WASHINGTON, Jan. 28 /PRNewswire-FirstCall/ -- Danaher Corporation
(NYSE: DHR) announced today that GAAP net earnings for the quarter
ended December 31, 2009 were $267 million, or $0.80 per diluted
share, a 13% decrease as compared to the Company's 2008 fourth
quarter GAAP net earnings of $306 million, or $0.92 per diluted
share. On a non-GAAP basis, which reflects the adjustments
identified in the attached reconciliation schedule, adjusted net
earnings for the quarter ended December 31, 2009 were $375 million
or $1.12 per diluted share, a 1% increase over 2008 fourth quarter
adjusted net earnings of $371 million or $1.11 per diluted share.
Sales for the 2009 fourth quarter were $3.1 billion, 1.5% less than
the $3.2 billion reported for the 2008 fourth quarter. Core
revenues declined 9% in the quarter, compared to the fourth quarter
of 2008. GAAP net earnings for the full year 2009 were $1.15
billion, or $3.46 per diluted share, compared with GAAP net
earnings of $1.32 billion, or $3.95 per diluted share for 2008.
Sales for the full year 2009 were $11.2 billion compared to $12.7
billion for the full year 2008, a decrease of 12%. H. Lawrence
Culp, Jr., President and Chief Executive Officer, stated, "We were
encouraged by the continued sequential end market improvements in
the fourth quarter, as well as our team's solid execution on the
restructuring initiatives undertaken throughout the year. Our
continued focus on internal growth investments, new product
introductions and strategic M&A opportunities give us
confidence that we can outperform in 2010 and over the long term."
Danaher will discuss its results during its investor conference
call today starting at 7:30 a.m. EST. The call and an accompanying
slide presentation will be webcast on the "Investors" section of
Danaher's website at http://www.danaher.com/. A replay of the
webcast can be accessed on the "Investors" section of Danaher's
website (under the subheading "Investor Events") shortly after the
conclusion of the presentation, and the webcast will remain
available until the next quarterly earnings call. The conference
call can be accessed by dialing 888-417-2254 in the US or
719-325-2339 outside the US a few minutes before the 7:30 a.m. EST
start and telling the operator that you are dialing in for
Danaher's investor conference call, access code 5742258. A replay
of the conference call will be available shortly after the
conclusion of the call until February 2, 2010 and you can access
the replay by dialing 888-203-1112 in the US or 719-457-0820
outside the US, access code 5742258. In addition, presentation
materials relating to Danaher's results have been posted to the
"Investors" section of Danaher's website under the subheading
"Earnings." Danaher is a diversified technology leader that
designs, manufactures, and markets innovative products and services
to professional, medical, industrial, and commercial customers. Our
portfolio of premier brands is among the most highly recognized in
each of the markets we serve. Driven by a foundation provided by
the Danaher Business System, our 47,000 associates serve customers
in more than 125 countries and generated $11.2 billion of revenue
in 2009. For more information please visit our website:
http://www.danaher.com/. In addition to the financial measures
prepared in accordance with generally accepted accounting
principles (GAAP), this earnings announcement also contains
non-GAAP financial measures. The reasons why we use these measures,
a reconciliation of these measures to the most directly comparable
GAAP measures and other information relating to these measures are
included in the supplemental reconciliation schedule attached.
