DHR - Earnings call 4 2023 | Danaher Corporation

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning. My name is Todd, and I will be your conference facilitator this morning. At this time, I would like to welcome everyone to Danaher Corporation's Fourth quarter 2023 Earnings Results Conference Call. [Operator Instructions]

I will now turn the call over to Mr. of President Vice Bedford, Investor Relations. John Mr. may you begin your conference. Bedford,

John Bedford

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

certain and also and certain pending of submitted we approvals references presentation, factors metrics or impacted quarter describe and certain period-to-period relate which results XXXX year-over-year. in remarks all only these our performance. to financial of will are available the regulatory materials devices, company-specific certain have products that Unless materials impacted from relate describe fourth more the metrics additional to all The in for 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

from forward-looking and over future. we forward-looking those may events filings, as SEC anticipate subject the like today. in update set forth statements obligation make not we to the a made, securities our including Rainer. federal laws,; developments risks within as I'd of materially forward-looking differ and actual During we These and or occur or These in except will including call results any statements statements the to forward-looking speak will or forward-looking and regarding might any date do number meaning statements of by make the we that are only assume the call, believe are to required statements law. With to statements, of they any turn the that that, uncertainties

Rainer Blair

and revenue margin the We our and at appreciate revenue today. us in what a flow our combination Thank you, We call John, led quarter, on delivered team's exceed dynamic market higher-than-expected of enabled segments The Cepheid. us you the better-than-anticipated of good morning, remains to our respiratory everyone. joining by execution expectations and in core in fourth strong revenues each cash environment.

to and get on was of for this details our I briefly portfolio our continue I the strategically we and strategy our performance, before a earnings into Now year. enhance to enhance Danaher as the strengthen to progress portfolio our our trajectory. and XXXX year made transformational we growth accelerate wanted reflect

X the Establishing secular transformation With innovator. stand-alone these durable in to Veralto exposure our diagnostics further as increases September, Veralto which of has which increased December, last exposure attractive sciences end markets. life portfolio Abcam, growth acquisition drivers. years, closed we're company The and public the to several markets spin-off with now over a highly our successful focused of was a in in step our

stronger year free was cash businesses. headwinds over business tailwinds in also long margins term, pandemic Now we faster-growing challenging as generation. XXXX our Danaher a believe with higher will became the be operationally a flow and

healthy cadence investments us helped Our towards Danaher maintaining and a initiatives the improving our with productivity navigate structure. challenges executing of cost team's System growth Business to while commitment geared these

steps this to of revenue period through While we proactive provide and XXXX, these the first half sustainable foundation continue earnings transformation the with a growth. in paired long-term strong transitional for expect our portfolio,

let's $XX.X a common our X.X%, adjusted revenue at core $X.XX. was and financial base XX.X% of XXXX revenue diluted margin closer full profit look COVID-XX down core was adjusted share with including So and were Our declined Sales results. and net billion, in and earnings which per operating year business, take that, a XX% headwind our revenue were approximately slightly

free free is metrics more at cash generated Strong XXnd consecutive also free in $X.X net the our resulting XXX%. flow XXXX Danaher, of cash XXX%. year, flow exceeded ratio billion a income to conversion cash ratio than of free generation and marks to one We conversion flow, of flow cash The income important net most the

growth customers faster and of market help We Life to yields time the drug helping faster. discovery how continue world. and biotechnology, These are new products examples our to to as customers. In continued In accelerate the impactful few the for and manufacturing helping and of to innovation AcelRx our next-generation which deliver more year, a of life-changing accurate some analyzer are XXXX delivering drug reduce us platform Insight important X such businesses cellXpress.ai therapies solve bring to investments is cost Sciences, bioreactor commitment Polar as on Danaher impacting Devices of throughout biologic the technologies Molecular many immunoassay in positioning new and Coulter's production. challenges are And Beckman solutions just health improve and across enabled around IDBS' patient new process patients diagnostics, the several DXI, the accelerate we're new enabling our most such Cytiva's diagnosis.

detail. turn down ongoing and revenues $X.X including a of quarter, the fourth in investment markets normalization in revenue a remains to high X%. the with lower were coupled driven vaccine in in by declined China, markets. low end digits, double let's fourth decline biopharma and landscape Sales base economic our decline revenues, and and pharma single Geographically, COVID-XX quarter billion headwind in digits our where including were mid-teens developed approximately business the and High-growth Now markets challenging. more respiratory revenue XX.X%, core COVID-XX declined core in results X.X% therapeutic

