WASHINGTON, July 25, 2016 /PRNewswire/ — Danaher Corporation (NYSE: DHR) today announced results for the second quarter 2016. For the quarter ended July 1, 2016, net earnings from continuing operations were $656.7 million, or $0.94 per diluted share on a GAAP basis, which represents a 5% year-over-year decrease. The results for the second quarter include the operations of Fortive Corporation (“Fortive”), which was spun-off to Danaher’s shareholders on July 2, 2016.
Non-GAAP adjusted diluted net earnings per share from continuing operations for the second quarter 2016 was $1.25 per share, which reflects the adjustments identified in the attached reconciliation schedule. This represents a 17% increase over the comparable 2015 amount.
For the second quarter 2016, revenues increased 16.5% year-over-year to $5.8 billion, with core revenue growth of 2.0% (non-GAAP). Operating cash flow from continuing operations of $2.1 billion was up 26% on the comparable 2015 amount.
For the third quarter 2016, the Company anticipates that GAAP diluted net earnings per share from continuing operations will be $0.47 to $0.51. Non-GAAP adjusted diluted net earnings per share from continuing operations is expected to be $0.80 to $0.84, reflecting the adjustments identified on the attached reconciliation schedule.
For the full year 2016, the Company anticipates GAAP diluted net earnings per share from continuing operations to be $2.79 to $2.86. Non-GAAP adjusted diluted net earnings per share from continuing operations is expected to be $3.53 to $3.60, reflecting the adjustments identified on the attached reconciliation schedule. Both the third quarter and full year 2016 guidance treat Fortive as a discontinued operation for the full year 2016.
Thomas P. Joyce, Jr., President and Chief Executive Officer, stated, “We were pleased with our performance in the second quarter. Our team continued to execute well in challenging economic conditions, delivering high-teens adjusted earnings per share growth, and strong operating and free cash flow from continuing operations in the quarter.”
Joyce added, “We also successfully completed the spin-off of Fortive on July 2nd. Going forward, Danaher will be a diversified, multi-industry, science and technology company with the Danaher Business System continuing as our foundation and competitive advantage.”
Danaher will discuss its results during its quarterly 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) 967-7187 within the U.S. or by dialing (719) 457-1506 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 investor conference call (access code 2425315). A replay of the conference call will be available shortly after the conclusion of the call and until Monday, August 1, 2016. You can access the replay dial-in information on the “Investors” section of Danaher’s website under the subheading “Events & Presentations.” In addition, presentation materials relating to Danaher’s results have been posted to the “Investors” section of Danaher’s website under the subheading “Financial Information – Quarterly Earnings.”
Danaher is a global science and technology innovator committed to helping its customers solve complex challenges and improving quality of life around the world. Its family of world class brands have leadership positions in some of the most demanding and attractive industries, including health care, environmental and industrial. With more than 20 operating companies, Danaher’s globally diverse team of 59,000 associates is united by a common culture and operating system, the Danaher Business System. For more information please visit www.danaher.com.
In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), this earnings release also contains non-GAAP financial measures. The reasons why we believe these measures provide useful information to investors, a reconciliation of these measures to the most directly comparable GAAP measures and other information relating to these measures are included in the supplemental reconciliation schedule attached.
Statements in this release that are not strictly historical, including the statements regarding the Company’s anticipated financial performance for the third quarter and full year 2016, future prospects 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, deterioration of or instability in the economy, the markets we serve and the financial markets, the impact of our restructuring activities on our ability to grow, 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 ability to successfully identify, consummate and integrate appropriate acquisitions and successfully complete divestitures and other dispositions, our ability to integrate the recent acquisition of Pall Corporation and achieve the anticipated benefits of that transaction, contingent liabilities relating to acquisitions and divestitures (including tax-related and other contingent liabilities relating to the distribution of Fortive Corporation), our compliance with applicable laws and regulations (including regulations relating to medical devices and the health care industry) and changes in applicable laws and regulations, our ability to effectively address cost reductions and other changes in the health care industry, 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, litigation and other contingent liabilities including intellectual property and environmental, health and safety matters, risks relating to product, service or software defects, product liability and recalls, risks relating to product manufacturing, the impact of our debt obligations on our operations and liquidity, our relationships with and the performance of our channel partners, commodity costs and surcharges, our ability to adjust purchases and manufacturing capacity to reflect market conditions, reliance on sole sources of supply, labor matters, international economic, political, legal, compliance and business factors (including the impact of the UK referendum to leave the EU), disruptions relating to man-made and natural disasters, security breaches or other disruptions of our information technology systems and pension plan costs. 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 2015 Annual Report on Form 10-K and Quarterly Report on Form 10-Q for the second quarter of 2016. These forward-looking statements speak only as of the date of this release and 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.
This information is presented for reference only. A complete copy of Danaher’s Form 10-Q financial statements is available on the Company’s website (www.danaher.com).
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 to:
The items excluded from the non-GAAP profitability and revenue measures set forth above have been excluded for the following reasons:
The Company estimates the tax effect of the items excluded from the non-GAAP measures above, as applicable, by applying the Company’s overall estimated effective tax rate to the pretax amount of each adjustment item, 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.
SOURCE Danaher Corporation