Summary
Danaher Corporation's (DHR) second quarter 2013 report indicates a moderate overall sales increase of 4.0% year-over-year, driven primarily by acquisitions and growth in high-growth markets, which now constitute approximately 26% of total sales. While developed markets showed slight growth in the US and a slight contraction in Western Europe, management anticipates continued challenges due to macroeconomic uncertainties, particularly in Europe. The company's strategic focus remains on expanding in high-growth geographies and product segments, pursuing acquisitions, developing innovative products, and improving operational efficiency. Financially, the company demonstrated solid operating profit margins, with improvements in several segments attributed to higher sales volumes, cost savings from restructuring, and productivity initiatives. However, operating profit margins were impacted by the dilutive effects of acquisitions and the divestiture of the Apex joint venture. The company also reported a significant after-tax gain of $144 million from the sale of its interest in Apex. Danaher maintains a strong liquidity position with $2.3 billion in cash and cash equivalents as of June 28, 2013, and remains compliant with its debt covenants, underscoring its financial stability and ability to fund ongoing operations and strategic growth.
Financial Highlights
50 data points| Revenue | $4.74B |
| Cost of Revenue | $2.24B |
| Gross Profit | $2.50B |
| R&D Expenses | $312.20M |
| SG&A Expenses | $1.34B |
| Operating Income | $843.60M |
| Interest Expense | $39.40M |
| Net Income | $616.80M |
| EPS (Basic) | $0.89 |
| EPS (Diluted) | $0.87 |
| Shares Outstanding (Basic) | 695.20M |
| Shares Outstanding (Diluted) | 709.80M |
Key Highlights
- 1Total consolidated sales increased by 4.0% for the three months ended June 28, 2013, compared to the prior year period.
- 2Sales from existing businesses grew by 2.5%, while acquired businesses contributed 2.0% growth, demonstrating successful integration and expansion.
- 3High-growth markets led the sales growth, accounting for approximately 26% of total sales in the second quarter of 2013.
- 4The company recorded a significant after-tax gain of $144 million ($0.20 per diluted share) from the sale of its investment in the Apex joint venture.
- 5Operating profit margins remained robust, with favorable impacts from higher sales volumes, cost savings from restructuring, and productivity improvements.
- 6The company generated $1.5 billion in operating cash flow from continuing operations in the first half of 2013, despite a year-over-year decrease.
- 7Danaher held $2.3 billion in cash and cash equivalents as of June 28, 2013, indicating a strong liquidity position.