Danaher Reports Record Fourth Quarter and Full Year 2011 Results
PR Newswire
WASHINGTON

WASHINGTON, Jan. 31, 2012 /PRNewswire/ -- Danaher Corporation (NYSE: DHR) today announced results for the fourth quarter and full year 2011. All financial metrics in this release reflect only the Company's continuing operations unless otherwise noted.

Net earnings for the quarter ended December 31, 2011 were $563.6 million, or $0.79 per share on a diluted basis, a 19.5% increase over diluted net earnings per share of $0.66 for the fourth quarter 2010. On a non-GAAP basis, which reflects the adjustments identified in the attached reconciliation schedule, 2011 fourth quarter adjusted net earnings were $577.0 million, or $0.81 per share on a diluted basis, a 26.5% increase over 2010 fourth quarter adjusted diluted net earnings per share of $0.64. Sales for the 2011 fourth quarter were $4.7 billion, 37.5% higher than the $3.4 billion reported for the 2010 fourth quarter. Core revenues increased 4% in the quarter compared to the fourth quarter of 2010.

Net earnings for the full year 2011 were $1.9 billion, or $2.77 per share on a diluted basis, compared with net earnings of $1.7 billion, or $2.53 per share on a diluted basis for the full year 2010. On a non-GAAP basis, full year 2011 adjusted net earnings were $2.0 billion, or $2.83 per share on a diluted basis, a 28.5% increase over full year 2010 adjusted diluted net earnings per share of $2.20. Revenues for the full year 2011 were $16.1 billion compared to $12.6 billion for the full year 2010, an increase of 28%. Core revenues increased 7% for the full year 2011 compared to the full year 2010.

The company anticipates that 2012 diluted net earnings per share for the quarter ending March 31, 2012 will be in the range of $0.66 to $0.71. The company reaffirms full year 2012 diluted net earnings per share guidance of $3.20 to $3.35.

H. Lawrence Culp, Jr., President and Chief Executive Officer, stated, "2011 was a tremendous year for Danaher. Our team's execution through the Danaher Business System led to an outstanding year of core revenue, earnings growth and a record $2.4 billion of free cash flow generation. We believe our continued investments in growth and the structural cost actions undertaken in the fourth quarter of 2011 position us well for another year of superior financial performance."

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 888-572-7025 within the U.S. or 719-325-2474 outside the U.S. 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 4407361. A replay of the conference call will be available shortly after the conclusion of the call and through Tuesday, February 7, 2012. 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 4407361. In addition, presentation materials relating to Danaher's results have been posted to the "Investors" section of Danaher's website under the subheading "Financial Information."


                                        * * *

Danaher is a science and technology leader that designs, manufactures, and markets innovative products and services to professional, medical, industrial, and commercial customers. Our premier brands are among the most highly recognized in each of the markets we serve. The Danaher Business System provides a foundation to our 59,000 associates around the world, serving customers in more than 125 countries. In 2011, we generated $16.1 billion of revenue. 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 release 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 anticipated diluted net earnings per share for the first quarter and full year 2012, the potential benefits of the Company's growth investments and fourth quarter 2011 cost reductions, the Company's ability to deliver superior performance in 2012 and any other statements regarding events or developments that we believe or anticipate will or may occur in the future, are "forward-looking" statements within the meaning of the federal securities laws. There are a number of important factors that could cause actual results, developments and business decisions 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, 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 (including our ability to effectively integrate the Beckman Coulter acquisition and realize the anticipated benefits therefrom), contingent liabilities relating to acquisitions (including our acquisition of Beckman Coulter), risks relating to potential impairment of goodwill and other long-lived assets, currency exchange rates, our compliance with applicable laws and regulations (including regulations relating to medical devices and the healthcare industry) and changes in applicable laws and regulations, our ability to effectively address cost reduction and other changes in the healthcare industry, 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, 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 2010 Annual Report on Form 10-K and Quarterly Report on Form 10-Q for the third quarter of 2011. 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.


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

                                                                  Three Months Ended                                    Year Ended
                                                                  ------------------                                    ----------
    Adjusted Net Earnings from Continuing
     Operations                                             December 31,   December 31,      %              December 31,   December 31,     %
    -------------------------------------                   ------------   ------------     ---             ------------   ------------    ---
                                                                     2011           2010  Change                     2011          2010  Change
                                                                     ----           ----  ------                     ----          ----  ------

    Net Earnings from Continuing Operations (GAAP)               $563,554       $451,805     24.7%             $1,935,287    $1,718,183      12.6%
                                                                                             ====                                            ====

