DHR - Earnings call transcript Q1 2020

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Operator

My name is Chrystal, and I will be your conference facilitator this morning. At this time, I would like to welcome everyone to Danaher Corporation's First Quarter 2020 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. [Operator Instructions]

the to turn now will call Mr. over I Investor Gugino, Vice of President Matt Relations. Mr. ahead. please Gugino, go

Matt Gugino

by under financial during Earnings. and Good on www.danaher.com, Chrystal. on measures under any call call, today audio our relating and out Matt are non-GAAP website, With Investors reconciliations XXXX us the quarter and Quarterly Vice heading Form Executive this the us provided Officer; archived The President all President the available McGrew, Joyce, be on the and our portion the call our of to Tom section Financial Thanks, of the Officer. available will earnings website the heading are of everyone, XXXX. will first call. May today morning, quarterly thanks section and Presentations Chief our be our replay Executive and Chief call. for I'd archived point like G slide A & our also release, until other SEC information Investors remain required and will our of to that Events presentation Regulation supplementing today's until XX-Q this XX, call next the later joining

certain and also and certain pending of submitted we approvals references presentation, factors metrics or impacted quarter describe and certain period-to-period refer which results XXXX, year-over-year. in remarks all only these are performance. to financial of will are available the regulatory materials devices company-specific certain have products that Unless materials impacted from relate describe first more the metrics additional to all The in or may to significant supplemental financial year-over-year that in references markets. describe year-over-year decreases factors continuing performance. for to and the applications noted, During otherwise and We operations increases supplemental

subject forward-looking future. may events anticipate the in make we might the a securities SEC and make uncertainties, including are results federal laws, those developments within in of During forward-looking to statements or occur set materially today. or number will statements statements statements will or regarding we risks differ meaning the any including we These forward-looking that the call, actual believe our forth from and of filings, that

statements forward-looking any are and that required statements, not by except assume made to do we the of obligation they as date any speak forward-looking law. These only update as

As had a result the revenue the acquisition core basis with current as comparable on overall growth revenue for second period on a of period. Cytiva Cytiva quarter profile core the been starting its owned we XXXX, year size and that of of to includes the and business Danaher's the present growth if intend impact prior

turn With that, to Tom. I'd like to over call the

Tom Joyce

to good response like for They're humbling Matt, their world start so we and to with Their everyone. recognizing tirelessly continue during their our off to this out our work. can pandemic up the carry has the inspiring. around contributions unprecedented facilities that Thanks, COVID-XX customers to necessary been to ensure I'd time. associates are dedication tools working and and the essential running invaluable by and today morning, provide

partners this and efforts. their a as one unfolded. supportive crisis customers Our of incredibly suppliers have has our for collective is and also today, associates, business grateful incredibly been Every I'm difference making

would of the is, quarter. impact little mind virus we call we top how the Given a this of felt the differently structure

of unforeseen these markets incredibly of These Danaher, fight with our our the provide portfolio number we a strength, force. direct from to with wrap presented proud COVID-XX. April, CEO support and fortunate recent through the number I'll COVID-XX. end quarter helping extremely of to events frontline of the in are the to our our saw have customers and team of created unprecedented month future. through diagnostic global businesses, We're and resilient first Business response businesses of run and navigate turbulent new to upcoming with few certainly At health capabilities needed but we driving a about treatments words a the up Danaher results, care on announcement our recap will much a as of part the I'll against times our across for pursuit to for our and support that are innovative position we the solutions transition. of support challenges vaccines and across the I System the community Before today testing the highlight a opportunities a providers also us talented trends they've fight

contain collectively Cepheid launched XX,XXX diagnostic that an help rapid strive being first molecular key IDT the on was has early of us front within effort, health COVID-XX than are ultimately global XX this probe March, test test highly testing molecular results In to related better curb virus. a in accurate detection minutes. kits primer and XX than million and including deployed the protect workers. a X,XXX understand With in to base virus, COVID-XX provides date, tests provides spread diagnostic the novel Cepheid's for more COVID-XX. of care enable the lines tests instruments, leading to patients their diagnostic IDT leader kits installed US, this to provide more To we As to as in essential diagnostic and tests. information component the shipped

to Since approximately forward, team six million quarter, Cepheid's the million per expect exceeding greatly able has our be And tests now shipped we two test cartridges. ship expectations. became available, approximately to initial going tests

