Danaher 2011 Annual Report Download - page 40

Table of Contents
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Sales growth from acquisitions was primarily attributable to the acquisition of AB Sciex and Molecular Devices in January 2010. Year-over-year price
increases in the segment had a negligible impact on sales growth during 2010.
Sales from existing businesses in the segment’s acute care diagnostics business grew at a high single-digit rate during 2010 as compared to 2009 due primarily
to strong demand in all major geographies for a new version of the business’ compact blood gas analyzer. Increased European demand for the business’
cardiac care instruments as well as continued strong consumable sales related to the business’ installed base of acute care diagnostic instrumentation also
contributed to year-over-year sales growth.
Sales from existing businesses in the segment’s life sciences instrumentation and pathology diagnostics businesses grew at a high single-digit rate during 2010
as compared 2009. Year-over-year growth was driven primarily by strong demand in all major geographies for new instruments and consumables in the
pathology diagnostics business. Increased sales of compound and stereo microscopy equipment serving the life sciences research and industrial markets also
contributed to the growth. Japanese economic stimulus funding also positively impacted 2010 sales as purchases were required to be completed by March 2010
in order to be eligible for Japanese stimulus funding.
Operating profit margins decreased 220 basis points during 2010 as compared to 2009. Acquisition related charges during 2010 associated with fair value
adjustments to acquired inventory and deferred revenue balances, primarily related to the AB Sciex and Molecular Devices acquisitions, as well as 2010
transaction costs deemed significant by the Company (in each case net of comparable acquisition related charges and costs recorded in 2009) adversely
impacted year-over-year operating profit margin comparisons by 270 basis points as such charges and costs were greater in 2010 than in 2009. The net
dilutive effect of acquired businesses had an adverse impact of 265 basis points on year-over-year operating profit margin comparisons. The favorable impact
of higher sales volumes in 2010 compared to 2009, cost savings attributable to the Company’s 2009 restructuring activities and 50 basis points of incremental
restructuring costs incurred in 2009 as compared to 2010 partially offset these adverse impacts.
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The Company’s Dental segment is a leading worldwide provider of a broad range of equipment, consumables and services for the dental market, focused on
driving technological innovations that help dental professionals improve clinical outcomes and enhance productivity.
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Sales $2,011.2 $1,824.6 $1,657.0
Operating profit before Align gain 236.1 203.3 130.8
Impact of Align gain — — 85.1
Total operating profit 236.1 203.3 215.9
Depreciation and amortization 94.0 81.7 71.3
Restructuring and other related charges 28.3 — 43.8
Operating profit as a % of sales 11.7% 11.1% 13.0%
Depreciation and amortization as a % of sales 4.7% 4.5% 4.3%
Restructuring and other related charges as a % of sales 1.4% — 2.6%
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Source: DANAHER CORP /DE/, 10-K, February 24, 2012 Powered by Morningstar® Document Research℠
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