Exhibit 99.5
DANAHER CORPORATION
2099 PENNSYLVANIA AVENUE, N.W.
WASHINGTON, D.C. 20006
TELEPHONE (202)-828-0850 FAX (202)-828-0860
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FOR IMMEDIATE RELEASE |
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CONTACT: Andy Wilson |
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VP, Investor Relations |
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(202) 828-0850 |
DANAHER CORPORATION ANNOUNCES RECORD
SECOND QUARTER RESULTS
WASHINGTON, D.C., July 17, 2003 — Danaher Corporation (NYSE:DHR) announced today that net earnings for its second quarter ended June 27, 2003 were $125.1 million, 21% above the corresponding 2002 period earnings of $103.7 million. Diluted earnings per share for the 2003 quarter were $0.79, an increase of 20% over the $0.66 reported for the 2002 second quarter. Sales for the 2003 second quarter were $1,299.4 million, 13% higher than the $1,146.3 million for the quarter ended June 28, 2002.
For the six month period ended June 27, 2003, net earnings were $228.3 million, up 22% from the $186.4 million reported in 2002 before the effect of a change in accounting related to goodwill. Diluted earnings per share for the 2003 six month period of $1.44 increased 19% from the $1.21 in 2002 before the effect of the accounting change. Net earnings for the 2002 six month period, after the effect of a first quarter $173.8 million one-time non-cash charge for impairment of goodwill, were $12.7 million, or $0.11 per diluted share. Sales of $2,495.6 million for the 2003 six month period were 16% higher than the $2,150.5 million reported in 2002.
H. Lawrence Culp, Jr., President and Chief Executive Officer, stated, “We are again pleased to report record second quarter results. Despite the continued sluggish economic environment, we were able to achieve a 20% increase in earnings per share for the quarter. Sales for the quarter grew 13% compared to last year’s second quarter, driven primarily by revenues from recently completed acquisitions. Operating cash flow was a record $449.2 million for the six month period and 14% higher than in 2002. We are optimistic that our targeted growth opportunities, coupled with a continued drive on cost reduction and acquisition integration, will provide positive results for the balance of the year and position us well for the eventual industrial economic upturn.”
Danaher Corporation is a leading manufacturer of Process/Environmental Controls and Tools and Components. (www.danaher.com)
Statements in this release that are not strictly historical may be “forward-looking” statements, which involve risks and uncertainties. These include economic and currency conditions, market demand, pricing, and competitive and technological factors, among others, as set forth in the company’s SEC filings.
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Three Months Ended |
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Six Months Ended |
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June 27, |
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June 28, |
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June 27, |
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June 28, |
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2003 |
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2002 |
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2003 |
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2002 |
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Net sales |
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$ |
1,299,432 |
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$ |
1,146,326 |
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$ |
2,495,647 |
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$ |
2,150,533 |
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Operating costs and expenses: |
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Cost of sales |
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774,546 |
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701,908 |
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1,503,362 |
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1,330,092 |
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Selling, general and administrative expenses |
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323,675 |
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277,374 |
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624,856 |
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516,176 |
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Gain on sale of real estate |
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— |
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(2,531 |
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(775 |
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(2,531 |
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Total operating expenses |
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1,098,221 |
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976,751 |
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2,127,443 |
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1,843,737 |
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Operating profit |
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201,211 |
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169,575 |
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368,204 |
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306,796 |
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Interest expense, net |
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13,024 |
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11,308 |
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24,940 |
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22,216 |
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Earnings before income taxes and effect of accounting change |
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188,187 |
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158,267 |
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343,264 |
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284,580 |
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Income taxes |
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63,043 |
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54,602 |
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114,994 |
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98,180 |
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Net earnings, before effect of accounting change |
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125,144 |
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103,665 |
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228,270 |
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186,400 |
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Effect of accounting change, net of tax |
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— |
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— |
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— |
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(173,750 |
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Net earnings |
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$ |
125,144 |
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$ |
103,665 |
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$ |
228,270 |
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$ |
12,650 |
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Basic earnings per share: |
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Net earnings before effect ofaccounting change |
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$ |
0.82 |
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$ |
0.69 |
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$ |
1.49 |
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$ |
1.26 |
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Less: Effect of accounting change |
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— |
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— |
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— |
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(1.17 |
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Net earnings |
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$ |
0.82 |
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$ |
0.69 |
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$ |
1.49 |
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$ |
0.09 |
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Diluted net earnings per share: |
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Net earnings before effect ofaccounting change |
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$ |
0.79 |
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$ |
0.66 |
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$ |
1.44 |
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$ |
1.21 |
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Less: Effect of accounting change |
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— |
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— |
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— |
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(1.10 |
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Net earnings |
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$ |
0.79 |
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$ |
0.66 |
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$ |
1.44 |
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$ |
0.11 |
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Average common stock and common equivalent shares outstanding: |
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Basic |
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153,185 |
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151,274 |
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153,031 |
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148,223 |
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Diluted |
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161,201 |
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160,045 |
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160,934 |
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156,994 |
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A complete copy of Danaher’s Form 10-Q financial statement is available on the Company’s website (www.danaher.com)