WASHINGTON, Jan. 29,
2025 /PRNewswire/ -- Danaher Corporation (NYSE: DHR)
(the "Company") today announced results for the fourth quarter and
full year 2024. All results in this release reflect only
continuing operations unless otherwise noted.
Key Fourth Quarter 2024 Results
- Net earnings were $1.1 billion,
or $1.49 per diluted common share and
non-GAAP adjusted diluted net earnings per common share were
$2.14.
- Revenues increased 2.0% year-over-year to $6.5 billion and non-GAAP core revenue increased
1.0%.
- Operating cash flow was $2.0
billion and non-GAAP free cash flow was $1.5 billion.
Key Full Year 2024 Results
- Net earnings were $3.9 billion,
or $5.29 per diluted common share and
non-GAAP adjusted diluted net earnings per common share were
$7.48.
- Revenues of $23.9 billion were
flat year-over-year and non-GAAP core revenue decreased 1.5%.
- Operating cash flow was $6.7
billion and non-GAAP free cash flow was $5.3 billion.
Rainer M. Blair, President and
Chief Executive Officer, stated, "We finished the year strong, with
better-than-anticipated core revenue in all three of our
segments. Good execution by our team also drove solid cash
flow and operating margin expansion."
Blair continued, "Looking ahead, we believe Danaher is better
positioned than at any point in our 40-year history. The
transformation in our portfolio over the last several years has
created a focused life sciences and diagnostics innovator, poised
for higher long-term growth, expanded margins and stronger cash
flow."
First Quarter and Full Year 2025 Outlook
The Company provides forecasted sales only on a non-GAAP core
revenue basis because of the difficulty in estimating the other
components of GAAP revenue, such as currency translation,
acquisitions and divested product lines.
For the first quarter 2025, the Company anticipates that
non-GAAP core revenue will decline low-single digits
year-over-year. For full year 2025, the Company expects that
non-GAAP core revenue will increase approximately 3%
year-over-year.
Conference Call and Webcast Information
Danaher will discuss its fourth quarter results and financial
guidance for the first quarter and full year 2025 during its
investor conference call today starting at 8:00 a.m. ET. The call and an accompanying
slide presentation will be webcast on the "Investors" section of
Danaher's website, www.danaher.com, under the subheading "Events
& Presentations." A replay of the webcast will be
available in the same section of Danaher's website shortly after
the conclusion of the presentation and will remain available until
the next quarterly earnings call.
The conference call can be accessed by dialing 800-445-7795
within the U.S. or by dialing +1 785-424-1699 outside the U.S. a
few minutes before the 8:00 a.m. ET
start and telling the operator that you are dialing in for
Danaher's earnings conference call (Conference ID: DHRQ424).
A replay of the conference call will be available shortly after the
conclusion of the call and until February
12, 2025. You can access the replay dial-in
information on the "Investors" section of Danaher's website under
the subheading "Events & Presentations."
ABOUT DANAHER
Danaher is a leading global life sciences and diagnostics
innovator, committed to accelerating the power of science and
technology to improve human health. Our businesses partner
closely with customers to solve many of the most important health
challenges impacting patients around the world. Danaher's
advanced science and technology - and proven ability to innovate -
help enable faster, more accurate diagnoses and help reduce the
time and cost needed to sustainably discover, develop and deliver
life-changing therapies. Focused on scientific excellence,
innovation and continuous improvement, our approximately 63,000
associates worldwide help ensure that Danaher is improving quality
of life for billions of people today, while setting the foundation
for a healthier, more sustainable tomorrow. Explore more at
www.danaher.com.
NON-GAAP MEASURES AND SUPPLEMENTAL MATERIALS
In addition to the financial measures prepared in accordance
with U.S. generally accepted accounting principles (GAAP), this
earnings release also contains non-GAAP financial measures.
Calculations of these measures, explanations of what these measures
represent and the reasons why we believe these measures provide
useful information to investors, a reconciliation of these measures
to the most directly comparable GAAP measures, as applicable, and
other information relating to these non-GAAP measures are included
in the supplemental reconciliation schedule attached.
In addition, this earnings release, the slide presentation
accompanying the related earnings call, non-GAAP reconciliations
and a note containing details of historical and anticipated, future
financial performance have been posted to the "Investors" section
of Danaher's website (www.danaher.com).
FORWARD-LOOKING STATEMENTS
Statements in this release that are not strictly historical,
including the statements regarding the anticipated financial
results for the first quarter and full year 2025, the Company's
positioning for the future and any other statements regarding
events or developments that we believe or anticipate will or may
occur in the future are "forward-looking" statements within the
meaning of the federal securities laws. There are a number of
important factors that could cause actual results, developments and
business decisions to differ materially from those suggested or
indicated by such forward-looking statements and you should not
place undue reliance on any such forward-looking statements.
