management now expects to reduce full-year 2015 sales by about 6.0%, and an unresolved Danish tax dispute with potential exposure of roughly $270 million including interest.

    Apr 23, 2015
  36. 2014-Q3

    DANAHER CORP /DE/ Quarterly Report for Q3 Ended Sep 26, 2014

    Danaher's Q3 2014 10-Q shows steady operating performance. Sales rose 4.5% to $4.87 billion for the quarter (3.0% from existing businesses, 2.0% from acquisitions, -0.5% from currency), and nine-month sales reached $14.50 billion, up 4.5%. Operating margin expanded to 17.8% from 17.4%, and diluted EPS grew to $0.95 from $0.84. Net earnings for the quarter were $680.6 million. Nine-month operating cash flow of $2.52 billion was roughly flat year over year, and the company ended the period with $4.0 billion of cash, against $3.0 billion of total debt. Notably, third-quarter comprehensive income was a loss of $5.0 million, driven by a $671 million foreign currency translation hit as the U.S. dollar strengthened. The filing highlights two strategic moves. Danaher agreed to acquire Nobel Biocare via a cash tender offer at roughly CHF 2.0 billion (about $2.1 billion including debt), expected to close in Q4 2014 or Q1 2015 and be funded from cash. Separately, it agreed on October 13, 2014 to combine its Communications business with NetScout in a tax-free spin-off or split-off, with Danaher shareholders receiving about 60% of the combined NetScout shares. The Test & Measurement segment is the main drag, with Communications sales declining in both periods. The company also announced cost reductions of about $125 million in pre-tax charges, mostly in Q4 2014. Risks to monitor include the pending deals, unresolved Danish and German tax assessments (roughly $195 million plus future interest), and continued weakness in China and developed-market demand.

    Oct 16, 2014
  37. 2014-Q2

    DANAHER CORP /DE/ Quarterly Report for Q2 Ended Jun 27, 2014

    Danaher Corporation's second-quarter 2014 Form 10-Q (quarter ended June 27, 2014) shows steady top-line growth and solid profitability. Sales rose 5.0% year over year to $4.96 billion for the quarter, driven by 3.0% growth from existing businesses, 1.5% from acquisitions, and 0.5% from currency. Operating profit increased 5.4% to $889 million, with operating margin edging up to 17.9% from 17.8%. Diluted EPS was $0.95 versus $0.87 a year earlier, though the prior-year period did not include the one-time Apex gain, so the comparison is not like-for-like in the first half. Net earnings for the quarter were $676 million, up 9.7%. For the six months, net earnings fell about 4% to $1.26 billion, primarily because the first half of 2013 included a $230 million pre-tax gain from the sale of the Apex joint venture. The balance sheet remains strong. Cash and equivalents rose to $3.3 billion, while long-term debt declined to $3.0 billion following the June 2014 repayment of $400 million of 1.3% senior notes. Goodwill and intangibles increased with $607 million of acquisitions completed in the first half, including fourteen businesses across four segments. Operating cash flow was $1.5 billion for the six months, down 2%, reflecting working capital outflows in receivables and payables. Capital expenditures are guided to about $650 million for 2014, and the company made no share repurchases during the period, retaining 20 million shares of authorization. Key watch items include a weak communications business within Test & Measurement, which drove a 250 basis point margin decline in that segment, and an unresolved Danish and German tax dispute with potential exposure of roughly $205 million plus interest. Management expects existing-business sales growth in the second half of 2014 to remain in line with the first half, and guided the second-half effective tax rate to about 24%.