Statements in this release that are not strictly historical,
including the statements regarding execution of cost reduction
activities, growth investments, new product introductions,
acquisitions and expectations for 2010 and future periods and any
other statements regarding events or developments that we believe
or anticipate will or may occur in the future, may be
"forward-looking" statements. There are a number of important
factors that could cause actual events to differ materially from
those suggested or indicated by such forward-looking statements and
you should not place undue reliance on any such forward-looking
statements. These factors include, among other things, the current
uncertainty in the global economy and credit markets, the impact of
our restructuring activities on our ability to grow, contractions
or growth rates and cyclicality of markets we serve, competition,
our ability to develop and successfully market new products and
technologies and expand into new markets, our ability to
successfully identify, consummate and integrate appropriate
acquisitions, contingent liabilities relating to acquisitions,
risks relating to potential impairment of goodwill and other
long-lived assets, currency exchange rates, our compliance with
applicable laws and regulations and changes in applicable laws and
regulations, tax audits and changes in our tax rate, litigation and
other contingent liabilities including intellectual property and
environmental matters, risks relating to product defects and
recalls, the impact of our debt obligations on our operations,
pension plan costs, commodity costs and surcharges, our ability to
adjust purchases and manufacturing capacity to reflect market
conditions, legislative health care reform and other changes in
health care industry, labor matters, our relationships with and the
performance of our channel partners, risks relating to man-made and
natural disasters, our ability to achieve projected cost reductions
and growth, and international economic, political, legal and
business factors. Additional information regarding the factors that
may cause actual results to differ materially from these
forward-looking statements is available in our SEC filings,
including our 2008 Annual Report on Form 10-K and Quarterly Report
on Form 10-Q for the quarter ended October 2, 2009. These
forward-looking statements speak only as of the date of this
release and the Company does not assume any obligation to update or
revise any forward-looking statement, whether as a result of new
information, future events and developments or otherwise. To
download a copy of the full earnings report, please go to
http://www.danaher.com/. DANAHER CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS ($ in thousands, except per
share amounts) Three Months Ended Year Ended 12/31/09 12/31/08
12/31/09 12/31/08 -------- -------- -------- -------- Sales
$3,132,892 $3,176,506 $11,184,938 $12,697,456 Operating costs and
expenses: Cost of sales 1,694,507 1,724,897 5,904,718 6,757,262
Selling, general and administrative expenses 890,455 860,491
3,190,211 3,345,274 Research and development expenses 154,216
167,467 632,651 725,443 Other (income) expense -- -- (85,118) --
--- --- ------- --- Total operating expenses 2,739,178 2,752,855
9,642,462 10,827,979 Operating profit 393,714 423,651 1,542,476
1,869,477 Interest expense (35,428) (25,433) (122,656) (130,174)
Interest income 1,649 4,000 5,034 10,004 ----- ----- ----- ------
Earnings before income taxes 359,935 402,218 1,424,854 1,749,307
Income taxes (93,000) (96,532) (273,150) (431,676) ------- -------
-------- -------- Net earnings $266,935 $305,686 $1,151,704
$1,317,631 ======== ======== ========== ========== Net earnings per
share: Basic $0.83 $0.96 $3.59 $4.13 ----- ----- ----- -----
Diluted $0.80 $0.92 $3.46 $3.95 ===== ===== ===== ===== Average
common stock and common equivalent shares outstanding: Basic
322,716 319,523 320,765 319,361 Diluted 338,680 333,593 335,742
335,863 This information is presented for reference only. Final
audited financial statements will include footnotes, which should
be referenced when available, to more fully understand the contents
of this information. DANAHER CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS As of December 31 ($ and shares in
thousands) ASSETS 2009 2008 ---- ---- Current Assets: Cash and
equivalents $1,721,920 $392,854 Trade accounts receivable, less
allowance for doubtful accounts of $133,103 and $120,730,
