QUOTE AND NEWS
Market Intelligence Center  Aug 13  Comment 
After closing Tuesday at $74.34, Danaher Corp (DHR) presents an attractive opportunity to get a 3.96% return in just 129 days, which is an annualized return of 11.20% (for comparison purposes only). To enter this trade, sell one Dec. '14 $72.50...
TheStreet.com  Jul 29  Comment 
Story updated at 9:55 a.m. to reflect market activity. NEW YORK (TheStreet) -- Deutsche Bank lowered its price target for Danaher to $78 Tuesday, reiterating its "hold" rating for the stock. Danaher stock fell -0.7% to $74.68 in morning...
Market Intelligence Center  Jul 29  Comment 
After closing Monday at $75.21, Danaher Corp (DHR) presents an attractive opportunity to get a 2.52% return in just 53 days, which is an annualized return of 17.32% (for comparison purposes only). To enter this trade, sell one Sep. '14 $75.00 call...
Motley Fool  Jul 22  Comment 
Danaher Corp. released a disappointing set of earnings, which contained mixed messages for Agilent Technologies, Pall Corporation, and Patterson Companies. With that said, it's starting to look like a good value.
Forbes  Jul 22  Comment 
The latest tally of analyst opinions from the major brokerage houses shows that among the components of the S&P 500 index, Danaher (DHR) is now the #30 analyst pick, moving up by 1 spot.         This rank is formed by averaging the...
Motley Fool  Jul 18  Comment 
Weak results in test & measurement and frustration over a lack of big M&A weighs on the shares
Motley Fool  Jul 17  Comment 
Quarterly earnings misses and underwhelming guidance make these names the three worst performers in the stock market today
SeekingAlpha  Jul 17  Comment 
Danaher Corporation (NYSE:DHR) Q2 2014 Earnings Conference Call July 17, 2014 08:00 AM ET Executives Matt Gugino - VP, IR Larry Culp - President and CEO Dan Comas - EVP and CFO Analysts Scott Davis - Barclays Nigel Coe -...
newratings.com  Jul 17  Comment 
WASHINGTON (dpa-AFX) - Danaher Corp. (DHR) Thursday reported increased profit for the second quarter, supported by a 5 percent improvement in revenues. Looking ahead, the company tightened its earnings forecast for the year. The company...




 

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"

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