These factors include, among other things: unanticipated, further
declines in demand for our COVID-19 related products, the impact of
global health crises, the impact of our debt obligations on our
operations and liquidity, deterioration of or instability in the
global economy, the markets we serve and the financial markets,
uncertainties with respect to the development, deployment, and use
of artificial intelligence in our business and products,
uncertainties relating to national laws or policies, including laws
or policies to protect or promote domestic interests and/or address
foreign competition, contractions or growth rates and cyclicality
of markets we serve, competition, our ability to develop and
successfully market new products and technologies and expand into
new markets, the potential for improper conduct by our employees,
agents or business partners, our compliance with applicable laws
and regulations (including rules relating to off-label marketing
and other regulations relating to medical devices and the health
care industry), the results of our clinical trials and perceptions
thereof, our ability to effectively address cost reductions and
other changes in the health care industry, our ability to
successfully identify and consummate appropriate acquisitions and
strategic investments, our ability to integrate the businesses we
acquire and achieve the anticipated growth, synergies and other
benefits of such acquisitions, contingent liabilities and other
risks relating to acquisitions, investments, strategic
relationships and divestitures (including tax-related and other
contingent liabilities relating to past and future IPOs, split-offs
or spin-offs), security breaches or other disruptions of our
information technology systems or violations of data privacy laws,
the impact of our restructuring activities on our ability to grow,
risks relating to potential impairment of goodwill and other
intangible assets, currency exchange rates, tax audits and changes
in our tax rate and income tax liabilities, changes in tax laws
applicable to multinational companies, litigation and other
contingent liabilities including intellectual property and
environmental, health and safety matters, the rights of
the United States government with
respect to our production capacity in times of national emergency
or with respect to intellectual property/production capacity
developed using government funding, risks relating to product,
service or software defects, product liability and recalls, risks
relating to our manufacturing operations and fluctuations in the
cost and availability of the supplies we use (including
commodities) and labor we need for our operations, our
relationships with and the performance of our channel partners,
uncertainties relating to collaboration arrangements with
third-parties, the impact of deregulation on demand for our
products and services, the impact of climate change, legal or
regulatory measures to address climate change and our ability to
address stakeholder expectations relating to climate change, labor
matters and our ability to recruit, retain and motivate talented
employees representing diverse backgrounds, experiences and skill
sets, non-U.S. economic, political, legal, compliance, social and
business factors (including the impact of military conflicts),
disruptions and other impacts relating to man-made and natural
disasters, inflation and the impact of our By-law exclusive forum
provisions. 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 2023 Annual Report on Form 10-K and Quarterly Report
on Form 10-Q for the third quarter of 2024. These
forward-looking statements speak only as of the date of this
release and except to the extent required by applicable law, the
Company does not assume any obligation to update or revise any
forward-looking statement, whether as a result of new information,
future events and developments or otherwise.
|
DANAHER CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES
|
|
|
Diluted Net Earnings
Per Common Share and Adjusted Diluted Net Earnings Per Common
Share1
|
|
|
Three-Month
Period Ended
|
|
Year
Ended
|
|
December 31,
2024
|
|
December 31,
2023
|
|
December 31,
2024
|
|
December 31,
2023
|
|
Diluted Net Earnings
Per Common Share
From Continuing Operations (GAAP)
|
$
1.49
|
|
$
1.50
|
|
$
5.29
|
|
$
5.65
|
|
Amortization of
acquisition-related intangible
assetsA
|
0.56
|
|
0.51
|
|
2.21
|
|
2.00
|
|
Fair value net (gains)
losses on
investmentsB
|
0.09
|
|
0.19
|
|
0.08
|
|
0.24
|
|
ImpairmentsC
|
0.06
|
|
0.05
|
|
0.36
|
|
0.10
|
|
Acquisition-related
itemsD
|
—
|
|
0.13
|
|
0.03
|
|
0.13
|
|
Litigation
gainsE
|
—
|
|
(0.01)
|
|
—
|
|
(0.01)
|
|
Contract termination
expenseF
|
0.08
|
|
—
|
|
0.08
|
|
—
|
|
Tax effect of the
above adjustmentsG
|
(0.13)
|
|
(0.18)
|
|
(0.51)
|
|
(0.47)
|
|
Discrete tax
adjustmentsH
|
(0.01)
|
|
(0.10)
|
|
(0.07)
|
|
(0.06)
|
|
MCPS "as if
converted"I
|
—
|
|
—
|
|
—
|
|
0.01
|
|
Rounding
|
—
|
|
—
|
|
0.01
|
|
(0.01)
|
|
Adjusted Diluted Net
Earnings Per Common
Share From Continuing Operations (Non-
GAAP)
|
$
2.14
|
|
$
2.09
|
|
$
7.48
|
|
$
7.58
|
|
|
|
1
|
For the year ended
December 31, 2023, each of the per share adjustment amounts above
have been calculated assuming the Mandatory Convertible Preferred
Stock ("MCPS") had been converted into shares of common stock as of
all dates presented.
