How did Danaher's revenue perform in the third quarter and first nine months of 2010?

Danaher reported significant revenue growth, with a 16.0% increase in the third quarter and a 19.0% increase for the first nine months of 2010, compared to the same periods in 2009. This growth was driven by both sales from existing businesses and contributions from recent acquisitions.

What were the major strategic transactions undertaken by Danaher during this period?

The company made a substantial acquisition of MDS Inc.'s Analytical Technologies division for approximately $1.1 billion, enhancing its Medical Technologies segment. Additionally, Danaher formed the Apex Tool Group joint venture with Cooper Industries, combining their respective tools businesses.

How did the company's profitability change, and what were the key drivers?

Profitability improved significantly. Operating profit margins increased to 18.0% in Q3 2010 and 16.1% for the first nine months of 2010. Key drivers included higher sales volumes, cost savings from 2009 restructuring activities, and a favorable year-over-year comparison due to the absence of certain costs incurred in the prior year.

What is the company's cash flow situation, and how is it being utilized?

Danaher maintained strong operating cash flow, generating $1.5 billion in the first nine months of 2010, an increase of 16% year-over-year. This cash flow was primarily used to fund significant acquisitions, capital expenditures, and other investments, while maintaining substantial cash reserves.

DHR 10-Q Filed Oct 21, 2010

Summary

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.

Key Highlights

1Consolidated sales increased by 16.0% for the third quarter and 19.0% for the first nine months of 2010 compared to the prior year periods.
2The company completed significant acquisitions, including MDS Inc.'s Analytical Technologies division for approximately $1.1 billion, and formed the Apex Tool Group joint venture.
3Operating profit margins improved year-over-year, reaching 18.0% for the third quarter and 16.1% for the nine months ended October 1, 2010, driven by higher sales and cost savings.
4Cash flow from operating activities was strong, totaling $1.5 billion for the nine months ended October 1, 2010, an increase of 16% year-over-year.
5Goodwill increased to $10.5 billion as of October 1, 2010, reflecting continued acquisition activity.
6Diluted Earnings Per Share (EPS) were $0.95 for the third quarter and $1.95 for the nine months ended October 1, 2010, up from $0.53 and $1.33 respectively in the prior year periods.
7The company experienced a significant gain of $291 million pre-tax from the formation of the Apex Tool Group joint venture.

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

Summary

Key Highlights

Frequently Asked Questions