Recently Cepheid's to time virus today, studies that fastest one with other independent indicate performance the of the market superior results. is test on best-in-class detection versus published point-of-care providing platforms

their leading The global this to this a Cepheid's team's to production commitment on. with tackle caliber ramp testament innovative significant crisis test, combined up, health head of market is

antibodies the it developing to Diagnostics, Coulter Beckman identify At the team that virus. is assays to announced

play these expect role improving forward. a to will going immunity, understanding in turn, ability We the in critical COVID-XX and assays antibody world's manage

high-sensitivity more two capability tests on million be IgG to base a assays and immunoassay of May than million able month by more Beckman in serology global per of analyzers. of June. tests shortly, will This test. over end to production plans run assay XX,XXX these team automated installed will than be to XX the The Beckman's launching ramp one

look therapeutics new cure. toward manufacturers biotech researchers COVID-XX, candidates. the who Filtration potential Solutions and supporting and designed Pall's to we the our and leading for are vaccines around ahead a multiple world, Pall Cytiva into of As tirelessly find vaccine are bioproduction process working

of is testing, prevention prototype treatment, Cytiva a And accelerate them resins volumes. of prepare programs scale and in our are examples numerous customers' we're specific ultimately helping These COVID-XX up development, cure. vaccine providing to few and to pursuit affinity just how important a helping production supporting

want this I officially thrilled to Cytiva, of board. opportunity on Speaking We're to welcome Danaher. to them take to the team have

our platform's in the doubled than to biopharmaceutical Life annual annual $X With the of addition our more highly billion, which represents revenue. end-market of Cytiva, Science revenue attractive approximately we've XX%

workflow, drugs cost, comprehensive entire the better faster support accentuated health bioproduction a customers that's offering and more at to crisis. a across our an global by working important With endeavor lower more are certainly we're who able deliver life-saving to today's

quarter. in XX% to and growth a achieved great approximately revenue is Cytiva here in first start its XXXX off

part operating Given of the in quarter. will results, we as acquisition the significance performance the beginning Cytiva's our metric to growth second our revenue of overall core include

billion, look high-single-digit of decreased X.X%. growth. X.X% revenue partially foreign The to now developed take driven in high-growth by quarter core the by growth let's Geographically, revenues impact results. markets. offset a our Sales currency translation first in markets So at by revenue $X.X was high-single-digit grew X% declines

to than result COVID-XX. in of Revenue shutdowns extensive as China XX% related was down a more

across of solid downturn were February North Western we the and across quarter pandemic regions. January more end severe the the when Europe, saw became a these While America toward demand and in

was net common share financial $XXX Gross earnings first to our million were profit margin was flow, free helping XX% XX.X% XX.X%. diluted Adjusted $X.XX. increase quarter We per for position. support operating strong of profit cash the year-over-year, a and margin generated

look at better the IDT Now we'll a Life revenue revenue reported at growth core Sciences. growth portfolio. Life revenue results Science high-single-digit of with by led more take or and increased across X.X% X.X%, core Pall, the Beckman detailed

instrument-oriented genomic demand deferrals Leica automation testing acute and our of these bioprocessing, were solutions. in for around research most the by due to negatively of global by particularly purchases. was remained strong and as capital more labs treatment to partially That equipment The SCIEX, develop academic our effort businesses dynamic performance offset This declines closed world in COVID-XX-related COVID-XX-related large drove Microsystems was impacted which and shutdowns.

achieved revenue revenue more our lines Moving than core across results to Cepheid core Diagnostics, with Cepheid all reported revenue was growth up product X%, strong XX% led very broad-based Radiometer. geographies. and major and point-of-care strength with growth businesses X% by at

coronavirus of Particularly Cepheid's increased driven a and flu the flu season was testing by more strength combination the assay outbreak. in during severe

Emergency FDA demand We Cepheid's also early the Use at of strong which U.S. March. end for test, Authorization COVID-XX received saw

in core for a instruments drove hospitalized patients. revenue Radiometer being and patients gas monitor high achieved blood business Surges to Our for key teens treated ill in parameter critically COVID-XX Radiometer's growth. tests, demand

blood healthcare unprecedented beyond. Radiometer global challenge support With and base the largest this instruments, is and well through positioned clinicians gas patients installed to of

Beckman Coulter Diagnostics' decreased revenue core mid-single digits.