      Acquisition-related transaction costs deemed
       significant ($0 and $26 million pre-tax for
       the three months and year ended December 31,
       2011, respectively, and $0 and $8 million pre-
       tax for the three months and year ended
       December 31, 2010, respectively), fair value
       adjustments to acquisition related inventory
       and deferred revenue balances and change-in-
       control payments to employees of Beckman
       Coulter ($17 million and $139 million pre-tax
       for the three months and year ended December
       31, 2011, respectively, and $8 million and $54
       million pre-tax for the three months and year
       ended December 31, 2010, respectively)
       ("Acquisition Related Costs")                               13,437          5,774   `             125,502        46,445

      Loss on early extinguishment of debt resulting
       from "make whole" payments associated with the
       retirement of certain of the acquired Beckman
       Coulter debt ($33 million pre-tax) ("Loss on
       Early Extinguishment of Debt")                                   -              -          20,790            -

      Reversal of reserve relating to legal
       contingency ($12 million pre-tax) ("Reversal
       of Legal Contingency Reserve")                                   -              -                           (8,915)            -

      Gain on contribution of assets to Apex joint
       venture ($291 million pre-tax) ("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")                                                          -        (24,185)                         (93,528)      (42,798)


    Adjusted Net Earnings from Continuing
     Operations (Non-GAAP)                                       $576,991       $433,394     33.1%             $1,979,136    $1,489,630      32.9%
                                                                 ========       ========     ====              ==========    ==========      ====

    Adjusted Diluted Net Earnings Per Share from Continuing
     Operations
    -------------------------------------------------------


    Diluted Net Earnings Per Share from Continuing
     Operations (GAAP)                                              $0.79          $0.66     19.7%                  $2.77         $2.53       9.5%
                                                                                             ====                                             ===

      Acquisition Related Costs                                      0.02           0.01                             0.18          0.07

      Loss on Early Extinguishment of Debt                              -              -                             0.03             -

      Reversal of Legal Contingency Reserve                             -              -                            (0.01)            -

      Joint Venture Gain                                                -              -                                -         (0.34)

      Income Tax Items                                                  -          (0.03)                           (0.14)        (0.06)


    Adjusted Diluted Net Earnings Per Share from
     Continuing Operations (Non-GAAP)                               $0.81          $0.64     26.6%                  $2.83         $2.20      28.6%
                                                                    =====          =====     ====                   =====         =====      ====


    Core Revenue Growth
    -------------------
      Components of Revenue Growth         Three Months     Year Ended
      ----------------------------         ------------     ----------
                                               Ended      December 31,
                                               -----      ------------
                                           December 31,      2011 vs.
                                           ------------      --------
                                              2011 vs.      Comparable
                                              --------      ----------
                                             Comparable    2010 Period
                                             ----------    -----------
                                            2010 Period
                                            -----------

      Core (non-GAAP)                                4.0%           7.0%
      Acquisitions (net of reduction in
       revenues relating to Apex JV) (non-
       GAAP)                                        33.5%          18.5%
      Impact of currency translation (non-
       GAAP)                                         0.0%           2.5%
                                                     ---            ---
      Total Revenue Growth (GAAP)                   37.5%          28.0%
                                                    ====           ====


    Free Cash Flow
    --------------
                                             Year Ended
                                             ----------
                                           December 31,
                                           ------------
                                                    2011
                                                    ----

      Operating Cash Flow (GAAP)              $2,732,036
      Less: Purchases of Property, Plant &
       Equipment                                (334,471)
                                                --------
      Free Cash Flow (Non-GAAP)               $2,397,565


Adjusted Net Earnings from Continuing Operations and Adjusted Diluted Net Earnings Per Share from Continuing Operations

We disclose the non-GAAP measures of adjusted net earnings from continuing operations and adjusted diluted net earnings per share from continuing operations, which refer to GAAP net earnings from continuing operations and GAAP diluted net earnings per share from continuing operations, 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, occur 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. The Company deems acquisition-related transaction costs incurred in a given period to be significant (generally relating to the Company's larger acquisitions) if it determines that such costs exceed the range of acquisition-related transaction costs typical for Danaher in a given period.

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) 2010 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 sales from acquired businesses and 2010 sales attributable to the businesses contributed to the Apex joint venture) and (b) the period-to-period change in revenue (excluding sales from acquired businesses and 2010 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 2010 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 2011.

Free Cash Flow

We disclose the non-GAAP measure of free cash flow, defined above. This measure should be considered in addition to, and not as a replacement for or superior to, GAAP operating cash flow, and may not be comparable to similarly titled measures reported by other companies.

Danaher's management believes that free cash flow reflects an additional way of viewing aspects of Danaher's operations that, when viewed with and reconciled to the related GAAP measure, provides useful information to investors regarding Danaher's ability to generate cash without external financings and helps investors assess the strength of Danaher's earnings performance and gauge Danaher's ability to strengthen its balance sheet, invest in the business and grow the business through acquisitions and other strategic opportunities.


