WASHINGTON, Oct. 21 /PRNewswire-FirstCall/ -- Danaher Corporation (NYSE: DHR) announced today that GAAP net earnings for the quarter ended October 1, 2010 were $646.4 million, or $0.95 per diluted share, which includes a $0.34 gain related to the formation of the Apex Tool Group joint venture, and represents a 79% increase as compared to GAAP net earnings per diluted share of $0.53 for the third quarter 2009. On a non-GAAP basis, which reflects the adjustments identified in the attached reconciliation schedule, 2010 third quarter adjusted net earnings were $405.4 million, or $0.60 per diluted share, a 33% increase over 2009 third quarter adjusted net earnings per diluted share of $0.45. Sales for the 2010 third quarter were $3.2 billion, 16% higher than the $2.8 billion reported for the 2009 third quarter. Core revenues increased 12.5% in the quarter compared to the third quarter of 2009.

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, the uncertainty 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,    October 2,   October 1,    October 2,
                             2010         2009          2010         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 (www.danaher.com)

    DANAHER CORPORATION
    RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
    ($ in 000's except per share data)

                                          Three Months Ended
                                          ------------------
                                        October 1,    October 2,       %
    Adjusted Net Earnings                   2010          2009      Change
    ---------------------               -----------   -----------  -------

    Net Earnings (GAAP)                    $646,435      $351,363     84.0%
                                                                      ====

      Acquisition-related transaction
       costs deemed significant ($8
       million and $11 million pre-tax
       for the nine months ended
       October 1, 2010 and October 2,
       2009, respectively), and fair
       value adjustments to acquisition
       related inventory and deferred
       revenue balances ($8 million and
       $46 million pre-tax for the
       three and nine months ended
       October 1, 2010, respectively,
       and $7 million and $11 million
       pre-tax for the three months
       and nine months ended October 2,
       2009, respectively)
       ("Acquisition Related Costs")          5,777        12,697

      Gain on contribution of assets to
       Apex joint venture ($291 million
       pre-tax for the three and nine
       months ended October 1, 2010,
       respectively) ("Joint Venture
       Gain")                              (232,200)            -

      Gains from net reduction in
       income tax reserves, other
       discrete tax items and reduction
       of effective tax rate ("Income
       Tax Items")                          (14,586)      (36,729)

      Gain on intellectual property
       litigation settlement with Align
       Technology, Inc ($85 million
       pre-tax for both the three and
       nine months ended October 2,
       2009, respectively) ("Align
       Settlement Gain)                           -       (53,412)

      Restructuring charges in excess
       of amounts originally budgeted
       for the applicable period ($33
       million and $67 million pre-tax
       for the three and nine months
       ended October 2,  2009,
       respectively) ("Additional
       Restructurings")                           -        25,115


    Adjusted Net Earnings (Non-GAAP)       $405,426      $299,034     35.6%
                                           ========      ========     ====

    Adjusted Net Earnings Per Diluted
     Share
    ---------------------------------

    Net Earnings Per Diluted Share
     (GAAP)                                   $0.95         $0.53     79.2%
                                                                      ====

      Acquisition Related Costs                0.01          0.02

      Joint Venture Gain                      (0.34)            -

      Income Tax Items                        (0.02)        (0.06)

      Align Settlement Gain                       -         (0.08)

      Additional Restructurings                   -          0.04


    Adjusted Net Earnings Per Diluted
     Share (Non-GAAP)                         $0.60         $0.45     33.3%
                                              =====         =====     ====

    Core Revenue Growth
    -------------------

                                           Three
                                           Months
                                           Ended
                                          October
                                          1, 2010
                                            vs.
                                        Comparable
                                            2009
      Components of Sales Growth           Period
      --------------------------        -----------

      Core (non-GAAP)                          12.5%
      Acquisitions (non-GAAP)                   5.0%
      Impact of currency translation
       (non-GAAP)                              -1.5%
                                               ----
      Total Sales Growth (GAAP)                16.0%
                                               ====

                                           Nine Months Ended
                                           -----------------
                                        October 1,    October 2,       %
    Adjusted Net Earnings                   2010          2009      Change
    ---------------------               -----------   -----------  -------

    Net Earnings (GAAP)                  $1,319,144      $884,769     49.1%
                                                                      ====

      Acquisition-related transaction
       costs deemed significant ($8
       million and $11 million pre-tax
       for the nine months ended
       October 1, 2010 and October 2,
       2009, respectively), and fair
       value adjustments to acquisition
       related inventory and deferred
       revenue balances ($8 million and
       $46 million pre-tax for the
       three and nine months ended
       October 1, 2010, respectively,
       and $7 million and $11 million
       pre-tax for the three months
       and nine months ended October 2,
       2009, respectively)
       ("Acquisition Related Costs")         40,671        17,517