    Jul 17, 2014
  38. 2014-Q1

    DANAHER CORP /DE/ Quarterly Report for Q1 Ended Mar 28, 2014

    Danaher Corporation's first quarter 2014 results (three months ended March 28, 2014) showed solid top-line and profit growth. Sales rose 5.0% year over year to $4,662.7 million, with 3.5% growth from existing businesses, 2.0% from acquisitions, and a 0.5% currency headwind. Operating profit grew 7.9% to $788.9 million, and operating margin expanded to 16.9% from 16.4%. Diluted EPS was $0.81, down from $0.98, but that comparison is distorted by the prior-year $229.8 million pre-tax gain on the sale of the Apex joint venture (about $0.20 per diluted share after tax). Excluding that gain, earnings growth was healthy. Net earnings fell to $579.7 million from $691.9 million for the same reason. The quarter's growth was led by high-growth markets, where existing-business sales grew at a high-single-digit rate and represented about 25% of total sales. Developed markets grew at a low-single-digit rate. All five segments reported higher sales and operating margins. Dental and Industrial Technologies posted the largest margin gains. Management expects existing-business sales to keep growing in the remainder of 2014 at a rate similar to Q1. The balance sheet remained strong, with $3.3 billion in cash and equivalents against $3.5 billion of total debt. Operating cash flow fell 20% to $511.2 million, mainly because of working capital timing and the absence of the prior-year Apex dividend. Free cash flow after capital expenditures of $130.9 million was about $380 million. Management also raised the quarterly dividend to $0.10 per share, a 300% increase. No shares were repurchased in the quarter. Investors should also note the unresolved Danish (SKAT) and German tax assessments, which could total several hundred million dollars and affect the effective tax rate.

    Apr 16, 2014
  39. 2013-Q3

    DANAHER CORP /DE/ Quarterly Report for Q3 Ended Sep 27, 2013

    Danaher's Q3 2013 10-Q shows a quarter of solid top-line and margin progress. Sales rose 5.7% to $4.67 billion (5.5% per the MD&A on a reported basis), with existing businesses contributing 3.0% organic growth and acquisitions adding 3.0%, partly offset by a 0.5% currency headwind. Operating margin widened to 17.4% from 17.1%, and diluted EPS from continuing operations rose to $0.84 from $0.77. Nine-month results were also healthy, with sales up 4.0% to $13.85 billion and diluted EPS from continuing operations of $2.69 versus $2.34 a year earlier. Note that the nine-month figure includes a $230 million pre-tax gain (about $0.20 per diluted share after tax) from the February 2013 sale of the Apex Tool Group joint venture, so underlying growth is somewhat lower than the headline number. Balance sheet and cash flow were strengthened during the period. Total debt fell sharply, with long-term debt dropping to $3.45 billion from $5.29 billion at year-end 2012, after the repayment of a EUR 500 million Eurobond and a $300 million floating-rate note. Cash rose to $2.0 billion, though $1.4 billion of it is held outside the U.S. Operating cash flow from continuing operations was $2.5 billion for the nine months, down 6% year over year, mainly because of tax payment timing and 2012 customer deposits. Management spent $869 million on eleven acquisitions, which added $554 million of goodwill, and expects 2013 capital expenditures of about $550 million. There were no share repurchases in the period, and a new 20 million-share authorization was approved in July. The key watch items are the segment-level trends and the tax and macro backdrop. Test & Measurement was flat in sales, with margins compressing as instrument demand softened. Life Sciences & Diagnostics and Environmental were the growth engines. Management guided to fourth-quarter organic growth consistent with the first nine months, and it flagged risks from U.S. federal government sequestration and the October 2013 partial shutdown. The effective tax rate was 24.0% for the nine months, and tax audits in Denmark and Germany remain unresolved.

    Oct 17, 2013
  40. 2013-Q2

    DANAHER CORP /DE/ Quarterly Report for Q2 Ended Jun 28, 2013

    Danaher's second-quarter 2013 10-Q shows steady top-line growth and solid profitability. Sales rose 4.0% year over year to $4.74 billion in the quarter, and 3.5% to $9.18 billion for the first half. Growth was mostly acquisition-driven: existing businesses contributed 2.5% in Q2, acquisitions 2.0%, offset by a 0.5% currency headwind. Operating profit grew 4.0% to $843.6 million, with the operating margin flat at 17.8%. Diluted EPS from continuing operations was $0.87 in Q2, up from $0.84, and $1.85 for the first half, up from $1.57. The first-half comparison is inflated by the $230 million pre-tax (about $144 million after-tax, $0.20 per share) gain on the sale of the Apex joint venture, so underlying growth is more modest than reported EPS suggests. The balance sheet strengthened materially. Cash rose to $2.3 billion from $1.7 billion at year-end, supported by the Apex sale proceeds of $692 million, while long-term debt fell about $1.2 billion to $4.1 billion after repaying commercial paper and maturing notes. Total equity increased to $20.4 billion. Operating cash flow from continuing operations declined 9% to $1.5 billion in the first half, mainly due to tax timing, lower customer deposits and working-capital swings. Free cash flow after $253 million of capex was roughly $1.3 billion. Management described organic growth as challenged, particularly in Western Europe, instrument businesses and the motion business, while high-growth markets grew at a high-single-digit rate. Management expects organic growth to improve slightly in the second half of 2013. For investors, the key points are a resilient, acquisition-supported growth profile, margin pressure from R&D investment and the new medical device excise tax, and a stronger balance sheet with a newly authorized 20 million share repurchase program. Note that the Q2 share repurchase program was not used during the quarter, leaving the buyback as an option rather than an active driver of capital returns.