|
|
Notes to Above
Reconciliation
|
|
|
|
A
|
Amortization of
acquisition-related intangible assets in the following historical
periods ($ in millions) (only the pretax amounts set forth
below are reflected in the amortization line item
above):
|
|
|
|
|
|
|
|
|
Three-Month Period
Ended
|
|
Year
Ended
|
|
|
|
|
December 31,
2024
|
|
December 31,
2023
|
|
December 31,
2024
|
|
December 31,
2023
|
|
|
|
Pretax
|
$
408
|
|
$
380
|
|
$
1,631
|
|
$
1,491
|
|
|
|
After-tax
|
338
|
|
317
|
|
1,346
|
|
1,226
|
|
|
|
B
|
Net (gains) losses,
including impairments, on the Company's equity and limited
partnership investments recorded in the following historical
periods ($ in millions) (only the pretax amounts set forth below
are reflected in the fair value net (gains) losses on
investments line above):
|
|
|
|
|
|
|
|
|
|
Three-Month Period
Ended
|
|
Year
Ended
|
|
|
|
|
December 31,
2024
|
|
December 31,
2023
|
|
December 31,
2024
|
|
December 31,
2023
|
|
|
|
Pretax
|
$
64
|
|
$
139
|
|
$
57
|
|
$
182
|
|
|
|
After-tax
|
48
|
|
98
|
|
39
|
|
130
|
|
|
|
C
|
Impairment charges
related to a trade name in the Diagnostics segment recorded in the
three-month period and year ended December 31, 2024
($43 million pretax as reported in this line item,
$32 million after-tax), a trade name in the Life Sciences
segment recorded in the year ended December 31, 2024
($222 million pretax as reported in this line item,
$169 million after-tax), technology-based intangible assets in
the Diagnostics segment recorded in the three-month period and year
ended December 31, 2023 ($23 million pretax as reported in
this line, $18 million after-tax) and technology-based
intangible assets and other assets in the Biotechnology segment
recorded in the three-month period and year ended December 31, 2023
($12 million and $54 million pretax as reported in this
line item, $8 million and $40 million after-tax,
respectively).
|
|
|
|
D
|
Costs incurred for the
fair value adjustment to inventory related to the acquisition
of Abcam plc ("Abcam") for the year ended December 31, 2024
($25 million pretax as reported in this line item, $19 million
after-tax). Transaction costs deemed significant, settlement
of pre-acquisition share-based payment awards and fair value
adjustments to inventory in each case related to the acquisition of
Abcam in the three-month period and year ended December 31, 2023
($95 million pretax as reported in this line item, $75 million
after-tax). The Company deems acquisition-related transaction
costs incurred in a given period to be significant (generally
relating to the Company's larger acquisitions) if it determines
that such costs exceed the range of acquisition-related transaction
costs typical for the Company in a given period.
|
|
|
|
E
|
Gain related to
settlement of litigation in the Life Sciences segment recorded in
the three-month period and year ended December 31, 2023 ($10
million pretax as reported in this line, $8 million
after-tax).
|
|
|
|
F
|
Loss on the termination
of a commercial agreement in the Diagnostics segment in the
three-month period and year ended December 31, 2024 ($56 million
pretax as reported in this line item, $56 million
after-tax).
|
|
|
|
G
|
This line item reflects
the aggregate tax effect of all non-tax adjustments reflected in
the preceding line items of the table. In addition, the
footnotes above indicate the after-tax amount of each individual
adjustment item. Danaher estimates the tax effect of each
adjustment item by applying Danaher's overall estimated effective
tax rate to the pretax amount, unless the nature of the item and/or
the tax jurisdiction in which the item has been recorded requires
application of a specific tax rate or tax treatment, in which case
the tax effect of such item is estimated by applying such specific
tax rate or tax treatment. The MCPS dividends are not tax
deductible and therefore the tax effect of the adjustments does not
include any tax impact of the MCPS dividends.
|
|
|
|
H
|
Discrete tax
adjustments and other tax-related adjustments for the three-month
period ended December 31, 2024, include the impact of net
discrete tax benefits of $4 million due principally to net discrete
tax benefits resulting from the release of reserves for uncertain
tax positions due to the expiration of statutes of limitation and
changes in estimates related to prior year tax filing positions,
net of charges related to changes in estimates associated with
prior period uncertain tax positions. Discrete tax
adjustments and other tax-related adjustments for the year ended
December 31, 2024 include the impact of net discrete tax
benefits of $49 million due principally to net discrete tax
benefits resulting from excess tax benefits from stock
compensation, the release of reserves for uncertain tax positions
due to the expiration of statutes of limitation and changes in
estimates related to prior year tax filing positions, net of
charges related to changes in estimates associated with prior
period uncertain tax positions. Discrete tax adjustments for
the three-month period ended December 31, 2023, include the
impact of net discrete tax benefits of $71 million due principally
to net deferred tax benefits resulting from changes in estimates
related to prior year tax filing positions and the release of
reserves for uncertain tax positions due to the expiration of
statutes of limitation, net of charges related to changes in
estimates associated with prior period uncertain tax
positions. Discrete tax adjustments and other tax-related
adjustments for the year ended December 31, 2023 include the
impact of net discrete tax benefits of $47 million due principally
to net discrete tax benefits from changes in estimates related to
prior year tax filing positions, the release of reserves for
uncertain tax positions due to the expiration of statutes of
limitation and excess tax benefits from stock-based compensation,
net of charges related to tax costs related to the separation of
Veralto Corporation, tax costs from legal and operational actions
undertaken to realign certain of its businesses and changes in
estimates associated with prior period uncertain tax
positions. The Company anticipates excess tax benefits from
stock compensation of approximately $7 million per quarter and
therefore excludes benefits in excess of this amount in the
calculation of adjusted diluted net earnings from continuing
operations per common share.
