What were the key drivers of Danaher's sales growth in the first quarter of 2010?

Sales growth was primarily driven by a combination of organic growth from existing businesses (5.5%), strategic acquisitions (8.5%), and a positive currency translation impact (3.5%). Improved global economic conditions and easier year-over-year comparisons also contributed.

What was the financial impact of the acquisitions made during the quarter?

Danaher completed significant acquisitions, including the $1.1 billion purchase of MDS Inc.'s Analytical Technologies division (AB Sciex and Molecular Devices). These acquisitions are expected to add approximately $650 million in annual revenues to the Medical Technologies segment. The company also acquired six other businesses for approximately $191 million. These acquisitions contributed significantly to revenue growth but also impacted operating profit margins due to acquisition-related charges.

How is Danaher managing its liquidity and capital resources?

Danaher demonstrated strong liquidity, generating $393.9 million in operating cash flow and maintaining $806.4 million in cash and cash equivalents. The company funded its significant acquisitions primarily through available cash. It utilizes commercial paper programs for short-term liquidity needs, supported by revolving credit facilities. While acquisitions were a major use of cash, the company expects to fund ongoing needs, capital expenditures, and dividends through internally generated funds and available credit.

What is the significance of the proposed joint venture with Cooper Industries plc?

The proposed joint venture with Cooper Industries plc will combine Danaher's Tools and Components segment (excluding certain businesses) with Cooper's Tools business into a 50/50 partnership. This strategic move is expected to create a larger, more focused tools business. Upon closing, Danaher will deconsolidate these businesses and account for its investment using the equity method.

DHR 10-Q Quarterly Report Q2 FY2010 — Revenue, Net Income, EPS

Summary

Danaher Corporation's first quarter 2010 report shows significant growth driven by strategic acquisitions and improving global economic conditions, particularly in emerging markets like China. Total sales increased by 17.5% year-over-year, with acquisitions contributing 8.5% and existing businesses showing a 5.5% organic growth. The company successfully integrated the acquisition of MDS Inc.'s Analytical Technologies division, including AB Sciex and Molecular Devices, for approximately $1.1 billion, bolstering its Medical Technologies segment. Financially, Danaher reported net earnings of $300.2 million, or $0.89 per diluted share, up from $237.7 million, or $0.72 per diluted share, in the prior year's quarter. Operating profit margins improved to 14% from 12.9%, benefiting from higher sales volumes and cost savings from 2009 restructuring efforts. The company generated $393.9 million in operating cash flow and ended the quarter with $806.4 million in cash and cash equivalents. A significant new development is the agreement to form a joint venture with Cooper Industries plc, combining their tools businesses, which is expected to close in the second quarter of 2010.

Financial Highlights

50 data points

Beta

Revenue

$2.94B

0.5% Gross Margin

Net Income

$300.20M

0.1% Net Margin

EPS (Diluted)

$0.45

Total Assets

$19.88B

Cash & Equivalents

$806.37M

Free Cash Flow

$356.59M

Financial Statements

Beta

Revenue	$2.94B
Cost of Revenue	$1.54B
Gross Profit	$1.45B
R&D Expenses	$180.84M
SG&A Expenses	$866.33M
Operating Expenses	$2.66B
Operating Income	$411.90M
Interest Expense	$30.04M
Net Income	$300.20M
EPS (Basic)	$0.46
EPS (Diluted)	$0.45
Shares Outstanding (Basic)	648.97M
Shares Outstanding (Diluted)	680.12M

Key Highlights

1Total sales increased 17.5% to $3.09 billion, driven by 5.5% organic growth and 8.5% from acquisitions.
2Net earnings rose to $300.2 million ($0.89/share) from $237.7 million ($0.72/share) in the prior year's quarter.
3Acquisitions were a major driver, notably the $1.1 billion purchase of MDS Inc.'s Analytical Technologies division, enhancing the Medical Technologies segment.
4Operating profit margin improved to 14% from 12.9%, reflecting higher sales volume and cost efficiencies from 2009 restructuring.
5The company generated strong operating cash flow of $393.9 million, an increase of 24% year-over-year.
6Danaher entered an agreement to form a 50/50 joint venture with Cooper Industries plc, combining their respective tools businesses, expected to close in Q2 2010.
7Cash and cash equivalents stood at $806.4 million at quarter-end.

DANAHER CORP /DE/ Quarterly Report for Q2 Ended Apr 2, 2010

Summary

Financial Highlights

Key Highlights

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