DOW JONES NEWSWIRES
Danaher Corp.'s (DHR) fourth-quarter net income fell 4.5% as
restructuring charges more than offset rising margins and
revenue.
Chief Executive H. Lawrence Culp Jr. said the maker of Craftsman
tools, bar-code readers and leak-detection systems expects 2009 to
be a difficult year but anticipates Danaher will outperform given
its strong balance sheet and businesses.
The company said last month it would cut 1,700 jobs, or about
3.4% of its work force, and close 13 facilities, citing the global
economic slowdown and the stronger U.S. dollar. Danaher also froze
salaries and wages.
With making Craftsman tools for Sears Holdings Corp. (SHLD),
Danaher is vulnerable to challenges in the retail environment, as
shoppers cut back on their discretionary spending. Same-store sales
have been steadily falling at stores like Sears and Kmart, with
categories such as home appliances and tools feeling the impact of
the housing slump.
Meanwhile, Danaher posted fourth-quarter net income of $305.7
million, or 92 cents a share, down from $320.2 million, or 97 cents
a share, a year earlier. Excluding restructuring and
acquisition-related costs, earnings dipped to $1.11 a share from
$1.12 a share. Last month, the company cut its earnings view to
$1.03 to $1.10 a share.
Revenue increased 1.3% to $3.18 billion. The company's core
revenue, or growth from existing businesses, was down 1%.Analysts
polled by Thomson Reuters most recently expected $3.08 billion.
Gross margin rose to 54.3% from 53.8%.
Danaher shares closed Friday at $51.35 and haven't traded
premarket. The stock is down nearly 40% since Labor Day.
-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089;
kerry.grace@dowjones.com
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