|
|
|
|
I
|
In May 2020, the
Company issued $1.72 billion in aggregate liquidation preference of
5.0% MCPS. Dividends on the MCPS were payable on a cumulative
basis at an annual rate of 5.0% on the liquidation preference of
$1,000 per share. Each share of MCPS converted on April 17,
2023 into 5.0175 shares of Danaher's common stock. For the
calculation of net earnings per common share from continuing
operations, the impact of the dilutive MCPS is calculated under the
"if-converted" method and the related MCPS dividends are
excluded. For the purposes of calculating adjusted earnings
per common share from continuing operations, the Company has
excluded the paid MCPS cash dividends and assumed the
"if-converted" method of share dilution (the incremental shares of
common stock deemed outstanding applying the "if-converted" method
of calculating share dilution only with respect to any MCPS the
conversion of which would be dilutive in the particular period are
referred to as the "Converted Shares") for any MCPS that were
anti-dilutive for the given period. For additional
information about the impact of the MCPS on the calculation of
diluted EPS, see note 2 in the Average and Adjusted Average Common
Stock and Common Equivalent Diluted Shares Outstanding table
below.
|
|
Average and Adjusted
Average Common Stock and Common Equivalent Diluted Shares
Outstanding
|
|
(shares in
millions)
|
|
|
Three-Month Period
Ended
|
|
Year
Ended
|
|
December 31,
2024
|
|
December 31,
2023
|
|
December 31,
2024
|
|
December 31,
2023
|
|
Average common stock
and common
equivalent shares outstanding - diluted
(GAAP)2
|
728.2
|
|
746.1
|
|
737.2
|
|
743.1
|
|
Converted
shares3
|
—
|
|
—
|
|
—
|
|
2.5
|
|
Adjusted average
common stock and common
equivalent shares outstanding - diluted (non-
GAAP)
|
728.2
|
|
746.1
|
|
737.2
|
|
745.6
|
|
|
|
2
|
The impact of
the MCPS calculated under the if-converted method was
anti-dilutive for the year ended December 31, 2023 and as
such, approximately 2.5 million shares underlying the MCPS
were excluded from the calculation of diluted EPS for the period
and the related MCPS dividends of $21 million were included in the
calculation of net earnings for diluted EPS for the
period. As of April 17, 2023, all outstanding shares of
the MCPS converted into 8.6 million shares of the Company's
common stock.
|
|
3
|
The number of converted
shares assumes the conversion of all MCPS and issuance of the
underlying shares applying the "if-converted" method of accounting
and using the actual conversion rates as of December 31,
2023.
|
|
Sales Growth
(Decline) by Segment, Core Sales Growth (Decline) by
Segment
|
|
|
% Change Three-Month
Period Ended December 31, 2024 vs. Comparable
2023 Period
|
|
|
|
Segments
|
|
Total
Company
|
|
Biotechnology
|
|
Life
Sciences
|
|
Diagnostics
|
|
Total sales growth
(decline) (GAAP)
|
2.0 %
|
|
6.5 %
|
|
5.5 %
|
|
(3.0) %
|
|
Impact of:
|
|
|
|
|
|
|
|
|
Acquisitions
|
(1.5) %
|
|
— %
|
|
(5.0) %
|
|
— %
|
|
Currency exchange
rates
|
0.5 %
|
|
1.5 %
|
|
0.5 %
|
|
1.0 %
|
|
Core sales growth
(decline) (non-GAAP)
|
1.0 %
|
|
8.0 %
|
|
1.0 %
|
|
(2.0) %
|
|
|
|
% Change Year Ended
December 31, 2024 vs. Comparable 2023 Period
|
|
|
|
Segments
|
|
Total
Company
|
|
Biotechnology
|
|
Life
Sciences
|
|
Diagnostics
|
|
Total sales growth
(decline) (GAAP)
|
— %
|
|
(6.0) %
|
|
2.5 %
|
|
2.0 %
|
|
Impact of:
|
|
|
|
|
|
|
|
|
Acquisitions
|
(2.0) %
|
|
— %
|
|
(6.0) %
|
|
— %
|
|
Currency exchange
rates
|
0.5 %
|
|
1.5 %
|
|
1.5 %
|
|
1.0 %
|
|
Core sales (decline)
growth (non-GAAP)
|
(1.5) %
|
|
(4.5) %
|
|
(2.0) %
|
|
3.0 %
|
|
Forecasted Core
Sales (Decline) Growth
|
|
The Company provides
forecasted sales only on a non-GAAP core revenue basis because of
the difficulty in estimating the other components of GAAP revenue,
such as currency translation, acquisitions and divested product
lines.
|
|
|
% Change
Three-Month
Period Ending March
28, 2025 vs.
