After a challenging fiscal 2009, 2010 was a bit of a rebound for Danaher Corp. The manufacturer of everything from environmental testing equipment to dental tools has re-made its portfolio in recent years through both acquisitions and
asset sales to focus on faster-growing, more profitable businesses
that are less dependent on cyclical demand.
Some of that strategy may have paid off last year. Revenues for
2010 (fiscal year ended Dec. 31) were $13.2 billion compared with
$11.2 billion for 2009, an increase of 18 percent. Earnings were
$1.8 billion, compared with $1.2 billion in fiscal 2009.
During the fourth quarter of 2010, the company changed the
composition of its reportable segments to reflect changes in its internal organization. It now reports results in five separate business segments consisting of Test & Measurement; Environmental;
Life Sciences & Diagnostics; Dental; and Industrial Technologies.
Danaher previously reported its operations under four segments:
Professional Instrumentation; Medical Technologies; Industrial
Technologies; and Tools & Components.
Danaher’s Life Sciences and Diagnostics units provide technology for clinical histopathology laboratories, hospital central
labs and point-of-care locations, as well as government, academic and pharmaceutical research laboratories. The Dental division provides devices for dental operatory, including dental
consumables, digital imaging products, precision dental hand
pieces, treatment units and diagnostic systems. On the medical
device side, Danaher more likely is known for its varied product lines than its company moniker. Divisions include such
brands as AB Sciex, Dexis, Gendex, Imaging Sciences International, Instrumentarium Dental, Invetech (a contract manufacturer with which Medical Product Outsourcing readers may be
familiar), KaVo, Dessert, Kerr, Leica Microsystems, Ormco, Pel-ton & Crane, Radiometer, Soredex and SybronEndo.
The company’s Life Sciences & Diagnostics segment earned
almost $2.3 billion for fiscal 2010, up sharply from nearly $1.5 billion in 2009, due in large part to the acquisitions of AB Sciex and
Molecular Devices (announced in 2009 and completed in February 2010). The acquisitions were responsible for 46 percent of revenue growth. Without them, sales for the division grew 9 percent.
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, officials noted.
The company’s dental business earned $1.8 billion in fiscal
2010, up from approximately $1.7 billion. Life-sciences businesses
profited the firm by $228 million, up from $180 million in fiscal
2009. Net earnings for the dental business dipped by 5. 6 percent
to $203 million from $215 million in 2009. Research and development spending for life sciences and diagnostics businesses was
$193 million, up significantly from $117 in 2009. Dental R&D also
rose to $73 million from $52 million.
Early in 2011, Danaher added a high-profile name to its portfolio of diagnostic brands housed under its Life Sciences & Diagnostics division and another company on this year’s Top 30 list:
Beckman Coulter. The purchase price was $6.8 billion, with the
deal completed in late June this year. The purchase raised Dan-her’s stock price to its highest level since the 1980s when the company was founded. Last year, Beckman hired investment firm
Goldman Sachs to help with the possible sale of the company.
Prior to that, Beckman Coulter had experienced a volatile year in
which CEO Scott Garrett abruptly resigned following a product
recall and troubles with the U.S. Food and Drug Administration.
(See more info on Beckman Coulter on page 106.)
For the immediate future, medical technology businesses will
make up about 47 percent of Danaher’s sales after the acquisition,
though CEO H. Lawrence Culp said that figure probably would
drop to 40 percent over time.
“Beckman Coulter is an iconic company with a great brand,
broad reach and technology leadership; well positioned in the
markets it serves. Beckman provides an excellent complement
to our existing Life Sciences & Diagnostics businesses,” said
Culp.“Being part of Danaher, Beckman associates will have the
opportunity to leverage the power of the Danaher Business Sys-
tem, including the processes by which Danaher accelerates
growth through new product innovation and driving sales, mar-
keting and service, as well as its strength in continuously ex-
Across all five business segments, company officials claim the
firm launched more than 1,800 new products. Notably, in the di-
agnostics sector, the company’s Radiometer division launched the
ABL90 FLEX blood gas analyzer targeting mid-volume point-of-
care testing in clinical applications and the ABL80 FLEX designed
for the emerging markets. Overall Danaher sales in emerging
markets expanded by 20 percent in fiscal 2010.
The name Danaher comes from the ancient Celtic word
“Dana,” which means“swift flowing.” It certainly seems as if the
company has moved swiftly throughout 2010 and the beginning
of 2011 to grow its presence in medical technology.
19. Smith & Nephew
Olivier Bohuon, CEO
Adrian Hennah, Chief Financial Officer
Mark Augusti, President, Biologics & Clinical Therapies
Joseph M. DeVivo, President, Orthopaedic
Reconstruction & Trauma
Michael Frazzette, President, Endoscopy
Roger Teasdale, President, Advanced Wound Management
Jerry Goodman, President, Healthcare Systems
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