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

                                               Three Months Ended                  Year Ended
                                               ------------------                  ----------
                                             December     December         December     December
                                                31,          31,              31,          31,
                                            ---------    ---------        ---------    ---------
                                                  2011         2010             2011         2010
                                                  ----         ----             ----         ----

    Sales                                   $4,716,684   $3,432,990      $16,090,540  $12,550,033
    Cost of
     sales                                 (2,389,503)  (1,653,032)      (7,913,876)  (6,145,509)
                                            ----------   ----------       ----------   ----------
    Gross
     profit                                  2,327,181    1,779,958        8,176,664    6,404,524

    Operating costs
     and other:
         Selling,
         general
         and
         administrative
         expenses                          (1,287,654)     (987,602)     (4,607,692)  (3,603,658)
         Research
         and
         development
         expenses                             (282,120)    (212,216)     (1,018,526)     (774,014)
         Earnings
         from
         unconsolidated
         joint
         venture                                21,854       12,218           66,780       22,768
                                                ------       ------           ------       ------

     Operating
     profit                                    779,261      592,358        2,617,226    2,049,620

    Non-operating
     income (expense):
         Gain on
          contribution
          of
          businesses
          to
          joint
          venture                                   --           --               --      291,037
         Loss on
          early
          extinguishment
          of
          debt                                      --           --          (32,887)          --
          Interest
          expense                              (37,424)     (27,791)        (141,637)    (117,167)
          Interest
          income                                   360        1,700            5,147        6,069
                                                   ---        -----            -----        -----

     Earnings
     from
     continuing
     operations
     before
     income
     taxes                                     742,197      566,267        2,447,849    2,229,559

    Income
     taxes                                    (178,643)    (114,462)        (512,562)    (511,376)
                                              --------     --------         --------     --------

    Net
     earnings
     from
     continuing
     operations                                563,554      451,805        1,935,287    1,718,183

     Earnings
     from
     discontinued
     operations,
     net of
     income
     taxes                                       7,160       22,051          236,977       74,817
                                                 -----       ------          -------       ------

    Net
     earnings                                 $570,714     $473,856       $2,172,264   $1,793,000
                                              ========     ========       ==========   ==========

    Net earnings per
     share from
     continuing
     operations:
          Basic                                  $0.82        $0.69            $2.86        $2.63
                                                 -----        -----            -----        -----
          Diluted                                $0.79        $0.66            $2.77        $2.53
                                                 =====        =====            =====        =====

    Net earnings per
     share from
     discontinued
     operations:
          Basic                                  $0.01        $0.03            $0.35        $0.11
                                                 -----        -----            -----        -----
          Diluted                                $0.01        $0.03            $0.34        $0.11
                                                 =====        =====            =====        =====

    Net earnings per
     share:
          Basic                                  $0.83        $0.72            $3.21        $2.74
                                                 -----        -----            -----        -----
          Diluted                                $0.80        $0.69            $3.11        $2.64
                                                 =====        =====            =====        =====

    Average common
     stock and common
     equivalent shares
    outstanding (in
     thousands):
          Basic                                688,610      656,733          676,169      653,194
          Diluted                              711,435      687,207          701,191      683,275

    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 (unaudited)
                               ($ and shares in thousands)

                                                             As of December 31
                                                             -----------------
    ASSETS                                                      2011          2010
                                                                ----          ----

    Current Assets:
        Cash and equivalents                                $537,001    $1,632,980
        Trade accounts receivable, less
         allowance for doubtful accounts of                3,049,895     2,097,974
                                $117,397 and $111,707, respectively
        Inventories                                        1,781,352     1,165,623
        Prepaid expenses and other current
         assets                                              904,109     1,168,878
                                                             -------     ---------
           Total current assets                            6,272,357     6,065,455

    Property, plant and equipment, net                     2,100,990     1,129,781
    Investment in joint venture                              521,882       511,283
    Other assets                                             739,686       809,136
    Goodwill                                              14,474,323    10,393,738
    Other intangible assets, net                           5,840,209     3,307,737
                                                           ---------     ---------

         Total assets                                    $29,949,447   $22,217,130
                                                         ===========   ===========

    LIABILITIES AND STOCKHOLDERS' EQUITY

    Current Liabilities:
        Notes payable and current portion of
         long-term debt                                      $98,392       $40,761
        Trade accounts payable                             1,422,438     1,124,821
        Accrued expenses and other liabilities             2,651,198     2,155,120
                                                           ---------     ---------
           Total current liabilities                       4,172,028     3,320,702

