Danaher to Close 16 Plants

John Wolz

Danaher Corporation will have cut 4,000 of its 19,000 jobs during 2001 and plans to close 16 plants and cut another 1,100 jobs in 2002.
CEO Lawrence Culp Jr. predicted Danaher 2001 earnings will be up from last year. “Despite a difficult economic environment, we expect to report 2001 operating earnings per share of approximately $2.30, up from $2.23 in 2000, on essentially flat revenues,” he said.
The 2001 fourth quarter year over year revenue decline will likely be in the 11% to 13% range, Culp estimated.
Culp said the manufacturing recession continues to impact Danaher in North America and increasingly in Europe.
“We continue to implement broad-based cost measures, including headcount reductions totaling 4,000 this year, with over 1,000 in the fourth quarter alone,” Culp said. “We plan to use this period of lower volume, which we expect to continue into mid-2002, to further reduce our fixed cost base and consolidate our manufacturing operations into higher volume and lower cost locations.”
Culp forecast that 2002 will begin “as 2001 is ending – with sluggish sales and difficult comparables. The effect of the facility closings and continuing cost reductions, in combination with key growth initiatives and forecasts for a recovering economy, give us confidence to expect the second half of 2002 to be significantly above the second half of 2001,” Culp said.
Known in the fastener industry for its Holo-Krome brand, Danaher manufactures of tools, including the Sears Craftsman hand tools, and process/environmental controls and components. Web:.danaher.com �2001 FastenerNews.com