Summary
Danaher Corporation's (DHR) first quarter 2013 results showed modest overall sales growth driven by strength in high-growth markets, which now represent 24% of total sales. While developed markets experienced slight declines, the company's diversification strategy helped mitigate these headwinds. A significant event during the quarter was the profitable sale of the Apex joint venture, contributing $144 million after-tax gain, or $0.20 per diluted share, to earnings. This sale significantly boosted investing cash flows. The company also completed a small acquisition for $12 million within its Industrial Technologies segment and announced a larger acquisition for $300 million in Life Sciences & Diagnostics that closed post-quarter. Operationally, consolidated sales increased by 3.0% year-over-year, with existing businesses contributing 1.0% and acquisitions adding 3.0%, partially offset by a 1.0% negative impact from currency exchange rates. Profitability saw a slight decrease in operating profit margins, down to 16.4% from 17.0% in the prior year, attributed to the dilutive effects of acquisitions and the Apex divestiture, though cost savings from prior restructuring actions and higher sales volumes provided some offset. The company maintains a strong liquidity position with $2.1 billion in cash and cash equivalents.
Financial Highlights
50 data points| Revenue | $4.44B |
| Cost of Revenue | $2.12B |
| Gross Profit | $2.33B |
| R&D Expenses | $296.40M |
| SG&A Expenses | $1.30B |
| Operating Income | $730.90M |
| Interest Expense | $39.20M |
| Net Income | $691.90M |
| EPS (Basic) | $1.00 |
| EPS (Diluted) | $0.98 |
| Shares Outstanding (Basic) | 692.00M |
| Shares Outstanding (Diluted) | 708.40M |
Key Highlights
- 1Consolidated sales increased by 3.0% to $4,444.7 million compared to the prior year's first quarter.
- 2Sales from existing businesses grew 1.0%, while acquisitions contributed 3.0% to sales growth; currency exchange rates had a negative impact of 1.0%.
- 3Significant gain of $144 million ($0.20 per diluted share) recognized from the sale of the Apex joint venture.
- 4Acquired one business for $12 million in the Industrial Technologies segment and announced a $300 million acquisition in Life Sciences & Diagnostics.
- 5Operating profit margin slightly decreased to 16.4% from 17.0% year-over-year, impacted by acquisitions and divestitures.
- 6High-growth markets continue to be a key driver, with sales growing at a high-single digit rate and representing 24% of total sales.
- 7The company ended the quarter with $2.1 billion in cash and cash equivalents, maintaining a strong liquidity position.