Home » Danaher’s (DHR) CEO Tom Joyce on Q3 2014 Results – Earnings Call Transcript

Danaher’s (DHR) CEO Tom Joyce on Q3 2014 Results – Earnings Call Transcript

The PPA system is the only testing solution in the market that uses a disposable cartridge to improve ease of use and reduce the manual steps by over 50% in an EPA compliant drinking water testing environment. Importantly, it provides technicians of all experience levels with a fail safe way to achieve highly accurate and consistent results.

In Trojan demand for large municipal projects remain weak globally. Encouragingly, we received two Ballast Water Treatment system orders that will be installed in a total of 15 ships. We anticipate the delivery of these systems will start in the second half of 2015.

On the regulatory front, we received Alternative Management System or AMS acceptance from the US Coast Guard for a full suite of UU ballast water treatment product in July, this is a temporary designation that allows customers to use Trojan solutions in US waters, while our application for US type approval is pending.

Gilbarco Veeder-Root’s core revenues grew mid-single digits with real robust demands for our dispensers, vapor recovery products and point-of-sales solutions. Vapor recover sales grew more than 50% in China as businesses continue to work towards compliance with environmental regulations.

In point-of-sale, North American customers are choosing GVR’s reliable and affordable payment security solutions as they operate their systems in advance of the new EMV regulations that begin to take affect in 2015.

In the quarter, Gilbarco Veeder Root acquired FuelQuest a leading provider of fuel management solutions for suppliers, distributors and buyers of petroleum products. This acquisition further expands the capabilities of our Insite360 cloud-based fuel management platform by allowing our customers to remotely monitor fuel acquisition, planning and distribution.

Moving to life sciences and diagnostics; revenue increased 4% with core revenues up 3%. Core operating margin was up 120 basis points, while our reported operating margin increased 100 basis points. Core revenues in our diagnostics platform grew mid-single digits.

ALSO READ:   Medtronic's (MDT) CEO Omar Ishrak on Q1 2015 Results - Earnings Call Transcript

At Beckman Coulter, core revenues increased a mid-single digit rate with double-digit growth in immunoassay, urinalysis, and automation. Growth was particularly strong in China where revenues grew over 20%. Beckman received FDA 510 clearance for its Power Express Sample Processing System in the quarter, further expanding its world-class suite of automation products.

The Power Express is a scalable, high speed system designed to automate sample processing in labs of all sizes across all core disciplines including chemistry, immunoassay and hematology. The Power Express is just one of several new FDA cleared solutions that will help our US customers improve efficiency and reduce turnaround time for critical diagnostic tests.

Radiometers core revenues increased at a mid-single digit rate, led by more than 35% growth in AQT sales. High growth market sales were up more than 20% as we continued to expand our market position in China.

Leica Biosystems core sales were up low-single digits, as mid-teens growth in high growth markets was offset by weakness in core histology instruments in Europe. Advanced staining instrument placements were particularly strong as revenues increased over 20% in the quarter. We expect our advance staining growth rates to remain healthy, as our growing installed base continues to drive sales of reagents and other consumables.

Core revenues in our life science platform grew at a low-single digit rate, compared to high-single digit growth in the third quarter of last year. Sales in the US and Western Europe were positive, but we continue to experience uncertainty in tender timings and funding in China.

AB SCIEX core revenues grew mid-single digits with strength in academic, clinical and applied markets. We continue to expand our in vitro diagnostic offerings by launching the Triple Quad 4500MD and QTRAP 4500 systems. 4500 series offers greater flexibility, exception sensitivity and faster data acquisition affording doctors and patients quicker access to reliable and accurate diagnostic test results.

ALSO READ:   Implant Sciences' (IMSC) CEO Glenn Bolduc on Q4 2014 Results - Earnings Call Transcript

Leica Microsystems core sales increased low-single digits. Our SP8 microscope continues to be very well received and drove double-digit growth for our Confocal microscope systems.

Last Wednesday, the Nobel Prize in Chemistry was awarded to three scientists including Leica long time collaborator and key opinion leader Professor Stefan Hell. Professor Hell and others were recognized for their work in developing a way to use optical microscopy to study the molecular processes in the living cells.

This work is especially meaningful to Leica, as we collaborated with Professor Hell to commercialize the first microscope that uses this technology back in 2004. Remarkably, this is the fourth year in a row that Leica Microscopes have been sighted in Nobel Prize wining work, and we are honored that our products continue to be used to support this and in other important scientific research.

Turning to Dental, segment revenues increased 3.5%, while core revenues were up 2%. Our core operating margin increased 100 basis points and reported operating margin increased 110 basis points to 17.2%.

The team has done a terrific job in using DBS to drive productivity and improve segment margins over the past several years. In early September, we announced the pending acquisition of Nobel Biocare, premier global brand and a pioneer in dental innovation.

Nobel Biocare has expertise in implant dentistry; digital prosthetics and software combined with our extensive capabilities in 3-D imaging, intra-oral scanning and digital restorative solutions will benefit both patients and dentists by further optimizing clinical workflows.

We believe DBS will make a significant impact on Nobel Biocare’s performance by helping to drive further innovation, growth and collaboration with our other dental companies. We are confident that Nobel Biocare is an outstanding bid for Danaher and we look forward to working with this capable team.

Pages: First | ← Previous | ... | 2 |3 | 4 | ... | Next → | Last | Single Page View

Leave a Comment