Thursday, Danaher Corp. (DHR), a diversified technology company, posted lower profit for the third quarter, as sales declined 14.5% from last year. However, the company's quarterly earnings per share topped the analysts' expectations.
The Washington-based company posted GAAP net earnings of $351 million or $1.05 per share, compared to $372 million or $1.11 per share in the year-ago quarter.
On a non-GAAP basis, the company earned adjusted net earnings of $299 million or $0.89 per share, lower than $382 million or $1.14 per share in the prior-year quarter. On average, 17 analysts polled by Thomson Reuters expected the company to report $0.86 per share for the quarter. Analysts' estimates typically exclude special items.
Sales for the quarter declined 14.5% to $2.75 billion from last year's $3.21 billion, and surpassed eleven analysts' consensus revenue estimate of $2.72 billion. Core revenues declined 14% in the recent quarter.
Operating profit dropped to $464.6 million from $522.14 million in the comparable quarter. Total operating expenses were $2.29 billion in the third-quarter of 2009, higher than $2.69 billion last year.
Lawrence Culp, President and Chief Executive Officer, said, "We were encouraged by the sequential improvement in revenues and our very strong margin and cash flow performance in the quarter. Our free cash flow was $472 million in the quarter, with a free cash flow to net income conversion ratio of 134%. Our focus on capturing market share while also accelerating cost reductions in a difficult economy, coupled with our continued progress in our acquisition efforts, positions us well for the balance of 2009 and beyond."
For the first nine months of fiscal 2009, GAAP net earnings were $885 million or $2.66 per share, versus $1.01 billion or $3.03 per share in the same period last year. Non-GAAP earnings were $802.26 million or $2.41 per share, in comparison with $1.04 billion or $3.12 per share in the year-ago period.
Sales for the nine-month period totaled $8.05 billion, down from $9.52 billion a year ago.
Among others in the industry, Johnson Controls Inc. (JCI) is set to release its fourth-quarter numbers on October 27, with Wall Street analysts forecasting earnings of $0.50 per share on revenues of $7.79 billion.
Danaher's another peer Emerson Electric Co. (EMR) may report its fourth-quarter results on November 3, with analysts looking for earnings of $0.60 per share on revenue of $5.29 billion.
DHR closed Wednesday's regular trading session at $70.57. In the past 52 weeks, shares have been trading in a broad range of $47.20 - $71.60.
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