Investor
News & Events
Financial Reports
Stock Information
Corporate Governance
Contacts & Alerts
Danaher Corporation
Net earnings for the full year 2005 including the effect of certain gains on the sale of real estate and other assets of $0.03 per share were $907.7 million, or $2.79 per diluted share, a 21.5% increase, compared with $746.0 million, or $2.30 per diluted share for 2004 which included approximately $0.02 per share of gains on the sale of real estate. Sales for 2005 were $7,984.7 million compared to $6,889.3 million in 2004, an increase of 16%.
H. Lawrence Culp, Jr., President and Chief Executive Officer, stated, "We are pleased to once again report record fourth quarter and full year results. For the quarter, growth from existing businesses, also known as core revenues increased 5.5%. Operating cash flow for the year was a record $1.2 billion, representing a 16.5% increase over 2004. Our record performance throughout 2005 and our strong finish to the year give us confidence in our ability to deliver excellent results in 2006."
Danaher Corporation is a leading manufacturer, specializing in Professional Instrumentation, Industrial Technologies and Tools and Components. (http://www.danaher.com/)
Statements in this release that are not strictly historical, including statements regarding events or developments that we believe or anticipate will or may occur in the future, may be "forward-looking" statements. 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. These factors include, among other things, litigation and other contingent liabilities, the Company's ability to achieve projected efficiencies, cost reductions, sales growth and earnings, economic conditions in the end-markets the Company sells into, the Company's ability to expand its business in new geographic markets, commodity costs and surcharges, competition, market demand for new products, currency exchange rates, the integration of acquired businesses, changes in the market for acquisitions and divestitures, regulatory approvals and the Company's ability to consummate announced acquisitions, and general economic conditions. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in our SEC filings. These forward-looking statements speak only as of the date of this release and the Company disclaims any duty to update any forward-looking statement.
DANAHER CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(in thousands, except per share amounts)
Quarter Ended Year Ended
12/31/05 12/31/04 12/31/05 12/31/04
Sales $2,263,754 $1,979,580 $7,984,704 $6,889,301
Cost of sales 1,291,397 1,143,878 4,539,689 3,996,636
Selling, general
and administrative
expenses 606,299 521,739 2,175,751 1,795,673
Gain on sale of
real estate and
other assets (1,570) (2,041) (10,904) (8,141)
Total operating
expenses 1,896,126 1,663,576 6,704,536 5,784,168
Operating profit 367,628 316,004 1,280,168 1,105,133
Interest expense (9,427) (14,199) (44,933) (54,984)
Interest income 2,658 2,711 14,707 7,568
Earnings before
income taxes 360,859 304,516 1,249,942 1,057,717
Income taxes 99,236 86,786 342,222 311,717
Net earnings $261,623 $217,730 $907,720 $746,000
Basic net earnings
per share $0.85 $0.70 $2.94 $2.41
Diluted net
earnings per share $0.81 $0.67 $2.79 $2.30
Average common stock
and common equivalent
shares outstanding:
Basic 306,510 309,498 308,905 308,964
Diluted 325,197 329,083 327,983 327,701
These statements are presented for reference only. The final audited statements will include footnotes, which should be referenced when available, to more fully understand the contents of these statements.
DANAHER CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands)
As of December 31
ASSETS 2005 2004
Current assets:
Cash and equivalents $315,551 $609,115
Trade accounts receivable, less allowance
for doubtful accounts of $91,115 and
$78,423 1,407,858 1,231,065
Inventories 825,263 703,996
Prepaid expenses and other current assets 396,347 374,514
Total current assets 2,945,019 2,918,690
Property, plant and equipment, net 748,172 752,966
Other assets 160,780 91,705
Goodwill 4,474,991 3,970,269
Other intangible assets, net 834,147 760,263
$9,163,109 $8,493,893
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable and current portion of
long-term debt $ 183,951 $ 424,763
Trade accounts payable 782,854 612,066
Accrued expenses 1,291,861 1,165,457
Total current liabilities 2,258,666 2,202,286
Other liabilities 956,402 746,390
Long-term debt 857,771 925,535
Stockholders' equity:
Common stock, one cent par value;
1,000,000 shares authorized; 338,547 and
336,946 issued; 305,571 and 308,920
outstanding 3,385 3,369
Additional paid-in capital 861,875 1,052,154
Accumulated other comprehensive income (109,279) 116,037
(loss)
Retained earnings 4,334,289 3,448,122
Total stockholders' equity 5,090,270 4,619,682
$9,163,109 $8,493,893
These statements are presented for reference only. The final audited statements will include footnotes, which should be referenced when available, to more fully understand the contents of these statements.