    Other long-term liabilities                            3,598,851     2,339,755
    Long-term debt                                         5,206,800     2,783,907
    Stockholders' equity:
        Common stock -$0.01 par value, 1
         billion shares authorized; 761,067
         and                                                   7,611         7,295
        729,516 issued; 687,730 and 656,360 outstanding,
         respectively
        Additional paid-in capital                         3,877,240     2,412,401
        Retained earnings                                 13,056,869    10,945,928
        Accumulated other comprehensive income
         (loss)                                              (36,937)      345,386
                                                             -------       -------
           Total Danaher stockholders' equity             16,904,783    13,711,010
        Non-controlling interest                              66,985        61,756
                                                              ------
           Total stockholders' equity                     16,971,768    13,772,766
                                                          ----------    ----------

     Total liabilities and stockholders'
      equity                                             $29,949,447   $22,217,130
                                                         ===========   ===========

          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 (unaudited)
                                       ($ in thousands)

                                                                Year Ended December 31
                                                                ----------------------
                                                                    2011           2010
                                                                    ----           ----
    Cash flows from operating activities:
       Net earnings                                           $2,172,264     $1,793,000
         Less earnings from discontinued
          operations, net of income taxes                        236,977         74,817
                                                                 -------         ------
       Net earnings from continuing
        operations                                             1,935,287      1,718,183
       Non-cash items:
          Depreciation                                           350,660        189,670
          Amortization                                           284,274        198,592
          Stock compensation expense                              95,603         88,122
          Earnings from unconsolidated
           joint venture, net of cash
           dividends received                                    (18,413)       (22,768)
          Pre-tax gain on contribution of
           businesses to joint venture                                --       (291,037)
          Consideration received in shares                            --             --
       Change in deferred income taxes                           271,395         37,632
       Change in trade accounts
        receivable, net                                         (135,279)      (250,946)
       Change in inventories                                     162,019       (161,699)
       Change in trade accounts payable                           36,602        217,230
       Change in prepaid expenses and
        other assets                                            (111,010)        67,550
       Change in accrued expenses and
        other liabilities                                       (139,102)       228,169
                                                                --------        -------
           Total operating cash provided by
            continuing operations                              2,732,036      2,018,698
           Total operating cash (used in)
            provided by discontinued
            operations                                          (105,769)        65,653
                                                                --------         ------
               Net cash provided by operating
                activities                                     2,626,267      2,084,351
                                                               ---------      ---------

    Cash flows from investing activities:
       Payments for additions to
        property, plant and equipment                           (334,471)      (191,110)
       Proceeds from disposals of
        property, plant and equipment                              8,645          1,551
       Proceeds from contribution of
        businesses to joint venture and
        other                                                     14,770         56,542
       Cash paid for acquisitions                            (6,210,837)     (2,129,652)
       Cash paid for other investments                                --             --
       Proceeds from divestitures                                     --             --
                                                                     ---            ---
           Total investing cash used in
            continuing operations                            (6,521,893)     (2,262,669)
           Total investing cash used in
            discontinued operations                               (5,466)       (26,210)
           Proceeds from sale of
            discontinued operations                              680,105             --
                                                                 -------            ---
               Net cash used in investing
                activities                                   (5,847,254)     (2,288,879)
                                                              ----------     ----------

    Cash flows from financing activities:
       Proceeds from issuance of common
        stock                                                  1,112,551        178,406
       Payment of dividends                                      (61,323)       (52,214)
       Net proceeds (repayments) of
        borrowings (maturities of 90
        days or less)                                            854,022             --
       Proceeds of borrowings
        (maturities longer than 90 days)                       1,785,763             --
       Repayments of borrowings
        (maturities longer than 90 days)                     (1,602,379)         (9,388)
                                                              ----------         ------
               Net cash provided by financing
                activities                                     2,088,634        116,804
                                                               ---------        -------

    Effect of exchange rate changes
     on cash and equivalents                                      36,374         (1,216)
                                                                  ------         ------
               Net change in cash and
                equivalents                                  (1,095,979)        (88,940)

    Beginning balance of cash and
     equivalents                                               1,632,980      1,721,920
                                                               ---------      ---------
    Ending balance of cash and
     equivalents                                                $537,001     $1,632,980
                                                                ========     ==========

                 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 millions,
     unaudited)


    Sales                                       Three Months Ended                Year Ended
    -----                                       ------------------                ----------
                                               12/31/11    12/31/10       12/31/11     12/31/10
                                               --------    --------       --------     --------
    Test &
     Measurement                                 $855.5      $801.4       $3,390.9     $2,832.9
    Environmental                                 806.4       751.9        2,939.6      2,738.0
    Life
     Sciences &
     Diagnostics                                1,728.5       682.1        4,627.4      2,298.3
    Dental                                        550.5       521.3        2,011.2      1,824.6
    Industrial
     Technologies                                 775.8       676.3        3,121.4      2,540.6
    Businesses
     contributed
     to Apex JV
     attributable
     to periods                                      --          --           --        315.6
    prior to
     contribution                                   ---         ---            ---        -----