resulted and America hospitals January. which reduced that Europe containment were not for was laboratory volumes. greatly going offset to initiated treatments of -- few in not North testing significant China, in in in declines procedures related shutdowns measures as result Western performance Solid These extensive were to the COVID by a very or patients COVID-XX, core

X.X% with mid-single-digit revenue Solutions ChemTreat. double-digit Environmental & revenue In core platform our at quality growth revenue our revenue X% core growth. increased was core segment. to Moving growth water led by Applied Reported

solutions the treat environment. Our mission-critical Water businesses provide essential products a and world, to water any test used service in economic around and

continued, the our solutions revenue product our to and expenditures. uncertainty low digits, the larger prompted single equipment customers quarter, chemistries platform postpone growth municipalities marking and macro while in for consumables of in coding by demand packaging toward declines sales with as broader our the offset at Good identification many businesses. Core and down declined was end

At Videojet, purchases. beverage in we consumables across orders medical and consumer saw drove surge but down, for goods, end packaged equipment strong as consumer a demand were markets, shelter-in-place widespread food and sales

DBS-driven the that portfolio a challenging to outperform outstanding enabled But we fronts. on quarter combination Danaher on and many So basis. differentiated was the our relative of believe first team's execution

So of The the to of to across a take moving our hold began weeks the trends that during on through were April. largely saw dynamics continuation few in we what March. last markets the month end

science particularly response COVID-XX-related like end our areas significantly testing. development a days increased and antiviral biotech We over and development markets. bifurcation see and immune life last therapies, research among pharmaceutical and continued vaccine our the research XX across in to customers,

cell also this driving chromatography, our generated single-use demand therapy filtration, momentum for bioprocessing, non-COVID-XX continued for gene turn, automation and and In other Good solutions. strong products. genomic demand and related for bioprocessing,

for delays However, work. most These and labs only installation labs return closures reopen to in China that off existing and the Europe are resulted it orders and and academic holding research closed new instrument reopen. they remained U.S. customers appears until started capital labs in fully in to have have the on recently significant purchases

clinical across to labs is where demand negatively continued This reference see acute lower very April strong contrasted visits through procedures, also and the placements impact we hospital activity for in volumes. significant diagnostics, which declines molecular instrument driving department emergency with increased testing, to in point-of-care wellness care globally. continue Looking labs, testing and and elective checks

We deferred these also spending saw in capital orders delayed on labs. equipment new larger and

delayed, equipment investments. the Consumables business are of safely treating purchases as product and remain packaging In sustained and mission-critical capital consumer being larger April. goods consumables testing divergence markets, But and persisted demand over essential like customers prioritized are the applied between operating through water expenses and equipment operations as medicine. solid,

of heading of America the quarter. cadence North growth and in dynamics with businesses be gradually appears with was and Western were the China spread started to improved reopen these to lifted negative that revenue in initial the better expectations than China. the market Europe, The April, virus, lockdowns as consistent slightly trailing impact end of and into

Cytiva these gradually next XX%. North down and stabilize In beginning to regions second we declines of that the we be Europe, America months, to begin believe sequential Western and improvements quarter trends, recent core of flat light including In reopen. over growth range in expect to modest to revenue expect few are the these as

wrap response associates few on help more to of I and months, reflect toughest am up, have are to been challenges crisis. and this customers core the So so their innovative as the unprecedented challenges. our events our True associates before our occasion. to humbled I and by to of our to have abundant last Never dedication values, our to listening I'm the these collectively and proud urgent innovating risen how address team's

exceptional that differentiate believe XXXX environment. Looking through Danaher beyond. outstanding well we team to continue of ahead, to portfolio very our We feel and DBS-driven navigate the will this and in positioned combination uncertain execution

the out upcoming retirement. knowing transition. leadership address around execution team go stronger. After night portfolio this create the for to begin Now Business transition innovation I Q&A, XX the the been six our including more combination that years has that do went foundation never as to want regarding enhanced last than press to continued release our decided I I've at last before Danaher to our we CEO by Danaher, seasoned driven of The strong Danaher a outperformance. and System CEO,

tremendous on have entire privileged driving of the these I've to and on to every Danaher developing the role I talent. my And we've of innovation made incredible current primary the all day be on enhancing decades. responsibilities fondly I loved efficiency, now be an of past my three focused portfolio, And part career, fronts. been can deploying back the always progress look I've capital team. throughout considered

