Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  Danaher Corporation    DHR

DANAHER CORPORATION (DHR)
Mes dernières consult.
Most popular
  Report  
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsofficial PublicationsSector newsTweets
OFFRE ETE Zonebourse : Jusqu'à 6 mois offerts sur tous les portefeuilles

Danaher Corporation : Danaher 1Q Profit Rises 43%; Acquisitions Supply Growth

share with twitter share with LinkedIn share with facebook
share via e-mail
0
04/19/2012 | 08:38pm CEST

--Danaher tops 1Q profit, revenue expectations

--Company narrows 2012 guidance.

--The addition of Beckman Coulter drives big increases in revenue, profit

(Updates with analyst quote and details about organic revenue growth starting in the seventh paragraph.)

By Bob Tita

  Of  
 

Danaher Corp.'s (DHR) first-quarter earnings rose 43%, driven mostly by income from the acquisition of medical-test manufacturer Beckman Coulter.

The diversified manufacturer of testing, diagnostic and medical equipment topped analysts' expectations for the quarter, but offered second-quarter guidance that was slightly below expectations because of per-share profit dilution caused by the pending purchase of X-Rite Inc. (XRIT).

The company narrowed its 2012 per-share earnings estimate to between $3.25 and $3.35 from its previous range of $3.20 to $3.35. The new forecast includes 3 cents of anticipated dilution related to X-Rite.

Danaher said geographic demand patterns for its products during the first quarter were largely as anticipated with growth in the U.S. offsetting flat demand in China and lower orders in Europe, where economic growth has stalled amid the continent's sovereign debt crisis.

"We are encouraged by a number of the booking trends we saw in the U.S. and the emerging markets," said Chief Executive Larry Culp during a conference call Thursday. "As we go through the year, China should get better. Obviously, we saw Europe soften a bit."

Danaher's product lines include calibration devices, orthodontic devices, water treatment products, medical tests and laboratory equipment. The Washington, D.C., company has been shifting its focus to high-margin, high-growth medical and science businesses and away from cyclical industrial product lines, such as hand tools and defense equipment.

Danaher has used acquisitions to realign its business portfolio. The company's acquisitions accounted for much of the 31% increase in revenue recorded for the first quarter. Revenue from the company's core of existing businesses -- also known as organic revenue -- grew by 1.5% in the quarter, while recently acquired businesses reported a 30.5% increase in revenue from a year ago. The company's overall operating margin in the first quarter slipped to 17% from 17.8% a year earlier.

Earlier this month, Danaher reached a deal to acquire color-measurement technology company X-Rite for $478 million. The purchase of the Grand Rapids, Mich., company is expected to complement Danaher's digital design capabilities and expand its offerings in the product identification sector. Danaher anticipates the X-Rite purchase closing during the second quarter.

Danaher is widely admired by investors for making shrewd acquisitions and rapidly expanding margins of the businesses it buys. But Danaher's organic revenue growth rate in the first quarter was far below the rate for its peer group. That's caused some analysts to grow concerned about Danaher becoming too dependent on large deals like the Beckman acquisition for revenue growth.

"Large enough deals are harder to come by," said Barclays analyst Scott Davis in a note Thursday to investors. "With a much larger revenue base than in the past, the need to grow at peer levels organically is imperative."

Danaher's $5.78 billion acquisition of Beckman Coulter accounted for much of Danaher's sales and profit expansion during the first quarter. Sales from the company's life sciences and diagnostics unit, which includes Beckman, increased 147% from a year earlier to $1.54 billion. Operating profit from the unit soared by 128% to $205.9 million, even as the unit's operating margin slipped to 13.3% from 14.4% a year ago.

None of the company's four other business units had revenue growth above 9%. The next-highest profit expansion after life sciences came from Danaher's dental business, which reported a 19% increase, mostly as a result of higher margins.

Moreover, Danaher faces a host of challenges to transform Beckman into an efficient, high-margin operation. In recent years, Beckman has had product recalls and was cited for inadequate quality controls by the U.S. Food and Drug Administration.

"While there is a lot of work ahead, we are happy with what the team has accomplished in the last nine months," Culp said. "We're seeing excellent progress on the cost side. The improvements are starting to turn up in the numbers."

Overall for the first quarter, Danaher reported a profit of $612.9 million, or 86 cents a share, up from $429.4 million, or 63 cents a share, a year earlier. Earnings from continuing operations were up at 73 cents per share from 61 cents. Revenue increased 31% to $4.32 billion.

Analysts had expected the company to earn 71 cents per share on revenue $4.32 billion.

For the second quarter, Danaher forecast per-share earnings of 76 cents to 81 cents, including anticipated dilution of a penny from X-Rite. Analysts polled by Thomson Reuters expected per-share earnings of 82 cents.

Danaher's shares were recently down 3.3% at $52.85 apiece.

-By Bob Tita, Dow Jones Newswires; 312-750-4129; [email protected]

--Tess Stynes contributed to this article.

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on DANAHER CORPORATION
06/07J&J gets $2.7 billion offer for sterilization unit from Fortive
RE
05/30DANAHER : To Present At Jefferies Global Healthcare Conference
PR
05/24DANAHER : To Present At Bernstein Strategic Decisions Conference
PR
05/11DANAHER CORPORATION (NYSE : DHR) Files An 8-K Submission of Matters to a Vote of..
AQ
05/10DANAHER CORP /DE/ : Submission of Matters to a Vote of Security Holders (form 8-..
AQ
05/08DANAHER : Announces Quarterly Dividend
PR
05/08DANAHER CORPORATION : 1st quarter results
CO
05/08DANAHER CORPORATION : Slide show Q1 results
CO
05/07DANAHER : to Present at Bank of America Merrill Lynch Health Care Conference
PR
05/04OC OERLIKON : prepares IPO for drives division - sources
RE
More news
News from SeekingAlpha
06/18Buy Cantel Medical, A High Quality Growth Story 
06/14Fortive Following A Familiar Pattern 
06/07Danaher (DHR) Presents At Jefferies 2018 Global Healthcare Conference - Slide.. 
05/31Share Turnover, Beta, And Stock Returns 
05/29Analyzing The Powershares S&P Global Water Index Portfolio 
Financials ($)
Sales 2018 19 896 M
EBIT 2018 3 763 M
Net income 2018 2 630 M
Debt 2018 7 713 M
Yield 2018 0,61%
P/E ratio 2018 26,97
P/E ratio 2019 24,41
EV / Sales 2018 3,94x
EV / Sales 2019 3,60x
Capitalization 70 744 M
Chart DANAHER CORPORATION
Duration : Period :
Danaher Corporation Technical Analysis Chart | DHR | US2358511028 | 4-Traders
Technical analysis trends DANAHER CORPORATION
Short TermMid-TermLong Term
TrendsNeutralNeutralBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 17
Average target price 111 $
Spread / Average Target 11%
EPS Revisions
Managers
NameTitle
Thomas Patrick Joyce President, Chief Executive Officer & Director
Steven M. Rales Chairman
Daniel L. Comas Chief Financial Officer & Executive Vice President
Alan G. Spoon Independent Director
Donald Jerry Ehrlich Lead Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
DANAHER CORPORATION7.77%70 744
THERMO FISHER SCIENTIFIC13.65%85 622
INTUITIVE SURGICAL34.45%55 591
BOSTON SCIENTIFIC CORPORATION32.96%44 554
ILLUMINA32.16%42 461
ROYAL PHILIPS13.48%39 541