Danaher 1Q Net Falls 13% Amid Downturn in Demand

   DOW JONES NEWSWIRES 
 

Danaher Corp.'s (DHR) first-quarter net income fell 13% on slumping demand, though the the industrial conglomerate known for its Sears' Craftsman tools met its earnings target.

Manufacturers continue to see weak demand as customers remained slow to restock inventories. But Danaher, unlike some of its rivals, hasn't slashed its 2009 forecasts yet.

President and Chief Executive H. Lawrence Culp Jr. said Thursday that few of the company's businesses have been immune to the downturn and that it continues to cut costs. Danaher unveiled major job cuts and plant closings in the fourth quarter and has been trimming its debt.

The company reported net income of $237.7 million, or 72 cents a share, down from $276.5 million, or 83 cents a share, a year earlier, which included 6 cents in charges. Danaher in January projected 70 cents to 80 cents.

Revenue decreased 13% to $2.63 billion. Analysts polled by Thomson Reuters most recently were looking for $2.67 billion.

Gross margin rose to 47.8% from 46.8%.

The company, which was very acquisitive last year, so far hasn't hinted it will slow its pace of acquisitions. Danaher bought 17 companies last year, including six in the fourth-quarter. Three deals have been closed this month.

Shares closed at $55.04 on Wednesday and didn't trade premarket.

-By Tess Stynes, Dow Jones Newswires; 201-938-2473; [e-mail]