Danaher Announces Record First Quarter Results

WASHINGTON, April 17 /PRNewswire-FirstCall/ -- Danaher Corporation
(NYSE: DHR) announced today that net earnings from continuing operations for
the quarter ended March 28, 2008 were $277 million, or $0.83 per diluted
share, as compared to the Company's 2007 first quarter net earnings from
continuing operations of $252 million, or $0.77 per diluted share. Included in
the 2008 first quarter earnings per share results were certain non-cash
charges related to the acquisition of Tektronix for fair value adjustments to
recorded inventory and deferred revenue which reduced net earnings by $19
million or $0.06 per diluted share in the period. Absent these items, adjusted
net earnings from continuing operations were $296 million or $0.89 per diluted
share, a 15.5% increase over last year's first quarter diluted earnings per
share from continuing operations. Operating profit margins for the first
quarter of 2008 were 13.6%. Adjusted operating profit margins, excluding the
impact of the non-cash charges related to the acquisition of Tektronix, were
14.5% in the first quarter of 2008.
Revenues for the 2008 first quarter were $3.03 billion, 20% higher than
the $2.52 billion reported for the 2007 first quarter. H. Lawrence Culp, Jr.,
President and Chief Executive Officer, stated, "We are pleased to announce
another record first quarter. Growth from existing businesses, also known as
core revenues, was 2% as continued strength in our Hach-Lange, Fluke,
Radiometer and Leica businesses was offset by lower demand in certain of our
OEM and consumer-driven operations, primarily in the US. We were encouraged
by strong orders during the quarter which gives us confidence in our ability
to deliver positive results for the balance of 2008."
Danaher will discuss its results during its investor conference call today
starting at 8:00 a.m. EST. Related presentation materials will also be posted
to the Investor section of our website (http://www.danaher.com) prior to the
call. To participate in the call, please dial 888-264-8892 or 913-312-0839
and tell the operator that you are dialing in for Danaher's investor
conference call (code 2384639). The webcast of the call and the related
presentation materials will be available through the "Investor" section of our
website (http://www.danaher.com) until July 17, 2008. You can access the
replay by dialing 888-203-1112 or 719-457-0820, and entering access code
2384639.
Danaher Corporation is a leading manufacturer of Professional
Instrumentation, Medical Technologies, Industrial Technologies, and Tools and
Components (www.danaher.com)
Statements in this release that are not strictly historical, including the
statements regarding expectations for the balance of 2008 and any other
statements regarding events or developments that we believe or anticipate will
or may occur in the future, may be "forward-looking" statements. There are a
number of important factors that could cause actual events to differ
materially from those suggested or indicated by such forward-looking
statements. These factors include, among other things, competition, our
ability to develop and successfully market new products and technologies, our
ability to expand our business in new markets, our ability to identify,
consummate and integrate appropriate acquisitions, litigation and other
contingent liabilities including intellectual property and environmental
matters, our compliance with applicable laws and regulations and changes in
applicable laws and regulations, tax audits and changes in our tax rate,
currency exchange rates, commodity costs and surcharges, our relationships
with and the performance of our channel partners, our ability to achieve
projected efficiencies, cost reductions, sales growth and earnings, economic
and other conditions in the end-markets we sell into, and general domestic and
international economic conditions. 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 2007 Annual
Report on Form 10-K. These forward-looking statements speak only as of the
date of this release and the Company does not intend to update any forward-
looking statement.
To download a copy of the full earnings report, please go to
www.danaher.com.

DANAHER CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
($ and shares in thousands, except per share amounts)
(unaudited)

Three Months Ended
March 28, 2008 March 30, 2007

Sales $3,028,874 $2,521,704

Operating costs and expenses: Cost of sales
1,611,158 1,381,801
Selling, general and administrative
expenses 818,390 645,825
Research and development expenses 186,104 123,961
Total operating expenses 2,615,652 2,151,587

Operating profit 413,222 370,117

Interest expense (40,669) (27,291)
Interest income 3,522 1,588

Earnings from continuing operations before
income taxes 376,075 344,414

Income taxes (99,570) (92,798)

Earnings from continuing operations 276,505 251,616

Earnings from discontinued operations, net
of income taxes -- 3,188

Net earnings $276,505 $254,804

Earnings per share from continuing operations:
Basic $0.87 $0.81
Diluted $0.83 $0.77

Earnings per share from discontinued
operations:
Basic -- $0.01
Diluted -- $0.01

Net earnings per share:
Basic $0.87 $0.82
Diluted $0.83 $0.78
Average common stock and common equivalent
shares outstanding:
Basic 318,803 309,668
Diluted 335,974 327,950

A complete copy of Danaher's Form 10-Q financial statements is available on
the Company's website (www.danaher.com).
Danaher Corporation
Supplemental Reconciliation of Diluted Earnings Per Share from
Continuing Operations (GAAP) to Adjusted Diluted Earnings Per
Share from Continuing Operations (Non-GAAP)
Three Months Ended March 28, 2008 and March 30, 2007

