Danaher Profit Rises; 3Q Forecast Below Analysts' Views
By Joshua Jamerson
Danaher Corp. ( DHR ) said its second-quarter earnings rose 9.7% as the manufacturer ramped up acquisitions while also seeing organic growth.
Danaher, which makes testing, diagnostic and medical equipment, has improved its revenue in recent years through acquisitions but has seen its bottom line pressured amid restructuring charges, cost-cutting activities and weakening economic and market conditions.
The Washington, D.C.-based conglomerate has also shown uncharacteristic weakness in recent quarters amid a slowdown in its deal making, on which it depends heavily for growth.
Chief Executive H. Lawrence Culp Jr. said the company expects solid performance in the second half of the year and beyond. The longtime CEO announced earlier this year he would step down in March 2015.
For the quarter ended June 27, Danaher reported a profit of $676.4 million, or 95 cents a share, compared with $616.8 million, or 87 cents a share, a year earlier. Included in the most recent results is an after-tax gain of two cents a share on the sale of marketable securities.
In April, the company had forecast per-share earnings of 90 cents to 94 cents a share.
Revenue rose 4.8% to $4.96 billion; core revenue increased 3% from the year-earlier period. Analysts polled by Thomson Reuters had expected revenue of $4.97 billion.
For the third quarter, Danaher projected per-share earnings to range from 86 cents to 89 cents, below analysts' forecasts for 93 cents.
The company narrowed its full-year earnings guidance range to $3.67 to $3.72 from its April-reported range of $3.60 to $3.75.
Write to Joshua Jamerson at Joshua.Jamerson@dowjones.com
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