respectively 1,916,831 1,894,585 Inventories 993,016 1,142,309
Prepaid expenses and other current assets 588,861 757,371 -------
------- Total current assets 5,220,628 4,187,119 Property, plant
and equipment, net 1,143,331 1,108,653 Other assets 758,035 464,353
Goodwill 9,817,923 9,210,581 Other intangible assets, net 2,655,503
2,519,422 --------- --------- Total assets $19,595,420 $17,490,128
=========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities: Notes payable and current portion of long-
term debt $44,186 $66,159 Trade accounts payable 1,051,487
1,108,961 Accrued expenses and other liabilities 1,665,287
1,569,977 --------- --------- Total current liabilities 2,760,960
2,745,097 Other long-term liabilities 2,315,261 2,383,299 Long-term
debt 2,889,023 2,553,170 Stockholders' equity: Common stock -$0.01
par value, 1 billion shares authorized; 358,922 and 354,487 issued;
322,735 and 318,380 outstanding, respectively 3,589 3,544
Additional paid-in capital 2,074,501 1,812,963 Retained earnings
9,205,142 8,095,155 Accumulated other comprehensive income (loss)
346,944 (103,100) ------- -------- Total stockholders' equity
11,630,176 9,808,562 ---------- --------- Total liabilities and
stockholders' equity $19,595,420 $17,490,128 ===========
=========== This information is presented for reference only. Final
audited financial statements will include footnotes, which should
be referenced when available, to more fully understand the contents
of this information. DANAHER CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS Year Ended December 31 ($ in
thousands) 2009 2008 ---- ---- Cash flows from operating
activities: Net earnings $1,151,704 $1,317,631 Non-cash items:
Depreciation 184,524 193,997 Amortization 157,063 145,290 Stock
compensation expense 87,350 86,000 Consideration received in shares
(84,749) -- Change in deferred income taxes (120,031) 27,691 Change
in trade accounts receivable, net 106,132 71,403 Change in
inventories 211,595 33,119 Change in accounts payable (89,853)
3,713 Change in prepaid expenses and other assets 142,396 (4,773)
Change in accrued expenses and other liabilities 54,703 (15,042)
------ ------- Total operating cash flows 1,800,834 1,859,029
--------- -------- Cash flows from investing activities: Payments
for additions to property, plant and equipment (188,547) (193,783)
Proceeds from disposals of property, plant and equipment 6,090
1,088 Cash paid for acquisitions (703,511) (423,208) Cash paid for
other investments (66,768) -- Proceeds from divestitures, sale of
investment and refundable escrowed purchase price 9,795 48,504
----- ------ Total investing cash flows (942,941) (567,399)
-------- -------- Cash flows from financing activities: Proceeds
from issuance of common stock 174,233 82,430 Payment of dividends
(41,717) (38,259) Purchase of treasury stock -- (74,165) Net
repayments of borrowings (maturities of 90 days or less) (445,711)
(905,567) Proceeds of borrowings (maturities longer than 90 days)
744,615 72,652 Repayments of borrowings (maturities longer than 90
days) (24,188) (259,344) ------- -------- Net cash (used in)
provided by financing activities 407,232 (1,122,253) -------
---------- Effect of exchange rate changes on cash and equivalents
63,941 (15,631) ------ ------- Net change in cash and equivalents
1,329,066 153,746 Beginning balance of cash and equivalents 392,854
239,108 ------- ------ Ending balance of cash and equivalents
$1,721,920 $392,854 ========== ======== This information is
presented for reference only. Final audited financial statements
will include footnotes, which should be referenced when available,
to more fully understand the contents of this information. DANAHER
CORPORATION AND SUBSIDIARIES SEGMENT INFORMATION ($ in thousands,
unaudited) Sales Three Months Ended Year Ended -----
------------------ ---------- 12/31/09 12/31/08 12/31/09 12/31/08
-------- -------- -------- -------- Professional Instrumentation
$1,224,686 $1,243,949 $4,330,695 $4,860,764 Medical Technologies
921,050 843,820 3,141,916 3,277,026 Industrial Technologies 705,116
777,932 2,658,041 3,265,451 Tools & Components 282,040 310,805
1,054,286 1,294,215 ------- ------- --------- --------- $3,132,892
$3,176,506 $11,184,938 $12,697,456 ========== ==========
=========== =========== Operating Profit --------- Professional
Instrumentation $228,171 $221,960 $728,479 $907,254 Medical
Technologies 78,043 90,134 395,489 370,473 Industrial Technologies
80,926 106,569 383,241 522,112 Tools & Components 29,520 30,343
