QUOTE AND NEWS
Benzinga  Jul 15  Comment 
Danaher Corporation (NYSE: DHR) disclosed Friday that it would redeem all of its $500 million aggregate principal amount of 5.625 percent senior notes due 2018, $750 million aggregate principal amount of 5.40 percent senior notes due 2019 and $600...
Benzinga  Jul 12  Comment 
Although Fortive Corp (NYSE: FTV) has solid franchises, the current premium valuation of its stock already reflects the attractive opportunities, while not baking in the risks associated with core cyclicality, JPMorgan’s Stephen C. Tusa said in...
Benzinga  Jul 6  Comment 
Steven and Mitchell Rales are hoping they will be able to repeat history following this week’s spinoff of Fortive Group (NYSE: FTV) from Danaher Corporation (NYSE: DHR). The brothers have built Danaher into a $43-billion-success story by taking...
Benzinga  Jul 6  Comment 
Barclays’ Scott R. Davis believes Fortive Corp (NYSE: FTV) shares could potentially see a 12 percent upside to their closing price on July 5. Davis initiated coverage of the company with an Overweight rating and price target of $55. Earnings...
Benzinga  Jul 5  Comment 
Cowen said Fortive Corp (NYSE: FTV*), which makes engineered products and services, could make acquisitions in excess of $1 billion annually, driven by strong balance sheet and cash flow. Fortive is created from the July 2016 spinoff of Danaher...
Benzinga  Jul 5  Comment 
Morgan Stanley’s Nigel Coe believes the spinoff of Fortive Corp (NYSE: FTV*) from Danaher Corporation (NYSE: DHR) is likely to surprise to the upside with its quality. Additionally, the analyst sees the stock potentially trading “very rich”...
Forbes  Jul 1  Comment 
Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Amazon.com Inc. (NASD: AMZN), where a total of 88,145 contracts have traded so far, representing approximately 8.8 million underlying shares....
SeekingAlpha  Jun 27  Comment 




 

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

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki