* Euro weakness, if it continues, would reduce FY EPS by 5
* Danaher seeing 'pockets of weakness'-CFO
* Shares up 0.9 percent
By Nick Zieminski
NEW YORK, June 6 The recent weakness of the euro
against the U.S. dollar could push down Danaher Corp's
full-year earnings if it persists, the company's finance chief
said on Wednesday.
When the medical and industrial conglomerate reported
quarterly results in late April, one euro bought around $1.30.
The currency has since fallen to $1.24.
If that euro weakness continues, it would reduce Danaher's
full-year earnings by about 5 cents a share, Chief Financial
Officer Daniel Komas told a JPMorgan investor conference in New
Analysts on average expect Danaher to earn $3.32 per share
for the year.
The company generates nearly a quarter of its sales from
Western Europe. A weaker euro reduces the value of European
sales when they are translated into dollars.
The euro hit a two-year low against the dollar last week on
fears that a European debt crisis may force Greece to exit the
euro zone and that Spain may need to issue more debt to
recapitalize its banks.
Komas said Danaher's industrial businesses, such as test and
measurement equipment, were one area of weakness in Europe,
along with its life sciences business, which relies in part on
government research budgets. However, demand for medical
diagnostic equipment remains "pretty good" in Europe, he said.
Asked whether the current economic weakness felt like 2008,
at the outset of recession, Komas said it did not.
"If you go back to the fall of '08, even the late summer,
pre the Lehman bankruptcy, you saw a noticeable delta between
orders and shipments," he said. "It was a real sign things are
going to turn south. We're not seeing that. We're seeing pockets
For Danaher, which has long relied on mergers and
acquisitions to fuel growth, weak markets have a silver lining
because they reduce asset prices.
"Every dynamic presents an opportunity," Komas said.
Shares of Danaher were up 0.9 percent at $50.80 in early