What was the primary driver of the significant increase in Danaher's revenue during this quarter?

The primary driver of Danaher's substantial revenue increase in the third quarter of 2011 was the acquisition of Beckman Coulter, Inc., completed in June 2011. This acquisition contributed significantly to the reported sales figures across the consolidated statements.

How did the acquisition of Beckman Coulter impact Danaher's balance sheet?

The acquisition of Beckman Coulter significantly increased Danaher's total assets and goodwill. Total assets grew from $22.2 billion at the end of 2010 to $30.6 billion by September 30, 2011. Goodwill alone increased from $10.5 billion to $14.4 billion, largely due to the Beckman Coulter acquisition. The company also took on approximately $1.6 billion of Beckman Coulter's debt and financed the acquisition through a combination of cash, stock offerings, and senior unsecured notes, leading to a substantial increase in long-term debt.

What is the company's outlook for sales growth in the near future?

Danaher expects sales to continue to grow in the fourth quarter of 2011 compared to 2010, although at a slower rate than experienced in the first nine months of the year, citing moderating global economic growth and macroeconomic uncertainty.

What were the main reasons for the increase in interest expense?

The increase in interest expense was primarily due to the additional debt incurred in the second quarter of 2011 to finance the acquisition of Beckman Coulter. This included new senior unsecured notes and commercial paper borrowings.

DHR 10-Q Filed Oct 20, 2011

Summary

Danaher Corporation's (DHR) third quarter 2011 10-Q filing reveals significant strategic activity, most notably the large-scale acquisition of Beckman Coulter, Inc. for approximately $5.5 billion in cash. This acquisition, completed in June 2011, has substantially increased Danaher's asset base, goodwill, and debt levels, and significantly boosted revenue, particularly within the Life Sciences & Diagnostics segment. The company also completed the divestiture of its Pacific Scientific Aerospace business, reporting a substantial after-tax gain. Financially, Danaher demonstrated robust operating cash flow growth. However, the increased debt from the Beckman Coulter acquisition led to higher interest expenses. The company actively managed its liquidity, utilizing commercial paper and revolving credit facilities. Despite the integration costs and acquisition-related charges, Danaher maintained a positive outlook, expecting continued sales growth, albeit at a moderated pace.

Key Highlights

1Completed the significant acquisition of Beckman Coulter, Inc. for $5.5 billion in cash, significantly expanding the Life Sciences & Diagnostics segment.
2Divested the Pacific Scientific Aerospace business, realizing an after-tax gain of approximately $202 million.
3Revenue increased substantially by 46.0% for the quarter and 24.0% for the nine months ended September 30, 2011, driven primarily by acquisitions.
4Operating cash flow from continuing operations increased by 28% for the nine months ended September 30, 2011.
5Long-term debt increased significantly to $5.8 billion from $2.8 billion primarily due to financing the Beckman Coulter acquisition.
6Incurred a $32.9 million charge for the early extinguishment of debt related to retiring Beckman Coulter's obligations.
7The effective tax rate for continuing operations decreased to 9.9% in Q3 2011 from 22.2% in Q3 2010, partly due to favorable tax resolutions.

DANAHER CORP /DE/ Quarterly Report for Q3 Ended Sep 30, 2011

Summary

Key Highlights

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