danaher 02-2qrel
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Danaher Corporation announced its second quarter 2002 results, with net earnings of $103.7 million, a 10% increase over the second quarter of 2001. Earnings per share increased 5% to $0.66. Sales for the quarter increased 20% to $1.146 billion due primarily to recent acquisitions. For the first six months of 2002, net earnings were $12.7 million after a one-time $173.8 million goodwill impairment charge, but were up 5% excluding this charge at $186.4 million, with sales up 10% to $2.15 billion. The CEO stated they were pleased with the results and optimistic about continued improvement for the rest of the year.
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danaher 02-2qrel
- 1. DANAHER CORPORATION 2099 PENNSYLVANIA AVENUE, N.W. 12TH FLOOR WASHINGTON, D.C. 20006 TELEPHONE (202)-828-0850 FAX (202)-828-0860 FOR IMMEDIATE RELEASE CONTACT: Patrick Allender Chief Financial Officer (202) 828-0850 DANAHER CORPORATION ANNOUNCES SECOND QUARTER RESULTS WASHINGTON, D.C., July 18, 2002 -- Danaher Corporation (NYSE:DHR) announced today that net earnings for its second quarter ended June 28, 2002 were $103.7 million, 10% above the corresponding 2001 period earnings of $94.2 million. Diluted earnings per share for the 2002 quarter were $0.66, an increase of 5% over the $0.63 reported for the 2001 second quarter. In accordance with the adoption of Statement of Financial Accounting Standards 142 (SFAS 142), the Company stopped amortizing goodwill as of January 1, 2002. Excluding goodwill amortization from the second quarter of 2001, earnings per share would have been $0.71. The second quarter of 2002 included a $1.6 million after-tax gain ($0.01 per share) from the sale of real estate. Sales for the 2002 second quarter were $1,146.3 million, 20% higher than the $956.6 million for the quarter ended June 29, 2001. For the six month period ended June 28, 2002, net earnings, before the effect of a change in accounting principle in connection with the Company’s adoption of SFAS 142, were $186.4 million, up 5% from the $176.8 million reported in 2001. Diluted earnings per share for the 2002 six month period of $1.21 (before the effect of the change in accounting principle related to SFAS 142) increased 2% from the $1.19 in 2001. Excluding goodwill amortization from the 2001 six month period, earnings per share would have been $1.35. Net earnings for the 2002 six month period, after the effect of a first quarter $173.8 million one-time non-cash charge for impairment of goodwill, was $12.7 million. Sales of $2,150.5 million for the 2002 six month period were 10% higher than the $1,961.9 million reported in 2001. H. Lawrence Culp, Jr., President and Chief Executive Officer, stated, quot;We are pleased with our second quarter results. Total sales for the quarter grew 20%, resulting primarily from our first quarter acquisitions of Gilbarco, Videojet and Viridor. Although continued softness in several of our Process/Environmental Controls businesses led to a 7% overall core volume decline for the quarter, our Tools and Components segment reported 5% core volume growth. Our pace to achieve record 2002 cash flow continues, with operating cash flow of $393 million for the six month period 26% higher than in 2001. We are optimistic that our results will show continued improvement throughout 2002, as the markets we serve stabilize and as we fully integrate our recent restructuring initiatives and acquisitions.” Danaher Corporation is a leading manufacturer of Process/Environmental Controls and Tools and Components. (www.danaher.com) Statements in this release that are not strictly historical may be “forward-looking” statements, which involve risks and uncertainties. These include economic and currency conditions, market demand, pricing, and competitive and technological factors, among others, as set forth in the company’s SEC filings.
- 2. DANAHER CORPORATION Results of Operations (thousands, except per share amounts) (unaudited) Quarter Ended Six Months Ended June 28, June 29, June 28, June 29, 2002 2001 2002 2001 Net sales $1,146,326 $ 956,641 $2,150,533 $1,961,924 Operating costs and expenses: Cost of sales 701,908 581,300 1,330,092 1,209,698 Selling, general and administrative expenses 273,576 203,347 509,629 427,209 Goodwill and other amortization _1,267 15,381 _4,016 29,986 Total operating expenses 976,751 800,028 1,843,737 1,666,893 Operating profit 169,575 156,613 306,796 295,031 Interest expense, net 11,308 5,845 22,216 12,141 Earnings before income taxes and effect of accounting change 158,267 150,768 284,580 282,890 Income taxes 54,602 56,538 _98,180 106,083 Net earnings, before effect of accounting change 103,665 94,230 186,400 176,807 Effect of accounting change, net of tax, adoption of SFAS No. 142 -- -- (173,750) --__ Net earnings $ 103,665 $ 94,230 $ 12,650 $ 176,807 Per share amounts before accounting change Basic earnings per share $ .69 $ .65 $1.26 $1.23 Weighted average shares outstanding - Basic 151,274 144,016 148,223 143,445 Diluted earnings per share $ .66 $ .63 $1.21 $1.19 Weighted average shares outstanding – Diluted 160,045 152,642 156,994 151,554 Per share amounts after accounting change Basic earnings per share $ .69 $ .65 $ .09 $1.23 Diluted earnings per share $ .66 $ .63 $ .11 $1.19 Per share effect of accounting change – Basic -- -- $1.17 -- Per share effect of accounting change – Diluted -- -- $1.10 -- Notes: 1) Net earnings, before effect of accounting change and after adjustment for 2001 goodwill amortization $103,665 $107,404 $186,400 $202,471 Per diluted share $ 0.66 $ 0.71 $ 1.21 $ 1.35 2) A complete copy of Danaher's Form 10-Q financial statements is available on the Company's web site (www.danaher.com). ###