Comparable 2024
Period
|
|
% Change Year
Ending
December 31, 2025 vs.
Comparable 2024
Period
|
|
Core sales (decline)
growth (non-GAAP)
|
-Low single
digit
|
|
~3.0%
|
|
Cash Flow from
Continuing Operations and Free Cash Flow from Continuing
Operations
($ in
millions)
|
|
|
Three-Month Period
Ended
|
|
Year-over-
Year
Change
|
|
Year
Ended
|
|
Year-over-
Year
Change
|
|
December 31,
2024
|
|
December 31,
2023
|
|
|
December 31,
2024
|
|
December 31,
2023
|
|
|
Total Cash Flows
from Continuing
Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cash provided by
operating
activities from continuing operations
(GAAP)
|
$
2,019
|
|
$
1,591
|
|
|
|
$
6,688
|
|
$
6,490
|
|
|
|
Total cash used in
investing activities
from continuing operations (GAAP)
|
$
(694)
|
|
$
(6,017)
|
|
|
|
$
(1,981)
|
|
$
(7,048)
|
|
|
|
Total cash (used in)
provided by
financing activities from continuing
operations (GAAP)
|
$
(1,692)
|
|
$
(1,819)
|
|
|
|
$
(8,385)
|
|
$
154
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow from
Continuing
Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cash provided by
operating
activities from continuing operations
(GAAP)
|
$
2,019
|
|
$
1,591
|
|
~27.0 %
|
|
$
6,688
|
|
$
6,490
|
|
~3.0 %
|
|
Less: payments for
additions to
property, plant & equipment (capital
expenditures) from continuing
operations (GAAP)
|
(516)
|
|
(434)
|
|
|
|
(1,392)
|
|
(1,383)
|
|
|
|
Plus: proceeds from
sales of property,
plant & equipment (capital disposals)
from continuing operations (GAAP)
|
1
|
|
6
|
|
|
|
13
|
|
12
|
|
|
|
Free cash flow from
continuing
operations (non-GAAP)
|
$
1,504
|
|
$
1,163
|
|
~29.5 %
|
|
$
5,309
|
|
$
5,119
|
|
~3.5 %
|
|
|
Note: The Company
defines free cash flow as operating cash flows from continuing
operations, less payments for additions to property, plant and
equipment from continuing operations ("capital expenditures") plus
the proceeds from sales of plant, property and equipment from
continuing operations ("capital disposals"). All amounts
presented above reflect only continuing
operations.
|
Statement Regarding Non-GAAP Measures
Each of the non-GAAP measures set forth above should be
considered in addition to, and not as a replacement for or superior
to, the comparable GAAP measure, and may not be comparable to
similarly titled measures reported by other companies.
Management believes that these measures provide useful information
to investors by offering additional ways of viewing Danaher
Corporation's ("Danaher" or the "Company") results that, when
reconciled to the corresponding GAAP measure, help our
investors:
- with respect to the profitability-related non-GAAP measures,
understand the long-term profitability trends of our business and
compare our profitability to prior and future periods and to our
peers;
- with respect to core sales, identify underlying growth trends
in our business and compare our sales performance with prior and
future periods and to our peers; and
- with respect to free cash flow from continuing operations (the
"FCF Measure"), understand Danaher's ability to generate cash
without external financings, strengthen its balance sheet, invest
in its business and grow its business through acquisitions and
other strategic opportunities (although a limitation of free cash
flow is that it does not take into account the Company's debt
service requirements and other non-discretionary expenditures, and
as a result the entire free cash flow amount is not necessarily
available for discretionary expenditures).
Management uses the non-GAAP measures referenced above to
measure the Company's operating and financial performance, and uses
core sales and non-GAAP measures similar to Adjusted Diluted Net
Earnings Per Common Share from Continuing Operations and
the FCF Measure in the Company's executive compensation
program.
- The items excluded from the non-GAAP profitability measures set
forth above have been excluded for the following reasons:
- Amortization of Intangible Assets: We exclude the amortization
of acquisition-related intangible assets because the amount and
timing of such charges are significantly impacted by the timing,
size, number and nature of the acquisitions we consummate. While we
have a history of significant acquisition activity we do not
acquire businesses on a predictable cycle, and the amount of an
acquisition's purchase price allocated to intangible assets and
related amortization term are unique to each acquisition and can
vary significantly from acquisition to acquisition. Exclusion of
this amortization expense facilitates more consistent comparisons
of operating results over time between our newly acquired and
long-held businesses, and with both acquisitive and non-acquisitive
peer companies. We believe however that it is important for
investors to understand that such intangible assets contribute to
sales generation and that intangible asset amortization related to
past acquisitions will recur in future periods until such
intangible assets have been fully amortized.
