Danaher Reports Record Fourth Quarter 2012 Results

              Danaher Reports Record Fourth Quarter 2012 Results

PR Newswire

WASHINGTON, Jan. 29, 2013

WASHINGTON, Jan. 29, 2013 /PRNewswire/ -- Danaher Corporation (NYSE: DHR)
today announced results for the fourth quarter and full year 2012. All
financial metrics in this release reflect only the Company's continuing
operations unless otherwise noted.

Net earnings for the quarter ended December 31, 2012 were $630.4 million, or
$0.89 per share on a diluted basis, a 12.5% increase over diluted net earnings
per share of $0.79 for the fourth quarter 2011. Included in the fourth quarter
2012 results is a $0.02 per share benefit from a mark-to-market gain from the
change in value of a currency swap agreement. Sales for the 2012 fourth
quarter were $4.98 billion, 5.5% higher than the $4.72 billion reported for
the 2011 fourth quarter. Core revenues increased 3.5% in the quarter compared
to the fourth quarter of 2011.

Net earnings for the full year 2012 were $2.3 billion, or $3.23 per share on a
diluted basis, compared with net earnings of $1.9 billion, or $2.77 per share
on a diluted basis for the full year 2011. Revenues for the full year 2012
were $18.3 billion compared to $16.1 billion for the full year 2011, an
increase of 13.5%. Core revenues increased 2.5% for the full year 2012
compared to the full year 2011.

The Company expects to close on the pending divestiture of its interest in
Apex Tool Group within the next two weeks and as a result it is updating its
full year 2013 non-GAAP adjusted diluted net earnings per share guidance range
to $3.32 to $3.47 from a previous GAAP diluted net earnings per share range of
$3.40 to $3.55. The Company anticipates that non-GAAP adjusted diluted net
earnings per share for the quarter ending March 29, 2013 will be in the range
of $0.72 to $0.77. The adjusted guidance excludes the anticipated gain on the
disposition of Apex as well as any benefit related to the retroactive
reinstatement of certain federal tax provisions contained in the American Tax
Relief Act of 2012.

H. Lawrence Culp, Jr., President and Chief Executive Officer, stated, "We were
pleased by the strong finish to 2012, which was broad-based across most of our
businesses. The team's application of the Danaher Business System led to a
solid year of earnings growth, year-over-year core margin expansion and
outstanding cash flow performance including a record $3.0 billion of free cash
flow generation. While cognizant of the current macroeconomic challenges, we
will continue our focus on gaining market share and remaining active on the
acquisition front in 2013."

Danaher will discuss its results during its investor conference call today
starting at 8:00 a.m. EST. The call and an accompanying slide presentation
will be webcast on Danaher's website at www.danaher.com. You can access a
replay of the webcast on the "Investors" section of Danaher's website, under
the subheading "Investor Events." A replay of the webcast will be available
shortly after the conclusion of the presentation and will remain available
until the next quarterly earnings call. The conference call can be accessed by
dialing 888-637-7707 within the U.S. or 913-981-4903 outside the U.S. a few
minutes before the 8:00 a.m. EST start and telling the operator that you are
dialing in for Danaher's earnings conference call (access code 2149164). A
replay of the conference call will be available shortly after the conclusion
of the call and until Tuesday, February 5, 2013. 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 2149164. 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 63,000 associates around the world, serving
customers in more than 125  countries. In 2012, we generated $18.3 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 anticipated timing of the closing of the pending
divestiture of the Company's interest in Apex Tool Group, the Company's
anticipated adjusted diluted net earnings per share for the first quarter and
full year 2013, the Company's anticipated focus on gaining market share and
anticipated acquisition activity in 2013 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, deterioration of or instability 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, the potential for
improper conduct by our employees, agents or business partners, 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) and divestures, 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, risks relating to potential impairment of goodwill and other
long-lived assets, currency exchange rates, 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, our relationships with and the performance of our channel
partners, commodity costs and surcharges, our ability to adjust purchases and
manufacturing capacity to reflect market conditions, labor matters,
international economic, political, legal and business factors, risks relating
to man-made and natural disasters, pension plan costs and our non-controlling
interest in the Apex joint venture. 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 2011
Annual Report on Form 10-K and Quarterly Report on Form 10-Q for the third
quarter of 2012. 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 millions except per
share data)
Forecasted Earnings Per
Share Guidance
                              Three Months Ending    Year Ending
                              March 29, 2013         December 31, 2013
                              Low End High End       Low End       High End
Diluted Net Earnings Per      $                                 $    
Share from Continuing         0.94   $    0.99   $    3.54 3.69
Operations (GAAP)
Anticipated gain on the
sale of investment in
Apex Tool Group LLC in
the first quarter of          (0.19)  (0.19)         (0.19)        (0.19)
2013 ($220 million
pre-tax for each of the
three and twelve month
periods)
Retroactive
reinstatement of certain
federal tax                   (0.03)  (0.03)         (0.03)        (0.03)
provisions contained in
the American Tax
Relief Act of 2012.
Adjusted Diluted Net
Earnings Per Share from       $    $    0.77   $    3.32 $    
Continuing Operations         0.72                                3.47
(Non-GAAP)

