DOW JONES NEWSWIRES 
 

Danaher Corp.'s (DHR) fourth-quarter net income fell 4.5% as restructuring charges more than offset rising margins and revenue.

Chief Executive H. Lawrence Culp Jr. said the maker of Craftsman tools, bar-code readers and leak-detection systems expects 2009 to be a difficult year but anticipates Danaher will outperform given its strong balance sheet and businesses.

The company said last month it would cut 1,700 jobs, or about 3.4% of its work force, and close 13 facilities, citing the global economic slowdown and the stronger U.S. dollar. Danaher also froze salaries and wages.

With making Craftsman tools for Sears Holdings Corp. (SHLD), Danaher is vulnerable to challenges in the retail environment, as shoppers cut back on their discretionary spending. Same-store sales have been steadily falling at stores like Sears and Kmart, with categories such as home appliances and tools feeling the impact of the housing slump.

Meanwhile, Danaher posted fourth-quarter net income of $305.7 million, or 92 cents a share, down from $320.2 million, or 97 cents a share, a year earlier. Excluding restructuring and acquisition-related costs, earnings dipped to $1.11 a share from $1.12 a share. Last month, the company cut its earnings view to $1.03 to $1.10 a share.

Revenue increased 1.3% to $3.18 billion. The company's core revenue, or growth from existing businesses, was down 1%.Analysts polled by Thomson Reuters most recently expected $3.08 billion.

Gross margin rose to 54.3% from 53.8%.

Danaher shares closed Friday at $51.35 and haven't traded premarket. The stock is down nearly 40% since Labor Day.

-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089; kerry.grace@dowjones.com

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