Company: DHR
Filing Date: 2025-07-22
Form Type: 10-Q
Source: 0000313616-25-000153
Chunk: 46

Company: DANAHER CORP /DE/
Filing Date: 2025-07-22
Form: 10-Q
Item: Item 1
Chunk 46
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 extent currency exchange rates, net of the impact of divestitures.  Total segment sales decreased 0.5% during the six-month period as a result of the impact of divestitures.  In the three-month period, the increase in segment core sales was primarily driven by increased year-over-year demand for consumables, partially offset by decreased demand for equipment.  In the six-month period, core sales were flat as increased year-over-year demand for consumables was offset by lower demand for equipment.  Geographically, increased core sales in North America and most other major markets were offset by decreased core sales in China attributable to the pricing impact of China’s volume-based procurement program and healthcare reimbursement changes in both periods.  

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During the three-month period, core sales growth in the molecular diagnostics business increased year-over-year as core sales in non-respiratory tests more than offset decreased core sales of respiratory tests, while during the six-month period, core sales declined year-over-year as decreased core sales of respiratory tests more than offset increased core sales of non-respiratory tests.  In the segment’s clinical diagnostics businesses core sales for all the businesses increased during both the three and six-month periods on a year-over-year basis.  In the clinical lab business, increased year-over-year sales outside of China, led by North America, more than offset core sales declines in China in both the three and six-month periods, due to the impact of China’s volume-based procurement and healthcare reimbursement changes. 

Operating Profit Performance

Operating profit margin decreased 60 basis points during the three-month period ended June 27, 2025 as compared to the comparable period of 2024.  The following factors unfavorably impacted year-over-year operating profit margin:

•The impact of product mix, partially offset by higher second quarter 2025 core sales and changes in leverage in the segment’s operational and administrative cost structure - 45 basis points

•The impact of a product line disposition which did not qualify as discontinued operations - 15 basis points

Operating profit margin decreased 230 basis points during the six-month period ended June 27, 2025 as compared to the comparable period of 2024.  The following factors unfavorably impacted year-over-year operating profit margin:

•The impact of product mix, changes in leverage in the segment’s operational and administrative cost structure, currency exchange rates and lower sales - 215 basis points

•The impact of a product line disposition which did not qualify as discontinued operations - 15 basis points

COST OF