DANAHER CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Year Ended
12/31/05 12/31/04
Cash flows from operating activities:
Net earnings from operations $907,720 $746,000
Depreciation and amortization 176,972 156,128
Change in trade accounts receivable,
net (66,611) (110,007)
Change in inventories (22,478) 65,528
Change in accounts payable 138,144 65,315
Change in accrued expenses and other
liabilities 108,685 135,616
Change in prepaid expenses and other
assets (38,631) (25,364)
Total operating cash flows 1,203,801 1,033,216
Cash flows from investing activities:
Payments for additions to property,
plant and equipment (121,206) (115,906)
Proceeds from disposals of property,
plant and equipment 18,783 30,894
Cash paid for acquisitions (885,083) (1,591,719)
Proceeds from divestitures 22,100 43,100
Net cash used in investing (965,406) (1,633,631)
activities
Cash flows from financing activities:
Proceeds from issuance of common
stock 59,931 45,957
Dividends paid (21,553) (17,731)
Proceeds from debt borrowings 355,745 130,000
Purchase of treasury stock (257,696) --
Debt repayments (647,987) (196,281)
Net cash used in financing
activities (511,560) (38,055)
Effect of exchange rate changes on
cash (20,399) 17,429
Net change in cash and equivalents (293,564) (621,041)
Beginning balance of cash and
equivalents 609,115 1,230,156
Ending balance of cash and
equivalents $315,551 $609,115
These statements are presented for reference only. The final audited statements will include footnotes, which should be referenced when available, to more fully understand the contents of these statements.
DANAHER CORPORATION AND SUBSIDIARIES
SEGMENT INFORMATION (in thousands)
2005 Segment Operating Results
Sales
Quarter Ended Year Ended
12/31/2005 12/31/2004 12/31/2005 12/31/2004
Professional
Instrumentation 1,170,167 946,839 3,782,109 2,963,549
Industrial
Technologies 744,354 687,237 2,908,141 2,619,495
Tools and
Components 349,233 345,504 1,294,454 1,306,257
2,263,754 1,979,580 7,984,704 6,889,301
Operating Profit
Quarter Ended Year Ended
12/31/2005 12/31/2004 12/31/2005 12/31/2004
Professional
Instrumentation 206,869 174,645 676,994 554,453
Industrial
Technologies 121,163 102,467 441,899 383,073
Tools and
Components 50,949 48,976 199,289 198,251
Other (11,353) (10,084) (38,014) (30,644)
367,628 316,004 1,280,168 1,105,133
Operating Margins
Professional
Instrumentation 17.7% 18.4% 17.9% 18.7%
Industrial
Technologies 16.3% 14.9% 15.2% 14.6%
Tools and
Components 14.6% 14.2% 15.4% 15.2%
Total 16.2% 16.0% 16.0% 16.0%
These statements are presented for reference only. The final audited statements will include footnotes, which should be referenced when available, to more fully understand the contents of these statements.
DANAHER CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL INFORMATION
Three Months and Year Ended December 31, 2005
Three Months Ended Years Ended
December December % December December %
31, 2005 31, 2004 Change 31, 2005 31, 2004 Change
Net earnings
before unusual
items $260,485 $216,271 20.4% $896,487 $740,258 21.1%
Included in
gains (losses)
on sales of
real estate
and other
assets, net:
Pre-tax loss on
operations of
disposed
SED business - (1,300) -
Pre-tax loss on
impairment of
minority
investment - (5,085) -
Pre-tax gain on
sale of shares
of Leica
Geosystems - 1,808 -
Pre-tax gain on
retained debt
and equity
interest on
previously sold
business - - 5,270 -
Pre-tax gain on
sale of business - 4,571
Other pre-tax
gains (loss) on
sale of real
estate & other
non-operational
assets 1,570 2,041 5,640 8,141
1,570 2,041 10,904 8,141
Included in
interest income:
Pre-tax interest
benefit on
interest
collected
related to
retained debt
interest - - 4,600 -
Income Tax Impact:
Income tax
impact on above
gains (losses) (432) (582) (4,271) (2,399)
Net earnings per
GAAP $261,623 $217,730 20.2% $907,720 $746,000 21.7%
These statements are presented for reference only. The final audited statements will include footnotes, which should be referenced when available, to more fully understand the contents of these statements.
SOURCE: Danaher Corporation
CONTACT: Andy Wilson, Vice President, Investor Relations of Danaher
Corporation, +1-202-828-0850
Web site: http://www.danaher.com/