Exhibit 99.1
DANAHER CORPORATION REPORTS RECORD FOURTH QUARTER AND 2005 RESULTS
WASHINGTON, D.C., January 26, 2006 — Danaher Corporation (NYSE:DHR) today announced results for the fourth quarter and year ended December 31, 2005. Net earnings for the fourth quarter of 2005 were $261.6 million, or $0.81 per diluted share, a 20% increase compared with $217.7 million, or $0.67 per diluted share for the fourth quarter of 2004. Sales for the 2005 fourth quarter were $2,263.8 million compared to $1,979.6 million for the fourth quarter of 2004, an increase of 14.5%.
Net earnings for the full year 2005 including the effect of certain gains on the sale of real estate and other assets of $0.03 per share were $907.7 million, or $2.79 per diluted share, a 21.5% increase, compared with $746.0 million, or $2.30 per diluted share for 2004 which included approximately $0.02 per share of gains on the sale of real estate. Sales for 2005 were $7,984.7 million compared to $6,889.3 million in 2004, an increase of 16%.
H. Lawrence Culp, Jr., President and Chief Executive Officer, stated, “We are pleased to once again report record fourth quarter and full year results. For the quarter, growth from existing businesses, also known as core revenues increased 5.5%. Operating cash flow for the year was a record $1.2 billion, representing a 16.5% increase over 2004. Our record performance throughout 2005 and our strong finish to the year give us confidence in our ability to deliver excellent results in 2006.”
Danaher Corporation is a leading manufacturer, specializing in Professional Instrumentation, Industrial Technologies and Tools and Components. (www.danaher.com)
Statements in this release that are not strictly historical, including statements regarding events or developments that we believe or anticipate will or may occur in the future, may be “forward-looking” statements. There are a number of important factors that could cause actual events to differ materially from those suggested or indicated by such forward-looking statements. These factors include, among other things, litigation and other contingent liabilities, the Company’s ability to achieve projected efficiencies, cost reductions, sales growth and earnings, economic conditions in the end-markets the Company sells into, the Company’s ability to expand its business in new geographic markets, commodity costs and surcharges, competition, market demand for new products, currency exchange rates, the integration of acquired businesses, changes in the market for acquisitions and divestitures, regulatory approvals and the Company’s ability to consummate announced acquisitions, and general economic conditions. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in our SEC filings. These forward-looking statements speak only as of the date of this release and the Company disclaims any duty to update any forward-looking statement.
Please contact:
Andy Wilson
Vice President, Investor Relations
Danaher Corporation
2099 Pennsylvania Avenue
Washington, D.C. 20006
Telephone: (202) 828-0850
Fax: (202) 828-0860
DANAHER CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(in thousands, except per share amounts)
Quarter Ended | Year Ended | |||||||||||||||
12/31/05 | 12/31/04 | 12/31/05 | 12/31/04 | |||||||||||||
Sales | $ | 2,263,754 | $ | 1,979,580 | $ | 7,984,704 | $ | 6,889,301 | ||||||||
Cost of sales | 1,291,397 | 1,143,878 | 4,539,689 | 3,996,636 | ||||||||||||
Selling, general and administrative expenses | 606,299 | 521,739 | 2,175,751 | 1,795,673 | ||||||||||||
Gain on sale of real estate and other assets | (1,570 | ) | (2,041 | ) | (10,904 | ) | (8,141 | ) | ||||||||
Total operating expenses | 1,896,126 | 1,663,576 | 6,704,536 | 5,784,168 | ||||||||||||
Operating profit | 367,628 | 316,004 | 1,280,168 | 1,105,133 | ||||||||||||
Interest expense | (9,427 | ) | (14,199 | ) | (44,933 | ) | (54,984 | ) | ||||||||
Interest income | 2,658 | 2,711 | 14,707 | 7,568 | ||||||||||||
Earnings before income taxes | 360,859 | 304,516 | 1,249,942 | 1,057,717 | ||||||||||||
Income taxes | 99,236 | 86,786 | 342,222 | 311,717 | ||||||||||||
Net earnings | $ | 261,623 | $ | 217,730 | $ | 907,720 | $ | 746,000 | ||||||||
Basic net earnings per share | $ | 0.85 | $ | 0.70 | $ | 2.94 | $ | 2.41 | ||||||||
Diluted net earnings per share | $ | 0.81 | $ | 0.67 | $ | 2.79 | $ | 2.30 | ||||||||
Average common stock and common equivalent shares outstanding: | ||||||||||||||||
Basic | 306,510 | 309,498 | 308,905 | 308,964 | ||||||||||||
Diluted | 325,197 | 329,083 | 327,983 | 327,701 |
These statements are presented for reference only. The final audited statements will include footnotes, which should be
referenced when available, to more fully understand the contents of these statements.