- Restructuring Charges: We exclude costs incurred pursuant to
discrete restructuring plans that are fundamentally different (in
terms of the size, strategic nature and planning requirements, as
well as the inconsistent frequency, of such plans) from the ongoing
productivity improvements that result from application of the
Danaher Business System. Because these restructuring plans are
incremental to the core activities that arise in the ordinary
course of our business and we believe are not indicative of
Danaher's ongoing operating costs in a given period, we exclude
these costs to facilitate a more consistent comparison of operating
results over time.
- Other Adjustments: With respect to the other items excluded
from Adjusted Diluted Net Earnings Per Common Share from Continuing
Operations, we exclude these items because they are of a nature
and/or size that occur with inconsistent frequency, occur for
reasons that may be unrelated to Danaher's commercial performance
during the period and/or we believe that such items may obscure
underlying business trends and make comparisons of long-term
performance difficult.
- With respect to adjusted average common stock and common
equivalent shares outstanding, Danaher's MCPS mandatorily converted
into Danaher common stock on the mandatory conversion date of
April 17, 2023 (unless converted or
redeemed earlier in accordance with the terms of the applicable
certificate of designations). With respect to the calculation of
Adjusted Diluted Net Earnings Per Common Share from Continuing
Operations, we apply the "if converted" method of share dilution to
the MCPS in all applicable periods irrespective of whether such
preferred shares were dilutive or anti-dilutive in the period. We
believe this presentation provides useful information to investors
by helping them understand the net impact on Danaher's earnings per
share-related measures irrespective of the period.
- With respect to core sales, (1) we exclude the impact of
currency translation because it is not under management's control,
is subject to volatility and can obscure underlying business
trends, and (2) we exclude the effect of acquisitions and divested
product lines because the timing, size, number and nature of such
transactions can vary significantly from period-to-period and
between us and our peers, which we believe may obscure underlying
business trends and make comparisons of long-term performance
difficult.
- With respect to the FCF Measure, we exclude payments for
additions to property, plant and equipment (net of the proceeds
from capital disposals) to demonstrate the amount of operating cash
flow for the period that remains after accounting for the Company's
capital expenditure requirements.
The Company provides forecasted sales only on a non-GAAP basis
because of the difficulty in estimating the other components of
GAAP revenue, such as currency translation, acquisitions and
divested product lines.
|
DANAHER CORPORATION
AND SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS (unaudited)
($ in millions,
except per share amount)
|
|
|
As of December
31
|
|
2024
|
|
2023
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and
equivalents
|
$
2,078
|
|
$
5,864
|
|
Trade accounts
receivable, less allowance for doubtful accounts of $113 as of
December 31, 2024 and $120 as of December 31,
2023
|
3,537
|
|
3,922
|
|
Inventories
|
2,330
|
|
2,594
|
|
Prepaid expenses and
other current assets
|
1,552
|
|
1,557
|
|
Total current
assets
|
9,497
|
|
13,937
|
|
Property, plant and
equipment, net
|
4,990
|
|
4,553
|
|
Other long-term
assets
|
3,990
|
|
3,644
|
|
Goodwill
|
40,497
|
|
41,608
|
|
Other intangible
assets, net
|
18,568
|
|
20,746
|
|
Total assets
|
$
77,542
|
|
$
84,488
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Notes payable and
current portion of long-term debt
|
$
505
|
|
$
1,695
|
|
Trade accounts
payable
|
1,753
|
|
1,766
|
|
Accrued expenses and
other liabilities
|
4,540
|
|
4,813
|
|
Total current
liabilities
|
6,798
|
|
8,274
|
|
Other long-term
liabilities
|
5,694
|
|
6,017
|
|
Long-term
debt
|
15,500
|
|
16,707
|
|
Stockholders'
equity:
|
|
|
|
|
Common stock - $0.01
par value, 2.0 billion shares authorized; 884.3 million issued
and 719.1 million outstanding as of December 31, 2024; 880.5
million issued and
739.2 million outstanding as of December 31, 2023
|
9
|
|
9
|
|
Additional paid-in
capital
|
16,727
|
|
16,170
|
|
Treasury
stock
|
(8,163)
|
|
(2,019)
|
|
Retained
earnings
|
44,188
|
|
41,074
|
|
Accumulated other
comprehensive income (loss)
|
(3,218)
|
|
(1,748)
|
|
Total Danaher
stockholders' equity
|
49,543
|
|
53,486
|
|
Noncontrolling
interests
|
7
|
|
4
|
|
Total stockholders'
equity
|
49,550
|
|
53,490
|
|
Total liabilities and
stockholders' equity
|
$
77,542
|
|
$
84,488
|
|
|
This information is
presented for reference only. Final audited financial
statements will include footnotes, which should be
referenced when available, to more fully understand the contents of
this information.
