* Q1 shr cont ops $0.73 vs. $0.71 expected
* Q1 sales up 31 pct to $4.32 bln
* Sees 2012 shr cont ops $3.25 to $3.35
* Shares down 2.1 pct
By Nick Zieminski
April 19 Danaher Corp reported a
higher-than-expected quarterly profit on Thursday, but sales
growth at the industrial and medical technology conglomerate
disappointed and shares dipped 2.1 percent.
Danaher's key China market, where sales were flat in the
quarter, was now showing signs of rebounding as orders outpaced
shipments, Chief Executive Larry Culp said.
"As we go through the year, China should get better," Culp
said on the company's conference call, adding he expected
mid-to-high single digit sales growth in China in the second
Danaher is among the first multinational industrial
companies to comment about the China market this earnings
season. In recent years, growth in that market has been one of
the bright spots for U.S. manufacturers, but many have pointed
to a slowdown in recent quarters.
Danaher's net earnings rose to $612.9 million, or 86 cents
per share, compared with $429.4 million, or 63 cents per share,
a year earlier.
Earnings from continuing operations were 73 cents a share,
beating the analysts' average estimate by 2 cents, according to
Thomson Reuters I/B/E/S.
Sales rose 31 percent to $4.32 billion, largely reflecting
acquisitions, which was slightly below Wall Street forecasts.
Sales in North America and in emerging markets improved, despite
flat China sales, but were lower in Europe.
Revenue growth from existing businesses -- so-called
"organic" growth -- was weaker than expected in both Danaher's
life sciences and dental businesses, Nomura Equity Research
analyst Shannon O'Callaghan said in a note to clients. Europe
appeared to pressure the life sciences business, he added.
Danaher shares were down 2.1 percent at $53.53 in morning
trading on the New York Stock Exchange.
Washington-based Danaher, whose business model relies on
growing through almost constant acquisitions, last year doubled
the size of its life sciences business with its $5.8 billion
purchase of U.S. medical diagnostics company Beckman Coulter,
pitting it against giants 3M Co and General Electric Co
But margins in the life sciences business were lower due to
This month, Danaher said it would pay $478.9 million before
assumed debt for X-Rite, a provider of digital color
management technology that competes with Japan's Konica-Minolta
The deal environment is attractive, CEO Culp said, and the
company has about $5 billion in acquisitions capacity over the
next two years.
Danaher slightly raised its full-year profit forecast even
as its second-quarter outlook came in below Wall Street
The company said it expected full-year earnings of $3.25 to
$3.35 a share from continuing operations, compared with
analysts' estimates of $3.30.
For the second quarter, Danaher forecast earnings of 76
cents to 81 cents a share, while Wall Street was expecting 82