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Danaher Posts 4 Percent Rise in Q2 Revenue, Mid-single Digit Growth at AB Sciex on Strong 6500 Sales


Danaher this week reported a 4 percent year-over-year increase in revenues for the second quarter, with its Life Sciences and Diagnostics revenues rose nearly 6 percent.

The company's AB Sciex division, which houses its mass spectrometry business, was up in the mid-single digits year over year, with growth in the applied and clinical research markets, as well as the pharmaceutical market, offsetting a reduction in revenues from academic researchers.

On a conference call following release of the results, CEO Lawrence Culp cited AB Sciex's top of the line triple quad platform – the 6500 – as a particularly strong performer, saying that the instrument is "expected to generate more than $100 million in revenue on an annualized basis."

Culp also cited the recent launch of AB Sciex's 3200MD CE-IVD series of mass spectrometers, aimed at the European clinical market. These devices expand AB Sciex's addressable market "to include clinical care customers," he said, adding that the company plans to leverage "channel synergies with our diagnostics platform to help drive growth of this largely previously focused product category from the research realm."

For the second quarter, Danaher posted total revenues of $4.74 billion, up from $4.55 billion, topping the consensus Wall Street estimate of $4.72 billion. Revenues from its Life Sciences and Diagnostics segment, increased to $1.67 billion from $1.58 billion.

The company's profit was up to $616.8 million, or $.87 per share, compared to $600.2 million, or $.84 per share, a year ago. On a non-GAAP basis, EPS from continuing operations was also $.87 per share, inching past analyst estimates of $.86.

R&D costs increased 10 percent to $312.2 million from $283.6 million in the second quarter of 2012, while SG&A spending rose 5 percent to $1.34 billion from $1.28 billion.

For the third quarter, the company forecast adjusted EPS of between $.78 and $.83. It narrowed its full-year 2013 EPS guidance to a range of $3.37 to $3.42 from a previous range of $3.32 to 3.47.