Danaher Corp. (NYSE:DHR) Q4 2014 Earnings Conference Call - Final Transcript

Jan 27, 2015 • 08:00 am ET


Danaher Corp. (NYSE:DHR) Q4 2014 Earnings Conference Call - Final Transcript


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Good day. My name is Aaron, and I will be your conference facilitator today. At this time, I would like to welcome everyone to the Danaher Corporation Fourth Quarter 2014 Earnings Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. (Operator Instructions).

I will now turn the call over to Mr. Matt Gugino, Vice President of Investor Relations. Mr. Gugino, you may begin your conference.

Matt Gugino

Thanks Aaron and good morning, everyone, and thanks for joining us. On the call today are Tom Joyce, our President and Chief Executive Officer and Dan Comas, our Executive Vice President and Chief Financial Officer. I'd like to point out that our earnings release, a slide presentation supplementing today's call, and the reconciling and other information required by SEC Regulation G relating to any non-GAAP financial measures provided during the call are all available in the Investor section of our website, www.danaher.com under the heading Financial Information-Quarterly Earnings and will remain available following the call.

The audio portion of this call will be archived on the Investor section of our website later today under the heading Investor Events and will remain archived until our next quarterly call. A replay of this call will also be available until February 3, 2015. The replay number is 888 203-1112 in the U.S. and 719-457-0820 internationally. And the confirmation code is 1202913.

During the presentation, we will describe certain of the more significant factors that impacted year-over-year performance. Please refer to the supplemental materials and our Annual Report on Form 10-Q when it is filed for additional factors that impacted year-over-year performance.

Unless otherwise noted, all references in these remarks and accompanying presentation to earnings, revenues and other company-specific financial metrics relate to the fourth quarter of 2014 and relate only to the continuing operation of Danaher's businesses, and all references to period-to-period increases or decreases in the financial metrics are year-over-year.

(Forward-Looking Cautionary Statements)

With that I'd like to turn the call over to Tom.

Tom Joyce

And good morning everyone. We're very pleased with the strong finish to 2014. The Danaher business system continues to enhance our competitive advantage. Driving market share gains, solid core margin expansion and record free cash flow generation. For the full year our targeted organic investments helped drive 3.5% core revenue growth and our total revenue is now just shy of $20 billion.

These investments in new products and go-to-market initiatives enabled us to increase market share in many of our businesses, including Fluke, Hach, Veeder-Root, Radiometer, AB Sciex, Implant Direct and Videojet. From a portfolio optimization perspective 2014 was also a very busy year for Danaher. We announced or closed 18 acquisitions for nearly $4 billion, improving our market-leading positions across the portfolio.

Most notable among these are our two largest deals Nobel Biocare and Devicor, which closed in December. We also announced the combination of our communications business with NetScout, which we believe will better position these