                                               $4,716.7    $3,433.0      $16,090.5    $12,550.0
                                               ========    ========      =========    =========

    Operating Profit
    ----------------

    Test &
     Measurement                                 $183.6      $158.8         $751.2       $572.9
    Environmental                                 177.0       166.3          622.7        564.3
    Life
     Sciences &
     Diagnostics                                  225.3        89.6          402.3        227.9
    Dental                                         60.1        63.0          236.1        203.3
    Industrial
     Technologies                                 140.5       127.1          655.0        513.3
    Businesses contributed
     to Apex joint
     venture:
        Attributable
         to periods
         prior to
         contribution                                --          --             --         41.5
        Equity
         method
         earnings
         subsequent
         to JV
         formation                                 21.9        12.2         66.8         22.8
    Other                                         (29.1)      (24.6)        (116.9)       (96.4)
                                                  -----       -----         ------        -----

                                                 $779.3      $592.4       $2,617.2     $2,049.6
                                                 ======      ======       ========     ========

    Operating Margins
    -----------------

    Test &
     Measurement                                   21.5%       19.8%          22.2%        20.2%
    Environmental                                  21.9%       22.1%          21.2%        20.6%
    Life
     Sciences &
     Diagnostics                                   13.0%       13.1%           8.7%         9.9%
    Dental                                         10.9%       12.1%          11.7%        11.1%
    Industrial
     Technologies                                  18.1%       18.8%          21.0%        20.2%

    Total                                          16.5%       17.3%          16.3%        16.3%

                    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











































SOURCE Danaher Corporation

SOURCE: Danaher Corporation

Danaher Reports Record Fourth Quarter and Full Year 2011 Results

PR Newswire

WASHINGTON, Jan. 31, 2012 /PRNewswire/ -- Danaher Corporation (NYSE: DHR) today announced results for the fourth quarter and full year 2011. All financial metrics in this release reflect only the Company's continuing operations unless otherwise noted.

Net earnings for the quarter ended December 31, 2011 were $563.6 million, or $0.79 per share on a diluted basis, a 19.5% increase over diluted net earnings per share of $0.66 for the fourth quarter 2010. On a non-GAAP basis, which reflects the adjustments identified in the attached reconciliation schedule, 2011 fourth quarter adjusted net earnings were $577.0 million, or $0.81 per share on a diluted basis, a 26.5% increase over 2010 fourth quarter adjusted diluted net earnings per share of $0.64.  Sales for the 2011 fourth quarter were $4.7 billion, 37.5% higher than the $3.4 billion reported for the 2010 fourth quarter.  Core revenues increased 4% in the quarter compared to the fourth quarter of 2010.

Net earnings for the full year 2011 were $1.9 billion, or $2.77 per share on a diluted basis, compared with net earnings of $1.7 billion, or $2.53 per share on a diluted basis for the full year 2010. On a non-GAAP basis, full year 2011 adjusted net earnings were $2.0 billion, or $2.83 per share on a diluted basis, a 28.5% increase over full year 2010 adjusted diluted net earnings per share of $2.20.  Revenues for the full year 2011 were $16.1 billion compared to $12.6 billion for the full year 2010, an increase of 28%. Core revenues increased 7% for the full year 2011 compared to the full year 2010.

The company anticipates that 2012 diluted net earnings per share for the quarter ending March 31, 2012 will be in the range of $0.66 to $0.71.  The company reaffirms full year 2012 diluted net earnings per share guidance of $3.20 to $3.35.

H. Lawrence Culp, Jr., President and Chief Executive Officer, stated, "2011 was a tremendous year for Danaher.  Our team's execution through the Danaher Business System led to an outstanding year of core revenue, earnings growth and a record $2.4 billion of free cash flow generation.  We believe our continued investments in growth and the structural cost actions undertaken in the fourth quarter of 2011 position us well for another year of superior financial performance."

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 888-572-7025 within the U.S. or 719-325-2474 outside the U.S. 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 4407361.  A replay of the conference call will be available shortly after the conclusion of the call and through Tuesday, February 7, 2012. 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 4407361. In addition, presentation materials relating to Danaher's results have been posted to the "Investors" section of Danaher's website under the subheading "Financial Information."

