Company: DHR
Filing Date: 2025-07-22
Form Type: 10-Q
Source: 0000313616-25-000153
Chunk: 146

Company: DANAHER CORP /DE/
Filing Date: 2025-07-22
Form: 10-Q
Item: Item 2
Chunk 146
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 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 SALES AND GROSS PROFIT

Three-Month Period EndedSix-Month Period Ended($ in millions)June 27, 2025June 28, 2024June 27, 2025June 28, 2024Sales$5,936 $5,743 $11,677 $11,539 Cost of sales(2,413)(2,315)(4,643)(4,624)Gross profit$3,523 $3,428 $7,034 $6,915 Gross profit margin59.3 %59.7 %60.2 %59.9 %

Cost of sales increased year-over-year during both the three and six-month periods ended June 27, 2025 as compared to the comparable periods in 2024.  The increase during the three-month period was primarily due to the impact of higher year-over-year sales volumes, currency exchange rates and product mix.  The increase during the six-month period was primarily due to the impact of higher year-over-year sales volumes, currency exchange rates, product mix and a $15 million impairment charge related to a facility in the Biotechnology segment recorded in the first half of 2025.  These increases were partially offset by a $25 million acquisition-related charge associated with the fair value adjustment to inventory recorded in the first half of 2024 in connection with the acquisition of Abcam plc.  

Year-over-year gross profit margin decreased during the three-month period ended June 27, 2025 as compared to the comparable period in 2024 primarily due to the impact of currency exchange rates, product mix and tariff costs, partially offset by the impact of continued productivity improvement initiatives and higher year-over-year sales volumes.  Year-over-year gross profit margin increased in the six-month period ended June 27, 2025 primarily due to the impact of product mix and higher year