Danaher Reports Fourth Quarter and Full Year 2009 Results
PRNewswire-FirstCall
WASHINGTON

Danaher Corporation announced today that GAAP net earnings for the quarter ended December 31, 2009 were $267 million, or $0.80 per diluted share, a 13% decrease as compared to the Company's 2008 fourth quarter GAAP net earnings of $306 million, or $0.92 per diluted share. On a non-GAAP basis, which reflects the adjustments identified in the attached reconciliation schedule, adjusted net earnings for the quarter ended December 31, 2009 were $375 million or $1.12 per diluted share, a 1% increase over 2008 fourth quarter adjusted net earnings of $371 million or $1.11 per diluted share. Sales for the 2009 fourth quarter were $3.1 billion, 1.5% less than the $3.2 billion reported for the 2008 fourth quarter. Core revenues declined 9% in the quarter, compared to the fourth quarter of 2008.

GAAP net earnings for the full year 2009 were $1.15 billion, or $3.46 per diluted share, compared with GAAP net earnings of $1.32 billion, or $3.95 per diluted share for 2008. Sales for the full year 2009 were $11.2 billion compared to $12.7 billion for the full year 2008, a decrease of 12%.

H. Lawrence Culp, Jr., President and Chief Executive Officer, stated, "We were encouraged by the continued sequential end market improvements in the fourth quarter, as well as our team's solid execution on the restructuring initiatives undertaken throughout the year. Our continued focus on internal growth investments, new product introductions and strategic M&A opportunities give us confidence that we can outperform in 2010 and over the long term."

Danaher will discuss its results during its investor conference call today starting at 7:30 a.m. EST. 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 888-417-2254 in the US or 719-325-2339 outside the US a few minutes before the 7:30 a.m. EST start and telling the operator that you are dialing in for Danaher's investor conference call, access code 5742258. A replay of the conference call will be available shortly after the conclusion of the call until February 2, 2010 and you can access the replay by dialing 888-203-1112 in the US or 719-457-0820 outside the US, access code 5742258. In addition, 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 use these measures, 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 execution of cost reduction activities, growth investments, new product introductions, acquisitions and expectations for 2010 and future periods 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. 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 current uncertainty in the global economy and credit 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, 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 2008 Annual Report on Form 10-K and Quarterly Report on Form 10-Q for the quarter ended October 2, 2009. 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 AND SUBSIDIARIES
                     CONSOLIDATED STATEMENTS OF EARNINGS

  ($ in thousands, except per share amounts)

                          Three Months Ended                Year Ended
                        12/31/09       12/31/08       12/31/09     12/31/08
                        --------       --------       --------     --------

  Sales               $3,132,892     $3,176,506    $11,184,938  $12,697,456

   Operating costs
    and expenses:
      Cost of sales    1,694,507      1,724,897      5,904,718    6,757,262
      Selling,  
       general and
       administrative
       expenses          890,455        860,491      3,190,211    3,345,274
      Research and
       development
       expenses          154,216        167,467        632,651      725,443
      Other (income)
       expense                --             --        (85,118)          --
                             ---            ---        -------          ---
          Total 
           operating
           expenses    2,739,178      2,752,855      9,642,462   10,827,979

   Operating profit      393,714        423,651      1,542,476    1,869,477

      Interest expense   (35,428)       (25,433)      (122,656)    (130,174)
      Interest income      1,649          4,000          5,034       10,004
                           -----          -----          -----       ------

   Earnings before
    income taxes         359,935        402,218      1,424,854    1,749,307

  Income taxes           (93,000)       (96,532)      (273,150)    (431,676)
                         -------        -------       --------     --------

  Net earnings          $266,935       $305,686     $1,151,704   $1,317,631
                        ========       ========     ==========   ==========

  Net earnings
   per share:
      Basic                $0.83          $0.96          $3.59        $4.13
                           -----          -----          -----        -----
      Diluted              $0.80          $0.92          $3.46        $3.95
                           =====          =====          =====        =====

  Average common stock
   and common  
   equivalent shares
   outstanding:
        Basic            322,716        319,523        320,765      319,361
        Diluted          338,680        333,593        335,742      335,863

  This information is presented for reference only.  Final audited financial
  statements will include footnotes, which should be referenced when
  available, to more fully understand the contents of this information.