* * *



Danaher is a science and technology leader that designs, manufactures, and markets innovative products and services to professional, medical, industrial, and commercial customers.  Our premier brands are among the most highly recognized in each of the markets we serve.  The Danaher Business System provides a foundation to our 59,000 associates around the world, serving customers in more than 125 countries.  In 2011, we generated $16.1 billion of revenue.  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 release 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 anticipated diluted net earnings per share for the first quarter and full year 2012, the potential benefits of the Company's growth investments and fourth quarter 2011 cost reductions, the Company's ability to deliver superior performance in 2012 and any other statements regarding events or developments that we believe or anticipate will or may occur in the future, are "forward-looking" statements within the meaning of the federal securities laws.   There are a number of important factors that could cause actual results, developments and business decisions 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, 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 (including our ability to effectively integrate the Beckman Coulter acquisition and realize the anticipated benefits therefrom), contingent liabilities relating to acquisitions (including our acquisition of Beckman Coulter), risks relating to potential impairment of goodwill and other long-lived assets, currency exchange rates, our compliance with applicable laws and regulations (including regulations relating to medical devices and the healthcare industry) and changes in applicable laws and regulations, our ability to effectively address cost reduction and other changes in the healthcare industry, 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, 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 2010 Annual Report on Form 10-K and Quarterly Report on Form 10-Q for the third quarter of 2011. 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.

DANAHER CORPORATION

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

($ in 000's except per share data)














Three Months Ended



Year Ended


Adjusted Net Earnings from Continuing Operations


December 31,

2011

December 31,

2010

%

Change


December 31,

2011

December 31,

2010

%

Change











Net Earnings from Continuing Operations (GAAP)


$         563,554

$       451,805

24.7%


$     1,935,287

$    1,718,183

12.6%












Acquisition-related transaction costs deemed significant ($0 and $26 million pre-tax for the three months and year ended December 31, 2011, respectively, and $0 and $8 million pre-tax for the three months and year ended December 31, 2010, respectively), fair value adjustments to acquisition related inventory and deferred revenue balances and change-in-control payments to employees of Beckman Coulter ($17 million and $139 million pre-tax for the three months and year ended December 31, 2011, respectively, and $8 million and $54 million pre-tax for the three months and year ended December 31, 2010, respectively) ("Acquisition Related Costs")


13,437

5,774


`

125,502

46,445













Loss on early extinguishment of debt resulting from "make whole" payments associated with the retirement of certain of the acquired Beckman Coulter debt ($33 million pre-tax) ("Loss on Early Extinguishment of Debt")


-

-



20,790

-













Reversal of reserve relating to legal contingency ($12 million pre-tax) ("Reversal of Legal Contingency Reserve")


-

-



(8,915)

-













Gain on contribution of assets to Apex joint venture ($291 million pre-tax) ("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")


-

(24,185)



(93,528)

(42,798)












Adjusted Net Earnings from Continuing Operations (Non-GAAP)


$         576,991

$       433,394

33.1%


$     1,979,136

$    1,489,630

32.9%











Adjusted Diluted Net Earnings Per Share from Continuing Operations

















Diluted Net Earnings Per Share from Continuing Operations (GAAP)                                    


$               0.79

$             0.66

19.7%


$              2.77

$             2.53

9.5%












Acquisition Related Costs


0.02

0.01



0.18

0.07













Loss on Early Extinguishment of Debt


-

-



0.03

-













Reversal of Legal Contingency Reserve


-

-



(0.01)

-













Joint Venture Gain


-

-



-

(0.34)













Income Tax Items


-

(0.03)



(0.14)

(0.06)












Adjusted Diluted Net Earnings Per Share from Continuing Operations (Non-GAAP)


$               0.81

$             0.64

26.6%


$              2.83

$             2.20

28.6%



Core Revenue Growth


Components of Revenue Growth


Three Months

Ended

December 31,

2011 vs.

Comparable

2010 Period

Year Ended

December 31,

2011 vs.

Comparable

2010 Period







Core (non-GAAP)


4.0%

7.0%


Acquisitions (net of reduction in revenues relating to Apex JV) (non-GAAP)


33.5%

18.5%


Impact of currency translation (non-GAAP)


0.0%

2.5%


Total Revenue Growth (GAAP)


37.5%

28.0%











Free Cash Flow




Year Ended

December 31,

2011








Operating Cash Flow (GAAP)


$      2,732,036



Less: Purchases of Property, Plant & Equipment


(334,471)



Free Cash Flow (Non-GAAP)


$      2,397,565









Adjusted Net Earnings from Continuing Operations and Adjusted Diluted Net Earnings Per Share from Continuing Operations

We disclose the non-GAAP measures of adjusted net earnings from continuing operations and adjusted diluted net earnings per share from continuing operations, which refer to GAAP net earnings from continuing operations and GAAP diluted net earnings per share from continuing operations, 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, occur 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.  The Company deems acquisition-related transaction costs incurred in a given period to be significant (generally relating to the Company's larger acquisitions) if it determines that such costs exceed the range of acquisition-related transaction costs typical for Danaher in a given period.

