Danaher Corporation (DHR) has reported 8.48 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $747 million, or $1.07 a share in the quarter, compared with $688.60 million, or $0.99 a share for the same period last year. On an adjusted basis, earnings per share were at $1.05 for the quarter compared with $0.91 in the same period last year.
Revenue during the quarter grew 6.04 percent to $4,584.30 million from $4,323 million in the previous year period. Gross margin for the quarter expanded 232 basis points over the previous year period to 54.53 percent. Total expenses were 84.11 percent of quarterly revenues, down from 84.93 percent for the same period last year. This has led to an improvement of 82 basis points in operating margin to 15.89 percent.
Operating income for the quarter was $728.60 million, compared with $651.60 million in the previous year period.
Thomas P. Joyce, Jr., president and chief executive officer, stated, "We are very pleased with our strong fourth quarter results, capping off a transformative year for Danaher. In 2016, the team delivered double-digit earnings growth, meaningful margin expansion, and strong free cash flow. We also executed on a number of strategically significant acquisitions during the year, including Cepheid and Phenomenex.
For the first-quarter, the company forecasts diluted earnings per share to be in the range of $0.64 to $0.67. On an adjusted basis, the company forecasts diluted earnings per share to be in the range of $0.82 to $0.85.
For financial year 2017, the company forecasts diluted earnings per share to be in the range of $3.13 to $3.23, the company forecasts diluted earnings per share to be in the range of $3.85 to $3.95 on adjusted basis.
Operating cash flow declinesDanaher Corporation has generated cash of $3,521.80 million from operating activities during the year, down 7.36 percent or $280 million, when compared with the last year. The company has spent $5,243 million cash to meet investing activities during the year as against cash outgo of $14,951 million in the last year.
Cash flow from financing activities was $2,042.70 million for the year, down 77.43 percent or $7,007.50 million, when compared with the last year.
Cash and cash equivalents stood at $963.70 million as on Dec. 31, 2016, up 21.86 percent or $172.90 million from $790.80 million on Dec. 31, 2015.
Working capital turns negative
Working capital of Danaher Corporation has turned negative to $208.90 million on Dec. 31, 2016 from positive $1,666.30 million on Dec. 31, 2015. Current ratio was at 0.97 as on Dec. 31, 2016, down from 1.27 on Dec. 31, 2015.
Cash conversion cycle (CCC) has increased to 37 days for the quarter from 35 days for the last year period. Days sales outstanding were almost stable at 32 days for the quarter, when compared with the last year period.
Days inventory outstanding has increased to 38 days for the quarter compared with 34 days for the previous year period. At the same time, days payable outstanding went up to 33 days for the quarter from 30 for the same period last year.
Debt comes down marginallyDanaher Corporation has recorded a decline in total debt over the last one year. It stood at $12,269 million as on Dec. 31, 2016, down 4.67 percent or $601.40 million from $12,870.40 million on Dec. 31, 2015. Total debt was 27.09 percent of total assets as on Dec. 31, 2016, compared with 26.69 percent on Dec. 31, 2015. Debt to equity ratio was almost stable at 0.53 as on Dec. 31, 2016, when compared with the last year. Interest coverage ratio improved to 22.56 for the quarter from 12.85 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