                    DANAHER CORPORATION AND SUBSIDIARIES
                         CONSOLIDATED BALANCE SHEETS

  As of December 31 ($ and shares in thousands)

  ASSETS
                                                        2009        2008
                                                        ----        ----

  Current Assets:
       Cash and equivalents                       $1,721,920    $392,854
       Trade accounts receivable, less allowance
        for doubtful accounts of $133,103 and
        $120,730, respectively
                                                   1,916,831   1,894,585
       Inventories                                   993,016   1,142,309
       Prepaid expenses and other current assets     588,861     757,371
                                                     -------     -------
           Total current assets                    5,220,628   4,187,119

  Property, plant and equipment, net               1,143,331   1,108,653
  Other assets                                       758,035     464,353
  Goodwill                                         9,817,923   9,210,581
  Other intangible assets, net                     2,655,503   2,519,422
                                                   ---------   ---------

       Total assets                              $19,595,420 $17,490,128
                                                 =========== ===========

  LIABILITIES AND STOCKHOLDERS' EQUITY

  Current Liabilities:
      Notes payable and current portion of long-
       term debt                                     $44,186     $66,159
      Trade accounts payable                       1,051,487   1,108,961
      Accrued expenses and other liabilities       1,665,287   1,569,977
                                                   ---------   ---------
         Total current liabilities                 2,760,960   2,745,097

  Other long-term liabilities                      2,315,261   2,383,299
  Long-term debt                                   2,889,023   2,553,170
  Stockholders' equity:
      Common stock -$0.01 par value, 1 billion
       shares authorized; 358,922 and 354,487
       issued; 322,735 and 318,380 outstanding,
       respectively                                    3,589       3,544
      Additional paid-in capital                   2,074,501   1,812,963
      Retained earnings                            9,205,142   8,095,155
      Accumulated other comprehensive income
       (loss)                                        346,944    (103,100)
                                                     -------    --------
         Total stockholders' equity               11,630,176   9,808,562
                                                  ----------   ---------

      Total liabilities and stockholders' equity $19,595,420 $17,490,128
                                                 =========== ===========


  This information is presented for reference only.  Final audited financial
  statements will include footnotes, which should be referenced when
  available, to more fully understand the contents of this information. 



                       DANAHER CORPORATION AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS

  Year Ended December 31 ($ in thousands)
                                                           2009        2008
                                                           ----        ----
  Cash flows from operating activities:
     Net earnings                                    $1,151,704  $1,317,631
     Non-cash items:
        Depreciation                                    184,524     193,997
        Amortization                                    157,063     145,290
        Stock compensation expense                       87,350      86,000
        Consideration received in shares                (84,749)         --
     Change in deferred income taxes                   (120,031)     27,691
     Change in trade accounts receivable, net           106,132      71,403
     Change in inventories                              211,595      33,119
     Change in accounts payable                         (89,853)      3,713
     Change in prepaid expenses and other
      assets                                            142,396      (4,773)
     Change in accrued expenses and other
      liabilities                                        54,703     (15,042)
                                                         ------     -------
         Total operating cash flows                   1,800,834   1,859,029
                                                      ---------    --------

  Cash flows from investing activities:
     Payments for additions to property, plant
      and equipment                                    (188,547)   (193,783)
     Proceeds from disposals of property, plant
      and equipment                                       6,090       1,088
     Cash paid for acquisitions                        (703,511)   (423,208)
     Cash paid for other investments                    (66,768)         --
     Proceeds from divestitures, sale of
      investment and refundable escrowed
      purchase price                                      9,795      48,504
                                                          -----      ------
         Total investing cash flows                    (942,941)   (567,399)
                                                       --------    --------