Three Months Ended
March 28, March 30, %
2008 2007 Change

Earnings from Continuing Operations per
GAAP $276,505 $251,616 10.0%

After-tax charges for fair value
adjustments to recorded inventory and
deferred revenue balances ($26.1
million pre-tax) related to the
acquisition of Tektronix 19,161 -

Adjusted Earnings from Continuing
Operations (Non-GAAP) $295,666 $251,616 17.5%

Diluted Earnings Per Share from
Continuing Operations per GAAP $0.83 $0.77 8.0%

After-tax charges for fair value
adjustments to recorded inventory and
deferred revenue balances ($26.1
million pre-tax) related to the
acquisition of Tektronix 0.06 $-

Adjusted Diluted Earnings Per Share
from Continuing Operations (Non-GAAP) $0.89$0.77 15.5%
Supplemental Reconciliation of Operating Profit Margin from
Continuing Operations (GAAP) to Adjusted Operating
Profit Margin from Continuing Operations (Non-GAAP)
Three Months Ended March 28, 2008 and March 30, 2007

Three Months Ended
March 28, March 30,
2008 2007

Operating Profit from Continuing
Operations per GAAP $413,222 $370,117

Pre-tax charges for fair value
adjustments to recorded inventory and
deferred revenue balances ($19.2
million after-tax) related to the
acquisition of Tektronix 26,069 -

Adjusted Operating Profit from
Continuing Operations (Non-GAAP) $439,291 $370,117

Sales from Continuing Operations per
GAAP $3,028,874 $2,521,704

Operating Profit Margin from Continuing
Operations per GAAP 13.6% 14.7%

Pre-tax charges for fair value
adjustments to recorded inventory and
deferred revenue balances ($19.2
million after-tax) related to the
acquisition of Tektronix 0.9% -

Adjusted Operating Profit Margin from
Continuing Operations (Non-GAAP) 14.5% 14.7%

NOTE: In addition to the results provided in this release in accordance
with U.S. Generally Accepted Accounting Principles ("GAAP"), the Company has
provided the non-GAAP measures of (1) adjusted net earnings from continuing
operations for the three months ended March 28, 2008 and adjusted net earnings
from continuing operations per diluted share for the three months ended March
28, 2008 on a basis which excludes certain non-cash charges related to the
acquisition of Tektronix, Inc. for fair value adjustments to recorded
inventory and deferred revenue balances (the "Tektronix non-cash charges"),
and compares adjusted net earnings from continuing operations for the three
months ended March 28, 2008 to earnings per share from continuing operations
for the three months ended March 30, 2007 (collectively, the "adjusted
earnings measures"); and (2) adjusted operating profit margins for the three
months ended March 28, 2008, on a basis which excludes the Tektronix non-cash
charges ("adjusted operating margin" and together with the adjusted earnings
measures, the "non-GAAP measures").
The adjusted earnings measures should be considered in addition to, and
not as a replacement for or superior to, net earnings from continuing
operations and net earnings from continuing operations per diluted share
calculated according to GAAP. Adjusted operating margin should be considered
in addition to, and not as a replacement for or superior to, operating profit
margin calculated according to GAAP. Danaher's non-GAAP measures may be
defined differently than similar non-GAAP measures that are used by other
companies.
Danaher management believes that the non-GAAP measures reflect an
additional way of viewing aspects of Danaher's operations that, when viewed
with and reconciled to the corresponding GAAP measure, provide a more complete
understanding of Danaher's performance and helps identify underlying trends in
Danaher's business. The charges related to the Tektronix acquisition have
been excluded because acquisition-related charges of this nature and size
occur with inconsistent frequency and we believe are not indicative of
Danaher's ongoing operating costs in a given period.
Danaher management references the non-GAAP measure in assessing current
performance against prior period performance and against forecasted
performance, in forecasting financial results for future periods, and in
making decisions about internal budgets, resource allocation and financial
goals for its business units. Danaher management believes that the non-GAAP
measures help investors and others, if they so choose, in understanding and
evaluating Danaher's current operating performance and future prospects in the
same manner as management does. In addition, Danaher believes that analysts
and others in the investment community use the non-GAAP measures to assess
Danaher's performance against prior period performance and against forecasted
performance, compare Danaher's performance to the performance of our peer
companies, identify trends in Danaher's performance and provide estimates of
future performance.
A general limitation of the non-GAAP measures is that use of the non-GAAP
measures (as compared to the related GAAP measure) may reduce comparability
with other companies who may calculate similar non-GAAP measures differently.
Another limitation of the non-GAAP measures is that they exclude charges that
affect Danaher's operations and that may recur in the course of Danaher's
business (though at times and in amounts that may be difficult to predict).
Danaher management compensates, and believes that investors should compensate,
for these and other limitations of the non-GAAP measures by also considering
Danaher's financial results as determined in accordance with GAAP.
SOURCE Danaher Corporation

Andy Wilson of Danaher Corporation, Vice President, Investor Relations,
+1-202-828-0850, +1-202-828-0860 (fax)