|
|
DANAHER CORPORATION
AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF EARNINGS (unaudited)
($ and shares in
millions, except per share amounts)
|
|
|
|
|
Three-Month Period
Ended
|
|
Year
Ended
|
|
|
December 31,
2024
|
|
December 31,
2023
|
|
December 31,
2024
|
|
December 31,
2023
|
|
|
Sales
|
$
6,538
|
|
$
6,405
|
|
$
23,875
|
|
$
23,890
|
|
|
Cost of
sales
|
(2,648)
|
|
(2,626)
|
|
(9,669)
|
|
(9,856)
|
|
|
Gross profit
|
3,890
|
|
3,779
|
|
14,206
|
|
14,034
|
|
|
Operating
costs:
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
(2,023)
|
|
(2,035)
|
|
(7,759)
|
|
(7,329)
|
|
|
Research and
development expenses
|
(442)
|
|
(407)
|
|
(1,584)
|
|
(1,503)
|
|
|
Operating
profit
|
1,425
|
|
1,337
|
|
4,863
|
|
5,202
|
|
|
Nonoperating income
(expense):
|
|
|
|
|
|
|
|
|
|
Other income
(expense), net
|
(63)
|
|
(137)
|
|
(56)
|
|
(175)
|
|
|
Interest
expense
|
(61)
|
|
(85)
|
|
(278)
|
|
(286)
|
|
|
Interest
income
|
14
|
|
117
|
|
117
|
|
303
|
|
|
Earnings from
continuing operations before
income taxes
|
1,315
|
|
1,232
|
|
4,646
|
|
5,044
|
|
|
Income taxes
|
(229)
|
|
(111)
|
|
(747)
|
|
(823)
|
|
|
Net earnings from
continuing operations
|
1,086
|
|
1,121
|
|
3,899
|
|
4,221
|
|
|
Earnings from
discontinued operations, net of
income taxes
|
—
|
|
(42)
|
|
—
|
|
543
|
|
|
Net earnings
|
1,086
|
|
1,079
|
|
3,899
|
|
4,764
|
|
|
Mandatory convertible
preferred stock
dividends
|
—
|
|
—
|
|
—
|
|
(21)
|
|
|
Net earnings
attributable to common
stockholders
|
$
1,086
|
|
$
1,079
|
|
$
3,899
|
|
$
4,743
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per common
share from
continuing operations:
|
|
|
|
|
|
|
|
|
|
Basic
|
$
1.50
|
|
$
1.52
|
|
$
5.33
|
|
$
5.70
|
(a)
|
|
Diluted
|
$
1.49
|
|
$
1.50
|
|
$
5.29
|
(a)
|
$
5.65
|
|
|
Net earnings per common
share from
discontinued operations:
|
|
|
|
|
|
|
|
|
|
Basic
|
$
—
|
|
$
(0.06)
|
|
$
—
|
|
$
0.74
|
|
|
Diluted
|
$
—
|
|
$
(0.06)
|
|
$
—
|
|
$
0.73
|
(a)
|
|
Net earnings per common
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
$
1.50
|
|
$
1.46
|
|
$
5.33
|
|
$
6.44
|
(a)
|
|
Diluted
|
$
1.49
|
|
$
1.45
|
(b)
|
$
5.29
|
(a)
|
$
6.38
|
(a)
|
|
Average common stock
and common
equivalent shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
722.7
|
|
739.8
|
|
731.0
|
|
736.5
|
|
|
Diluted
|
728.2
|
|
746.1
|
|
737.2
|
|
743.1
|
|
|
|
|
(a) Net earnings per common share
amount for the relevant three-month periods do not add to the full
year period amount due to rounding.
|
|
(b) Net earnings per common share
amount does not add due to rounding.
|
|
|
|
|
This information is
presented for reference only. Final audited financial
statements will include footnotes, which should be
referenced when available, to more fully understand the contents of
this information.
