Summary
Danaher Corporation reported solid performance for the third quarter and first nine months of 2018, with overall revenue growth driven by its Life Sciences and Environmental & Applied Solutions segments. The company achieved 7.0% revenue growth year-over-year for the third quarter, with core sales increasing by 6.5%. This growth was supported by strong demand in both high-growth and developed markets, particularly in China and North America. Net earnings from continuing operations also saw a significant increase, reaching $664 million ($0.93 per diluted share) for the third quarter and $1.9 billion ($2.68 per diluted share) for the nine-month period. The company also highlighted the strategic acquisition of Integrated DNA Technologies (IDT) for $2.1 billion, which is expected to bolster the Life Sciences segment. Looking ahead, Danaher remains committed to its growth strategy, including future acquisitions, and continues to refine its portfolio with plans to spin off its Dental business in the second half of 2019.
Financial Highlights
51 data points| Revenue | $4.17B |
| Cost of Revenue | $2.16B |
| Gross Profit | $2.31B |
| R&D Expenses | $301.20M |
| SG&A Expenses | $1.56B |
| Operating Income | $745.30M |
| Interest Expense | $41.30M |
| Net Income | $663.70M |
| EPS (Basic) | $0.95 |
| EPS (Diluted) | $0.93 |
| Shares Outstanding (Basic) | 701.40M |
| Shares Outstanding (Diluted) | 710.60M |
Key Highlights
- 1Total revenue increased by 7.0% to $4.85 billion for the third quarter ended September 28, 2018, compared to the prior year period.
- 2Core sales, excluding acquisitions and currency impacts, grew by 6.5% in the third quarter, indicating strong underlying business performance.
- 3The company reported net earnings from continuing operations of $664 million ($0.93 per diluted share) for the third quarter, an increase from $572 million ($0.81 per diluted share) in the prior year.
- 4Danaher completed the acquisition of Integrated DNA Technologies (IDT) for approximately $2.1 billion in April 2018, significantly expanding its Life Sciences segment.
- 5The company announced plans to spin off its Dental business into an independent, publicly traded company, expected in the second half of 2019.
- 6Operating profit margins showed improvement, with a 30 basis point increase for the third quarter, driven by higher core sales volumes and cost savings initiatives.
- 7Cash flow from operations increased by approximately 5% to $2.8 billion for the first nine months of 2018 compared to the same period in 2017, demonstrating strong cash generation.