The ratings on Danaher Corp. reflect the firm's strong business profile, an above-average financial risk profile with ample liquidity, 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 more stable replacement markets help temper earnings and cash flow volatility. This bodes well for strong operating performance over the economic cycle. Through the first nine months of 2003, core revenue growth (excluding foreign currency) was nominal, as growth in Danaher's Gilbarco, Veeder Root, and hand tool operations was offset by weakness in the general industrial markets and weak demand in the company's niche tool operations. Return on
