Summary
Danaher Corporation (DHR) reported its Q3 2012 results, indicating a mixed performance influenced by global economic conditions and strategic divestitures and acquisitions. While consolidated sales saw a slight decrease of 0.5% year-over-year for the quarter, this was largely attributed to a 3.0% negative impact from currency translation. Excluding currency effects, sales from existing businesses grew by 1.0%, and acquisitions contributed an additional 1.5% growth. The company highlighted strong performance in emerging markets, particularly China, Latin America, and the Middle East, which led sales growth. In contrast, sales in the United States were down slightly, and Western Europe experienced a mid-single-digit contraction. Danaher is actively managing its portfolio, evidenced by the pending sale of its 50% interest in Apex Tool Group for approximately $1.6 billion and the completed sales of its ASI and KEO businesses earlier in the year. These strategic moves aim to optimize the business portfolio and enhance financial flexibility.
Financial Highlights
50 data points| Revenue | $4.42B |
| Cost of Revenue | $2.14B |
| Gross Profit | $2.28B |
| R&D Expenses | $289.50M |
| SG&A Expenses | $1.25B |
| Operating Income | $755.80M |
| Interest Expense | $39.40M |
| Net Income | $548.70M |
| EPS (Basic) | $0.79 |
| EPS (Diluted) | $0.77 |
| Shares Outstanding (Basic) | 695.20M |
| Shares Outstanding (Diluted) | 713.90M |
Key Highlights
- 1Consolidated sales for Q3 2012 declined 0.5% year-over-year to $4.416 billion, primarily due to a 3.0% negative impact from currency translation.
- 2Sales from existing businesses grew 1.0% year-over-year in Q3 2012, indicating underlying operational strength.
- 3Emerging markets, especially China, Latin America, and the Middle East, showed strong sales growth, while developed markets like Western Europe contracted.
- 4The company is divesting its 50% stake in Apex Tool Group for approximately $1.6 billion, expecting net proceeds of $650 million.
- 5Operating profit margins improved significantly to 17.1% in Q3 2012 from 14.5% in the prior year, boosted by cost savings and acquisition-related adjustments.
- 6The Life Sciences & Diagnostics segment saw a notable 60.5% sales increase for the nine-month period, largely driven by the acquisition of Beckman Coulter in June 2011.
- 7Cash flow from operating activities increased substantially by 39% to $2.7 billion for the first nine months of 2012 compared to the same period in 2011.