Core Revenue Growth
                                  Three Months             Year Ended
                                  Ended December           December 31,
 Components of Revenue Growth     31, 2012 vs. Comparable 2012 vs.
                                  2011 Period              Comparable
                                                           2011 Period
 Core (non-GAAP)                  3.5%                     2.5%
 Acquisitions (non-GAAP)          3.0%                     13.0%
 Impact of currency               -1.0%                    -2.0%
 translation (non-GAAP)
 Total Revenue Growth (GAAP)      5.5%                     13.5%

Free Cash Flow
                                             Year Ended
                                             December 31, 2012
 Operating Cash Flow provided by continuing  $      3,502.1
 operations (GAAP)
 Less: Purchases of Property, Plant &        (458.3)
 Equipment from continuing operations
 Free Cash Flow (Non-GAAP)                   $      3,043.8



Adjusted Diluted Net Earnings Per Share from Continuing Operations

We disclose the non-GAAP measure of adjusted diluted net earnings per share
from continuing operations, which refers to GAAP diluted net earnings per
share from continuing operations, excluding the items identified in the
reconciliation schedule above. This non-GAAP measure should be considered in
addition to, and not as a replacement for or superior to, the comparable GAAP
measure, and may not be comparable to similarly titled measures reported by
other companies.

Management believes that this measure provides useful information to investors
by reflecting additional ways of viewing aspects of Danaher's operations that,
when reconciled to the corresponding GAAP measure, helps our investors to
better understand the long-term profitability trends of our business, and
facilitates easier comparisons of our profitability to prior and future
periods and to our peers. The items described above have been excluded from
this measure 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 from existing operations excluding (1) sales from acquired
businesses recorded prior to the first anniversary of the acquisition less the
impact from the divestiture of a product line the sales of which (prior to the
divestiture) were included in sales from acquired businesses ("acquisition
sales"), and (2) the impact of currency translation. The portion of GAAP
revenue from existing operations attributable to currency translation is
calculated as the difference between (a) the period-to-period change in
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" 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 non-GAAP measures provide useful information to
investors by helping identify underlying growth trends in our business and
facilitating 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.

Free Cash Flow

We disclose the non-GAAP measure of free cash flow, as defined above. This
non-GAAP 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 used by other companies.

Danaher's management believes that this non-GAAP measure provides useful
information to investors by reflecting an additional way of viewing aspects of
Danaher's operations that, when reconciled to GAAP operating cash flow, helps
our investors to better understand the strength of Danaher's earnings as well
as Danaher's ability to generate cash without external financings, strengthen
its balance sheet, invest in the business and grow the business through
acquisitions and other strategic opportunities. A limitation of Danaher's
free cash flow measure is that it does not take into account the Company's
debt service requirements and other non-discretionary expenditures.