Our gross was quarter profit fourth for XX%. the margin

margin and Our Diagnostics the basis points, share common $X.XX flow adjusted in we operating related in Adjusted and to volume billion and quarter. costs $X.X segments down primarily free our earnings due Biotechnology of of the impact XX.X% per to of XXX was net lower cash productivity diluted initiatives. were generated

core at some core in in we're was approximately programs. and remain during seeing down in with discovery our In medical XX% declined customers the North look broad-based and Bioprocessing stable high levels the America to Reported was was as ratio. XX.X%. down anticipated full encouraged a the modest normal XX% China Now Revenue working customers and today. revenue quarter we results improvement declined with see buildup conserve down let's revenue business, across over Europe end seen XXXX. as yet core consistent revenue fourth on weak are and saw segment underlying in declined largely our closer take give what is activity this inflection high-teens. customers sequential and inventory color bioprocessing in what patterns, through markets with and a our quarter Biotechnology some a orders the in year for pandemic. order still We demand. The we haven't and the our to returning and including but prioritize continuing portfolio base and were you in revenue trends teens were Demand our in quarter, ordering to environment book-to-bill capital third of XX%

any and down growth higher low for the market For leading reinforce in in year an growth in and of as XXXX, full followed high business we the assumption long-term single bioprocessing to a digits. trajectory gradual to history. record single is destocking, ahead XXXX. demand than strong These our as in franchise. of teens biologic pipeline biologics near-term remains core This meaningfully to confidence the includes expect year, of conviction headwinds and mid- rise. core high the our a exit genomic digits medicines, medicines better revenue point trajectory revenue decline we our rate a to the for first of in for half tremendous from Despite be development opportunity continues improvement our the the growth the long-term by or bioprocessing was of at approvals single-digit XXXX ever. in as FDA another biologic the year trends market Underlying positive high health

in X,XXX as and which in simplifies recombinant more they to the optimize Over recombinant example protein to Cytiva recently there A efficient chromatography from currently is Cytiva impactful This and more the are to solutions commercial advance last development. been several customers production. than bring to affinity purification designed faster an therapies Select the enables new of Protein process proteins, process lab and accelerating has new through technology, great resin development technology launched years, investments purification. the innovation

Turning to decline and segment. X%, business. our revenue low Reported our Life revenue declined single-digit Sciences was in core a including down base X%

levels in academic business while trends and We Our quarter, from research with and pharma America. in customers Life with largely quarter. Sciences in investment biopharma third mid-single growth saw the globally, China fourth declined constrained, at digits consistent Instruments collectively science customers the and continued remain particularly life North

our our to to which capabilities presence help segment The map and drug our furthering our the expanded December also discovery Abcam, attractive this Abcam accelerate to couldn't in talented proteomics to team acquisition highly diseases strategy of the Danaher. welcome be of portfolio Sciences closed the with is complex XXXX. We and process. expands highly and innovative in pleased more market and addition We incredibly Life

and based and next-generation Robust proteins was consumables across gene genomics business the demand research. flat sequencing in by writing solutions in offset basic declines plasmas, and Our was essentially editing quarter.

facilitating today cell new capacity complete therapeutic facility therapy of capabilities therapeutics. to enabling improving Iowa IDT analysis a is workflow opened expansion oligonucleotide offer patient can in manufacturing CRISPR and of important commercialization customers' their IDT Coreville, gene campus. and our of life-changing that development now and a quarter, work our by the both IDT's and This of supports all During fulfilling lives vision from customers CGMP development. at faster stages design

revenue Diagnostics Reported Moving our segment. and high declined lower now single-digit to respiratory with more growth in revenue Cepheid. core at both X.X% offset business than by our base

