By Ben Fox Rubin
Danaher Corp.'s (DHR) third-quarter profit rose 4.8% as the
diversified manufacturer's reduced costs helped mask a slight drop
in revenue.
For the year, Danaher again trimmed its earnings-per-share
estimate, to $3.14 to $3.19 from its July range of $3.19 to $3.26.
It also said it was increasing the cost of its restructuring
efforts to $120 million from $100 million.
Danaher, which focuses on testing, diagnostic and medical
equipment, has been acquisitive in recent years and has seen those
acquisitions account for much of its growth. Its purchase of
medical-test supplier Beckman Coulter last year for $5.78 billion
was Danaher's largest deal and gives the company a stronger
foothold in the growing diagnostics industry. More recently,
Danaher agreed to buy in-vitro diagnostics system maker Iris
International Inc. (IRIS) in a deal valued at about $352 million.
Also, the company and Cooper Industries PLC (CBE) agreed to sell
their joint venture, Apex Tool Group, to private-equity firm Bain
Capital LLC for about $1.6 billion.
But, Danaher in July predicted downbeat earnings for the third
quarter and trimmed its 2012 profit outlook, saying it would
accelerate restructuring and cost-cutting activities amid weakening
economic and market conditions.
Danaher reported a third-quarter profit of $548.7 million, or 77
cents a share, up from $523.4 million, or 74 cents a share, a year
earlier. Excluding acquisition-related costs and other items, last
year's earnings from continuing operations were 72 cents.
The company in July forecast a profit of 74 cents to 79 cents a
share.
Revenue edged down 0.7% to $4.42 billion. Excluding acquisitions
and currency fluctuations, revenue was up 1%. Analysts recently
projected revenue of $4.51 billion.
Gross margin widened to 51.6% from 49.1%, as input costs fell
5.5%.
Shares closed Wednesday at $56.10 and were inactive premarket.
The stock is up 19% so far this year.
Write to Ben Fox Rubin at ben.rubin@dowjones.com
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