see margin and the to the are in of SCIEX through our name IDT plan months our Life come. that days years and evolution Pall, Blair leading fantastic to and know and in a Science you platform, I'm well the enhancing acquisitions is profile few challenges a to the of President of both the from Many of thrive the platform's our as team recently EVP Rainer portfolio his just the leading confident I to Cytiva of next corporation and position while few. more the growth

to is the the There person lead no future. question is that into us Rainer right

continue and confident Rainer I'm that support our shareholders. and our prepared significant our to of leadership Board, senior execute is well priorities team value the creating our for strategic With

advisory MedStar But what's spending to I'll CEO now the into is serve a in back around I'll to to Cross. XXXX time Xst September off right for an looking remain Holy now. of So to the months. be role I'll we because be of this on as we call, soon next that in one months Well College for as the me? my have lot this forward first and coming family and of question more work Boards I'm the through from year for finish with in we and continue several Health the But do role. will and

turn that, With Matt, questions. back can over so the I'll your call to we start taking

Matt Gugino

for our concludes questions. Chrystal, comments. now formal Thanks, we're Tom. ready That

Operator

Bank of Instructions] Thank from you. first De of comes Derik Your America. [Operator question line the Bruin with

Derik De Bruin

morning. Hi, good

Tom Joyce

Good morning, Derik.

Derik De Bruin

Hey.

I'll a couple you congratulate by then So questions I'm the of jealous on way. retirement, and the

you're so the I and terms all in to So start into guess, embedding off, the to contributions? I COVID-related of are think ramping. those a I do was the spoken can what embedded was mean, what's what of producing for the going used you tell us XQ utilization mean, tests, for? about lot what in all serologies you're I just Cepheid curious guide sort be Thanks. you tests guide? into of

Tom Joyce

Sure.

bit. you Derik. Happy a through walk Thanks that to Okay.

COVID XXX the Cepheid, about points would a And growth the IDT. terms largely think that's basis predominantly Cepheid tailwind out Radiometer question for, represents it as related improvement in that to associated QX. go right we're spoken or let's probably Cepheid. and impact of -- at about flat with I of what's So And in

its capacity. running to quite flat holding exceptionally single test surge needed is well. also doing we continuing gets well Radiometer that but We every out, and expanded IDT as day shipped are to every We there, build. expand for the we the own but continuing our the capacity and need demand capacity, they're produce not had

means down of in on to from consider anywhere that I SCIEX that portfolio of a are side. LMS volume see Beckman are contributors Cepheid bit And more positive that loosening greater X% going coming XX%. come of and But patient procedures the bit really Biosystems a like to headwind business no volume-dependent return. of headwinds PID starts and bit elective businesses the the and up have is heavier those potentially the we'll and IDT that equipment-oriented in is patient So certainly is Leica rest doubt. to whether What the you'd Radiometer from overall think to Diagnostics, certainly like

putting Cytiva therapies then but a exclusively from probably developments the to not offset that Pall together related growth COVID-related, partially that and now that vaccines. and that's you around So, all positive showing are with certainly future of positive bit

So, I generally think and sort that's the of way, the the in I'd the frame minuses pluses around up impact QX. COVID

Matt McGrew

serology. – make of also mentioned And sure I Derik, to just we it's kind Matt. want you've

not in up testing here a early of tell what look local are that and to or for just view is kind might kind little the anything of we're like going program we're to have a though programs here the with look We it's really other any serology. capacity quarter testing assuming some our what national Beckman volumes like. too might Even ramping

serology COVID So just that tailwind does include not clear. to be

Derik De Bruin

I helpful. Great. revenue just you are the the stand-alone see organic what quarter? for general, In any you question second I'm in And quarter? growth did first assuming curious Cytiva on really And just That's Cytiva. stocking the guess one business in for

Tom Joyce

we first and driven going very business and as we off whether tell of tell the don't that quarter margins strong time a over much It's it there therapies there's as solutions always what depending that the as how volume there. to vaccines. just was you start, March saw stocking in looks great progression you really growth understand XX% the uncertainties I'd to folks really hard core material. or plenty given core I that's closed like. of getting as the particularly it's was build Xst little. we imagine Cytiva can about we we're of Derik, think in on by COVID-XX. really think to momentum But but April, in mentioned really funnel the we bioprocessing have Generally, just end to will to on on of working not And, there I was on look when forward, And

