Danaher Reports Record First Quarter 2014 Results
WASHINGTON - Danaher Corporation announced results for the first quarter of 2014.
Net earnings for the quarter ended March 28, 2014 were $579.7 million, or $0.81 per share on a diluted basis, an 8% increase over first quarter 2013 non-GAAP adjusted diluted net earnings per share of $0.75. Sales for the first quarter of 2014 were $4.7 billion, 5% higher than the $4.4 billion reported for the first quarter of 2013. Core revenues increased 3.5% in the first quarter of 2014 compared to the first quarter of 2013.
The company anticipates that GAAP diluted net earnings per share for the quarter ending June 27, 2014 will be in the range of $0.90 to $0.94. The Company reaffirmed its full year GAAP 2014 diluted net earnings per share guidance of $3.60 to $3.75.
H. Lawrence Culp, Jr., President and Chief Executive Officer, stated, "We are off to a good start in 2014 as our team's execution drove better-than-expected revenue growth, outstanding margin expansion and solid earnings performance. The Danaher Business System has helped build momentum across our portfolio by driving continued share gains and funding increased growth investments. We believe this momentum, along with our robust balance sheet and confidence on the acquisition front, position us well in 2014."
Thomas P. Joyce, Jr. To Succees H. Lawrence Culp, Jr. As President & CEO In March 2015
WASHINGTON - Danaher Corporation announced that Executive Vice President Thomas P. Joyce, Jr. will succeed H. Lawrence Culp, Jr. as President and Chief Executive Officer upon Mr. Culp's retirement on March 1, 2015. Mr. Culp will continue at Danaher in an advisory role into the first quarter of 2016.
Steven M. Rales, Chairman of the Danaher Board of Directors, stated, "This announced transition comes at a time of strength at Danaher given our attractive portfolio of businesses, excellent management team, strong balance sheet and culture of the Danaher Business System. The selection of Tom to succeed Larry next year reflects the culmination of our succession planning process. Tom has a demonstrated track record of success in a wide range of positions at Danaher over the past 25 years, and he is well qualified to lead our continued growth and development. The Board believes Tom is the ideal candidate to become just the fourth CEO in the Company's 30-year history."
Mr. Rales continued, "Larry's leadership during the last 13 years as CEO has been extraordinary. During Larry's tenure, Danaher's revenues and market capitalization have increased approximately five-fold to nearly $20 billion and $50 billion, respectively, while at the same time driving shareholder returns five times that of the S&P500 Index. He has been instrumental in reshaping the portfolio and positioning us today as a leading global science and technology company. We have greatly expanded our global reach with particular emphasis in the high growth markets, increasing our sales in these markets ten-fold to $5 billion under Larry's leadership. In addition, Larry has played a central role in enhancing the Danaher Business System and building a deep and talented management team."
Mr. Culp began his career at Danaher in 1990 and has been President and Chief Executive Officer since May 2001. He said, "While there is much more I intend to accomplish at Danaher, I believe this is the right time to start this transition. Danaher has an exceptional portfolio and is poised for continued organic and inorganic growth. Tom and I have worked together for more than 20 years. He is a highly respected leader within Danaher, with a wealth of experience and knowledge about our businesses and the customers we serve. He also shares my passion for the Danaher Business System, our culture and our core values. With the support of our senior leadership team and our Board, I am confident that Tom is well-prepared to execute our strategic priorities and create significant value for shareholders."
Mr. Joyce began his career at Danaher in 1989 as a Marketing Project Manager in the Danaher Tool Group. In 1995, he became President of Delta Consolidated Industries, a truck box and storage container manufacturer. Following that assignment, in 2001, Mr. Joyce became President of Hach Company, the global leader in water analytics. In 2002, he was appointed Group Executive and a corporate officer of Danaher. In 2006, he was promoted to Executive Vice President, and today has responsibility for Danaher's Water Quality, Life Sciences and Diagnostics platforms, which collectively represent over $9 billion of annual revenues.
Mr. Joyce has been instrumental in building Danaher's portfolio. Under his leadership, Danaher's Water Quality platform revenues increased from $400 million to almost $2 billion. He has led the acquisition and integration of many of Danaher's leading brands, including Beckman Coulter, AB SCIEX and ChemTreat. He is a seasoned teacher and practitioner of the Danaher Business System and has played a key role in creating and evolving many of the tools and processes on which the system is built.
"I am deeply honored that the Board has selected me to succeed Larry as Danaher's next President and CEO," said Mr. Joyce. "Our company has a rich history of meeting the needs and expectations of our shareholders, customers and associates globally. I will work tirelessly to build on Danaher's strong foundation, and our stakeholders should expect continuity and consistency from me going forward. I believe we have the right strategy, the right management team, and that our future is bright."