What was the primary driver behind the sales decline in Q2 2009?

The primary driver behind the sales decline was the worsening global economic conditions and a general contraction in worldwide demand for Danaher's products and services. This was particularly evident in the industrial and consumer-oriented businesses, with Europe experiencing the most significant demand decline in the second quarter.

How is Danaher managing costs and profitability in the current economic climate?

Danaher is actively managing costs through ongoing restructuring actions initiated in late 2008 and further planned in April 2009. These initiatives include workforce reductions and facility consolidations, aimed at reducing the cost base and improving operational efficiency. The company also focuses on ongoing efforts to reduce material costs and improve productivity.

What is the company's current liquidity position, and how is it being managed?

Danaher maintains a strong liquidity position. As of July 3, 2009, the company had approximately $1.3 billion in cash and cash equivalents. The company generated $802 million in operating cash flow for the first six months of the year. Additionally, Danaher completed a $750 million note offering in March 2009, and has access to significant revolving credit facilities, ensuring sufficient resources for operations, investments, and debt management.

Are there any significant impacts from acquisitions or divestitures in this report?

During the first half of 2009, Danaher completed the acquisition of three businesses for approximately $140 million. These acquisitions were in the test and measurement, environmental, and sensors and controls markets and are expected to complement existing segments. The report does not mention any significant divestitures during this period.

DHR 10-Q Quarterly Report Q3 FY2009 — Revenue, Net Income, EPS

Summary

Danaher Corporation (DHR) reported its second-quarter 2009 financial results, showing a continued decline in sales and operating profit compared to the prior year, largely attributed to the challenging macroeconomic environment. Total sales for the quarter ended July 3, 2009, decreased by 18.5% to $2.67 billion, with a significant portion of this decline driven by lower demand across most of its business segments, particularly in the industrial and consumer-oriented sectors. Despite the revenue contraction, Danaher demonstrated effective cost management and restructuring initiatives, which helped to mitigate some of the margin pressure. The company reported a net earning of $295.7 million, or $0.89 per diluted share, compared to $363.4 million, or $1.09 per diluted share, in the prior-year period. The company's cash flow from operations remained robust at $802.3 million for the first six months of the year, indicating a strong underlying operational capability. Danaher also strengthened its financial position by completing a $750 million offering of senior unsecured notes, providing additional liquidity and flexibility.

Financial Highlights

50 data points

Beta

Revenue

$2.75B

0.5% Gross Margin

Net Income

$351.40M

0.1% Net Margin

EPS (Diluted)

$0.53

Total Assets

$18.32B

Cash & Equivalents

$1.26B

Free Cash Flow

$438.13M

Financial Statements

Beta

Revenue	$2.75B
Cost of Revenue	$1.41B
Gross Profit	$1.32B
R&D Expenses	$158.50M
SG&A Expenses	$759.82M
Operating Expenses	$2.33B
Operating Income	$464.60M
Interest Expense	$31.33M
Net Income	$351.40M
EPS (Basic)	$0.55
EPS (Diluted)	$0.53
Shares Outstanding (Basic)	639.83M
Shares Outstanding (Diluted)	669.08M

Key Highlights

1Consolidated sales decreased by 18.5% year-over-year to $2.67 billion for the second quarter of 2009.
2Net earnings for the quarter were $295.7 million, or $0.89 per diluted share, down from $363.4 million, or $1.09 per diluted share, in the prior year.
3Operating profit margins declined to 12.9% from 15.5% in the prior-year quarter, impacted by lower sales volumes and restructuring costs.
4Cash flow from operating activities remained strong at $802.3 million for the first six months of 2009.
5The company successfully completed a $750 million offering of 5.40% senior unsecured notes due 2019 in March 2009.
6Danaher continued its restructuring efforts, incurring $45.8 million in charges during the second quarter to reduce costs and improve efficiency.

DANAHER CORP /DE/ Quarterly Report for Q3 Ended Jul 3, 2009

Summary

Financial Highlights

Key Highlights

Frequently Asked Questions