So we're is we we operating still guide yet trying face-to-face I the standpoint have in where think got a to Obviously, from with up start are we've an travel. to even from limitations review gotten haven't like. we what terms of Cytiva, here. But team starting look an perspective on the on backlog given size outstanding here that

deal we operating to good execute stand-alone a that sure and we're improve obviously right to continue the streams to opportunities work we're to embedding to re-branding TSA going up costs that company, now, stand going do. those make So its it as and and a on focus work of on TSA the working We're exit business into on need performance. DBS and

look So we'll a looks second half the better and bit back the balance the terms sense more like and we little come a here we give how round bookings of into the of what of trends Cytiva coming here corner year, once the get of the in you stability in year.

Derik De Bruin

you. Thank Great.

Tom Joyce

Derik. Thanks.

Operator

next line comes Peterson from Your JPMorgan. of question the with Tycho

Tom Joyce

morning, Tycho. Good

Tycho Peterson

with morning. Good the Tom on congrats I'll start Thanks. transition.

to pandemic know the I largest were is might in now a of plan you right off advance. I think people in after But caught closing time? bit be middle your it out hear think deals. I why little the from you helpful guard these well things

little just you time? now this right bit about long how the transition had been talk is planned? a And could So why maybe

Tom Joyce

to year in you say and all talent role Board to way happy about go leadership get an about be to me. along where are that, Blair ways very are we where talked today my succeed would ensuring choice progressing I'd the honestly to various in Tycho, Rainer sure I through point, our outstanding to Absolutely, that, in the ranks had the made we the first we can we that with Sure. development, to. have back

the over position process much the in very has of to we're of think this us strength. our I talent is six and to five culmination where the of a planning want I the innovation we driving team on like over. last comfortable something our certainly where time really has that a or what a We and and really of strength combination that And this, So good performance, always succession been very when do gone are are is growth portfolio turn this and reins the we years. with makes the think around

role that we into to important that the Rainer of to super allows was comes ensuring closed. that I Cytiva we contribute both ensure that for gave transition Cytiva and And to the ourselves organization got It time smoothly. here the

I think all a those it's So combination of really things.

incredibly am was this role going all capabilities supportive brings job. to the I Rainer this I to he's and around think the and that Danaher and excited he do constructive the along. fantastic really Board a talent about just and

great it. So we about all feel

Tycho Peterson

longer-term follow-up just Thanks. then some of COVID-related the question a the Okay. on And for tailwinds.

presumed going there's flu forward. Cepheid rule-out to be COVID tied For rule-in less testing to

For then curious businesses you pricing durability meaningful serology? think just be basis? if about test on once those that? vaccine around I'm then vaccine is Thanks. the lastly development put how multiyear you So how anything curious, and of a for curious there for on you therapy Pall that a Beckman for about how think you and Cytiva market? And And could think can

Tom Joyce

on Sure. the uniquely think the long-term. There's both to on pretty a we've future short-term as Thanks, positioned Tycho. COVID many it lot the and I and relates of got we're respects impacts in going --

unique start terms of treatment Radiometer Cepheid's the on along and impact you combination frontline well if in I IgG capabilities. from testing think, think that's with as I perspective a with diagnostic as and pretty serology a Beckman testing, of IDT

about asked Cepheid durability test. you Now the of the

Cepheid. also is same doing cartridge, the and run a the platform you're and obviously, advantage opportunity I configuration flu ability leaders think have are world think know to here testing. to be we cartridge the future in are well, on opportunity COVID-XX one to the in And think see flu we you -- looking as real tests And those I going doing real the going with as look I testing. of same for be a -- to clinicians the we for same the testing

cartridges seeing but is in the this that as of now themselves, a significant installed course, increase Of demand in only we're driving not base. our test in it's happening terms surge

installed And that time. base to share suite Cepheid tests also And testing flu base on of the installed and as that continuing support gains for to that's testing, a not run COVID-XX that going going Cepheid market driving to only as so and see but has well. it's you're architecture broader obviously, grown, so there's expanded over benefit

So will durability we the and architecture even where an we have think we in therapies as god exceptional Cepheid in both willing there's to have environment one well as vaccines.

