Summary
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.
Financial Highlights
48 data points| Revenue | $3.15B |
| Cost of Revenue | $1.61B |
| Gross Profit | $1.58B |
| R&D Expenses | $191.20M |
| SG&A Expenses | $896.59M |
| Operating Income | $504.50M |
| Interest Expense | $28.94M |
| Net Income | $372.50M |
| EPS (Basic) | $0.57 |
| EPS (Diluted) | $0.55 |
| Shares Outstanding (Basic) | 652.48M |
| Shares Outstanding (Diluted) | 682.34M |
Key Highlights
- 1Total sales increased by 24.0% for the three months ended July 2, 2010, and 20.5% for the six months ended July 2, 2010, compared to the prior year periods.
- 2Significant acquisition activity, including the $1.1 billion acquisition of MDS Inc.'s Analytical Technologies division (AB Sciex and Molecular Devices), bolstering the Medical Technologies segment.
- 3Formation of Apex Tool Group, LLC, a 50/50 joint venture with Cooper Industries, plc, expected to result in a pre-tax gain of approximately $300 million.
- 4Gross profit margin improved to 49.5% for the quarter and 49.0% for the half-year, driven by higher sales volumes and cost savings from 2009 restructuring.
- 5Operating profit increased significantly in most segments, with strong performance in Professional Instrumentation and Industrial Technologies.
- 6Solid liquidity maintained with $1.2 billion in cash and cash equivalents as of July 2, 2010.
- 7Year-over-year sales growth was led by emerging markets, with particular strength in China.