Summary
Danaher Corporation reported a significant increase in consolidated sales for the second quarter of 2016, driven by a substantial contribution from acquisitions, particularly the acquisition of Pall. Sales from existing businesses showed modest growth, with high-growth markets leading the way. The company also successfully completed the separation of its Fortive business, which included the Test & Measurement and Industrial Technologies segments (excluding product identification businesses), and the retail/commercial petroleum business. This separation resulted in a substantial cash distribution to Danaher shareholders and involved incurring separation-related costs. Despite overall sales growth, operating profit margins saw a slight decrease compared to the prior year period, influenced by factors such as growth investments, the dilutive effect of recent acquisitions, and separation costs. The company highlighted continued investments in sales growth initiatives and cost-saving measures. Danaher also continued to manage its capital structure, utilizing cash from the Fortive distribution to repay debt. The company maintained a strong liquidity position with substantial cash and cash equivalents on hand.
Financial Highlights
52 data points| Revenue | $4.24B |
| Cost of Revenue | $1.85B |
| Gross Profit | $2.38B |
| R&D Expenses | $241.10M |
| SG&A Expenses | $1.35B |
| Operating Income | $710.10M |
| Interest Expense | $43.70M |
| Net Income | $656.70M |
| EPS (Basic) | $0.95 |
| EPS (Diluted) | $0.94 |
| Shares Outstanding (Basic) | 692.20M |
| Shares Outstanding (Diluted) | 701.30M |
Key Highlights
- 1Consolidated sales from continuing operations increased by 16.5% in Q2 2016 compared to Q2 2015, driven by 15.0% growth from acquired businesses and 2.0% from existing businesses.
- 2Danaher completed the separation of its Fortive business on July 2, 2016, distributing Fortive common stock to Danaher shareholders and receiving approximately $3.0 billion in net cash distributions.
- 3The Life Sciences & Diagnostics segment showed robust sales growth of 41.5% in Q2 2016, significantly boosted by the acquisition of Pall.
- 4Operating profit margins for continuing operations decreased slightly to 17.9% in Q2 2016 from 18.8% in Q2 2015, impacted by growth investments, acquisition dilution, and separation costs.
- 5The company generated $2.05 billion in operating cash flow from continuing operations in the first six months of 2016, an increase of 26% year-over-year.
- 6Danaher utilized a portion of the Fortive cash distribution to repay $500 million in senior unsecured notes.
- 7The company declared a quarterly dividend of $0.16 per share, an increase of 18.5% compared to the prior year's second quarter dividend.