      Gain on contribution of assets to
       Apex joint venture ($291 million
       pre-tax for the three and nine
       months ended October 1, 2010,
       respectively) ("Joint Venture
       Gain")                              (232,200)            -

      Gains from net reduction in
       income tax reserves, other
       discrete tax items and reduction
       of effective tax rate ("Income
       Tax Items")                          (18,613)      (97,229)

      Gain on intellectual property
       litigation settlement with Align
       Technology, Inc ($85 million
       pre-tax for both the three and
       nine months ended October 2,
       2009, respectively) ("Align
       Settlement Gain)                           -       (53,412)

      Restructuring charges in excess
       of amounts originally budgeted
       for the applicable period ($33
       million and $67 million pre-tax
       for the three and nine months
       ended October 2,  2009,
       respectively) ("Additional
       Restructurings")                           -        50,615


    Adjusted Net Earnings (Non-GAAP)     $1,109,002      $802,260     38.2%
                                         ==========      ========     ====

    Adjusted Net Earnings Per Diluted
     Share
    ---------------------------------

    Net Earnings Per Diluted Share
     (GAAP)                                   $1.95         $1.33     46.6%
                                                                      ====

      Acquisition Related Costs                0.06          0.03

      Joint Venture Gain                      (0.34)            -

      Income Tax Items                        (0.03)        (0.15)

      Align Settlement Gain                       -         (0.08)

      Additional Restructurings                   -          0.08


    Adjusted Net Earnings Per Diluted
     Share (Non-GAAP)                         $1.64         $1.21     35.5%
                                              =====         =====     ====

    Core Revenue Growth
    -------------------

      Components of Sales Growth
      --------------------------

      Core (non-GAAP)
      Acquisitions (non-GAAP)
      Impact of currency translation
       (non-GAAP)
      Total Sales Growth (GAAP)

Adjusted Net Earnings and Adjusted Net Earnings Per Diluted Share

We disclose the non-GAAP measures of adjusted net earnings and adjusted net earnings per diluted share, which refer to GAAP net earnings and GAAP diluted net earnings per share, respectively, excluding the items identified in the reconciliation schedule above. These non-GAAP measures should be considered in addition to, and not as a replacement for or superior to, the comparable GAAP measures, and may not be comparable to similarly titled measures reported by other companies.

Management believes that these measures provide useful information to investors by reflecting additional ways of viewing aspects of Danaher's operations that, when 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. The items described above have been excluded from these 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, which we believe may obscure underlying business trends and make comparisons of long-term performance difficult. At the beginning of 2010, management communicated that it expects to incur approximately $35 million (approximately $0.04 cents per share) of acquisition-related transaction costs during 2010. Acquisition-related transaction costs incurred during a quarter in excess of $13.5 million (approximately $0.02 per share) are deemed significant.

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

We use the term "core revenue" or "sales from existing businesses" to refer to GAAP revenue excluding (1) sales from acquired businesses recorded prior to the first anniversary of the acquisition ("acquisition sales"), (2) third quarter 2009 sales attributable to the businesses contributed to the Apex joint venture, and (3) 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 third quarter 2009 sales attributable to the businesses contributed to the Apex joint venture) and (b) the period-to-period change in revenue (excluding acquisition sales and third quarter 2009 sales attributable to the businesses contributed to the Apex joint venture) after applying current period foreign exchange rates to the prior year period. We use the term "core revenue growth" to refer to the measure of comparing current period core revenue with the corresponding period of the prior year. These non-GAAP measures should be considered in addition to, and not as a replacement for or superior to, the comparable GAAP measures, and may not be comparable to similarly titled measures reported by other companies.

Management believes that these measures provide useful information to investors by reflecting additional ways of viewing aspects of Danaher's operations that, when reconciled to the corresponding GAAP measures, help our investors to better identify underlying growth trends in our business and facilitate easier comparisons of our revenue performance with prior and future periods and to our peers. 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 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 make comparisons of long-term performance difficult. We exclude the effect of the third quarter 2009 sales attributable to the businesses contributed to the Apex joint venture because as a result of application of the equity method of accounting beginning with the formation of the joint venture on July 4, 2010, the Company did not recognize sales from those businesses in the third quarter of 2010.

SOURCE Danaher Corporation

SOURCE: Danaher Corporation