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) 2010 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 sales from acquired businesses and 2010 sales attributable to the businesses contributed to the Apex joint venture) and (b) the period-to-period change in revenue (excluding sales from acquired businesses and 2010 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 2010 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 2011.

Free Cash Flow

We disclose the non-GAAP measure of free cash flow, defined above.  This measure should be considered in addition to, and not as a replacement for or superior to, GAAP operating cash flow, and may not be comparable to similarly titled measures reported by other companies.

Danaher's management believes that free cash flow reflects an additional way of viewing aspects of Danaher's operations that, when viewed with and reconciled to the related GAAP measure, provides useful information to investors regarding Danaher's ability to generate cash without external financings and helps investors assess the strength of Danaher's earnings performance and gauge Danaher's ability to strengthen its balance sheet, invest in the business and grow the business through acquisitions and other strategic opportunities.

DANAHER CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EARNINGS (unaudited)

($ in thousands, except per share data)



Three Months Ended


Year Ended


December 31,

2011

December 31,

2010


December 31,

2011

December 31,

2010







Sales

$    4,716,684

$     3,432,990


$  16,090,540

$   12,550,033

Cost of sales

(2,389,503)

(1,653,032)


(7,913,876)

(6,145,509)

Gross profit

2,327,181

1,779,958


8,176,664

6,404,524







Operating costs and other:






    Selling, general and administrative expenses

(1,287,654)

(987,602)


(4,607,692)

(3,603,658)

    Research and development expenses

(282,120)

(212,216)


(1,018,526)

(774,014)

    Earnings from unconsolidated joint venture

21,854

12,218


66,780

22,768







Operating profit

779,261

592,358


2,617,226

2,049,620







Non-operating income (expense):






     Gain on contribution of businesses to joint venture

--

--


--

291,037

     Loss on early extinguishment of debt

--

--


(32,887)

--

     Interest expense

(37,424)

(27,791)


(141,637)

(117,167)

     Interest income

360

1,700


5,147

6,069







Earnings from continuing operations before income taxes

742,197

566,267


2,447,849

2,229,559







Income taxes

(178,643)

(114,462)


(512,562)

(511,376)







Net earnings from continuing operations

563,554

451,805


1,935,287

1,718,183







Earnings from discontinued operations, net of income taxes

7,160

22,051


236,977

74,817







Net earnings

$   570,714

$   473,856


$   2,172,264

$   1,793,000


Net earnings per share from continuing operations:






      Basic 

$         0.82

$         0.69


$            2.86

$            2.63

      Diluted

$         0.79

$         0.66


$            2.77

$            2.53


Net earnings per share from discontinued operations:






      Basic 

$         0.01

$         0.03


$            0.35

$            0.11

      Diluted

$         0.01

$         0.03


$            0.34

$            0.11


Net earnings per share:






      Basic 

$         0.83

$         0.72


$            3.21

$            2.74

      Diluted

$         0.80

$         0.69


$            3.11

$            2.64


Average common stock and common equivalent shares

outstanding (in thousands):






      Basic

688,610

656,733


676,169

653,194

      Diluted

711,435

687,207


701,191

683,275


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 (unaudited)

($ and shares in thousands)



As of December 31

ASSETS

2011

2010




Current Assets:



Cash and equivalents

$             537,001

$        1,632,980

Trade accounts receivable, less allowance for doubtful accounts of

$117,397 and $111,707, respectively

3,049,895

2,097,974

Inventories

1,781,352

1,165,623

Prepaid expenses and other current assets

904,109

1,168,878

Total current assets

6,272,357

6,065,455




Property, plant and equipment, net

2,100,990

1,129,781

Investment in joint venture

521,882

511,283

Other assets

739,686

809,136

Goodwill

14,474,323

10,393,738

Other intangible assets, net

5,840,209

3,307,737




Total assets

$       29,949,447

$      22,217,130




LIABILITIES AND STOCKHOLDERS' EQUITY






Current Liabilities:



Notes payable and current portion of long-term debt

$                98,392

$             40,761

Trade accounts payable

1,422,438

1,124,821

Accrued expenses and other liabilities

2,651,198

2,155,120

Total current liabilities

4,172,028

3,320,702




Other long-term liabilities

3,598,851

2,339,755

Long-term debt

5,206,800

2,783,907

Stockholders' equity:



Common stock - $0.01 par value, 1 billion shares authorized; 761,067 and

729,516 issued; 687,730 and 656,360 outstanding, respectively

7,611

7,295

Additional paid-in capital

3,877,240

2,412,401

Retained earnings

13,056,869

10,945,928

Accumulated other comprehensive income (loss)

