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Danaher Revenues Grow 24 Percent in Q2

By a GenomeWeb staff reporter

NEW YORK (GenomeWeb News) – Danaher this morning reported revenues for its second quarter grew 24 percent year over year, as sales in its Medical Technologies segment grew 31 percent for the period, helped along by its recent purchases of AB Sciex and Molecular Devices.

For the three months ended July 2, revenues grew to $3.31 billion from $2.67 billion in the year-ago period.

The company netted a profit of $372 million, or $0.55 per diluted share, a 26 percent increase from $295.7 million, or $0.44 per share, in Q2 2009.

The results beat analysts' consensus estimates of about $3.21 billion in revenues for the quarter and $0.53 per share.

The company's Med Tech segment had sales of $968 million, up from $738 million in the year-ago period, helped by a 28.5 percent growth in revenues stemming from acquisitions, primarily Danaher's purchases of AB Sciex and Molecular Devices, completed earlier this year. Revenues for existing businesses rose 4.5 percent in the quarter.

Within Med Tech, life sciences and diagnostics sales bounced 55 percent year-over-year, the company said in a document filed with the US Securities and Exchange Commission, with acquisitions contributing almost 49 percent to the growth and existing business contributing almost 8 percent.

Life sciences and diagnostics made up 56 percent of Med Tech's sales for the quarter. The other part of the segment, dental, saw revenues increase 10.5 percent.

On a conference call following today's earnings release, Danher President and CEO Larry Culp said that, overall, the company continues to "see encouraging signs across the global economy," and that the firm is capturing market share in many of its businesses, including its Leica brand, which includes Leica Microsystems, a manufacturer and developer of various microscopes.

He added that Danaher is "very encouraged with the ongoing integration efforts" of the AB Sciex and Molecular Devices businesses.

Danaher spent $197.7 million on R&D, up from $158.5 million in Q2 2009. SG&A expenses also rose to $907.9 million in the quarter from $759.8 million a year ago.

Danaher reported cash and cash equivalents of more than $1.2 billion as of July 2.

For the third quarter, the company gave earnings guidance of between $0.50 and $0.55 per share, which at the midpoint would be an 18 percent increase from a year ago. For full-year 2010, Danaher raised its guidance to between $2.16 and $2.23 per share from earlier guidance of $2.12 to $2.20 per share.

In early morning trading on the New York Stock Exchange, shares of Danaher were up less than 1 percent at $38.11.

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