124,814 157,673 Other (22,946) (25,355) (89,547) (88,035) -------
------- ------- ------- $393,714 $423,651 $1,542,476 $1,869,477
======== ======== ========== ========== Operating Margins
----------------- Professional Instrumentation 18.6% 17.8% 16.8%
18.7% Medical Technologies 8.5% 10.7% 12.6% 11.3% Industrial
Technologies 11.5% 13.7% 14.4% 16.0% Tools & Components 10.5%
9.8% 11.8% 12.2% Total 12.6% 13.3% 13.8% 14.7% Restructuring &
Other Related Charges --------------------- Professional
Instrumentation $40,184 $28,813 $99,016 $28,813 Medical
Technologies 44,847 26,081 60,531 26,081 Industrial Technologies
40,858 23,093 60,701 23,093 Tools & Components 11,243 3,978
18,281 3,978 ------ ----- ------ ----- Total $137,132 $81,965
$238,529 $81,965 ======== ======= ======== ======= Restructuring
Cost Classification ------------------ Cost of sales $87,303
$33,130 $121,783 $33,130 Selling, general and administrative
expenses 49,829 48,835 116,746 48,835 ------ ------ ------- ------
$137,132 $81,965 $238,529 $81,965 ======== ======= ======== =======
This information is presented for reference only. Final audited
financial statements will include footnotes, which should be
referenced when available, to more fully understand the contents of
this information DANAHER CORPORATION RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES ($ in 000's except per share data)
Three Months Ended ------------------ December 31, December 31,
Adjusted Net Earnings 2009 2008 % Change --------------------- ----
---- -------- Net Earnings (GAAP) $266,935 $305,686 -12.7% =====
Restructuring charges in excess of amounts originally budgeted for
the applicable period ($125 million and $82 million pre-tax for the
three months ended December 31, 2009 and 2008, respectively, and
$190 million and $82 million pre-tax for the years ended December
31, 2009 and 2008, respectively) ("Additional Restructurings")
93,750 61,500 2009 transaction costs associated with completed and
pending acquisitions (expensed in accordance with the adoption of
the new business combination accounting standard) ($12 million and
$24 million pre-tax for the three months and year ended December
31, 2009, respectively), and fair value adjustments to
acquisition-related inventory and deferred revenue balances
incurred in 2009 ($3 million and $13 million pre-tax for the three
months and year ended December 31, 2009, respectively) and in 2008
($7 million and $52 million pre-tax for the three months and year
ended December 31, 2008, respectively) ("Acquisition Related
Costs") 14,250 5,150 Gain on intellectual property litigation
settlement with Align Technology, Inc. ($85 million pre-tax).
("Align Settlement Gain") - - Gains from net reduction in income
tax reserves and discrete tax benefits ("Discrete Income Tax
Items") - (1,160) --- ------ Adjusted Net Earnings (Non- GAAP)
$374,935 $371,176 1.0% ======== ======== === Adjusted Diluted Net
Earnings Per Share ----------------------------- Diluted Net
Earnings Per Share (GAAP) $0.80 $0.92 -13.0% ==== Additional
Restructurings 0.28 0.18 Acquisition Related Costs 0.04 0.01 Align
Settlement Gain - - Discrete Income Tax Items - - --- --- Adjusted
Diluted Net Earnings Per Share (Non-GAAP) $1.12 $1.11 0.9% =====
===== === Year Ended ---------- December 31, December 31, Adjusted
Net Earnings 2009 2008 % Change --------------------- ---- ----
-------- Net Earnings (GAAP) $1,151,704 $1,317,631 -12.6% ======
Restructuring charges in excess of amounts originally budgeted for
the applicable period ($125 million and $82 million pre-tax for the
three months ended December 31, 2009 and 2008, respectively, and
$190 million and $82 million pre-tax for the years ended December
31, 2009 and 2008, respectively) ("Additional Restructurings")
144,365 61,500 2009 transaction costs associated with completed and
pending acquisitions (expensed in accordance with the adoption of
the new business combination accounting standard) ($12 million and
$24 million pre-tax for the three months and year ended December
31, 2009, respectively), and fair value adjustments to
acquisition-related inventory and deferred revenue balances
incurred in 2009 ($3 million and $13 million pre-tax for the three
months and year ended December 31, 2009, respectively) and in 2008
($7 million and $52 million pre-tax for the three months and year
ended December 31, 2008, respectively) ("Acquisition Related
Costs") 31,767 44,465 Gain on intellectual property litigation
settlement with Align Technology, Inc. ($85 million pre-tax).
