07.24.12
13. Danaher
$6.6 Billion ($16.1B total)
KEY EXECUTIVES:
Steven M. Rales, Chairman
H. Lawrence Culp Jr., President & CEO
Daniel L. Comas, Exec. VP & CFO
Daniel A. Raskas, VP of Corporate Development
NO. OF EMPLOYEES: 59,000 (total)
GLOBAL HEADQUARTERS: Washington, D.C.
Washington, D.C.-based Danaher Corp. goes about its business quietly. Or perhaps that’s better phrased as businesses (plural). Chances are that people are more familiar with the brands that Danaher makes than they are with the parent company. Danaher’s diverse brands are broken down into five categories: Test & Measurement; Environmental; Life Sciences & Diagnostics; Dental; and Industrial Technologies.
In the medical device space, the company’s Dental and Life Sciences & Diagnostics divisions are of interest to the Medical Product Outsourcing (MPO) audience. Danaher’s Life Sciences and Diagnostics units provide technology for clinical histopathology laboratories, hospital central labs and point-of-care locations, as well as government, academic and pharmaceutical research laboratories. The Dental division provides devices for dental operatory, including dental consumables, digital imaging products, precision dental hand pieces, treatment units and diagnostic systems. On the medical device side, Danaher more likely is known for its varied product lines than its company moniker. Divisions include such brands as AB Sciex, Dexis, Gendex, Imaging Sciences International, Instrumentarium Dental, Invetech (a contract manufacturer with which MPO readers may be familiar), KaVo, Dessert, Kerr, Leica Microsystems, Ormco, Pelton & Crane, Radiometer, Soredex and SybronEndo.
For the 2011 fiscal year (ended Dec. 31) revenues for everything under the Danaher corporate umbrella were $16.1 billion compared to $12.6 billion in 2010, an increase of 28 percent. The significant increase was due in large part to the acquisition of diagnostic firm Beckman Coulter in early 2011 for $6.8 billion, which Danaher added to its Sciences & Diagnostics division. The deal was completed in June 2011. Overall net earnings were $1.9 billion, or $2.77 per share on a diluted basis, compared with net earnings of $1.7 billion, or $2.53 per share on a diluted basis for 2010. The company divested a number of non-life-science-related firms in 2011, which has been part of an ongoing corporate strategy to focus on existing operations or to acquire faster-growing, more profitable businesses that are less dependent on cyclical demand. A total of 13 companies across all product categories were acquired. Notably, research and development spending topped the $1 billion mark for the first time in Danaher’s history. For the company overall, emerging market revenues grew more than 12 percent in 2011 compared to 2010. The company also has doubled its low-cost region sourcing to nearly 30 percent from 2005 to 2011.
H. Lawrence Culp, Jr., president and CEO called 2011 a “tremendous” year for the company.
The Life Sciences & Diagnostics sector recorded $4.6 billion in sales, up from $2.3 billion in 2010. Operating profit was $402 million, a significant increase compared with $228 million for fiscal 2010. Acquisitions (the Beckman Coulter buyout) were responsible 91 percent of sales growth. Sales for this segment in 2011 by geographic destination were: Europe, 37 percent; North America, 31 percent; Asia/Australia, 27 percent; and other regions, 5 percent. Sales by geographic destination in 2012 are expected to differ from sales by geographic destination during 2011 as a result of the June 2011 acquisition of Beckman Coulter. More of the segment’s 2012 sales are anticipated to be in North America.
Sales from existing businesses in the segment’s acute care diagnostics business grew at a high single-digit rate during 2011 as a result of strong consumable sales related to the business’ installed base of acute care diagnostic instrumentation and new instrument placements, primarily in Europe, China and other Asian markets. Demand for the business’ compact blood gas analyzer also remained strong, particularly in emerging markets, the company reported. Increased European and emerging market demand for the business’ cardiac care instruments also contributed to growth. Sales from existing businesses in the pathology diagnostics business also grew at a high single-digit rate during 2011 due to increased demand for advanced staining instruments and consumables, as well as higher sales of core histology systems and consumables, primarily in North America and emerging markets, and to a lesser extent, Europe. The acquisition of Beckman Coulter significantly expanded the segment’s product portfolio in the area of clinical diagnostics through the addition of new and complementary product and service offerings. Sales from existing businesses in the segment’s microscopy business grew at a mid single-digit rate during 2011 due to demand for confocal and compound instrumentation serving the life-sciences research and industrial markets, particularly in China and other emerging markets. Strong demand for mass spectrometers serving both the academic and proteomic research markets as well as the applied markets resulted in a low double-digit growth rate from sales from existing businesses. Sales from existing businesses in the mass spectrometry business grew in all major geographies during 2011 led by strong performance in the Asia-Pacific region and North America. Company officials expect “significant cost synergies” by applying existing Danaher business models to Beckman Coulter and the combined purchasing power of the company and Beckman Coulter.
Danaher’s Dental division businesses took a $2 billion bite out of the market in terms of sales. That’s up compared to $1.8 billion in 2010. Total operating profit was $236 million, compared to $203 million for the previous fiscal year. Dental segment sales by location were: North America, 49 percent; Europe, 34 percent; Asia/Australia, 10 percent; and other regions, 7 percent. Price increases throughout the Dental segment contributed 1 percent to sales growth during 2011. Sales from existing businesses in the dental consumables business grew at a mid single-digit rate in 2011 driven primarily by increased demand for general dentistry consumables and orthodontic products and, to a lesser extent, infection control products, the company reported. Sales in the dental consumables business grew in all major geographies. Increased sales of imaging products were led by North America, and to lesser extent, the emerging markets, while instrument sales growth was driven largely by North America and Europe.