DANAHER CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands)
As of December 31 | |||||||
2005 | 2004 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and equivalents | $ | 315,551 | $ | 609,115 | |||
Trade accounts receivable, less allowance for doubtful accounts of $91,115 and $78,423 | 1,407,858 | 1,231,065 | |||||
Inventories | 825,263 | 703,996 | |||||
Prepaid expenses and other current assets | 396,347 | 374,514 | |||||
Total current assets | 2,945,019 | 2,918,690 | |||||
Property, plant and equipment, net | 748,172 | 752,966 | |||||
Other assets | 160,780 | 91,705 | |||||
Goodwill | 4,474,991 | 3,970,269 | |||||
Other intangible assets, net | 834,147 | 760,263 | |||||
$ | 9,163,109 | $ | 8,493,893 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Notes payable and current portion of long-term debt | $ | 183,951 | $ | 424,763 | |||
Trade accounts payable | 782,854 | 612,066 | |||||
Accrued expenses | 1,291,861 | 1,165,457 | |||||
Total current liabilities | 2,258,666 | 2,202,286 | |||||
Other liabilities | 956,402 | 746,390 | |||||
Long-term debt | 857,771 | 925,535 | |||||
Stockholders’ equity: | |||||||
Common stock, one cent par value; 1,000,000 shares authorized; 338,547 and 336,946 issued; 305,571 and 308,920 outstanding | 3,385 | 3,369 | |||||
Additional paid-in capital | 861,875 | 1,052,154 | |||||
Accumulated other comprehensive income (loss) | (109,279 | ) | 116,037 | ||||
Retained earnings | 4,334,289 | 3,448,122 | |||||
Total stockholders’ equity | 5,090,270 | 4,619,682 | |||||
$ | 9,163,109 | $ | 8,493,893 | ||||
These statements are presented for reference only. The final audited statements will include footnotes, which should be
referenced when available, to more fully understand the contents of these statements.
DANAHER CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Year Ended | ||||||||
12/31/05 | 12/31/04 | |||||||
Cash flows from operating activities: | ||||||||
Net earnings from operations | $ | 907,720 | $ | 746,000 | ||||
Depreciation and amortization | 176,972 | 156,128 | ||||||
Change in trade accounts receivable, net | (66,611 | ) | (110,007 | ) | ||||
Change in inventories | (22,478 | ) | 65,528 | |||||
Change in accounts payable | 138,144 | 65,315 | ||||||
Change in accrued expenses and other liabilities | 108,685 | 135,616 | ||||||
Change in prepaid expenses and other assets | (38,631 | ) | (25,364 | ) | ||||
Total operating cash flows | 1,203,801 | 1,033,216 | ||||||
Cash flows from investing activities: | ||||||||
Payments for additions to property, plant and equipment | (121,206 | ) | (115,906 | ) | ||||
Proceeds from disposals of property, plant and equipment | 18,783 | 30,894 | ||||||
Cash paid for acquisitions | (885,083 | ) | (1,591,719 | ) | ||||
Proceeds from divestitures | 22,100 | 43,100 | ||||||
Net cash used in investing activities | (965,406 | ) | (1,633,631 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from issuance of common stock | 59,931 | 45,957 | ||||||
Dividends paid | (21,553 | ) | (17,731 | ) | ||||
Proceeds from debt borrowings | 355,745 | 130,000 | ||||||
Purchase of treasury stock | (257,696 | ) | — | |||||
Debt repayments | (647,987 | ) | (196,281 | ) | ||||
Net cash used in financing activities | (511,560 | ) | (38,055 | ) | ||||
Effect of exchange rate changes on cash | (20,399 | ) | 17,429 | |||||
Net change in cash and equivalents | (293,564 | ) | (621,041 | ) | ||||
Beginning balance of cash and equivalents | 609,115 | 1,230,156 | ||||||
Ending balance of cash and equivalents | $ | 315,551 | $ | 609,115 | ||||
These statements are presented for reference only. The final audited statements will include footnotes, which should be
referenced when available, to more fully understand the contents of these statements.