double-digit test. The accurate to consumables Flu point and out a value the A and prevalence for immunoassay. with believe or the COVID-XX, high Beckman, revenue significant competitive Molecular GeneXpert respiratory business, better modestly businesses In enhanced drive new are of has in testament Cepheid delivered the X-in-X approximately been new impactful growth. a their million product public increase clinical revenue we at recent has viruses its group In commercial clinical with respiratory paired standard will including our provides for core $X.X made. Flu the of initial ability experts, growth and way a revenue at helped strep diagnosis years, customers is a in XX% for single-digit close product single, fourth volumes year and The drove the driven diagnostic respiratory utilization strong This over X patients strength teens respiratory billion positioning both growth annual core in easy-to-use higher with clinicians, circulating discussions job Cepheid's X mix on instruments Cepheid improving customers fantastic fast, season provide lab including become innovation led continued a for are decisions at revenue core a illnesses higher preference and test terrific gains nonrespiratory exceeded the what and our growth, sexual and Based business, durability of team our performance were volumes both and year most Coulter X-in-X with of care the collectively by doing the core the and of revenue assumption we Diagnostics to test quarter a in $X.X B execution. expectation distinct chemistry increased the innovation rounds respiratory growth per saw high of notable care menu cartridge. RSV. an Diagnostics Cepheid's $XXX $XXX where share Our to our approximately for quality XX customers and treatment given typical be diagnostics a through in our high and health. quarter million. of low-teens Beckman last by from and our and health This A, expectation revenue billion. greater of in

meet is ahead, market a differentiated market Cepheid diagnostic more the positioning installed our help and leading continue and growing Looking clinical gaining the on XX,XXX base than of to with respiratory test menu customers well their positioned adoption systems broadest testing, and of molecular needs share.

the XXXX. longer to full business look XXXX, of and quarter with transitioned for the let's the revenue will for we first pandemic growth, as year revenue ahead guidance Now report has quarter state. core Beginning provide but the base no briefly an endemic expectations first will at core

Now first high the we in to decline range. the revenue in quarter, expect single-digit core percent

quarter the XX%. Additionally, first we approximately adjusted of operating expect margin

Turning to a revenue the full the of single-digit year XXXX. revenue assumes growth to returning the core XXXX. core before low half of the to anticipate which year decline the range, in second decline first We percent in half in

adjusted operating by year margin approximately points profit Additionally, XXXX. improve we expect versus XX full the to our year basis full

with continue focused XXXX, deliver what and dynamic up, steps fourth expectations remains improving wrap Despite strengthen M&A cost challenges a our saw pleased we portfolio the throughout our to results on in we're proactive to environment. So our quarter of to took ahead we structure.

application System breakthrough launch process in also and Business enabled improvements lasting several consistent drove of our team's Danaher the businesses of solutions. Our the

Solutions reflecting largely as replaced years, acquisition it's Abcam. in that Aldevron and our with & past and on their pandemic a stronger revenue the We So higher-margin growth, Applied stand-alone Environmental Cytiva, segments dental with contribution back clear We and companies Danaher annuities public exiting established of the higher few Baralta. company. much Envista better, is the

is we Xx today expect pandemic, was Additionally, now prior sustainable. to and be Cepheid's to franchise than this respiratory it larger the

our margins our cash it trajectory, generation. improved putting growth and all So strengthened significantly we've together, flow long-term expanded free

with and foundation about for shareholders. to The ahead our Danaher. future what optionality science sheet of portfolio talented our all our is the I'm provides lies Danaher Business maximize and incredibly unique us combination differentiated for excited and value a associates our and by technology bright, powered balance team, our strong So System customers,

over to So back John. turn it with that, I'll you,

John Bedford

for concludes comments. questions. ready Operator, Rainer. our formal Thanks, That we're now

Operator

from Cowen. comes Brennan with Dan question first TD Our

Daniel Brennan

a of I was Rainer, maybe peak? And starting as breakdown China, snapshot your a do inventory versus much that does of customers a little you in maybe say, have Could providing, bioprocess. you when us of of of the And just here off on that assume much then changed terms that guidance can give outlook your how has think for you rest then And you're how normal kind inventory today? us reaches kind what state? and the hoping, give world? well

Rainer Blair

and overview And in why don't into I out laid here we your bioprocessing start off with then sort how can dig a we've of guide the an question little more detail.

single full the low digits, be of that's than is segments the to XXXX will biotechnology for guide our year low let So bioprocessing. on revenue me different And and now open about down digits. that mid-single break talk down and

once Diagnostics, Life low about So low And low segment digit. guide Biotechnology keep in digits. digits. entirety. that's digits again, overall, mind, the in I'm single down is talking its down The to mid-single Sciences, not down then low and single single up

