Danaher Reports Record Third Quarter 2010 Results
GAAP net earnings for the first nine months of 2010 were $1.3 billion, or $1.95 per diluted share, compared with GAAP net earnings of $885 million, or $1.33 per diluted share for the first nine months of 2009. Sales for the first nine months of 2010 were $9.6 billion compared to $8.1 billion for the first nine months of 2009, an increase of 19%.
H. Lawrence Culp, Jr., President and Chief Executive Officer, stated, "We saw sustained momentum across our businesses and were particularly pleased with our team's execution which led to outstanding year-over-year core margin expansion and earnings performance. We're winning in the marketplace and serving our customers well with a continued focus on new product development and other organic initiatives that helped deliver outstanding core growth in the quarter. We're confident that these growth investments as well as ample strategic acquisition opportunities will allow us to perform well for the remainder of 2010 and beyond."
Danaher will discuss its results during its investor conference call today starting at 8:00 a.m. EDT. The call and an accompanying slide presentation will be webcast on the "Investors" section of Danaher's website at 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 888-617-5714 in the US or 719-457-2638 outside the US a few minutes before the 8:00 a.m. EDT start and telling the operator that you are dialing in for Danaher's investor conference call, access code 4297828. A replay of the conference call will be available shortly after the conclusion of the call and through October 26, 2010. You can access the replay by dialing 888-203-1112 within the U.S. or 719-457-0820 outside the U.S. with the access code 4297828. In addition, Danaher's Quarterly Report on Form 10-Q and 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: 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 believe these measures provide useful information to investors, 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 the Company's competitive performance and expectations for the balance of 2010 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 within the meaning of the federal securities laws. 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, theuncertainty in the economy and financial 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 and income tax liabilities, 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 2009 Annual Report on Form 10-K and our Quarterly Report on Form 10-Q for the third quarter of 2010. 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 www.danaher.com.
DANAHER CORPORATION CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS ($ and shares in thousands, except per share amounts) (unaudited) | |||||
Three Months Ended | Nine Months Ended | ||||
October 1, 2010 | October 2, 2009 | October 1, 2010 | October 2, 2009 | ||
Sales | $ 3,190,193 | $ 2,750,693 | $ 9,593,334 | $ 8,052,046 | |
Cost of sales | 1,541,337 | 1,429,736 | 4,807,015 | 4,210,211 | |
Gross profit | 1,648,856 | 1,320,957 | 4,786,319 | 3,841,835 | |
Operating costs and other: | |||||
Selling, general and administrative expenses | (884,165) | (782,438) | (2,669,530) | (2,299,756) | |
Research and development expenses | (202,591) | (159,040) | (587,473) | (478,435) | |
Earnings from unconsolidated joint venture | 10,550 | -- | 10,550 | -- | |
Other income | -- | 85,118 | -- | 85,118 | |
Operating profit | 572,650 | 464,597 | 1,539,866 | 1,148,762 | |
Non-operating income (expense): | |||||
Gain on contribution of businesses to joint venture | 291,037 | -- | 291,037 | -- | |
Interest expense | (31,903) | (31,842) | (92,128) | (87,228) | |
Interest income | 1,777 | 1,594 | 4,369 | 3,385 | |
Earnings before income taxes | 833,561 | 434,349 | 1,743,144 | 1,064,919 | |
Income taxes | (187,126) | (82,986) | (424,000) | (180,150) | |
Net earnings | $ 646,435 | $ 351,363 | $ 1,319,144 | $ 884,769 | |
Net earnings per share: | |||||
Basic | $ 0.99 | $ 0.55 | $ 2.02 | $ 1.39 | |
Diluted | $ 0.95 | $ 0.53 | $ 1.95 | $ 1.33 | |
Average common stock and common equivalent shares outstanding: | |||||
Basic | 654,599 | 642,186 | 651,995 | 637,038 | |
Diluted | 683,431 | 672,536 | 681,964 | 669,526 | |
A complete copy of Danaher's Form 10-Q financial statements is available on the Company's website (