  Cash flows from financing activities:
     Proceeds from issuance of common stock             174,233      82,430
     Payment of dividends                               (41,717)    (38,259)
     Purchase of treasury stock                              --     (74,165)
     Net repayments of borrowings (maturities
      of 90 days or less)                              (445,711)   (905,567)
     Proceeds of borrowings (maturities longer
      than 90 days)                                     744,615      72,652
     Repayments of borrowings (maturities
      longer than 90 days)                              (24,188)   (259,344)
                                                        -------    --------
             Net cash (used in) provided by financing
              activities                                407,232  (1,122,253)
                                                        -------  ----------

  Effect of exchange rate changes on cash
   and equivalents                                       63,941     (15,631)
                                                         ------     -------
             Net change in cash and equivalents       1,329,066     153,746

  Beginning balance of cash and equivalents             392,854     239,108
                                                        -------      ------
  Ending balance of cash and equivalents             $1,721,920    $392,854
                                                     ==========    ========

  This information is presented for reference only.  Final audited financial
  statements will include footnotes, which should be referenced when
  available, to more fully understand the contents of this
  information. 



                       DANAHER CORPORATION AND SUBSIDIARIES                
                               SEGMENT INFORMATION                         
                                                                          
                                                                           
  ($ in thousands, unaudited)                                              
                                                                           
                                                                          
  Sales                       Three Months Ended           Year Ended     
  -----                       ------------------           ----------     
                             12/31/09    12/31/08     12/31/09     12/31/08
                             --------    --------     --------     --------
  Professional                                                              
   Instrumentation         $1,224,686  $1,243,949   $4,330,695   $4,860,764 
  Medical Technologies        921,050     843,820    3,141,916    3,277,026 
  Industrial Technologies     705,116     777,932    2,658,041    3,265,451 
  Tools & Components          282,040     310,805    1,054,286    1,294,215 
                              -------     -------    ---------    --------- 
                                                                            
                           $3,132,892  $3,176,506  $11,184,938  $12,697,456 
                           ==========  ==========  ===========  =========== 
                                                                            
  Operating                                                                 
   Profit                                                                   
  ---------                                                                 
                                                                            
  Professional 
   Instrumentation           $228,171    $221,960     $728,479     $907,254 
  Medical Technologies         78,043      90,134      395,489      370,473 
  Industrial Technologies      80,926     106,569      383,241      522,112 
  Tools & Components           29,520      30,343      124,814      157,673 
  Other                       (22,946)    (25,355)     (89,547)     (88,035)
                              -------     -------      -------      ------- 
                                                                            
                             $393,714    $423,651   $1,542,476   $1,869,477 
                             ========    ========   ==========   ========== 
                                                                            
  Operating Margins                                                 
  -----------------                                            
                                                                            
  Professional                                                              
   Instrumentation               18.6%       17.8%        16.8%        18.7%
  Medical Technologies            8.5%       10.7%        12.6%        11.3%
  Industrial Technologies        11.5%       13.7%        14.4%        16.0%
  Tools & Components             10.5%        9.8%        11.8%        12.2%
                                                                            
  Total                          12.6%       13.3%        13.8%        14.7%
                                                                            
                                                                            
                                                                            
  Restructuring & Other 
   Related Charges                                        
  ---------------------                              
                                                                            
  Professional                                                              
   Instrumentation            $40,184     $28,813      $99,016      $28,813 
  Medical Technologies         44,847      26,081       60,531       26,081 
  Industrial Technologies      40,858      23,093       60,701       23,093 
  Tools & Components           11,243       3,978       18,281        3,978 
                               ------       -----       ------        ----- 
                                                                            
  Total                      $137,132     $81,965     $238,529      $81,965 
                             ========     =======     ========      ======= 
                                                                            
                                                                            
  Restructuring Cost                                                        
   Classification                                                           
  ------------------                                                        
  Cost of sales               $87,303     $33,130     $121,783      $33,130 
  Selling, general                                                          
   and administrative                                                       
   expenses                    49,829      48,835      116,746       48,835 
                               ------      ------      -------       ------ 
                                                                            
                             $137,132     $81,965     $238,529      $81,965 
                             ========     =======     ========      ======= 
                                                                            
                                                                            
                                                                            
  This information is presented for reference only.  Final audited financial
  statements will include footnotes, which should be referenced when
  available, to more fully understand the contents of this information 