XXXX second that dynamic And Starting actually assumptions about level, high half, with a half. we first the to talk with let expect growth be returning slow just to bit me the our little at around in guidance. a versus a Now to a QX. now opposite bioprocessing, to And which which we're incrementally of XXXX, first coming look lot showed be down like high think improved single second orders will we low guiding the fourth off mid- a half half down of quarter, teens of digits.

to course, ease single-digit been then America And half, destocking will Second expect there have to Europe Western mid- we completed. North return believe as high we the to the in that comps by and of well. and growth, largely

year or high think digits single we better rate bioprocessing, for growth. for be importantly, will core the exit So

Sciences a we to low we that we guide. given the and expect been the seen we time, about the down for some as Life digits business, the some that the we second and expect through normalization, comps instrument we and continues, to particularly be look here start, for that if at expect of XXXX well. have single we've slow see improve Sciences, Now as into And talking continue Life should in growth half

see lower by macro then year comparatively but China Geographically, some pharma holding we with stable, the in we look particular, course, the of And see markets be and related with Sciences, Sciences, academic program lastly, consistent at and and better. if relatively up have on subsidized and expect prior of we biotech, to weak Life in there. at that comps loan Life to markets developed XXXX. end a slower applied market, demand levels Now we

As we no $X.X we growth digits. that's offset by XXXX. be which business, the And we up expect the nonrespiratory course, revenue, that of lower look will we was trends, and underlying patient volumes billion digits, billion And are change which Diagnostics, we of that, anticipate low normalized. guiding XXXX, at have in $X.X in to respiratory mid-single in single see

So Dan, can we a now that's shapes And bit more year segment. the then around how perhaps by bioprocessing. little detail up talk of course,

Matt McGrew

Dan, to around some as numbers your well. question just put kind Well, maybe of

of of down the first sort far think saw we've should even kind of year, year kind after here in. to how call I channel. most got then get got of destocking. of asked America then bioprocessing North I inventory full for X And and I the kind we being And X good sense think and still in half what China, biggest. that in the QX, dialed we'll China, to Europe, be I is that's moving year, what what kind the for in bioprocessing, growth say, think of past think half the mid-teens destocking in in think and hard but the And It's will similar we've will particularly through a last return much you you to it we've the target, that first it, for down know in kind the world, of XX. I a the the north of where we largely we was probably about So be got as of probably Dan. be for the mean down a I rest quarter second as

be I the of why speaks little half, better in think half which we of year. we're gets think first then that to going in the bit through second a here the sort to

Daniel Brennan

just And it. follow-up focus. a then a maybe bioprocess such Got and huge on

their laid the just as kind out, guide related do about of year? book-to-bill assume is kind or seen think the seeing? bookings you in it book? kind have that, but you've the above business X. the of any work of through we business mix faster terms your pointed of of that color trajectory just clinical And you that why Is what's Or does than turn just commercial? it Or book-to-bill business Just of like to what from or a peers the in is are guys you different, your several order peers some to unique kind versus what think? books everyone's of the have Obviously, early of size

Matt McGrew

Yes.

I a our this book-to-bill calls right? quarters. couple overview of kind that us of demonstrated of This sort versus before, behind Let bit America half, that not a range first destocking for the the on calling this X.X, half me through think guide but for inflection of the the largely X.XX half. of are I'm or improvement with guide, with for thinking We've -- point and in said we an Europe qualitative assuming maybe move little first X we is, after kind last guide Start at is modest about as we or what North second the thinking as color and about you start quarters, the last how the bioprocessing. a slight like as in give year, into any are the we of we're been improvement how some X is guide

were. better where So no of kind a inflection little gets sort of just we bit than

that, with start kind Maybe far numbers some of as Dan. around the As backlog.

backlog. we're with in ] were about we pretty with So That's XXXX, of consistent X/X starting where [ XXXX.

