Company: DHR
Filing Date: 2025-04-22
Form Type: 10-Q
Source: 0000313616-25-000088
Chunk: 111

Company: DANAHER CORP /DE/
Filing Date: 2025-04-22
Form: 10-Q
Item: Item 2
Chunk 111
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 $1.45 per diluted common share for the three-month period ended March 29, 2024.  Increased 2025 operating expenses, investment losses and net interest expense, drove the year-over-year decline in net earnings and diluted net earnings per common share for the three-month period ended March 28, 2025.

Currency exchange rates decreased reported sales by approximately 1.5% for the three-month period ended March 28, 2025 compared to the comparable period of 2024, primarily due to the exchange rates of the U.S. dollar compared to the euro and other major currencies in 2025.  In future periods, strengthening of the U.S. dollar against other major currencies compared to the exchange rates in effect as of March 28, 2025 would adversely impact the Company’s sales and results of operations on an overall basis, and any weakening of the U.S. dollar against other major currencies compared to the exchange rates in effect as of March 28, 2025 would positively impact the Company’s sales and results of operations.

As a diversified, global business, Danaher operates a global supply chain and sources parts and materials globally.  In the second quarter of 2025, the U.S. implemented significant new tariffs on imports from a wide range of countries, which has also prompted retaliatory tariffs by a number of countries and a cycle of retaliatory tariffs by both the U.S. and other countries.  In early April 2025, actions were taken by the U.S. and certain 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