DANAHER CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS (unaudited)
($ and shares in millions, except per share data)
                      Three Months Ended           Year Ended
                      December 31,  December 31,   December 31,  December 31,

                      2012          2011           2012          2011
Sales                 $  4,975.2    $   4,716.6    $  18,260.4   $  16,090.5
Cost of sales         (2,429.9)     (2,389.5)      (8,846.1)     (7,913.9)
Gross profit          2,545.3       2,327.1        9,414.3       8,176.6
Operating costs and
other:
Selling, general and
administrative        (1,406.5)     (1,287.7)      (5,181.2)     (4,607.7)
expenses
Research and          (294.6)       (282.1)        (1,137.9)     (1,018.5)
development expenses
Earnings from
unconsolidated joint  18.9          21.9           69.9          66.8
venture
Operating profit      863.1         779.2          3,165.1       2,617.2
Non-operating income
(expense):
Loss on early
extinguishment of     —             —              —             (32.9)
debt
Interest expense      (40.8)        (37.4)         (157.5)       (141.6)
Interest income       1.0           0.3            3.2           5.1
Earnings from
continuing operations 823.3         742.1          3,010.8       2,447.8
before income taxes
Income taxes          (192.9)       (178.6)        (711.5)       (512.5)
Net earnings from     630.4         563.5          2,299.3       1,935.3
continuing operations
Earnings from
discontinued          —             7.2            92.9          237.0
operations, net of
income taxes
Net earnings          $  630.4      $   570.7      $  2,392.2    $  2,172.3
Net earnings per
share from continuing
operations:
Basic                 $  0.91       $   0.82       $  3.32       $  2.86
Diluted               $  0.89       $   0.79       $  3.23       $  2.77
Net earnings per
share from
discontinued
operations:
Basic                 $  0.00       $   0.01       $  0.13       $  0.35
Diluted               $  0.00       $   0.01       $  0.13       $  0.34
Net earnings per
share:
Basic                 $  0.91       $   0.83       $  3.45       $  3.21
Diluted               $  0.89       $   0.80       $  3.36       $  3.11
Average common stock
and common equivalent
shares outstanding:
Basic                 691.4         688.6          693.4         676.2
Diluted               709.6         711.4          713.1         701.2





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 millions)
                                                      As of December 31
                                                      2012         2011
ASSETS
Current Assets:
Cash and equivalents                                  $ 1,678.7    $ 537.0
Trade accounts receivable, less allowance for
doubtful accounts of $121.4 and $117.4,               3,267.3      3,049.9
 respectively
Inventories                                           1,813.4      1,781.4
Prepaid expenses and other current assets             828.4        904.1
Total current assets                                  7,587.8      6,272.4
Property, plant and equipment, net                    2,140.9      2,101.0
Investment in joint venture                           548.3        521.9
Other assets                                          858.0        739.7
Goodwill                                              15,462.0     14,474.3
Other intangible assets, net                          6,344.0      5,840.2
Total assets                                          $ 32,941.0   $ 29,949.5
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Notes payable and current portion of long-term debt   $ 55.5       $ 98.4
Trade accounts payable                                1,546.3      1,422.4
Accrued expenses and other liabilities                2,604.3      2,651.2
Total current liabilities                             4,206.1      4,172.0
Other long-term liabilities                           4,363.4      3,598.9
Long-term debt                                        5,287.6      5,206.8
Stockholders' Equity:
Common stock - $0.01 par value, 2.0 billion shares
authorized; 774.6 and 761.1 issued;                   7.7          7.6
 687.5 and 687.7 outstanding, respectively
Additional paid-in capital                            3,688.1      3,877.2
Retained earnings                                     15,379.9     13,056.9
Accumulated other comprehensive income (loss)         (59.2)       (36.9)
Total Danaher stockholders' equity                    19,016.5     16,904.8
Non-controlling interests                             67.4         67.0
Total stockholders' equity                            19,083.9     16,971.8
Total liabilities and stockholders' equity            $ 32,941.0   $ 29,949.5