(36,937)

345,386

Total Danaher stockholders' equity

16,904,783

13,711,010

Non-controlling interest

66,985

61,756

Total stockholders' equity

16,971,768

13,772,766




Total liabilities and stockholders' equity

$       29,949,447

$      22,217,130


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 (unaudited)

($ in thousands)



Year Ended December 31


2011

2010

Cash flows from operating activities:



Net earnings

$    2,172,264

$  1,793,000

Less earnings from discontinued operations, net of income taxes

236,977

74,817

Net earnings from continuing operations

1,935,287

1,718,183

Non-cash items:



Depreciation

350,660

189,670

Amortization

284,274

198,592

Stock compensation expense

95,603

88,122

Earnings from unconsolidated joint venture, net of cash dividends received

(18,413)

(22,768)

Pre-tax gain on contribution of businesses to joint venture

--

(291,037)

Consideration received in shares

--

--

Change in deferred income taxes

271,395

37,632

Change in trade accounts receivable, net

(135,279)

(250,946)

Change in inventories

162,019

(161,699)

Change in trade accounts payable

36,602

217,230

Change in prepaid expenses and other assets

(111,010)

67,550

Change in accrued expenses and other liabilities

(139,102)

228,169

Total operating cash provided by continuing operations

2,732,036

2,018,698

Total operating cash (used in) provided by discontinued operations

(105,769)

65,653

Net cash provided by operating activities

2,626,267

2,084,351




Cash flows from investing activities:



Payments for additions to property, plant and equipment

(334,471)

(191,110)

Proceeds from disposals of property, plant and equipment

8,645

1,551

Proceeds from contribution of businesses to joint venture and other

14,770

56,542

Cash paid for acquisitions

(6,210,837)

(2,129,652)

Cash paid for other investments

--

--

Proceeds from divestitures

--

--

Total investing cash used in continuing operations

(6,521,893)

(2,262,669)

Total investing cash used in discontinued operations

(5,466)

(26,210)

Proceeds from sale of discontinued operations

680,105

--

Net cash used in investing activities

(5,847,254)

(2,288,879)




Cash flows from financing activities:



Proceeds from issuance of common stock

1,112,551

178,406

Payment of dividends

(61,323)

(52,214)

Net proceeds (repayments) of borrowings (maturities of 90 days or less)

854,022

--

Proceeds of borrowings (maturities longer than 90 days)

1,785,763

--

Repayments of borrowings (maturities longer than 90 days)

(1,602,379)

(9,388)

Net cash provided by financing activities

2,088,634

116,804




Effect of exchange rate changes on cash and equivalents

36,374

(1,216)

Net change in cash and equivalents

(1,095,979)

(88,940)




Beginning balance of cash and equivalents

1,632,980

1,721,920

Ending balance of cash and equivalents

$       537,001

$  1,632,980


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 millions, unaudited)


















Sales

Three Months Ended


Year Ended


12/31/11

12/31/10


12/31/11

12/31/10

Test & Measurement

$            855.5

$            801.4


$        3,390.9

$           2,832.9

Environmental

806.4

751.9


2,939.6

2,738.0

Life Sciences & Diagnostics

1,728.5

682.1


4,627.4

2,298.3

Dental

550.5

521.3


2,011.2

1,824.6

Industrial Technologies

775.8

676.3


3,121.4

2,540.6

Businesses contributed to Apex JV attributable to periods

prior to contribution

--

--


--

315.6








$         4,716.7

$         3,433.0


$      16,090.5

$         12,550.0







Operating Profit












Test & Measurement

$            183.6

$            158.8


$           751.2

$              572.9

Environmental

177.0

166.3


622.7

564.3

Life Sciences & Diagnostics

225.3

89.6


402.3

227.9

Dental

60.1

63.0


236.1

203.3

Industrial Technologies

140.5

127.1


655.0

513.3

Businesses contributed to Apex joint venture:






Attributable to periods prior to contribution

--

--


--

41.5

Equity method earnings subsequent to JV formation

21.9

12.2


66.8

22.8

Other

(29.1)

(24.6)


(116.9)

(96.4)








$            779.3

$            592.4


$        2,617.2

$           2,049.6







Operating Margins












Test & Measurement

21.5%

19.8%


22.2%

20.2%

Environmental

21.9%

22.1%


21.2%

20.6%

Life Sciences & Diagnostics

13.0%

13.1%


8.7%

9.9%

Dental

10.9%

12.1%


11.7%

11.1%

Industrial Technologies

18.1%

18.8%


21.0%

20.2%







Total

16.5%

17.3%


16.3%

16.3%


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



SOURCE Danaher Corporation

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