The ratings on Danaher Corp. reflect the firm's strong business profile, an above-average financial risk profile, 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. Organic revenue growth in the fourth quarter was 6%, the highest quarterly rate since September 2000. The recent announcements that Danaher had will acquire Denmark-based Radiometer A/S, a manufacturer of blood gas analyzers, for $730 million, and the Gendex division of DENTSPLY International Inc. should further bolster