    Jul 18, 2013
  41. 2013-Q1

    DANAHER CORP /DE/ Quarterly Report for Q1 Ended Mar 29, 2013

    Danaher's first quarter 2013 10-Q shows a company with modest organic growth and a strong balance sheet event: the February 2013 sale of its 50% stake in Apex Tool Group, which produced a pre-tax gain of $229.8 million (after-tax $143.6 million, or about $0.20 per diluted share). Reported sales rose 3.0% to $4,444.7 million, with existing businesses contributing only 1.0% growth, acquisitions adding 3.0%, and currency reducing sales by 1.0%. Operating margin slipped to 16.4% from 17.0%, pressured by acquisition dilution, the Apex divestiture, and higher SG&A and R&D investment. Excluding the Apex gain, the underlying earnings trend was weaker than the headline net earnings of $691.9 million (up from $612.9 million, which included discontinued operations in the prior year), and diluted EPS from continuing operations was $0.98 versus $0.73. Balance sheet and cash flow were the clearest positives. Cash rose to $2.15 billion, and total debt fell to about $4.47 billion from $5.34 billion as Danaher repaid $764 million of mostly commercial paper using Apex proceeds. Operating cash flow from continuing operations was $636.5 million, down 2% year over year. Management guided that existing-business sales growth in the second quarter of 2013 would be in line with the 2012 and first-quarter 2013 rates, while acknowledging challenging conditions in Western Europe and the United States, partly offset by high-growth markets, which represented about 24% of sales. Investors should note that goodwill and intangibles declined only modestly, to about $21.5 billion combined, against total assets of $32.5 billion, so impairment risk remains a watch item in a slow-growth environment. The company also disclosed a $300 million Life Sciences & Diagnostics acquisition that closed after quarter-end, and the medical device excise tax is expected to add about $35 million to 2013 cost of sales. Overall, the filing reflects a company using its portfolio moves and balance sheet strength to offset soft organic demand.

    Apr 18, 2013
  42. 2012-Q3

    DANAHER CORP /DE/ Quarterly Report for Q3 Ended Sep 28, 2012

    Danaher's Q3 2012 10-Q shows a company with strong year-to-date growth but a softer third quarter. Sales for the nine months rose 17.0% to $13.29 billion, driven largely by the Beckman Coulter acquisition (existing businesses grew only 2.0%). Third-quarter sales fell 0.5% to $4.42 billion as currency translation cut reported sales by 3.0%; existing businesses grew 1.0%. Operating margin expanded to 17.1% in Q3 (from 14.5%) and 17.3% year-to-date (from 16.2%), helped by restructuring savings and the lapping of 2011 Beckman acquisition charges. Diluted EPS from continuing operations was $0.77 for the quarter (vs. $0.73) and $2.34 year-to-date (vs. $1.97). Cash generation and capital allocation were highlights. Operating cash flow from continuing operations rose 39% to $2.67 billion for the nine months. Cash and equivalents climbed to $1.54 billion, and total debt fell to about $4.7 billion from $5.3 billion, largely through commercial paper repayment. Danaher repurchased about 5 million shares for $258 million in the quarter and raised its quarterly dividend to $0.025 per share. Balance-sheet goodwill and intangibles grew with the 2012 acquisitions, which totaled $973 million across ten businesses. Looking ahead, management announced a cost-reduction plan with roughly $120 million in pre-tax charges, mostly in Q4 2012. It also agreed in October 2012 to sell its 50% stake in the Apex Tool Group joint venture for about $1.6 billion, with after-tax proceeds of roughly $650 million expected in the first half of 2013. Risks include continued weakness in instrument demand, softness in Western Europe, the stronger U.S. dollar (which management expects to cut 2012 revenue by about 2%), and integration of Beckman Coulter.

