The ratings on Danaher Corp., a leading maker of process/environmental controls, and tools and components, reflect the firm's above-average business profile, together with a sound balance sheet, strong cash flow protection, and a moderately conservative financial policy. Although Danaher's business is cyclical, factors such as strong brand-name recognition; customer, end-market, and geographic diversity; limited capital intensity; and a healthy portion of sales going to the more stable replacement markets mitigate earnings and cash flow volatility. This bodes well for strong operating performance over the economic cycle. For 2001, net earnings, excluding restructuring charges, were $324.2 million, up 5% from 2000. Earnings for the first half of 2002, eliminating the amortization of goodwill for the first quarter of 2001, declined 8%