("Align Settlement Gain") (53,412) - Gains from net reduction in
income tax reserves and discrete tax benefits ("Discrete Income Tax
Items") (97,229) (9,524) -------- ------- Adjusted Net Earnings
(Non- GAAP) $1,177,195 $1,414,072 -16.8% ========== ==========
===== Adjusted Diluted Net Earnings Per Share
----------------------------- Diluted Net Earnings Per Share (GAAP)
$3.46 $3.95 -12.4% ===== Additional Restructurings 0.43 0.18
Acquisition Related Costs 0.09 0.13 Align Settlement Gain (0.16) -
Discrete Income Tax Items (0.29) (0.03) ----- ----- Adjusted
Diluted Net Earnings Per Share (Non-GAAP) $3.53 $4.23 -16.5% =====
===== ===== Core Revenue Growth / Decline
----------------------------- Three Months Ended Year Ended
December 31, December 31, 2009 vs. 2009 vs. Comparable Comparable
2008 Components of Sales Growth 2008 Period Period -------------
---------------- Core (non-GAAP) -9.0% -12.0% Acquisitions
(non-GAAP) 3.0% 2.0% Impact of currency translation (non- GAAP)
4.5% -2.0% --- ---- Total Sales Growth/Decline (GAAP) -1.5% -12.0%
==== ===== General We believe that the non-GAAP measures set forth
in this presentation, when viewed with and reconciled to the
corresponding GAAP measures, provide additional understanding of
Danaher's performance and help identify underlying trends in
Danaher's business. The non-GAAP measures should be considered in
addition to, and not as a replacement for or superior to, the
comparable GAAP measures. Adjusted Net Earnings and Adjusted
Diluted Net Earnings Per Share We use the term adjusted net
earnings and adjusted diluted net earnings per share to refer to
GAAP net earnings and GAAP diluted earnings per share, respectively
excluding the items identified in the reconciliation schedule
above. These items have been excluded from the non-GAAP measures
because items of this nature and/or size occur with inconsistent
frequency, for reasons that may be unrelated to Danaher's
commercial performance during the period and/or we believe are not
indicative of Danaher's ongoing operating costs or gains in a given
period. We believe that these measures reflect additional ways of
viewing aspects of Danaher's operations that, when viewed with and
reconciled to the corresponding GAAP measures, help our investors
to better understand the long-term profitability trends of our
business, and facilitate easier comparisons of our profitability to
prior and future periods and to our peers. We believe that
investors use these measures to (1) generally assess the
performance of our operating model, including assessing Danaher's
performance against prior period performance, forecasted
performance and/or peer company performance, (2) forecast financial
results for future periods, (3) identify trends in Danaher's
performance, and (4) value Danaher. The Company estimates the tax
effect of the items identified in the reconciliation schedule above
by applying the Company's overall estimated effective tax rate to
the pre-tax amount, unless the nature of the item and/or the tax
jurisdiction in which the item has been recorded requires
application of a specific tax rate or tax treatment, in which case
the tax effect of such item is estimated by applying such specific
tax rate or tax treatment. Core Revenue and Core Revenue
Growth/Decline We use the term "core revenue" to refer to GAAP
revenue excluding (1) sales from acquired businesses recorded prior
to the first anniversary of the acquisition ("acquisition sales"),
and (2) the impact of currency translation. The portion of GAAP
revenue attributable to currency translation is calculated as the
difference between (a) the period-to-period change in GAAP revenue
(excluding acquisition sales) and (b) the period-to-period change
in revenue (excluding acquisition sales) after applying current
period foreign exchange rates to the prior year period. We use the
term "core revenue growth/decline" to refer to the measure of
comparing current period core revenue with the corresponding period
of the prior year. We exclude the effect of currency translation
from these measures because currency translation is not under
management's control, is subject to volatility and can therefore
obscure underlying business trends. We exclude the effect of
acquisitions because the nature, size and number of acquisitions
can vary dramatically from period to period and between us and our
peers, which we believe may obscure underlying business trends and
makes comparisons of long-term performance difficult. We believe
that these measures reflect additional ways of viewing aspects of
Danaher's operations that, when viewed with and reconciled to the
corresponding GAAP measures, help our investors to better identify
and understand underlying growth trends in our business, and
facilitate easier comparisons of our results of operations with
prior and future periods and to our peers. We believe that
investors use these measures to help gauge Danaher's long-term
growth prospects and to value Danaher. DATASOURCE: Danaher
Corporation CONTACT: Matt R. McGrew, Vice President, Investor
Relations, Danaher Corporation, +1-202-828-0850, Fax:
+1-202-828-0860 Web Site: http://www.danaher.com/
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