Danaher 2011 Annual Report Download - page 42

Table of Contents
Technologies segment consists of two strategic lines of business, product identification and motion, as well as the sensors and controls, defense and engine
retarder businesses. The Company sold its Pacific Scientific Aerospace business in April 2011, its Accu-Sort business in January 2012 and its Kollmorgen
Electro-Optical business in February 2012. These businesses were previously reported as part of the Industrial Technologies segment and all current and prior
year results of the segment have been adjusted to exclude the results of these discontinued operations.


  
Sales $3,121.4 $2,540.6 $2,126.9
Operating profit 655.0 513.3 297.5
Depreciation and amortization 65.8 51.5 51.5
Restructuring and other related charges 23.8 — 52.7
Operating profit as a % of sales 21.0% 20.2% 14.0%
Depreciation and amortization as a % of sales 2.1% 2.0% 2.4%
Restructuring and other related charges as a % of sales 0.8% — 2.5%

 
Existing businesses 11.5% 19.0%
Acquisitions 9.5% 0.5%
Currency exchange rates 2.0% —
Total 23.0% 19.5%

Price increases throughout the segment contributed 2.5% to sales growth on a year-over-year basis during 2011 and are reflected as a component of the change
in sales from existing businesses.
Sales from existing businesses in the segment’s product identification businesses grew at a high single-digit rate on a year-over-year basis during 2011,
primarily due to continued strong demand for core marking and coding equipment. Consumable sales associated with the installed base of marking and
coding equipment also contributed to year-over-year growth. Sales grew in all major geographies. The 2011 acquisition of EskoArtwork, a leading full service
solutions provider for the digital packaging and design and production market, provides additional sales and earnings growth opportunities for the segment by
expanding the businesses’ product line diversity and through the potential acquisition of complementary businesses.
Sales from existing businesses in the segment’s motion businesses grew at a high single-digit rate during 2011. Sales growth rates declined in the second half
of 2011 compared to growth rates in the first half of 2011, in part due to easier prior year comparisons in the first half of 2011 as well as the impact of
slowing demand on a global basis in the second half of 2011, primarily in the technology-related and solar end markets. Year-over-year sales increases in
engineered solutions and linear and mechanical motion products during the second half of 2011 more than offset sales declines in industrial automation that
occurred primarily in the fourth quarter 2011. Sales grew in all major geographies. Year-over-year sales are expected to decline in the first quarter 2012 due, in
part, to softness in technology-related end markets and also due to anticipated lower demand for engineered solutions.
Sales from existing businesses in the segment’s other businesses grew collectively at a mid-teens rate during 2011 as compared to 2010 due to generally higher
demand in the majority of end-markets served.
Operating profit margins increased 80 basis points during 2011 as compared to 2010. Year-over-year operating profit margin comparisons benefited 135 basis
points from the favorable impact of higher sales volumes and continued productivity improvements. The net dilutive effect of acquired businesses adversely
impacted year-over-year operating profit margin comparisons by 55 basis points.
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Source: DANAHER CORP /DE/, 10-K, February 24, 2012 Powered by Morningstar® Document Research℠
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