Danaher Corporation Reports Record Fourth Quarter and 2000 Results
PRNewswire
WASHINGTON

Danaher Corporation announced today results for the fourth quarter and year ended December 31, 2000. Net earnings for the fourth quarter of 2000 were $87.8 million, up 18% from $74.3 million for the 1999 fourth quarter. Diluted earnings per share were $.60 for the 2000 fourth quarter, an increase of 18% from $.51 in 1999. Sales for the 2000 fourth quarter were $1,032.4 million, compared to $848.2 million for the fourth quarter of 1999, an increase of 22%.

For the full year, net earnings (excluding the one-time charge associated with the pooling-of-interests with Hach Company in 1999) increased 19% on an 18% sales gain. Net earnings for 2000 were $324.2 million, compared to $271.4 million before the one-time charge for the year ended December 31, 1999. Diluted earnings per share were $2.23 for 2000, a 20% increase compared to $1.86 in 1999, before the one-time charge. Sales in 2000 were $3.778 billion, compared to $3.197 billion in 1999.

George M. Sherman, President and Chief Executive Officer, stated, "We are extremely pleased to report record performance for both the fourth quarter and all of 2000. Process/Environmental Control segment sales were strong during the fourth quarter, allowing us to realize 4% core volume growth despite the expected sales decline in several Tools and Components segment businesses. The new strategic platforms that we have created over the past few years in our Process/Environmental Control segment provided excellent growth for the full year, allowing us to achieve 6% overall core volume growth for the full year. Operating profit for 2000 was 21% higher than in 1999, reflecting continued cost improvements in both business segments. Operating cash flow increased $93.1 million to a record $512.2 million in 2000. While we are cautious with respect to the U.S. economic slow-down, we are well-positioned with strength in our key growth businesses and a cost structure consistent with a slow to no growth scenario for the U.S. economy. We remain confident that Danaher will continue to deliver superior performance in 2001."

Danaher Corporation is a leading manufacturer of Process/Environmental Controls and Tools and Components. (http://www.danaher.com/ )

Statements in this release that are not strictly historical may be "forward-looking" statements, which involve risks and uncertainties. These include economic and currency conditions, market demand, pricing, and competitive and technological factors, among others, as set forth in the company's SEC filings.

  DANAHER CORPORATION AND SUBSIDIARIES
  CONSOLIDATED STATEMENTS OF EARNINGS
  (in thousands, except per share amounts)

                             Quarter Ended                Year Ended
                              (unaudited)


                        12/31/00      12/31/99     12/31/00      12/31/99

  Net sales           $1,032,369      $848,194   $3,777,777    $3,197,238

  Cost of sales          636,774       520,260    2,315,731     1,960,822
  Selling,
    general and
    administrative
    expenses             244,584       205,681      909,897       778,409
    Total operating
    expenses             881,358       725,941    3,225,628     2,739,231
  Operating profit       151,011       122,253      552,149       458,007
  One-time costs of
    merger before
    tax (1)                   --            --           --        11,778
  Interest expense         9,456         1,434       29,225        16,667
  Earnings before
    income taxes         141,555       120,819      522,924       429,562
  Income taxes            53,791        46,516      198,711       167,938
  Net earnings           $87,764       $74,303     $324,213      $261,624
  Basic earnings
    per share               $.62          $.52        $2.28         $1.84
  Average shares
    outstanding          142,516       142,946      142,469       141,832
  Diluted earnings
    per share               $.60          $.51        $2.23         $1.79
  Average shares and
    equivalents
    outstanding          146,095       146,799      145,499       146,089



  (1) After-tax
    effect of one-
    time costs                --            --           --        $9,800
  Per diluted share           --            --           --          $.07



  DANAHER CORPORATION AND SUBSIDIARIES
  CONSOLIDATED BALANCE SHEETS
  (in thousands)
                                                     As of December 31,
  ASSETS
                                                    2000           1999

  Current assets:
  Cash and equivalents                            $176,924       $260,281
  Trade accounts receivable,
    less allowance for doubtful
    accounts of $37,000 and $28,000                704,214        544,738
  Inventories                                      460,610        324,673
  Prepaid expenses and other                       132,558         72,425
    Total current assets                         1,474,306      1,202,117
  Property, plant and equipment, net               575,531        500,189
  Other assets                                     117,942         52,476
  Excess of cost over net assets
    of acquired companies, less
    accumulated amortization of
    $245,000 and $196,000                        1,863,900      1,292,289
                                                $4,031,679     $3,047,071

  LIABILITIES AND STOCKHOLDERS' EQUITY

  Current liabilities:
  Notes payable and current
    portion of debt                                $81,633        $33,597
  Trade accounts payable                           262,095        213,209
  Accrued expenses                                 674,812        461,980
    Total current liabilities                    1,018,540        708,786
  Other liabilities                                357,249        288,494
  Long-term debt                                   713,557        341,037
  Stockholders' equity:
    Common stock, one cent par value;
    300,000 shares authorized;
    155,650 and 154,035 issued;
    142,013 and 142,440 outstanding                  1,556          1,540
  Additional paid-in capital                       364,426        420,036
  Accumulated other
    comprehensive income                           (59,130)       (34,105)
  Retained earnings                              1,635,481      1,321,283
  Total stockholders' equity                     1,942,333      1,708,754
                                                $4,031,679     $3,047,071

  DANAHER CORPORATION AND SUBSIDIARIES
  CONSOLIDATED STATEMENTS OF CASH FLOWS
  (in thousands)
                                                  Year Ended December 31,
                                                    2000           1999

  Cash flows from operating activities:
  Net earnings                                    $324,213       $261,624
  Depreciation and amortization                    149,721        126,419
  Change in accounts receivable                    (15,926)       (60,327)
  Change in inventories                            (38,451)        11,149
  Change in accounts payable                           (81)        45,852
  Change in other assets
    and liabilities                                 92,769         34,390
    Total operating cash flows                     512,245        419,107
  Cash flows from investing activities:
  Payments for additions to property,
    plant and equipment, net                       (88,503)      (88,909)
  Disposition of businesses                             --             --
  Net cash paid for acquisitions                  (706,794)      (64,834)
    Net cash used in investing activities         (795,297)     (153,743)
  Cash flows from financing activities:
  Proceeds from sale of treasury stock                  --         69,845
  Proceeds from issuance of common stock            26,580         18,141
  Dividends paid                                   (10,015)        (9,912)
  Borrowings (repayments) of debt                  266,090       (129,851)
  Purchase of common stock                         (82,174)            --
    Net cash provided by (used in)
    financing activities                           200,481        (51,777)
  Effect of exchange rate changes on cash             (786)        (1,104)
  Net change in cash and equivalents               (83,357)       212,483
  Beginning balance of cash
    and equivalents                                260,281         47,798
  Ending balance of cash
    and equivalents                               $176,924       $260,281

SOURCE: Danaher Corporation

Contact: Patrick Allender, Chief Financial Officer of Danaher
Corporation, 202-828-0850