    Oct 18, 2012
  43. 2012-Q2

    DANAHER CORP /DE/ Quarterly Report for Q2 Ended Jun 29, 2012

    Danaher's Q2 2012 10-Q shows a company growing sharply on the back of the June 2011 Beckman Coulter acquisition. Sales from continuing operations rose 25.0% year over year in the second quarter to $4.55 billion, with acquisitions contributing 25.0 points and existing businesses 3.5 points, partly offset by a 3.5-point currency headwind. Diluted EPS from continuing operations was $0.84 versus $0.64 a year earlier, and operating margin improved to 17.8% from 16.8%, helped by lapping Beckman-related acquisition charges and restructuring savings, though the Beckman deal's lower gross margins weighed on gross profit margin (51.7% vs. 52.7%). Cash generation was strong: operating cash flow from continuing operations was $1.70 billion for the first half, up 38%. Cash of $1.12 billion at June 29, 2012 rose from $537 million at year-end, aided by $337 million of divestiture proceeds from the ASI and KEO sales. Acquisitions consumed $945 million in the first half, including X-Rite, and total debt fell to about $4.9 billion, mainly through commercial paper repayment. Goodwill and intangibles now total roughly $21.1 billion, about 68% of total assets, which leaves the balance sheet exposed to future impairment if acquired businesses underperform. The outlook has a few cautions. Management flagged weak instrument demand in Test & Measurement and China, flat Western Europe sales, and a motion business in high-single-digit decline. Danaher's Board approved a cost-reduction plan on July 18, 2012 with roughly $100 million of pre-tax charges, mostly in the second half. Management also expects currency to cut 2012 revenue by about 2.5% if rates hold, and capital expenditures are projected at about $550 million for the year.

    Jul 19, 2012
  44. 2012-Q1

    DANAHER CORP /DE/ Quarterly Report for Q1 Ended Mar 30, 2012

    Danaher Corporation (DHR) reported strong top-line growth for the first quarter of 2012, with total sales increasing by 31.0% year-over-year to $4.32 billion. This growth was significantly driven by the acquisition of Beckman Coulter in June 2011, which contributed 30.5% to the sales increase. Excluding acquisitions and currency impacts, existing businesses showed a modest 1.5% growth. Net earnings also saw a substantial increase, rising to $612.9 million ($0.89 per diluted share) from $429.4 million ($0.63 per diluted share) in the prior year period. This performance was bolstered by a significant gain from the sale of discontinued operations. The company's operating profit margin slightly decreased to 17.0% from 17.8%, impacted by the lower margins of acquired businesses, though productivity improvements and cost savings offered some offset. Danaher announced a pending acquisition of X-Rite, Inc. for approximately $625 million, expected to close in Q2 2012 and to be financed with available cash.

    Apr 19, 2012
  45. 2011-Q3

    DANAHER CORP /DE/ Quarterly Report for Q3 Ended Sep 30, 2011

    Danaher Corporation's (DHR) third quarter 2011 10-Q filing reveals significant strategic activity, most notably the large-scale acquisition of Beckman Coulter, Inc. for approximately $5.5 billion in cash. This acquisition, completed in June 2011, has substantially increased Danaher's asset base, goodwill, and debt levels, and significantly boosted revenue, particularly within the Life Sciences & Diagnostics segment. The company also completed the divestiture of its Pacific Scientific Aerospace business, reporting a substantial after-tax gain. Financially, Danaher demonstrated robust operating cash flow growth. However, the increased debt from the Beckman Coulter acquisition led to higher interest expenses. The company actively managed its liquidity, utilizing commercial paper and revolving credit facilities. Despite the integration costs and acquisition-related charges, Danaher maintained a positive outlook, expecting continued sales growth, albeit at a moderated pace.

    Oct 20, 2011
  46. 2011-Q3

    DANAHER CORP /DE/ Quarterly Report for Q3 Ended Jul 1, 2011

    Danaher Corporation's Q2 2011 10-Q filing reveals a period of significant transformation, primarily driven by the monumental acquisition of Beckman Coulter for approximately $5.5 billion. This acquisition, completed at the end of June 2011, was financed through a combination of cash, equity, and debt offerings, substantially increasing the company's assets, goodwill, and long-term debt. The deal significantly bolsters Danaher's Life Sciences & Diagnostics segment and is expected to drive future growth and cost synergies. Financially, the company reported strong sales growth across most segments, aided by existing business performance and favorable currency translations. However, the report also highlights the impact of acquisition-related costs, particularly for Beckman Coulter, which affected short-term earnings and operating profit margins. While the company successfully divested its Pacific Scientific Aerospace business for a notable gain, the overall financial narrative for this quarter is dominated by the strategic integration of Beckman Coulter and its implications for future financial performance.