DANAHER CORPORATION AND SUBSIDIARIES
SEGMENT INFORMATION(in thousands)
2005 Segment Operating Results
Quarter Ended | Year Ended | |||||||||||
12/31/2005 | 12/31/2004 | 12/31/2005 | 12/31/2004 | |||||||||
Sales | ||||||||||||
Professional Instrumentation | 1,170,167 | 946,839 | 3,782,109 | 2,963,549 | ||||||||
Industrial Technologies | 744,354 | 687,237 | 2,908,141 | 2,619,495 | ||||||||
Tools and Components | 349,233 | 345,504 | 1,294,454 | 1,306,257 | ||||||||
2,263,754 | 1,979,580 | 7,984,704 | 6,889,301 | |||||||||
Quarter Ended | Year Ended | |||||||||||
12/31/2005 | 12/31/2004 | 12/31/2005 | 12/31/2004 | |||||||||
Operating Profit | ||||||||||||
Professional Instrumentation | 206,869 | 174,645 | 676,994 | 554,453 | ||||||||
Industrial Technologies | 121,163 | 102,467 | 441,899 | 383,073 | ||||||||
Tools and Components | 50,949 | 48,976 | 199,289 | 198,251 | ||||||||
Other | (11,353 | ) | (10,084 | ) | (38,014 | ) | (30,644 | ) | ||||
367,628 | 316,004 | 1,280,168 | 1,105,133 | |||||||||
Operating Margins | ||||||||||||
Professional Instrumentation | 17.7 | % | 18.4 | % | 17.9 | % | 18.7 | % | ||||
Industrial Technologies | 16.3 | % | 14.9 | % | 15.2 | % | 14.6 | % | ||||
Tools and Components | 14.6 | % | 14.2 | % | 15.4 | % | 15.2 | % | ||||
Total | 16.2 | % | 16.0 | % | 16.0 | % | 16.0 | % |
These statements are presented for reference only. The final audited statements will include footnotes, which should be
referenced when available, to more fully understand the contents of these statements.
DANAHER CORPORATION AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL INFORMATION
Three Months and Year Ended December 31, 2005
Three Months Ended | Years Ended | |||||||||||||||||||||
December 31, 2005 | December 31, 2004 | % Change | December 31, 2005 | December 31, 2004 | % Change | |||||||||||||||||
Net earnings before unusual items | $ | 260,485 | $ | 216,271 | 20.4 | % | $ | 896,487 | $ | 740,258 | 21.1 | % | ||||||||||
Included in gains (losses) on sales of real estate and other assets, net: | ||||||||||||||||||||||
Pre-tax loss on operations of disposed SED business | — | (1,300 | ) | — | ||||||||||||||||||
Pre-tax loss on impairment of minority investment | — | (5,085 | ) | — | ||||||||||||||||||
Pre-tax gain on sale of shares of Leica Geosystems | — | 1,808 | — | |||||||||||||||||||
Pre-tax gain on retained debt and equity interest on previously sold business | — | — | 5,270 | — | ||||||||||||||||||
Pre-tax gain on sale of business | — | 4,571 | ||||||||||||||||||||
Other pre-tax gains (loss) on sale of real estate & other non-operational assets | 1,570 | 2,041 | 5,640 | 8,141 | ||||||||||||||||||
1,570 | 2,041 | 10,904 | 8,141 | |||||||||||||||||||
Included in interest income: | ||||||||||||||||||||||
Pre-tax interest benefit on interest collected related to retained debt interest | — | — | 4,600 | — | ||||||||||||||||||
Income Tax Impact: | ||||||||||||||||||||||
Income tax impact on above gains (losses) | (432 | ) | (582 | ) | (4,271 | ) | (2,399 | ) | ||||||||||||||
Net earnings per GAAP | $ | 261,623 | $ | 217,730 | 20.2 | % | $ | 907,720 | $ | 746,000 | 21.7 | % | ||||||||||
These statements are presented for reference only. The final audited statements will include footnotes, which should be
referenced when available, to more fully understand the contents of these statements.