WASHINGTON, Jan. 13, 2021 /PRNewswire/ -- Danaher
Corporation (NYSE: DHR) (the "Company") announced that its
President and Chief Executive Officer, Rainer M. Blair, will comment today on the
Company's fourth quarter 2020 performance in a presentation at the
J.P. Morgan Healthcare Conference at 10:50
a.m. ET.
Mr. Blair will communicate that fourth quarter 2020 core revenue
growth including Cytiva is expected to be above the Company's
previously announced guidance, driven primarily by better
performance in its Life Sciences and Diagnostics segments.
For the fourth quarter 2020, estimated revenues increased
approximately 38.5% year-over-year, with approximately 15.0%
estimated non-GAAP core revenue growth including Cytiva.
As previously announced, Danaher will hold its quarterly
earnings conference call for the fourth quarter and year-end 2020
on Thursday, January 28, 2021 at
8:00 a.m. ET.
ABOUT DANAHER
Danaher is a global science and technology innovator committed
to helping its customers solve complex challenges and improving
quality of life around the world. Its family of world class brands
has leadership positions in the demanding and attractive health
care, environmental and applied end-markets. With more than 20
operating companies, Danaher's globally diverse team of more than
67,000 associates is united by a common culture and operating
system, the Danaher Business System, and its Shared Purpose,
Helping Realize Life's Potential. For more information,
please visit www.danaher.com.
FORWARD LOOKING STATEMENTS
Statements in this release that are not strictly historical,
including the statements regarding the Company's anticipated
financial performance for the fourth quarter of 2020 and any other
statements regarding events or developments that we believe or
anticipate will or may occur in the future are "forward-looking"
statements within the meaning of the federal securities laws. There
are a number of important factors that could cause actual results,
developments and business decisions to differ materially from those
suggested or indicated by such forward-looking statements and you
should not place undue reliance on any such forward-looking
statements. These factors include, among other things, the highly
uncertain and unpredictable severity, magnitude and duration of the
COVID-19 pandemic (and the related governmental, business and
community responses thereto) on our business, results of operations
and financial condition, Danaher's ability to successfully
integrate the operations and employees of the Biopharma business
Danaher acquired from General Electric Company (now known as
Cytiva) with Danaher's existing business, the ability to realize
anticipated financial, tax and operational synergies and benefits
from such acquisition, Cytiva's performance and maintenance of
important business relationships, the impact of our debt
obligations (including the debt incurred to finance the acquisition
of Cytiva) on our operations and liquidity, deterioration of or
instability in the economy, the markets we serve and the financial
markets (including as a result of the COVID-19 pandemic),
developments and uncertainties in U.S. policy stemming from the
U.S. administration, such as changes in U.S. trade and tariff
policies and the reaction of other countries thereto, contractions
or growth rates and cyclicality of markets we serve, competition,
our ability to develop and successfully market new products and
technologies and expand into new markets, the potential for
improper conduct by our employees, agents or business partners, our
compliance with applicable laws and regulations (including
regulations relating to medical devices and the health care
industry), the results of our clinical trials and perceptions
thereof, our ability to effectively address cost reductions and
other changes in the health care industry, our ability to
successfully identify and consummate appropriate acquisitions and
strategic investments and successfully complete divestitures and
other dispositions, our ability to integrate the businesses we
acquire and achieve the anticipated benefits of such acquisitions,
contingent liabilities relating to acquisitions, investments and
divestitures (including tax-related and other contingent
liabilities relating to past and future IPOs, split-offs or
spin-offs), security breaches or other disruptions of our
information technology systems or violations of data privacy laws,
the impact of our restructuring activities on our ability to grow,
risks relating to potential impairment of goodwill and other
intangible assets, currency exchange rates, tax audits and changes
in our tax rate and income tax liabilities, changes in tax laws
applicable to multinational companies, litigation and other
contingent liabilities including intellectual property and
environmental, health and safety matters, the rights of
the United States government to
use, disclose and license certain intellectual property we license
if we fail to commercialize it, risks relating to product, service
or software defects, product liability and recalls, risks relating
to product manufacturing, our relationships with and the
performance of our channel partners, uncertainties relating to
collaboration arrangements with third-parties, commodity costs and
surcharges, our ability to adjust purchases and manufacturing
capacity to reflect market conditions, reliance on sole sources of
supply, the impact of deregulation on demand for our products and
services, labor matters, international economic, political, legal,
compliance and business factors (including the impact of the
United Kingdom's separation from
the EU and remaining uncertainty relating to the terms of such
separation), disruptions relating to man-made and natural disasters
(including pandemics such as COVID-19) and pension plan costs.
Additional information regarding the factors that may cause actual
results to differ materially from these forward-looking statements
is available in our SEC filings, including our 2019 Annual Report
on Form 10-K and our first, second and third quarter 2020 Quarterly
Reports on Form 10-Q. These forward-looking statements speak only
as of the date of this release and except to the extent required by
applicable law, the Company does not assume any obligation to
update or revise any forward-looking statement, whether as a result
of new information, future events and developments or
otherwise.
Estimated Core
Sales Growth and Core Sales Growth Including Cytiva
|
|
|
|
% Change
Three-Month
Period Ended December
31, 2020 vs. Comparable
2019 Period
|
Total sales growth
(GAAP)
|
~38.5%
|
Impact of:
|
|
Acquisitions/divestitures
|
~(24.5%)
|
Currency exchange
rates
|
~(2.5%)
|
Core sales growth
(non-GAAP)
|
~11.5%
|
Impact of Cytiva
sales growth (net of divested product lines)
|
~3.5%
|
Core sales growth
including Cytiva (non-GAAP)
|
~15.0%
|
Statement Regarding Non-GAAP Measures
We present core sales on a basis that includes sales
attributable to Cytiva (formerly the Biopharma Business of General
Electric Company's ("GE") Life Sciences business), which Danaher
acquired from GE on March 31,
2020. Core revenue growth including Cytiva should be
considered in addition to, and not as a replacement for or superior
to, GAAP revenue growth, and may not be comparable to similar
measures reported by other companies. Management believes
that this measure provides useful information to investors by
offering an additional way of viewing Danaher's results that, when
reconciled to GAAP revenue growth, helps our investors to identify
underlying growth trends in our business and compare our sales
performance with prior and future periods and to our peers.
Historically Danaher has calculated core sales solely on a basis
that excludes sales from acquired businesses recorded prior to the
first anniversary of the acquisition. However, given Cytiva's
significant size and historical core sales growth rate, in each
case compared to Danaher's existing businesses, management believes
it is appropriate to also present core sales on a basis that
includes Cytiva sales. Management believes this presentation
provides useful information to investors by demonstrating the
impact Cytiva has on the Company's current growth profile, rather
than waiting to demonstrate such impact 12 months after the
acquisition when Cytiva would normally have been included in
Danaher's core sales calculation. Danaher calculates
period-to-period core sales growth including Cytiva by adding to
the baseline period sales Cytiva's historical sales from such
period (when it was owned by GE), net of the sales of the divested
product lines and also adding the Cytiva sales to the current
period.
With respect to core sales including Cytiva, (1) we exclude the
impact of currency translation because it is not under management's
control, is subject to volatility and can obscure underlying
business trends, and (2) we exclude the effect of acquisitions
(other than Cytiva) and divested product lines because the timing,
size, number and nature of such transactions can vary significantly
from period-to-period and between us and our peers, which we
believe may obscure underlying business trends and make comparisons
of long-term performance difficult.
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SOURCE Danaher Corporation