Danaher Profit Rises on Acquisitions
January 26 2016 - 6:55AM
Dow Jones News
By Anne Steele
Industrial conglomerate Danaher Corp. on Tuesday posted a 4%
increase in profit, handily beating expectations as recent
acquisitons boosted results.
The Washington, D.C.-based company said its acquisition of Pall
Corp. helped increase its top-line growth by 17.5%. Still, the
company faced foreign-exchange volatility that it said reduced its
top line by 5%.
The company also said it expects adjusted earnings in its first
fiscal quarter of 2016 will be in the range of $1 to $1.04 a share.
Analysts polled by Thomson Reuters are looking for $1.04 a
share.
Chief Executive Thomas Joyce pointed to double-digit earnings
growth in the most recent quarter.
"Despite the more challenging economic landscape, particularly
in our industrially oriented markets, we continue to execute well,"
he said.
For the quarter ended Dec. 31, the company posted a profit of
$688.6 million, or 99 cents a share, up from $661.7 million or 92
cents a share a year earlier. Excluding certain items, earnings on
a per-share basis were $1.27 compared with $1.06 a year
earlier.
Revenue climbed 12.6% to $5.88 billion. Revenue excluding the
boon from acquisitions was flat.
Danahar had forecast adjuested earnings between $1.25 and $1.29
a share on $5.53 billion in revenue.
In May, Danaher Corp said it agreed to buy Pall for about $13.6
billion and unveiled plans to split itself into two separate
companies.
Pall, based in Port Washington, N.Y., sells purification and
filtration products to a wide range of customers, including
biopharmaceutical companies, airplane manufactures, brewers and
municipal water suppliers.
The two resulting businesses would be a science and technology
company, which would include Pall, and an industry company. The
science business is slated to keep the Danaher name and include
Danaher's life-sciences and diagnostics and dental segments, as
well as its water-quality and product-identification platforms. The
company hopes to complete the split around the end of 2016.
Write to Anne Steele at anne.steele@wsj.com.
(END) Dow Jones Newswires
January 26, 2016 06:40 ET (11:40 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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