Company: DHR
Filing Date: 2025-04-22
Form Type: 10-Q
Source: 0000313616-25-000088
Chunk: 31

Company: DANAHER CORP /DE/
Filing Date: 2025-04-22
Form: 10-Q
Item: Item 1
Chunk 31
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 other countries to delay the effective date of certain of these tariffs, but a number of the new tariffs remain in effect, including significant tariffs between the U.S. and China.

Based on the tariffs enacted and in effect as of April 20, 2025 (the “enacted tariffs”), the Company anticipates incurring incremental tariff costs in 2025 of several hundred millions of dollars.  These incremental tariff costs reflect the impact of the enacted tariffs on the costs of parts and materials used by the Company to produce products, as well as costs the Company may incur on finished goods shipped to customers.  The Company expects to largely offset the operating profit impact of the enacted tariffs with manufacturing footprint changes, supply chain adjustments, surcharges and additional productivity and cost savings actions.  To the extent the Company is unable to offset the tariffs or the tariffs negatively impact demand, the Company’s revenue and profitability would be adversely impacted.  If the delayed tariffs come into effect or other additional tariffs are adopted, the Company would incur additional tariff costs that could be material. 

In addition to changes in trade policy, the new U.S. administration has implemented a number of other policy and regulatory changes, including the elimination, downsizing and reduced funding of certain government agencies and programs as well as changes in the policy positions of such agencies.  

The full impact of the matters noted above on the Company, our business partners, the overall economy and capital markets remains uncertain, but the Company currently expects end-market demand for the remainder of 2025 to be relatively consistent with the first quarter of 2025.  Refer to “Risk Factors” for additional information.

22

RESULTS OF OPERATIONS

Non-GAAP Measures

In this report, references to the non-GAAP measure of core sales (also referred to as core revenues or sales/revenues from existing businesses) refer to sales calculated according to U.S. GAAP, but excluding:

•sales from acquired businesses (as defined below); and

•the impact of currency translation.

References to sales or operating profit attributable to acquisitions or acquired businesses refer to sales or operating profit, as applicable, from acquired businesses recorded prior to the first anniversary of the acquisition less any sales and operating profit, during the applicable period, attributable to divested product lines not considered discontinued operations.  The portion of revenue attributable to currency translation is calculated as the difference between:

•the period-to-period change in revenue (excluding sales from acquired businesses (as defined above)); and

•the period-to-period change in revenue (excluding sales from acquired