Danaher 2009 Annual Report Download - page 41

Table of Contents
Overview of Businesses within Industrial Technologies Segment
Product Identification. The product identification businesses accounted for approximately 27% of segment sales in 2008. Sales from the segment’s product
identification businesses decreased 1.5% in 2008 compared to 2007. Sales from existing businesses accounted for a 3.5% decline in sales while currency
translation contributed 1.5% to revenue growth and acquisitions contributed 0.5% to revenue growth in 2008.
Through the first nine months of 2008, sales growth driven by increased demand for both consumable products and services associated with the installed
base of marking and coding equipment had partially offset a decline in equipment sales. Further weakening of equipment demand during the fourth quarter,
primarily in North America and Europe, resulted in double-digit year-over-year declines in equipment sales during the quarter as customers cancelled or
delayed purchases. The declines in equipment sales more than offset the sales growth from consumables and services experienced throughout the majority of
2008. In addition, sales in the integrated scanning system product line declined throughout 2008 due to lower capital expenditures by the United States Postal
Service and the timing of completion of various large projects for other large parcel post and retail customers.
Motion Sales in the segment’s motion businesses, representing approximately 34% of segment sales in 2008, increased 4.0% over 2007. Sales from existing
businesses accounted for 1.0% growth while currency translation accounted for 3.0% growth during 2008. There were no acquisitions in the motion businesses
in 2008 or 2007.
Sales growth from existing businesses during 2008 was primarily driven by demand for custom motors and drives, particularly in the elevator application,
flat panel display and aerospace and defense end markets. Largely offsetting this growth was weakness in demand for the business’ standard motors and
drives product offerings throughout the year, and in particular during the fourth quarter, primarily in North America and Europe. In addition, during the
fourth quarter, demand for products supporting the semiconductor and electronic assembly end markets, as well as other industrial applications, declined at
levels in excess of the declines experienced during the first nine months of the year.
Focused Niche Businesses. Revenues in the segment’s existing niche businesses grew at a mid-single digit rate during 2008 as compared to 2007, driven
primarily by high-single digit sales growth in the segment’s aerospace and defense businesses and low-single digit sales growth in the segment’s sensors and
controls businesses. Sales growth from the sensors and controls business primarily occurred during the first nine months of 2008 as demand weakened
during the fourth quarter resulting in essentially flat segment sales for the fourth quarter of 2008 as compared to the comparable period of 2007.
TOOLS & COMPONENTS
The Tools & Components segment is one of the largest producers and distributors of general purpose and specialty mechanics’ hand tools. Other products
manufactured by the businesses in this segment include toolboxes and storage devices; diesel engine retarders; wheel service equipment and drill chucks.
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Source: DANAHER CORP /DE/, 10-K, February 24, 2010 Powered by Morningstar® Document Research℠
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