In cost serology the the terms test IgG the more and And test I a reasonable blood integrated primarily is with with testing. And of your quite be routine the see Beckman other question into tests. over in time evolving about going serology, driven think, you're it's and be to way immunoassay to we draw. going going to line it's therefore, be to see serology is going test, per obviously

it's more in of Matt million And wouldn't I as think any capacity fact said test it I testing to IgG going we representative into when that XX models, a so that become about earlier to comes to immunoassay. talk standard build the of think have while serology tests testing the basic is but that

as population a potential testing. terrific and of there to it I in public relates advances lot So particularly health think

hotspots public over to And that's some being of look authorities the by health for time. done work

And greater XXX candidates. to to positioned Cytiva estimate in we critical inputs terms your therapeutic In and and with they're vaccines, are would around vaccine now that work resins uniquely filtration of provide both candidates meaning therapies capacity. and Pall I'd and therapeutic Cytiva pretty question say of than and Pall and some Right Cytiva and those are working majority both today. a about vaccine

of obviously therapy think a to number of so going winners likely answers. be there that be losers, exceptional have positions with the we there'll And and/or but vaccine and are we folks part future

in. So be I spot good a think to

Tycho Peterson

Great. on the congrats retirement. it I and appreciate again

Tom Joyce

Tycho. Thanks,

Operator

Your Vijay with Evercore from next the Kumar question ISI. comes line of

Tom Joyce

Vijay. morning, Good

Vijay Kumar

Good morning, guys a Tom on rest. well-earned and congrats

the Tom. think -- maybe I question starting leadership with here

perhaps style look the not him to you knows with investors known should versus here? that -- And Rainer Rainer You bring forward right everyone what your but contrast to does style, mention transition? leadership well. person. -- mentioned the he's he not leadership Rainer's what was did this under And Maybe Street,

Tom Joyce

exceptional of Danaher I'd when with that at all Well, for virtually I don't if as know, together Rainer fact Rainer Boston SCIEX, our initially every IDT, had Videojet. And throughout and actually sure literally the at through largest was had SCIEX tremendous after years looking a Rainer and outstanding to led SCIEX identifying the and work their Rainer Videojet did succeed to headed worked the job. the work who Vijay I repacked come Cytiva, bags since Elaine and did of acquisition, day leader and I'm we wife -- I Sure. and we he to when he together become at the had into off not through start has SCIEX at acquisitions have an his was and moved acquisition President I just that his unpacked came in have this And closely first real the then, had and obviously, he Beckman me need -- the of opportunity Pall were that worked XX everybody ever. we and the that years. for knows number of and hired SCIEX just

ask to will. he'll you to about two for of that we you're as question together do and have, quite tend to two us. Vijay, Rainer I be of more have guess, a have as a contrast plenty when the so, of going probably of But between number time thoughtful And there the than long I work similarities us

across of helping Danaher. He single in somebody and a is lives across Danaher steeped values who in DBS leader, is our and realize potential teacher, he domains, an He's the core and life science, smart. but purpose not He's every the DBS practitioner life's as super individual, breathes a Danaher, outstanding a shared unbelievably great only well-respected day.

unparalleled. relative to mature His as bets innovation as place stage towards bets, being record driving track to M&A early willing his bets is drive well both and more by innovation to bias

believe mark Danaher will but you'll similarities and indelible that lot value, the of put going mark and us and probably in an that is to of two what am his that hope own I Danaher on terms we confident see So supremely Rainer of I a between one. outstanding one an be on

Vijay Kumar

Tom. That's helpful perspective,

in had perhaps maybe contribution press of low think, usual? QX, double the the the Matt. growth Just the sure business in guys. I Matt, Or couple housekeeping make business? also perhaps question just teens any then, hundred implies XQ? contribution, points I want for here as a Cytiva. that That growth I doing margins maybe, just XX%, double XQ, from with was release from continuing think, Thanks, the business perhaps, basis one address is even COVID-related business. there digits, perhaps decremental digits And to for in

Matt McGrew

Sure. Yes.

So perspective, in I mean, XX% think from I there it grew QX. Cytiva

business be well. as I probably the reasonable think a place that's quarter in for second to here the

think So that on correct. math I is pretty your

place cetera. I'd starting to or though, As to you a QX, more far good to as start that et But in XX% bit probably is be think think that I that's the tell XX% probably margins on like is go, I need about decremental place It and I XX% start. a all related XX% FX. decrementals will in quite vary depending with probably can decrementals. mix, Diagnostics

So that FX quarter, here delta touch higher QX in will maybe XX%, be so here of in Diagnostics. the because a in overall,

Vijay Kumar

guys. Thanks,

Tom Joyce

Vijay. Thanks,

Operator

allotted time have the reached questions. for We

Research. of from Scott question comes Davis Melius last Your with the line

Scott Davis

morning, guys, congrats, Tom. and Good Hi.