|
|
|
DANAHER CORPORATION
AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS (unaudited)
($ in
millions)
|
|
|
Year Ended December
31
|
|
2024
|
|
2023
|
|
Cash flows from
operating activities:
|
|
|
|
|
Net
earnings
|
$
3,899
|
|
$
4,764
|
|
Less: earnings from
discontinued operations, net of income taxes
|
—
|
|
(543)
|
|
Net earnings from
continuing operations
|
3,899
|
|
4,221
|
|
Noncash
items:
|
|
|
|
|
Depreciation
|
721
|
|
675
|
|
Amortization of
intangible assets
|
1,631
|
|
1,491
|
|
Amortization of
acquisition-related inventory fair value step-up
|
25
|
|
8
|
|
Stock-based
compensation expense
|
288
|
|
306
|
|
Investment
losses
|
57
|
|
182
|
|
Impairment
charges
|
265
|
|
77
|
|
Change in deferred
income taxes
|
(483)
|
|
(1,204)
|
|
Change in trade
accounts receivable, net
|
331
|
|
322
|
|
Change in
inventories
|
147
|
|
185
|
|
Change in trade
accounts payable
|
19
|
|
(149)
|
|
Change in prepaid
expenses and other assets
|
274
|
|
419
|
|
Change in accrued
expenses and other liabilities
|
(486)
|
|
(43)
|
|
Total operating cash
provided by continuing operations
|
6,688
|
|
6,490
|
|
Total operating cash
provided by discontinued operations
|
—
|
|
674
|
|
Net cash provided by
operating activities
|
6,688
|
|
7,164
|
|
Cash flows from
investing activities:
|
|
|
|
|
Cash paid for
acquisitions
|
(558)
|
|
(5,610)
|
|
Payments for additions
to property, plant and equipment
|
(1,392)
|
|
(1,383)
|
|
Proceeds from sales of
property, plant and equipment
|
13
|
|
12
|
|
Payments for purchases
of investments
|
(331)
|
|
(172)
|
|
Proceeds from sales of
investments
|
253
|
|
61
|
|
All other investing
activities
|
34
|
|
44
|
|
Total cash used in
investing activities from continuing operations
|
(1,981)
|
|
(7,048)
|
|
Total investing cash
used in discontinued operations
|
—
|
|
(33)
|
|
Net cash used in
investing activities
|
(1,981)
|
|
(7,081)
|
|
Cash flows from
financing activities:
|
|
|
|
|
Proceeds from the
issuance of common stock in connection with
stock-based compensation
|
162
|
|
68
|
|
Payment of
dividends
|
(768)
|
|
(821)
|
|
Net proceeds from
(repayments of) borrowings (maturities of 90 days or
less)
|
5
|
|
(1,006)
|
|
Repayments of
borrowings (maturities longer than 90 days)
|
(1,674)
|
|
(620)
|
|
Distribution from
discontinued operations
|
—
|
|
2,600
|
|
Payments for
repurchase of common stock
|
(5,979)
|
|
—
|
|
All other financing
activities
|
(131)
|
|
(67)
|
|
Net cash (used in)
provided by financing activities for continuing
operations
|
(8,385)
|
|
154
|
|
Cash distributions to
Veralto Corporation, net
|
—
|
|
(427)
|
|
Net cash used in
financing activities
|
(8,385)
|
|
(273)
|
|
Effect of exchange rate
changes on cash and equivalents
|
(108)
|
|
59
|
|
Net change in cash and
equivalents
|
(3,786)
|
|
(131)
|
|
Beginning balance of
cash and equivalents
|
5,864
|
|
5,995
|
|
Ending balance of cash
and equivalents
|
$
2,078
|
|
$
5,864
|
|
|
This information is
presented for reference only. Final audited financial
statements will include footnotes, which should be
referenced when available, to more fully understand the contents of
this information.
|
|
DANAHER CORPORATION
AND SUBSIDIARIES
SEGMENT INFORMATION
(unaudited)
($ in
millions)
|
|
|
Three-Month Period
Ended
|
|
Year
Ended
|
|
December 31,
2024
|
|
December 31,
2023
|
|
December 31,
2024
|
|
December 31,
2023
|
|
Sales:
|
|
|
|
|
|
|
|
|
Biotechnology
|
$
1,869
|
|
$
1,759
|
|
$
6,759
|
|
$
7,172
|
|
Life
Sciences
|
2,032
|
|
1,930
|
|
7,329
|
|
7,141
|
|
Diagnostics
|
2,637
|
|
2,716
|
|
9,787
|
|
9,577
|
|
Total
Company
|
$
6,538
|
|
$
6,405
|
|
$
23,875
|
|
$
23,890
|
|
|
|
|
|
|
|
|
|
Operating
Profit:
|
|
|
|
|
|
|
|
|
Biotechnology
|
$
508
|
|
$
416
|
|
$
1,685
|
|
$
1,909
|
|
Life
Sciences
|
376
|
|
235
|
|
879
|
|
1,209
|
|
Diagnostics
|
624
|
|
766
|
|
2,625
|
|
2,406
|
|
Other
|
(83)
|
|
(80)
|
|
(326)
|
|
(322)
|
|
Total
Company
|
$
1,425
|
|
$
1,337
|
|
$
4,863
|
|
$
5,202
|
|
|
|
|
|
|
|
|
|
Operating Profit
Margins:
|
|
|
|
|
|
|
|
|
Biotechnology
|
27.2 %
|
|
23.6 %
|
|
24.9 %
|
|
26.6 %
|
|
Life
Sciences
|
18.5 %
|
|
12.2 %
|
|
12.0 %
|
|
16.9 %
|
|
Diagnostics
|
23.7 %
|
|
28.2 %
|
|
26.8 %
|
|
25.1 %
|
|
Total
Company
|
21.8 %
|
|
20.9 %
|
|
20.4 %
|
|
21.8 %
|
|
|
This information is
presented for reference only. Final audited financial
statements will include footnotes, which should be
referenced when available, to more fully understand the contents of
this information.
|
View original
content:https://www.prnewswire.com/news-releases/danaher-reports-fourth-quarter-and-full-year-2024-results-302362722.html
SOURCE Danaher Corporation
