QUOTE AND NEWS
TheStreet.com  Jul 16  Comment 
NEW YORK (TheStreet) -- Danaher stock closed up 0.42% to $88.70 on Thursday, after it was initiated at RBC Capital Markets with a "sector perform" rating and a price target of $93. On Tuesday, Danaher completed the spin-off of its...
Benzinga  Jul 14  Comment 
MPLX LP (NYSE: MPLX) shares climbed 6.35 percent to $62.78. The volume of MPLX shares traded was 9761 percent higher than normal. Scotia Howard Well downgraded MPLX from Outperform to Sector Perform. NetScout Systems, Inc. (NASDAQ: NTCT)...
newratings.com  Jul 14  Comment 
WASHINGTON (dpa-AFX) - NetScout Systems Inc. (NTCT) announced that it has completed the acquisition of Danaher Corp.'s (DHR) Communications Business. The transaction was valued at $2.3 billion, based on the issuance of 62.5 million shares of...
Jutia Group  Jul 14  Comment 
[PR Newswire] - Danaher has accepted shares of Danaher common stock tendered in the exchange offer, subject to proration, and the merger has closed. In the exchange offer, Danaher shareholders had the option to exchange some, none or all of their...
Benzinga  Jul 9  Comment 
Danaher Corporation (NYSE: DHR) announced today the final exchange ratio for its split-off exchange offer for Danaher common stock in connection with the previously announced separation of Danaher's Communications business and merger of Potomac...
Jutia Group  Jul 9  Comment 
[PR Newswire] - WASHINGTON, July 9, 2015 /PRNewswire/ -- Danaher Corporation (DHR) announced today the final exchange ratio for its split-off exchange offer for Danaher common stock in connection with the previously announced separation of...
The Hindu Business Line  Jun 26  Comment 
The $60-billion technology giant Danaher Corporation is eying acquisitions in India. It plans to invest $100 million over three to five years, and is looking to double its R&D headcount.
Forbes  Jun 25  Comment 
The latest tally of analyst opinions from the major brokerage houses shows that among the components of the S&P 500 index, Danaher Corp. (DHR) is now the #23 analyst pick, moving up by 1 spot.
Benzinga  Jun 25  Comment 
NetScout Systems, Inc. (NASDAQ: NTCT), an industry leader in service assurance solutions, announced the results from the Company's Special Meeting of Stockholders held earlier today at its corporate headquarters. The proposal to issue 62.5 million...




 

Danaher Corporation (NYSE:DHR) produces high-tech equipment for a broad range of industries, from surgical microscopes to airline smoke detectors. In the conglomerates industry, DHR competes against Goliaths like General Electric Company (GE) and 3M Company (MMM). The company generates slightly more than half of its revenues from overseas.[1] The company earned $11 billion in revenue and $1.1 billion in net income in 2009.[2]

As a conglomerate, DHR can apply its efficient manufacturing operations to many processes. Part of DHR's strategy is to acquire underperforming technology ventures and implement efficient manufacturing operations. In 2009 the company acquired 15 companies.[3] As a retailer, the company is susceptible to changes in the economic environment. The sluggish global economy caused a decrease in the demand for Danaher's products which resulted in net sales falling 12% in 2009.[2]

Company Overview

DHR operates in four segments:[4]

Professional Instrumentation (32.1% of Net Sales)

The professional instrumentation segment sells environmental and measurement tools. These tools include calibration equipment, water quality instruments, and petroleum services.

Medical Technologies (27.2% of Net Sales)

The medical technologies segment manufactures dental, microscopy, and life sciences equipment. Products range from infection control products to surgical microscopes. DHR sells these products to professionals and health care institutions.

Industrial Technologies (28.6% of Net Sales)

The industrial technologies segment manufactures production and packaging line products as well as aerospace & defense products. Industrial products range from motors to brakes and aerospace & defense products range from security systems to smoke detectors.

Tools & Components (12.1% of Net Sales)

The Tools & Components segment manufactures tools and industrial parts. Products range from hand tools to gear boxes to automotive tools, with brands including Matco and Sears Craftsman. These products are sold at hardware stores and to automotive end markets.

Business Growth

FY 2009 (ended December 31, 2009)[2]

  • Net sales fell 12% to $11.2 billion. The company attributes the lower sales to lower spending and investment by both businesses and consumers which resulted from the sluggish global economy. As a result, sales fell in all of the company's product segments.
  • Net income fell 12.6% to $1.1 billion.

Trends and Forces

Acquisitions

Part of DHR's business strategy is to acquire poorly-run companies and manage them with more efficient operations. In 2009,t he company acquired 15 businesses for approximately $704 million. The businesses were acquired to complement the company's already existnig units of the Medical Technologies, Professional Instrumentation, and Industrial Technologies segments.[3]

DHR expands internationally in response to declining U.S. economy.

DHR reasons that consumers will buy less because of the potential recession, so the company wants to become less dependent on the U.S. economy. Danaher has turned this negative into a positive by expanding to emerging international markets. The company has had a strong presence in China -- the world's leading emerging market. Slightly more than half of the company's sales come from international markets,[1] of which a quarter come from China. Sales from China represent 6% of the company's total sales.[5]

However, in 2009 the sluggish global economy still had negative effects on the company's bottom line as net sales fell 12% for the year.[2]

Rising steel, oil and non-ferrous metals prices.

Steel is DHR's principle material used in manufacturing. Over the past 5 years, scrap metal price has grown from under $100 per ton to over $550 per ton. DHR also uses oil and gas in manufacturing and transportation. Prices for both have increased, and have caused the company's margins to decline.

Competition

Conglomerates

References

  1. 1.0 1.1 DHR 2009 10-K "International Operations" pg. 14
  2. 2.0 2.1 2.2 2.3 DHR 2009 10-K "Selected Financial Data" pg. 28
  3. 3.0 3.1 DHR 2009 10-K "Acquisitions" pg. 30
  4. DHR 2009 10-K "Operating Segments" pg. 4-10
  5. DHR 2009 10-K "Operations in Geographical Areas Year Ended December 31" pg. 100
  6. 3M website, "About Us"
  7. Textron website, "Textron Businesses"
  8. Cooper Industries website, "About Cooper Industries"

Kidney Infection Signs

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