$6.6 Billion ($16.1B total)
KEY EXECUTIVES:
Steven M. Rales, Chairman
H. Lawrence Culp Jr., President & CEO
Daniel L. Comas, Exec. VP & CFO
Daniel A. Raskas, VP of Corporate Development
NO. OF EMPLOYEES: 59,000 (total)
GLOBAL HEADQUARTERS: Washington, D.C.
Washington, D.C.-based Danaher Corp. goes about its business quietly. Or perhaps that’s better phrased as businesses (plural). Chances are that people are more familiar with the brands that Danaher makes than they are with the parent company. Danaher’s diverse brands are broken down into five categories: Test & Measurement; Environmental; Life Sciences & Diagnostics; Dental; and Industrial Technologies.
In the medical device space, the company’s Dental and Life Sciences & Diagnostics divisions are of interest to the Medical Product Outsourcing (MPO) audience. Danaher’s Life Sciences and Diagnostics units provide technology for clinical histopathology laboratories, hospital central labs and point-of-care locations, as well as government, academic and pharmaceutical research laboratories. The Dental division provides devices for dental operatory, including dental consumables, digital imaging products, precision dental hand pieces, treatment units and diagnostic systems. On the medical device side, Danaher more likely is known for its varied product lines than its company moniker. Divisions include such brands as AB Sciex, Dexis, Gendex, Imaging Sciences International, Instrumentarium Dental, Invetech (a contract manufacturer with which MPO readers may be familiar), KaVo, Dessert, Kerr, Leica Microsystems, Ormco, Pelton & Crane, Radiometer, Soredex and SybronEndo.
For the 2011 fiscal year (ended Dec. 31) revenues for everything under the Danaher corporate umbrella were $16.1 billion compared to $12.6 billion in 2010, an increase of 28 percent. The significant increase was due in large part to the acquisition of diagnostic firm Beckman Coulter in early 2011 for $6.8 billion, which Danaher added to its Sciences & Diagnostics division. The deal was completed in June 2011. Overall net earnings were $1.9 billion, or $2.77 per share on a diluted basis, compared with net earnings of $1.7 billion, or $2.53 per share on a diluted basis for 2010. The company divested a number of non-life-science-related firms in 2011, which has been part of an ongoing corporate strategy to focus on existing operations or to acquire faster-growing, more profitable businesses that are less dependent on cyclical demand. A total of 13 companies across all product categories were acquired. Notably, research and development spending topped the $1 billion mark for the first time in Danaher’s history. For the company overall, emerging market revenues grew more than 12 percent in 2011 compared to 2010. The company also has doubled its low-cost region sourcing to nearly 30 percent from 2005 to 2011.
H. Lawrence Culp, Jr., president and CEO called 2011 a “tremendous” year for the company.
The Life Sciences & Diagnostics sector recorded $4.6 billion in sales, up from $2.3 billion in 2010. Operating profit was $402 million, a significant increase compared with $228 million for fiscal 2010. Acquisitions (the Beckman Coulter buyout) were responsible 91 percent of sales growth. Sales for this segment in 2011 by geographic destination were: Europe, 37 percent; North America, 31 percent; Asia/Australia, 27 percent; and other regions, 5 percent. Sales by geographic destination in 2012 are expected to differ from sales by geographic destination during 2011 as a result of the June 2011 acquisition of Beckman Coulter. More of the segment’s 2012 sales are anticipated to be in North America.
Sales from existing businesses in the segment’s acute care diagnostics business grew at a high single-digit rate during 2011 as a result of strong consumable sales related to the business’ installed base of acute care diagnostic instrumentation and new instrument placements, primarily in Europe, China and other Asian markets. Demand for the business’ compact blood gas analyzer also remained strong, particularly in emerging markets, the company reported. Increased European and emerging market demand for the business’ cardiac care instruments also contributed to growth. Sales from existing businesses in the pathology diagnostics business also grew at a high single-digit rate during 2011 due to increased demand for advanced staining instruments and consumables, as well as higher sales of core histology systems and consumables, primarily in North America and emerging markets, and to a lesser extent, Europe. The acquisition of Beckman Coulter significantly expanded the segment’s product portfolio in the area of clinical diagnostics through the addition of new and complementary product and service offerings. Sales from existing businesses in the segment’s microscopy business grew at a mid single-digit rate during 2011 due to demand for confocal and compound instrumentation serving the life-sciences research and industrial markets, particularly in China and other emerging markets. Strong demand for mass spectrometers serving both the academic and proteomic research markets as well as the applied markets resulted in a low double-digit growth rate from sales from existing businesses. Sales from existing businesses in the mass spectrometry business grew in all major geographies during 2011 led by strong performance in the Asia-Pacific region and North America. Company officials expect “significant cost synergies” by applying existing Danaher business models to Beckman Coulter and the combined purchasing power of the company and Beckman Coulter.
Danaher’s Dental division businesses took a $2 billion bite out of the market in terms of sales. That’s up compared to $1.8 billion in 2010. Total operating profit was $236 million, compared to $203 million for the previous fiscal year. Dental segment sales by location were: North America, 49 percent; Europe, 34 percent; Asia/Australia, 10 percent; and other regions, 7 percent. Price increases throughout the Dental segment contributed 1 percent to sales growth during 2011. Sales from existing businesses in the dental consumables business grew at a mid single-digit rate in 2011 driven primarily by increased demand for general dentistry consumables and orthodontic products and, to a lesser extent, infection control products, the company reported. Sales in the dental consumables business grew in all major geographies. Increased sales of imaging products were led by North America, and to lesser extent, the emerging markets, while instrument sales growth was driven largely by North America and Europe.
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