Company: DHR
Filing Date: 2025-04-22
Form Type: 10-Q
Source: 0000313616-25-000088
Chunk: 32

Company: DANAHER CORP /DE/
Filing Date: 2025-04-22
Form: 10-Q
Item: Item 1
Chunk 32
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 businesses (as defined above)) after applying current period foreign exchange rates to the prior year period.

Core sales growth (decline) should be considered in addition to, and not as a replacement for or superior to, sales, and may not be comparable to similarly titled measures reported by other companies.  Management believes that reporting this non-GAAP financial measure provides useful information to investors by helping identify underlying growth trends in Danaher’s business and facilitating comparisons of Danaher’s revenue performance with its performance in prior and future periods and to Danaher’s peers.  Management also uses this non-GAAP financial measure to measure the Company’s operating and financial performance and uses core sales growth as one of the performance measures in the Company’s executive short-term cash incentive compensation program.  The Company excludes the effect of currency translation from this measure because currency translation is not under management’s control, is subject to volatility and can obscure underlying business trends.  The Company excludes the effect of acquisitions and divestiture-related items because the nature, size, timing and number of acquisitions and divestitures can vary dramatically from period-to-period and between the Company and its peers and can also obscure underlying business trends and make comparisons of long-term performance difficult.

Throughout this discussion, references to sales growth or decline refer to the impact of both price and unit sales and references to productivity improvements generally refer to improved cost-efficiencies resulting from the ongoing application of the Danaher Business System.

Sales Decline and Core Sales Growth

% Change Three-Month Period Ended March 28, 2025 vs. Comparable 2024 PeriodTotal sales decline (GAAP)(1.0)%Impact of:Acquisitions/divestitures(0.5)%Currency exchange rates 1.5 %Core sales growth (non-GAAP)— %

Operating Profit Performance 

Operating profit margins decreased 40 basis points from 22.6% during the three-month period ended March 29, 2024 to 22.2% for the three-month period ended March 28, 2025.  

First quarter 2025 vs. first quarter 2024 operating profit margin comparisons were unfavorably impacted by:

•The impact of product mix, reduced leverage on the Company’s operations and administrative cost structure and the impact of currency exchange rates - 30 basis points

•Incremental dilutive effect in 2025 of acquired businesses and the impact of a product line disposition which did not qualify as discontinued operations - 25 basis points

•First quarter 2025 impairment charge related