Summary
Danaher Corporation reported strong performance for the second quarter and first half of 2018, with total sales increasing by 10.5% and 11.0% respectively compared to the prior year. Core revenue growth, which excludes the impact of acquisitions and currency fluctuations, stood at a healthy 6.0% for the quarter and 5.5% for the half-year, indicating robust underlying business performance. The company saw positive contributions to sales growth from both high-growth and developed markets. Earnings per diluted share from continuing operations also showed significant improvement, rising to $0.95 for the quarter and $1.75 for the half-year. A significant strategic development highlighted is the planned spin-off of the Dental business into an independent publicly traded company, expected by the second half of 2019. This move aims to unlock shareholder value by allowing each business to focus on its respective growth opportunities. The company also completed a major acquisition in April 2018, acquiring IDT for approximately $2.1 billion, which is expected to drive sales and earnings growth within the Life Sciences segment.
Financial Highlights
51 data points| Revenue | $4.25B |
| Cost of Revenue | $2.16B |
| Gross Profit | $2.39B |
| R&D Expenses | $311.70M |
| SG&A Expenses | $1.64B |
| Operating Income | $758.90M |
| Interest Expense | $43.20M |
| Net Income | $673.80M |
| EPS (Basic) | $0.96 |
| EPS (Diluted) | $0.95 |
| Shares Outstanding (Basic) | 700.20M |
| Shares Outstanding (Diluted) | 709.50M |
Key Highlights
- 1Total sales increased by 10.5% for the three months ended June 29, 2018, and 11.0% for the six months ended June 29, 2018, compared to the prior year periods.
- 2Core revenue (excluding acquisitions and currency) grew by 6.0% in Q2 2018 and 5.5% year-to-date, demonstrating strong organic growth.
- 3Income from continuing operations per diluted share increased to $0.95 for Q2 2018 and $1.75 for the first six months of 2018.
- 4Danaher announced plans to spin off its Dental business into a separate, publicly traded company, targeting completion by the second half of 2019.
- 5The acquisition of IDT for approximately $2.1 billion was completed in April 2018, strengthening the Life Sciences segment with genomics consumables and new product offerings.
- 6Operating profit margins improved significantly across the company, notably in the Diagnostics segment (up 680 basis points in Q2), driven by higher sales volumes, cost savings, and a favorable gain on acquisition-related matters.
- 7The company's operating cash flow from continuing operations increased by approximately 19% to $1.9 billion for the first six months of 2018.