Tom Joyce

Good Scott. Thanks, morning.

Scott Davis

years. right a you. It's you're but great a surprised don't -- I It's retirement going, now. sounds been blame interesting little pretty six I'm

Tom Joyce

the Scott, the it informed was uncertainties. was part It very of current plan. much economic not by

Scott Davis

you Anyway, Yes. anyway… Sure. I we'll wish you so go, I but Sure, best. before that. see the you know, believe I

Tom Joyce

Thank you.

Scott Davis

great A run.

Tom Joyce

Thank you.

Scott Davis

just I mean, kind here are Kaizens and of challenges world? this stuff -- DBS in you that business what to on teach of integrating the With switching video? new Cytiva and can Zoom really all a do

Tom Joyce

off that the Yes, that Orientation. it would ECO, Microsoft Yes. being. Champion being DBS we the being do case, how to actually real using we answer for just being kicked what question, that important gemba, I at given the Scott. virtually in about is two talk place, that kicked be we Thanks call use how Why -- why -- ago. important training Well, term, the that. we weeks Teams Executive off We

was Sekowski, and over more people office, know the effort. who we able tool. digital that touched forgot so full duration, being -- because kicked day-and-a-half, tool We that virtual of DBS our John call. Rainer off, I day, through it -- a use you I on the ECO led a to the got from actually probably

get it's things good so, working. Interestingly, We're to existing and outside got fact it's answer our of Zoom We've doing creative. multi-day Microsoft And businesses our We're in not start. new off We've ways get to are Cytiva using we're the same, done. is, using using best. invent Teams to virtual the to different. a got doing tools, Kaizens

face-to-face. our We wouldn't absolutely going to We in standard value environment. creative teams use this forward. that being get But improvement as even we've a continue challenged and drive to continuous

Scott Davis

That's encouraging. Okay.

we on if as you've actually that you but such. an encouraging XQ should too. any Videojet there I least color gears switching I -- can that? Applied Cepheid of at comments overall on be. you of of a But interesting and in to some But Water range & is a Environmental businesses to give kind just some start Beckman you've Just think cyclicalities know Solutions, and down got go at there Tom, know can basis those Is on been different and businesses? outcomes questions there around there's for about made lot

Tom Joyce

mean in environment. water those a skewed those leadership when north every steady aftermarket businesses marked goods have testing of of consumer consumables, I single reasonably service. be their and towards done quality sales XX% even consumables five the and well. economic day When skewed Water fantastic share being towards balance analytics underpin Scott, single XX%, performance. heavily nearest perspective in be leader world Videojet, a the world, Yes. are in as -- competitor; Yes. to to its from four municipalities day Both consumables obviously around to around times position these shipped every has packaged continue businesses a to challenging times Hach's in Quality

they businesses. are the and of in And revenue really dimensions a businesses side equipment even solid in still software will are I PID the those water little be that of even under a times. some the think mean for pressured or more be structures quality the challenging -- net here, bit businesses some while example in these I safety like other those there'll

I their So, any in for businesses wouldn't those trade markets.

Scott Davis

segment guess. I will differently this corporate average, -- Tom? Should I should ask than your it be down more

Tom Joyce

as Well, to Cepheid think only at and and more Cytiva continue is buoyed see the terrific pretty IDT well at what we yes they're I to and as even a not solid that mean I Radiometer by be think performance they we bit with Pall. would be performance down going because

I would growth end the So, be businesses lower of these the at think yes, core component.

see of potentially teens potentially could the inside the segment EAS mid-to-high guide. You down

Scott Davis

of you Okay. congrats again and Perfect. Best Tom. luck. Thank

Tom Joyce

hear today. from Thanks, you to Scott. Good

Matt Gugino

that day Chrystal, us Well final Do questions. for you everyone to questions. want thanks today. around for our remarks? all get concludes joining any We're

Operator

today's call. This conference concludes

You may disconnect. now

Danaher (DHR) 7 May 202020 Q1 Earnings call transcript