Summary
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.
Financial Highlights
50 data points| Revenue | $3.29B |
| Cost of Revenue | $1.54B |
| Gross Profit | $1.75B |
| R&D Expenses | $215.23M |
| SG&A Expenses | $963.24M |
| Operating Income | $584.90M |
| Interest Expense | $30.44M |
| Net Income | $429.40M |
| EPS (Basic) | $0.65 |
| EPS (Diluted) | $0.63 |
| Shares Outstanding (Basic) | 661.60M |
| Shares Outstanding (Diluted) | 688.33M |
Key Highlights
- 1Total sales increased by 11.0% to $3.35 billion in Q1 2011, driven by growth across all segments and favorable currency translation.
- 2Net earnings rose to $429.4 million from $300.2 million in Q1 2010, with diluted EPS reaching $0.63.
- 3Completed two acquisitions for $517 million in Q1 2011, adding to the product identification and water quality markets.
- 4Announced a definitive agreement to acquire Beckman Coulter for approximately $6.8 billion, expected to close in Q2 2011, significantly expanding the Life Sciences & Diagnostics segment.
- 5Agreed to sell the Pacific Scientific Aerospace business for $685 million, with the transaction expected to close in Q2 2011 and generate an estimated after-tax gain of $210 million.
- 6Operating profit margins improved significantly, with consolidated margins increasing by 370 basis points year-over-year.
- 7Maintained a strong liquidity position with $1.6 billion in cash and cash equivalents as of April 1, 2011.