    Jul 27, 2011
  47. 2011-Q2

    DANAHER CORP /DE/ Quarterly Report for Q2 Ended Apr 1, 2011

    Danaher Corporation reported strong performance for the first quarter of 2011, with total sales increasing by 11.0% year-over-year to $3.35 billion. This growth was driven by a 10.0% increase from existing businesses and a 1.5% favorable currency translation impact. Net earnings saw a significant jump to $429.4 million, up from $300.2 million in the prior year quarter, resulting in diluted EPS of $0.63. The company also made progress on its strategic objectives, including the completion of two acquisitions totaling $517 million and the announcement of a significant pending acquisition of Beckman Coulter for approximately $6.8 billion, which is expected to close in Q2 2011. Operationally, all five reporting segments demonstrated sales growth. The company highlights strong performance in Test & Measurement, Environmental, Life Sciences & Diagnostics, and Industrial Technologies segments. Danaher also continued its strategic repositioning by agreeing to sell its Pacific Scientific Aerospace business for $685 million, classifying it as a discontinued operation. The company maintains a solid liquidity position with $1.6 billion in cash and cash equivalents as of April 1, 2011.

    Apr 21, 2011
  48. 2010-Q3

    DANAHER CORP /DE/ Quarterly Report for Q3 Ended Oct 1, 2010

    Danaher Corporation reported a strong third quarter and first nine months of 2010, with sales increasing significantly year-over-year, driven by both existing businesses and strategic acquisitions. The company benefited from stabilizing global economic conditions and growth in emerging markets, particularly China. Significant strategic moves during the period included the acquisition of MDS Inc.'s Analytical Technologies division for approximately $1.1 billion, bolstering the Medical Technologies segment, and the formation of the Apex Tool Group joint venture with Cooper Industries. Financially, Danaher demonstrated robust operating profit growth and improved margins, attributed to higher sales volumes and cost savings from 2009 restructuring activities. The company maintained a strong cash flow from operations, providing ample liquidity to fund its strategic investments in acquisitions and organic growth initiatives. The balance sheet shows substantial goodwill and intangible assets resulting from acquisitions, alongside solid stockholders' equity.

    Oct 21, 2010
  49. 2010-Q3-A

    DANAHER CORP /DE/ Quarterly Report (Amendment) for Q3 Ended Jul 2, 2010

    Danaher Corporation (DHR) filed an amendment to its Form 10-Q for the quarterly period ended July 2, 2010. The primary purpose of this amendment was to provide the required Interactive Data File exhibits, as mandated by Regulation S-K. Investors should note that this filing does not introduce any new financial information or reflect events subsequent to the original filing date. The company confirmed it is a large accelerated filer and not a shell company, with 652,622,896 shares of common stock outstanding as of July 16, 2010. The amendment also listed various exhibits, including its Certificate of Incorporation, By-laws, an Interchange Agreement, and calculations related to per-share earnings and ratio of earnings to fixed charges.

    Aug 11, 2010
  50. 2010-Q3

    DANAHER CORP /DE/ Quarterly Report for Q3 Ended Jul 2, 2010

    Danaher Corporation reported a strong second quarter and first half of 2010, with consolidated sales increasing by 24.0% and 20.5% respectively compared to the prior year periods. This growth was driven by a combination of increased demand in emerging markets, stabilization in global economic conditions, and significant contributions from acquisitions. The company successfully integrated the $1.1 billion acquisition of MDS Inc.'s Analytical Technologies division, including AB Sciex and Molecular Devices, bolstering its Medical Technologies segment. Operationally, Danaher saw improvements in gross profit margin due to higher sales volumes and the ongoing benefits of its 2009 restructuring activities. While SG&A expenses as a percentage of sales decreased, this was partially offset by investments in growth initiatives and the dilutive impact of recent acquisitions. The company also announced a significant joint venture with Cooper Industries, plc, forming Apex Tool Group, LLC, which is expected to result in a substantial pre-tax gain in the third quarter. Financially, Danaher maintained a solid liquidity position with $1.2 billion in cash and cash equivalents as of July 2, 2010. Acquisitions were the primary use of cash in the first half of the year, with approximately $1.4 billion invested in 14 new businesses. The company expects continued year-over-year sales growth for the remainder of 2010, albeit at a moderating rate.

    Jul 22, 2010