Summary
Danaher Corporation reported solid top-line growth in the second quarter of 2012, primarily driven by the acquisition of Beckman Coulter in June 2011. Consolidated sales from continuing operations increased by 25.0% year-over-year for the quarter. The company also announced a plan to implement cost reductions, expected to be substantially completed by year-end 2012, with an estimated pre-tax charge of approximately $100 million. This initiative aims to improve efficiency in light of macroeconomic uncertainties, particularly in Europe. Acquisitions remain a key growth driver, with eight businesses acquired for $945 million in the first half of 2012. Concurrently, Danaher divested two businesses, ASI and KEO, for $337 million in cash, resulting in an after-tax gain of $94 million. The company generated strong operating cash flow, increasing by 38% to $1.7 billion in the first half of 2012, which funded strategic acquisitions and other operational needs. Despite these positive trends, currency headwinds, particularly a stronger U.S. dollar, negatively impacted reported sales.
Financial Highlights
50 data points| Revenue | $4.55B |
| Cost of Revenue | $2.20B |
| Gross Profit | $2.36B |
| R&D Expenses | $283.60M |
| SG&A Expenses | $1.28B |
| Operating Income | $811.30M |
| Interest Expense | $37.90M |
| Net Income | $600.20M |
| EPS (Basic) | $0.86 |
| EPS (Diluted) | $0.84 |
| Shares Outstanding (Basic) | 695.60M |
| Shares Outstanding (Diluted) | 714.90M |
Key Highlights
- 1Consolidated sales from continuing operations grew 25.0% year-over-year for the three months ended June 29, 2012, largely driven by the Beckman Coulter acquisition.
- 2The company announced a new cost reduction plan expected to incur approximately $100 million in pre-tax charges, aiming for completion by December 31, 2012.
- 3Acquisitions remain a significant strategy, with eight businesses acquired for $945 million in the first half of 2012.
- 4Divestitures of ASI and KEO businesses generated $337 million in cash proceeds in the first half of 2012, resulting in a $94 million after-tax gain.
- 5Operating cash flow from continuing operations increased by 38% to $1.7 billion for the six months ended June 29, 2012, demonstrating strong cash generation.
- 6The Life Sciences & Diagnostics segment saw significant sales growth (124.5% for the quarter) driven by the Beckman Coulter acquisition, although its operating profit margin was impacted by acquisition-related charges and dilutive effects.
- 7The stronger U.S. dollar negatively impacted reported sales by approximately 3.5% in the second quarter of 2012.