  DANAHER CORPORATION                                   
  RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES           
  ($ in 000's except per share data)                      
                                               
                                            Three Months Ended
                                            ------------------ 
                                        December 31,   December 31, 
  Adjusted Net Earnings                    2009           2008      % Change
  ---------------------                    ----           ----      --------
                                                             
  Net Earnings (GAAP)                     $266,935      $305,686     -12.7%
                                                                      =====
                                                                
    Restructuring charges in excess 
     of amounts originally budgeted 
     for the applicable period ($125 
     million and $82 million pre-tax 
     for the three months ended December
     31, 2009 and 2008, respectively, 
     and $190 million and $82 million
     pre-tax for the years ended
     December 31, 2009 and 2008, 
     respectively) ("Additional 
     Restructurings")                       93,750        61,500          
                                                       
    2009 transaction costs associated
     with completed and pending 
     acquisitions (expensed in accordance      
     with the adoption of the new business
     combination accounting standard) 
     ($12 million and $24 million pre-tax 
     for the three months and year ended        
     December 31, 2009, respectively), and
     fair value adjustments to 
     acquisition-related inventory and
     deferred revenue balances incurred 
     in 2009 ($3 million and $13 million 
     pre-tax for the three months and year    
     ended December 31, 2009, respectively) 
     and in 2008 ($7 million and $52 million
     pre-tax for the three months and year 
     ended December 31, 2008, respectively)
     ("Acquisition Related Costs")          14,250         5,150           
                                                 
    Gain on intellectual property 
     litigation settlement with Align 
     Technology, Inc. ($85 million 
     pre-tax).  ("Align Settlement Gain")        -             -    
                                                         
    Gains from net reduction in income
     tax reserves and discrete tax benefits
     ("Discrete Income Tax Items")               -        (1,160)          
                                               ---        ------           
  Adjusted Net Earnings (Non-                        
   GAAP)                                  $374,935      $371,176       1.0%
                                          ========      ========       === 
                                                  
  Adjusted Diluted Net Earnings                      
   Per Share                                          
  -----------------------------                      
                                                
  Diluted Net Earnings Per Share                              
   (GAAP)                                    $0.80         $0.92     -13.0%
                                                                       ==== 
                                                        
    Additional Restructurings                 0.28          0.18           
                                             
    Acquisition Related Costs                 0.04          0.01           
                                            
    Align Settlement Gain                        -             -           
                                                     
    Discrete Income Tax Items                    -             -           
                                               ---           ---
             
  Adjusted Diluted Net Earnings                          
   Per Share (Non-GAAP)                      $1.12         $1.11       0.9%
                                             =====         =====       === 



                                                                         
                                               Year Ended                 
                                               ----------                 
                                        December 31,   December 31,       
  Adjusted Net Earnings                     2009           2008     % Change 
  ---------------------                     ----           ----     --------
    
                                                                     
  Net Earnings (GAAP)                    $1,151,704     $1,317,631   -12.6%  
                                                                     ====== 
                                                          
    Restructuring charges in excess
     of amounts originally budgeted 
     for the applicable period ($125 
     million and $82 million pre-tax 
     for the three months ended December
     31, 2009 and 2008, respectively, 
     and $190 million and $82 million        
     pre-tax for the years ended December
     31, 2009 and 2008, respectively) 
     ("Additional Restructurings")          144,365         61,500           
                                                             
    2009 transaction costs associated 
     with completed and pending 
     acquisitions (expensed in accordance         
     with the adoption of the new 
     business combination accounting 
     standard) ($12 million and $24 million        
     pre-tax for the three months and
     year ended December 31, 2009, 
     respectively), and fair value                    
     adjustments to acquisition-related
     inventory and deferred revenue 
     balances incurred in 2009 ($3 million
     and $13 million pre-tax for the 
     three months and year ended 
     December 31, 2009, respectively) 
     and in 2008 ($7 million and $52 
     million  pre-tax for the three 
     months and year ended December 31,
     2008, respectively) ("Acquisition 
     Related Costs")                         31,767         44,465           
                                                           
