DOW JONES NEWSWIRES
Danaher Corp.'s (DHR) first-quarter net income fell 13% on
slumping demand, though the the industrial conglomerate known for
its Sears' Craftsman tools met its earnings target.
Manufacturers continue to see weak demand as customers remained
slow to restock inventories. But Danaher, unlike some of its
rivals, hasn't slashed its 2009 forecasts yet.
President and Chief Executive H. Lawrence Culp Jr. said Thursday
that few of the company's businesses have been immune to the
downturn and that it continues to cut costs. Danaher unveiled major
job cuts and plant closings in the fourth quarter and has been
trimming its debt.
The company reported net income of $237.7 million, or 72 cents a
share, down from $276.5 million, or 83 cents a share, a year
earlier, which included 6 cents in charges. Danaher in January
projected 70 cents to 80 cents.
Revenue decreased 13% to $2.63 billion. Analysts polled by
Thomson Reuters most recently were looking for $2.67 billion.
Gross margin rose to 47.8% from 46.8%.
The company, which was very acquisitive last year, so far hasn't
hinted it will slow its pace of acquisitions. Danaher bought 17
companies last year, including six in the fourth-quarter. Three
deals have been closed this month.
Shares closed at $55.04 on Wednesday and didn't trade
premarket.
-By Tess Stynes, Dow Jones Newswires; 201-938-2473;
tess.stynes@dowjones.com