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 millions)
                                                       Year Ended December 31
                                                       2012        2011
Cash flows from operating activities:
Net earnings                                           $ 2,392.2   $ 2,172.3
Less earnings from discontinued operations, net of     92.9        237.0
income taxes
Net earnings from continuing operations                2,299.3     1,935.3
Non-cash items:
Depreciation                                           497.8       350.7
Amortization                                           342.0       284.3
Stock compensation expense                             109.9       95.6
Earnings from unconsolidated joint venture, net of     (25.4)      (18.4)
cash dividends received
Change in deferred income taxes                        184.9       271.4
Change in trade accounts receivable, net               (79.7)      (135.3)
Change in inventories                                  69.8        162.0
Change in trade accounts payable                       57.0        36.6
Change in prepaid expenses and other assets            (100.3)     (111.0)
Change in accrued expenses and other liabilities       146.8       (139.1)
Total operating cash provided by continuing operations 3,502.1     2,732.1
Total operating cash used in discontinued operations   (87.1)      (105.8)
Net cash provided by operating activities              3,415.0     2,626.3
Cash flows from investing activities:
Payments for additions to property, plant and          (458.3)     (334.5)
equipment
Proceeds from disposals of property, plant and         30.0        8.6
equipment and other assets
Proceeds from contribution of businesses to joint      —           14.8
venture
Cash paid for acquisitions                             (1,796.8)   (6,210.8)
Total investing cash used in continuing operations     (2,225.1)   (6,521.9)
Total investing cash used in discontinued operations   —           (5.5)
Proceeds from sale of discontinued operations          337.5       680.1
Net cash used in investing activities                  (1,887.6)   (5,847.3)
Cash flows from financing activities:
Proceeds from the issuance of common stock             212.0       1,112.5
Payment of dividends                                   (86.4)      (61.3)
Purchase of treasury stock                             (648.4)     —
Net proceeds from borrowings (maturities of 90 days or 195.9       854.0
less)
Proceeds from borrowings (maturities longer than 90    —           1,785.8
days)
Repayments of borrowings (maturities longer than 90    (61.5)      (1,602.4)
days)
Net cash (used in) provided by financing activities    (388.4)     2,088.6
Effect of exchange rate changes on cash and            2.7         36.4
equivalents
Net change in cash and equivalents                     1,141.7     (1,096.0)
Beginning balance of cash and equivalents              537.0       1,633.0
Ending balance of cash and equivalents                 $ 1,678.7   $ 537.0

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 (unaudited)
($ in millions)
                    Three Months Ended             Year Ended
                    December 31,  December 31,     December 31,  December 31,
                    2012          2011             2012          2011
Sales
Test & Measurement  $        $           $         $    
                    863.7        855.5           3,381.0       3,390.9
Environmental       850.6         806.4            3,063.5       2,939.6
Life Sciences &     1,837.7       1,728.5          6,485.1       4,627.4
Diagnostics
Dental              570.5         550.4            2,022.9       2,011.2
Industrial          852.7         775.8            3,307.9       3,121.4
Technologies
                    $                         $          $   
                    4,975.2                        18,260.4      16,090.5
                                  $ 4,716.6
Operating Profit
Test & Measurement  $        $           $        $     
                    161.8        183.6           701.2        751.2
Environmental       196.0         177.0            652.5         622.7
Life Sciences &     261.7         225.2            861.1         402.3
Diagnostics
Dental              86.6          60.1             293.1         236.1
Industrial          154.0         140.5            685.6         655.0
Technologies
Equity method
earnings of Apex    18.9          21.9             69.9          66.8
joint venture
Other               (15.9)        (29.1)           (98.3)        (116.9)
                    $        $           $         $    
                    863.1        779.2           3,165.1       2,617.2
Operating Margins
Test & Measurement  18.7%         21.5%            20.7%         22.2%
Environmental       23.0%         21.9%            21.3%         21.2%
Life Sciences &     14.2%         13.0%            13.3%         8.7%
Diagnostics
Dental              15.2%         10.9%            14.5%         11.7%
Industrial          18.1%         18.1%            20.7%         21.0%
Technologies
Total               17.3%         16.5%            17.3%         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

Website: http://www.danaher.com
Contact: Matt R. McGrew, Vice President, Investor Relations, Danaher
Corporation, +1-202-828-0850, or fax, +1-202-828-0860