Danaher 2011 Annual Report Download - page 38

Table of Contents
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Price increases in the segment contributed 0.5% to sales growth during 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 low double-digit rate during 2010 as compared to 2009. Demand for the
businesses’ laboratory and process instrumentation product lines was led by industrial markets and was stronger in all major geographies as compared to
2009. Sales in the business’ ultraviolet water treatment product line grew at a high single-digit rate during 2010. Solid year-over-year growth in the product
line’s industrial and residential applications was partially offset by a difficult prior year comparison associated with a significant drinking water treatment
project that favorably impacted revenues throughout 2009 and into the first half of 2010. Sales in the business’ chemical treatment solutions product line also
grew during 2010 as compared to 2009 due, in part, to continuing expansion of the chemical treatment solutions product line outside of the U.S. market.
Sales from existing businesses in the segment’s retail/commercial petroleum equipment businesses grew at a low double-digit rate during 2010 as compared to
2009. Strong North American demand during 2010 for the business’ payment and point-of-sale retail solutions products was driven by enhanced industry
security standards deadlines and contributed significantly to the year-over-year sales growth. Demand for dispensing equipment also increased in all major
geographic regions due to an increase in capital spending by customers. Sales declines in the business’ vapor recovery product offerings in North America,
primarily due to regulatory compliance deadlines in 2009 compared to 2010, partially offset these increases.
Operating profit margins increased 110 basis points in 2010 as compared to 2009. The increase in operating profit margins during the period is primarily a
result of higher sales volumes in 2010 compared to 2009 as well as cost savings attributable to the Company’s 2009 restructuring activities. Year-over-year
operating margin comparisons for 2010 also benefited from approximately 100 basis points of incremental restructuring costs incurred in 2009 as compared to
2010. The dilutive effect of acquired businesses had a net adverse impact of 55 basis points on year-over-year operating profit margin comparisons, partially
offsetting these favorable year-over-year factors. Incremental year-over-year investments in 2010 compared to 2009 associated with the segment’s emerging
market growth initiatives also negatively impacted year-over-year operating profit margin comparisons.
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The Company’s diagnostics businesses offer a broad range of analytical instruments, reagents, consumables, software and services that hospitals,
physician’s offices, reference laboratories and other critical care settings use to diagnose disease and make treatment decisions. The Company’s life sciences
businesses offer a broad range of research and clinical tools that scientists use to study cells and cell components to gain a better understanding of complex
biological processes. Pharmaceutical and biotechnology companies, universities, medical schools and research institutions use these tools to study the causes
of disease, identify new therapies and test new drugs and vaccines.
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Sales $4,627.4 $2,298.3 $1,484.9
Operating profit 402.3 227.9 179.6
Depreciation and amortization 297.2 90.7 56.6
Restructuring and other related charges 100.9 — 16.7
Operating profit as a % of sales 8.7% 9.9% 12.1%
Depreciation and amortization as a % of sales 6.4% 3.9% 3.8%
Restructuring and other related charges as a % of sales 2.2% — 1.1%
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Source: DANAHER CORP /DE/, 10-K, February 24, 2012 Powered by Morningstar® Document Research℠
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