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Danaher Corporation Announces First Quarter Results

Danaher Corporation announced today that net earnings for its first quarter ended March 29, 2002, before the effect of a change in accounting principle, were $82.7 million, comparable to 2001 first quarter net income of $82.6 million. Diluted earnings per share for the 2002 quarter, before the effect of a change in accounting principle, were $0.55, 2% below the comparable $0.56 for the 2001 first quarter. In accordance with the adoption of Statement of Financial Accounting Standards 142 (SFAS 142), the Company stopped amortizing goodwill as of January 1, 2002. Excluding goodwill amortization from the first quarter of 2001, adjusted diluted earnings per share fell 14%, from $0.64 in 2001 to $0.55 in 2002. Also related to the adoption of SFAS 142, the Company recorded a $173.8 million one-time non-cash charge for impairment of goodwill associated with the Company's power quality businesses. After the accounting change, the first quarter resulted in a net loss of $91 million or $.58 per share. Sales for the 2002 first quarter were $1,004.2 million, essentially flat to the $1,005.3 million for the 2001 first quarter.

H. Lawrence Culp, Jr., President and Chief Executive Officer, stated, "We are pleased to report expected 2002 earnings, despite the continued challenging economic environment. Also as expected, we experienced core volume declines in both business segments, totaling 15% overall. However, we have seen a sequential stabilization in revenues, particularly in our motion and power quality businesses, which were most negatively affected by the recession in 2001. Acquisitions added approximately 16% of revenue growth for the quarter, due primarily to the previously announced acquisitions of Gilbarco, Videojet and Viridor. Operating cash flow, at $263 million, was a quarterly record, with strong gains in all working capital components. The signs of stability in many of our industrial markets, combined with our on-going cost reduction programs and the early progress at Videojet , Gilbarco, and Viridor give us a more encouraging outlook for the balance of the year."

Danaher Corporation is a leading manufacturer of Process/Environmental Controls and Tools and Components. (

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

                          Results of Operations
                  (thousands, except per share amounts)

                                                   Three Months Ended
                                                 March 29,      March 30,
                                                   2002          2001

  Net sales                                      $ 1,004,207    $ 1,005,283
  Cost of sales                                      628,184        628,398
  Selling, general and
     administrative expenses                         236,053        223,862
  Goodwill and other amortization                      2,749         14,605
  Total operating expenses                           866,986        866,865
  Operating profit                                   137,221        138,418
  Interest expense, net                               10,908          6,296
  Earnings before income taxes and effect
     of accounting change                            126,313        132,122
  Income taxes                                        43,578         49,545

  Net earnings, before effect of
     accounting change                                82,735         82,577
  Effect of accounting change, net of tax           (173,750)            --

  Net earnings (loss)                            $   (91,015)   $    82,577

  Per-share amounts before accounting change
     Basic earnings per share                    $       .57    $       .58
     Weighted average shares outstanding-Basic       145,173        142,874
     Diluted earnings per share                  $       .55    $       .56
     Weighted average shares outstanding-Diluted     153,942        150,466

  Per-share amounts after accounting change
     Basic earnings (loss) per share             $      (.63)   $       .58
     Diluted earnings (loss) per share           $      (.58)   $       .56

  Per-share effect of accounting change-Basic    $     (1.20)   $        --

  Per-share effect of accounting change-Diluted  $     (1.13)   $        --

   1) Net earnings, before effect of accounting
      change and after adjustment for 2001
      goodwill amortization                      $    82,735    $    95,067
      Per diluted share                          $      0.55    $      0.64

   2) A complete copy of Danaher's Form 10-Q
      financial statements is available on the
      Company's web site (


SOURCE: Danaher Corporation

Contact: Patrick Allender, Chief Financial Officer of Danaher
Corporation, +1-202-828-0850