Danaher Corp.'s (DHR) first-quarter earnings rose 43% as the
diversified manufacturer's revenue growth got a boost from
acquisitions.
For the current quarter, Danaher forecast per-share earnings of
76 cents to 81 cents, including anticipated dilution of a penny
from its recent deal to acquire X-Rite Inc. (XRIT). Analysts polled
by Thomson Reuters expected per-share earnings of 82 cents.
The company narrowed its 2012 per-share earnings estimate to
$3.25 to $3.35 from its previous range of $3.20 to $3.35. The new
forecast includes 3 cents of anticipated dilution related to
X-Rite.
Danaher has remained acquisitive, mostly focusing its efforts on
medical technology, testing and measurement and dental equipment.
The acquisition of Beckman Coulter last year for $5.78 billion was
Danaher's largest deal and gives the company a stronger foothold in
the growing diagnostics industry.
More recently Danaher reached a $478 million deal for
color-measurement technology company X-Rite in a move Danaher
expects will complement its Esko digital design capabilities and
further its lead in the product identification industry.
President and Chief Executive H. Lawrence Culp Jr. said the
company was encouraged by the quarter-to-quarter business
improvement and expects that core growth will accelerate in the
second quarter.
Danaher reported a profit of $612.9 million, or 86 cents a
share, up from $429.4 million, or 63 cents a share, a year earlier.
Earnings from continuing operations were up at 73 cents from 61
cents. Danaher in January had projected earnings of 66 cents to 71
cents.
Revenue increased 31% to $4.32 billion. Excluding acquisitions
and currency fluctuations, revenue was up 1.5%
Analysts recently projected $4.33 billion.
Gross margin fell to 51.8% from 53.1%.
Shares closed Wednesday at $54.69 and were inactive
premarket.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
Tess.Stynes@dowjones.com