DANAHER CORP /DE/ Quarterly Report for Q1 Ended Mar 30, 2018

Summary

Danaher Corporation reported strong top-line growth in the first quarter of 2018, with total revenues increasing by 11.5% year-over-year, driven by a 5.5% increase in core sales. This growth was observed across both high-growth and developed markets, with high-growth markets, particularly China, showing a double-digit rate increase. The company also saw a significant improvement in its operating profit margin, which increased by 110 basis points, reflecting higher core sales volumes and ongoing productivity initiatives, partially offset by integration costs from recent acquisitions. Financially, Danaher demonstrated robust operating cash flow generation, up 48% year-over-year, indicating effective working capital management. The company also announced a significant acquisition in April 2018: IDT, a custom DNA and RNA oligonucleotide manufacturer, for approximately $2.0 billion, which is expected to bolster its Life Sciences segment. Despite global economic uncertainties, Danaher maintains a positive outlook for the remainder of 2018, supported by its diversified business model and strategic investments.

Key Highlights

• 1Total revenues grew 11.5% year-over-year to $4.695 billion for the first quarter of 2018.
• 2Core sales (excluding acquisitions and currency impacts) increased by 5.5%, indicating strong underlying business performance.
• 3Operating profit margins improved by 110 basis points, driven by higher sales volumes and cost efficiencies.
• 4The Life Sciences and Diagnostics segments showed significant revenue growth, up 13.0% and 14.5% respectively.
• 5Operating cash flow from continuing operations surged by 48% to $828.9 million.
• 6Danaher acquired IDT in April 2018 for approximately $2.0 billion to expand its Life Sciences segment's offerings.
• 7The company updated its tax strategy and is analyzing the impact of the Tax Cuts and Jobs Act (TCJA) enacted in late 2017.

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