Danaher 2011 Annual Report Download - page 37

Table of Contents


  
Sales $2,939.6 $2,738.0 $2,418.7
Operating profit 622.7 564.3 471.0
Depreciation and amortization 45.9 45.9 43.1
Restructuring and other related charges 7.5 — 31.7
Operating profit as a % of sales 21.2% 20.6% 19.5%
Depreciation and amortization as a % of sales 1.6% 1.7% 1.8%
Restructuring and other related charges as a % of sales 0.3% — 1.3%

 
Existing businesses 4.0% 10.5%
Acquisitions 1.5% 3.0%
Currency exchange rates 2.0% (0.5%)
Total 7.5% 13.0%

Price increases in the segment contributed 1.5% to sales growth on a year-over-year basis during 2011 as compared to 2010 and are reflected as a component of
the change in sales from existing businesses.
Sales from existing businesses in the segment’s water quality businesses grew at a high single-digit rate during 2011 as compared to 2010. Strong demand
during the first half of 2011 for the businesses’ laboratory and process instrumentation product lines in the municipal and industrial markets moderated
slightly during the second half of 2011. While demand in the China municipal market increased on a year-over-year basis during 2011, the rate of revenue
growth for the year declined compared to the 2010 growth rate. Sales in the business’ ultraviolet water treatment product line grew at a low double-digit rate on a
year-over-year basis as municipal markets returned to growth in the second half of the year, and in particular during the fourth quarter, after having declined
in the first half of 2011. Sales in the segment’s ultraviolet water treatment product line are expected to decline in the first quarter 2012 on a year-over-year basis
due, in large part, to a difficult prior year comparison resulting from strong industrial sales in the first quarter 2011. Sales in the business’ chemical treatment
solutions product line also grew at a low double-digit rate on a year-over-year basis primarily due to the addition of new customers in the U.S. market and to a
lesser extent to continued international expansion.
Sales from existing businesses in the segment’s retail/commercial petroleum equipment businesses declined at a low single-digit rate during 2011 as compared
to 2010. The year-over-year sales decline during the period is primarily attributable to 2010 performance dynamics. The business generated strong sales of
payment and point-of-sale retail solutions product offerings in 2010, particularly the first half of 2010, driven by deadlines for compliance with enhanced
industry security standards. During 2011, increased demand for the business’ automatic tank gauge products and dispensing equipment in all major
geographies resulted in year-over-year sales growth that partially offset the unfavorable impact of the difficult prior year comparison.
Operating profit margins increased 60 basis points during 2011 as compared to 2010. Year-over-year operating profit margin comparisons benefited 70 basis
points from the favorable impact of higher sales volumes and continued productivity improvements net of the impact of costs associated with various sales,
marketing and product development growth investments. The dilutive effect of acquired businesses adversely impacted year-over-year operating profit margin
comparisons by 10 basis points.
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Source: DANAHER CORP /DE/, 10-K, February 24, 2012 Powered by Morningstar® Document Research℠
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