Danaher Profit Soars 33% on Acquisitions
April 21 2016 - 6:57AM
Dow Jones News
By Anne Steele
Industrial conglomerate Danaher Corp. on Thursday raised its
guidance for the year after reporting its profit shot up 33% in the
first quarter of the year and results topped expectations as recent
acquisitions padded results in the face of currency challenges.
For the year, the company now anticipates adjusted earnings of
$4.85 to $4.98 a share, up from its previous forecast for $4.80 to
$4.95 a share. But for the second quarter, the company expects
adjusted earnings in the range of $1.19 to $1.23 a share, just
below analysts' forecast for $1.24 a share.
Chief Executive Thomas Joyce said the company outperformed "in
the face of uncertain and challenging economic conditions,"
pointing to high-teens earnings growth, healthy operating margin
expansion and free cash flow up more than 50% year-on-year.
Acquisitions helped the Washington, D.C.-based company increase
its top-line growth by 16.5%. Still, the company faced
foreign-exchange volatility that it said reduced its top line by
2%.
For the quarter ended April 1, the company posted a profit of
$758.4 million, or $1.09 a share, up from $569.8 million or 79
cents a share a year earlier. Excluding certain items, earnings on
a per-share basis rose to $1.08 from 91 cents a year earlier.
Revenue climbed 15% to $5.39 billion. Revenue excluding the boon
from acquisitions edged up 0.5%.
Danahar had forecast adjusted earnings of $1 to $1.04 a share.
Analysts were looking for $5.33 billion in revenue.
Last May, Danaher Corp said it agreed to buy Pall Corp. 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.
Shares in the company, inactive premarket, have risen 13% over
the past three months.
Write to Anne Steele at anne.steele@wsj.com.
(END) Dow Jones Newswires
April 21, 2016 06:42 ET (10:42 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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