    Gain on intellectual property 
     litigation settlement with Align
     Technology, Inc. ($85 million 
     pre-tax).  ("Align Settlement Gain")   (53,412)             -       
                                                              
    Gains from net reduction in 
     income tax reserves and discrete
     tax benefits ("Discrete Income Tax                 
     Items")                                (97,229)         (9,524)     
                                            --------         -------     
  Adjusted Net Earnings (Non-                                    
   GAAP)                                 $1,177,195       $1,414,072 -16.8%
                                         ==========       ==========  ===== 
                                                      
  Adjusted Diluted Net Earnings                        
   Per Share                                                
  -----------------------------                          
                                                            
  Diluted Net Earnings Per Share                                 
   (GAAP)                                     $3.46           $3.95  -12.4%
                                                                      =====
                                                                
    Additional Restructurings                  0.43            0.18        
                                                               
    Acquisition Related Costs                  0.09            0.13        
                                                                     
    Align Settlement Gain                     (0.16)              -        
                                                                         
    Discrete Income Tax Items                 (0.29)          (0.03)  
                                              -----           -----    
  Adjusted Diluted Net Earnings                                        
   Per Share (Non-GAAP)                       $3.53           $4.23   -16.5%
                                              =====           =====    =====



  Core Revenue Growth / Decline                                           
  -----------------------------                                           
                                                                          
                                           Three Months                   
                                               Ended        Year Ended    
                                           December 31,     December 31,  
                                             2009 vs.         2009 vs.    
                                            Comparable    Comparable 2008 
    Components of Sales Growth              2008 Period        Period     
                                          -------------  ---------------- 
                                                                          
    Core (non-GAAP)                            -9.0%            -12.0%
    Acquisitions (non-GAAP)                     3.0%              2.0%
    Impact of currency translation (non-                                  
     GAAP)                                      4.5%             -2.0%
                                                ---              ---- 
    Total Sales Growth/Decline (GAAP)          -1.5%            -12.0%
                                               ====             =====


  General

We believe that the non-GAAP measures set forth in this presentation, when viewed with and reconciled to the corresponding GAAP measures, provide additional understanding of Danaher's performance and help identify underlying trends in Danaher's business. The non-GAAP measures should be considered in addition to, and not as a replacement for or superior to, the comparable GAAP measures.

Adjusted Net Earnings and Adjusted Diluted Net Earnings Per Share

We use the term adjusted net earnings and adjusted diluted net earnings per share to refer to GAAP net earnings and GAAP diluted earnings per share, respectively excluding the items identified in the reconciliation schedule above. These items have been excluded from the non-GAAP 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. We believe that these measures reflect additional ways of viewing aspects of Danaher's operations that, when viewed with and 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. We believe that investors use these measures to (1) generally assess the performance of our operating model, including assessing Danaher's performance against prior period performance, forecasted performance and/or peer company performance, (2) forecast financial results for future periods, (3) identify trends in Danaher's performance, and (4) value Danaher.

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/Decline

We use the term "core revenue" to refer to GAAP revenue excluding (1) sales from acquired businesses recorded prior to the first anniversary of the acquisition ("acquisition sales"), and (2) 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 (b) the period-to-period change in revenue (excluding acquisition sales) after applying current period foreign exchange rates to the prior year period. We use the term "core revenue growth/decline" to refer to the measure of comparing current period core revenue with the corresponding period of the prior year. 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 therefore 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 makes comparisons of long-term performance difficult. We believe that these measures reflect additional ways of viewing aspects of Danaher's operations that, when viewed with and reconciled to the corresponding GAAP measures, help our investors to better identify and understand underlying growth trends in our business, and facilitate easier comparisons of our results of operations with prior and future periods and to our peers. We believe that investors use these measures to help gauge Danaher's long-term growth prospects and to value Danaher.

First Call Analyst:
FCMN Contact: meghan.britt@danaher.com

SOURCE: Danaher Corporation

CONTACT: Matt R. McGrew, Vice President, Investor Relations, Danaher
Corporation, +1-202-828-0850, Fax: +1-202-828-0860