The ratings on Danaher Corp. reflect the firm's above-average business profile, sound balance sheet, strong cash flow protection, and moderately conservative financial policy. Although Danaher's business is cyclical, the company's earnings and cash flow volatility is mitigated by several factors: its strong brand-name recognition; its customer, end-market, and geographical diversity; its limited capital intensity; and the fact that a healthy portion of the company's sales go to the more stable replacement markets. These factors bode well for the company's strong operating performance throughout the economic cycle. For 2001, net earnings, excluding restructuring charges, were $324.2 million, up 5% from 2000. Earnings for the first quarter of 2002, eliminating the amortization of goodwill for the first quarter of 2001, declined 13%
