Company: DHR
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0000313616-25-000043
Chunk: 287

Company: DANAHER CORP /DE/
Filing Date: 2025-02-20
Form: 10-K
Item: Item 7
Chunk 287
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5% primarily as a result of acquisitions, partially offset by decreased core sales and to a lesser extent the impact of currency exchange rates.  The decrease in core sales was led by China and Western Europe.  Core sales declined year-over-year in the mass spectrometry and flow cytometry and lab automation solutions businesses primarily as a result of weaker demand for equipment, partially offset by increased demand for consumables and service.  Core sales declined year-over-year in the microscopy business across most major end-markets.  Core sales in the filtration business increased year-over-year driven by increased core sales from aerospace customers, partially offset by decreased core sales from food and beverage customers.  Core sales declined year-over-year in the genomics consumables business across most product lines, led by lower core sales in the gene reading and plasmids product lines.

39

Operating Profit Performance

Operating profit margins declined 490 basis points during 2024 as compared to 2023.  The following factors impacted year-over-year operating profit margin comparisons.

2024 vs. 2023 operating profit margin comparisons were unfavorably impacted by:

•2024 impairment charge related to a trade name.  Refer to Note 10 to the accompanying Consolidated Financial Statements for additional information regarding the impairment - 305 basis points

•The incremental dilutive effect in 2024 of acquired businesses - 245 basis points

•Lower 2024 core sales and the impact of product mix, net of improvements in the segment’s operational and administrative cost structure - 25 basis points

•2023 gain from the resolution of a litigation contingency - 15 basis points

2024 vs. 2023 operating profit margin comparisons were favorably impacted by:

•Acquisition-related transaction costs deemed significant, settlement of pre-acquisition share-based payment awards and fair value adjustments to inventory in 2023, net of acquisition-related fair value adjustment to inventory in 2024, in each case related to the acquisition of Abcam - 100 basis points

Depreciation and amortization of intangible assets increased as a percentage of sales during 2024 as compared with 2023, primarily as a result of acquisitions.

DIAGNOSTICS

The Diagnostics segment offers clinical instruments, consumables, software and services that hospitals, physicians’ offices, reference laboratories and other critical care settings use to diagnose disease and make treatment decisions. 

Diagnostics Selected Financial Data

 Year Ended December 31($ in millions)202420232022Sales$9,787 $9,