Company: DHR
Filing Date: 2025-04-22
Form Type: 10-Q
Source: 0000313616-25-000088
Chunk: 117

Company: DANAHER CORP /DE/
Filing Date: 2025-04-22
Form: 10-Q
Item: Item 2
Chunk 117
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 assets48 48 Operating profit as a % of sales29.3 %32.8 %Depreciation as a % of sales4.1 %3.8 %Amortization as a % of sales2.0 %1.9 %

26

Sales Decline and Core Sales Decline 

% Change Three-Month Period Ended March 28, 2025 vs. Comparable 2024 PeriodTotal sales decline (GAAP)(3.0)%Impact of:Divestitures0.5 %Currency exchange rates 1.0 %Core sales decline (non-GAAP)(1.5)%

Price decreases, attributable to factors discussed below, in the segment of 0.5% negatively impacted the year-over-year change in sales during the three-month period ended March 28, 2025 and are reflected as a component of core sales above.

Total segment sales decreased 3.0% during the three-month period, primarily as a result of decreased core sales and to a lesser extent currency exchange rates and the impact of divestitures.  Overall segment core sales decline was driven primarily by decreased core sales in China attributable to the impact of China’s volume-based procurement program and healthcare reimbursement changes.  During the three-month period, core sales in the molecular diagnostics business declined year-over-year as decreased core sales of respiratory disease tests more than offset increased core sales in non-respiratory tests.  In the segment’s clinical diagnostics businesses core sales increased during the three-month period on a year-over-year basis as increases in the pathology and acute care diagnostics businesses more than offset declines in the clinical lab business. 

Operating Profit Performance

Operating profit margin decreased 350 basis points during the three-month period ended March 28, 2025 as compared to the comparable period of 2024.  The following factors unfavorably impacted year-over-year operating profit margin:

•Lower first quarter 2025 core sales, the impact of product mix and the impact of reduced leverage in the segment’s operational and administrative cost structure - 340 basis points

•The impact of a product line disposition which did not qualify as discontinued operations - 10 basis points

COST OF SALES AND GROSS PROFIT

Three-Month Period Ended($ in millions)March 28, 2025March 29, 2024Sales$5,741 $5,796 Cost of sales(2,230)(2,309)Gross profit$3,511 $3,