UPDATE 1-Danaher CEO 'optimistic' about M&A landscape

(Adds comparison to Reuters Estimates, CEO quote, stock price; changes dateline, previously Boston)

NEW YORK, March 5 (Reuters) - U.S. industrial conglomerate Danaher Corp (DHR.N) may step up merger and acquisition activity this year to take advantage of lower prices, though it is too early to say whether it will go through with deals, its chief executive said on Wednesday.

CEO Larry Culp told the Citigroup Global Industrial Manufacturing conference the company's portfolio transformation toward higher-margin global businesses such as medical instruments is continuing, and deals are set to play a prominent role.

"We're optimistic about M&A in this environment," Culp said. "You go back to the last time we saw a slowdown, we were very active in '02."

"But I wouldn't say our pipeline has changed materially," he added. "Valuations in the public markets have come down ... (but) it may be a little early to really see the things in the pipeline come into the zone where they're actionable."

Earlier, Danaher confirmed its forecast of first-quarter profit of 84 to 89 cents per share, excluding 5 cents of noncash charges.

Analysts, on average, expect the company to earn 88 cents per share before special items in the quarter.

Danaher shares fell 27 cents to $74.19 in morning trading on the New York Stock Exchange. (Reporting by Nick Zieminski with additional reporting by Scott Malone; Editing by Maureen Bavdek)