Danaher 2009 Annual Report Download - page 39

Table of Contents
The segment’s dental business’ revenue in 2008 was essentially flat as compared to 2007. Revenues in the dental technologies business grew at a mid-single
digit rate through the first nine months of 2008 primarily driven by strong demand for imaging equipment. However, a significant decline in demand in the
fourth quarter for the majority of the products in the dental technologies’ business, including imaging equipment, more than offset this earlier growth resulting
in low-single digit sales declines for the year. The decline in demand is primarily attributable to customer decisions to cancel or delay capital spending as well
as inventory reductions in certain distribution channels. Offsetting the 2008 sales declines in the dental technologies business was low-single digit growth in
the dental consumables business. Sales growth in the dental consumables’ businesses was primarily due to strong sales of general dentistry consumables and
increased demand for endodontic and infection control products, offset by lower demand in the orthodontia product line.
INDUSTRIAL TECHNOLOGIES
Businesses in the Industrial Technologies segment manufacture products and sub-systems that are typically incorporated by customers and systems
integrators into production and packaging lines, as well as incorporated by original equipment manufacturers (“OEMs”) into various end-products. Many of
the businesses also provide services to support their products, including helping customers integrate and install the products and helping ensure product
uptime. The Industrial Technologies segment encompasses two strategic lines of business, product identification and motion, and two focused niche
businesses, aerospace and defense, and sensors and controls. These businesses produce and sell product identification equipment and consumables; precision
motion control equipment; monitoring, sensing and control devices; and aerospace safety devices and defense articles. In the third quarter of 2007, the
Company disposed of the power quality businesses that were part of this segment and all 2007 segment results have been adjusted to exclude the results of
these discontinued operations.
Industrial Technologies Segment Selected Financial Data


  
Sales $2,658.0 $3,265.5 $3,153.4
Operating profit 383.2 522.1 532.5
Depreciation and amortization 56.0 64.4 63.2
Restructuring and other related charges 60.7 23.1 —
Operating profit as a % of sales 14.4% 16.0% 16.9%
Depreciation and amortization as a % of sales 2.1% 2.0% 2.0%
Restructuring and other related charges as a % of sales 2.3% 0.7% —
Components of Sales Growth (Decline)
 
Existing businesses (16.0)% 1.5%
Acquisitions 0.5% —
Currency exchange rates (3.0)% 2.0%
Total (18.5)% 3.5%
2009 COMPARED TO 2008
Sales declines in a majority of the segment’s businesses during 2009 more than offset sales growth of approximately 1.5% related to price increases which are
reflected as a component of the decrease in sales from existing businesses.
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Source: DANAHER CORP /DE/, 10-K, February 24, 2010 Powered by Morningstar® Document Research℠
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