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Danaher's Q1 Revenues up 31 Percent, Aided by Beckman Coulter Purchase

NEW YORK (GenomeWeb News) – Danaher today reported its first-quarter revenues increased 31 percent year over year driven by acquisitions, including the Beckman Coulter purchase.

For the period ending March 30, total revenues rose to $4.32 billion from $3.29 billion a year ago, slightly below consensus analyst estimates of $4.33 billion. Acquisitions accounted for 30.5 percent of total revenue growth on a non-GAAP basis, while core revenues grew 1.5 percent. The impact of currency reduced revenues by 1 percent.

Within Danaher's Life Sciences and Diagnostics segment, revenues rose 147 percent to $1.55 billion from $626.6 million in the year-ago period, the firm said in its Form 10-Q filed today. In a conference call following the release of the earnings results, company President and CEO Larry Culp said the uptick was due largely to the Beckman Coulter acquisition. Excluding the impact of acquisitions, core revenues in the segment were up 2 percent year over year.

Diagnostics' core business, minus Beckman Coulter, grew in the mid-single digits, while core life sciences growth was flat, he added.

In Beckman Coulter, Danaher continues to work through quality issues. While problems with the company's sodium and glucose tests have been resolved, Culp said, work remains to be done on its troponin assay.

During Danaher's fourth-quarter earnings call in January, Culp acknowledged delays in the recertification of Beckman Coulter's AccuTnl troponin test kits, but said that a refiling of the assay with the US Food and Drug Administration was anticipated in the first quarter.

A resubmission to the agency has yet to happen, however, and Culp today declined to provide a timeline for a refiling, saying only "we should be in a good place on troponin real soon."

Beckman Coulter revenues grew modestly year over year during the quarter, he said, adding, "While there's a lot of work ahead, we are happy with what the team has accomplished in the past nine months."

AB Sciex's core sales, meanwhile, saw modest growth in the quarter, though orders were up in the mid-teens, "positioning the business well for strong core growth in the upcoming quarters," Culp said.

For the first quarter, R&D costs increased 26 percent to $270.1 million from $215.2 million, while SG&A costs rose 29 percent to $1.24 billion from $963.2 million.

Danaher's net income was $612.9 million, or $.86 per share, up from $429.4 million, or $.63 per share, for Q1 2011. EPS from continuing operations were $.73, beating Wall Street estimates of $.71.

Danaher initiated guidance for second-quarter EPS from continuing operations of between $.76 and $.81, which assumes core revenue growth of 3 percent to 5 percent. For full year 2012, the firm narrowed anticipated EPS to between $3.25 to $3.35 from an earlier range of between $3.20 and $3.35.

In early morning trading on the New York Stock Exchange, shares of Danaher were down 2 percent at $53.77.

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