then above the relatively X.X, in we the and speaking, you backlog a I build like not are we're to through of said, book-to-bill we kind in quarter assuming in with that those add given with bit into we X.XX slightly, the this think will X pretty I backlog little line levels So assumption that every are quarter. are but book-to-bill much that history. has assuming start back and there, improved better any year, as from get book-to-bill And

that past that the the second half I we're And exiting here, that kind on been half, teens, people in we without single gets like little mid- think as the and or high with be there's bit first well. inventory inflection. to half mid-teens exit kind second half some so questions of said, on better but of high I ramp assumes down digit that. half we to the a just And an get quantitative second that the Maybe some I seeing give will destocking numbers maybe better first know that --

$XXX million second the about guide, in a So is in bioprocess increase. half assumed second ramp year-over-year this half

$X So a $X.X on business. a, call billion it, that's billion,

there we in yes, couple we dollars but expect second better the think relatively business modest of a we past year-over-year could on as million destocking. the half a is So $X hundred billion a I do with move it's think to that step-up,

that hopefully, little. helps frame So the guide a

Operator

Vijay Our from come next with ISI. Kumar will question Evercore

Vijay Kumar

start biotech XXs. see I driving -- on last the here, easier sequential comps off guess down for on QX what get we bioprocess in bioprocess. comment did order to Rainer, What get for I biotech easier. Matt. QX QX comps do I'll to is guess So and for guidance low QX improvements The with you, and being

assumptions? And Danaher? fee guidance no was -- have that is know driving the process minus maybe also So for a cancellation policy. XX% I thought around Has what there the you QX stopped

Matt McGrew

a stab take Maybe at Matt. it's first it. Vijay, I'll

first instructive we think it's I the we if about probably kind year, think of were. So where to sort half remember of

low were we the to first mid-single kind for comp down only that low half we core we second were in single business QX total, year mid-teens growth was base half, right? And our actually digits single The of have the teens of as remember, everybody down quarter. you digits. up in If but low XXXX, high do first or remembers, -- coming in last

when so biggest about the you factor. that's really And think year-over-year,

As we this -- to I QX, kind far in about think you goes, sequential talked as January. I would would QX of we tell that

QX QX Our sequential, that's to to That's normal normal. pretty QX a step-up. QX

think step that to seasonality normal of XX% were see our And year, is to also at normal down, we for is QX it's and QX usually -- for QX I attributed when so XX% of to a out we to JPMorgan. very just and the XX% numbers XX%, that. maybe usually year. QX revenue some

mean, it. it's to I normal for us So see pretty

a think saw of even we 'XX, step saw heyday 'XX kind down. I it to of a we in

much the big And So it us continue as kind of as trying and we last remember question of thing there's I there, think normal is, I ties get can. to this other destock think behind a we into your seasonality. to are to and Vijay, actively

with going And that. aggressive so I we've think remain been aggressive that. to We're pretty with

seeing we half think can to second hopefully year. of the I to rest of that the doing in to no kind it but the fees what depends first that are are we get here assured, back we your and answer, half you're is the question,

Vijay Kumar

we at sort think about customer is been up Understood. what's activity when here, levels And up volumes Rainer, Last you one still high consumption, I will, if digits. being levels did at drug And year, follow-up you look intact? Diagnostics.. my when the customer I for signals double Is on activity you this space? you And guess guess, underlying that mid-single year. of, think I base mentioned for in Diagnostics that guys

why a would that So slow Diagnostics just issue down? is comp

Rainer Blair

activity no change been be talking seen what's level long-term digits, to high the about drawing growth Well, single starting the down. rate along And We've bioprocessing. for in continues with the been which we've that inventories of XX%. important that's really in terms level, activity here the

North -- drawing with with inventories small more and down as how China. So than it perhaps are more about here companies Western that and regional emerging Europe we biotech, rapidly aligns are regions developments the biotech America spoke such

So both we've the prepared activity approvals pipeline. development in of the to as strong. you that as I to mentioned remarks projects well historic during continues the of level biologic number level be seen

there. we confident positive continue in be very So development continued to

Vijay Kumar

I'm sorry, Rainer? on Diagnostics,

Matt McGrew

,I Yes. mean, it's say, for to going business, business be do think well mostly continues base should Cepheid. -- I to all I respiratory the outside The it's just accomplished. of,

All to of the other real diagnostics, in the demand. change no businesses underlying

So it's going be a to comp issue.

Operator

comes Scott Milius Our next question with Research. from Davis

Scott Davis

that of you've can helps internally when we that understand volumes in around share hard help headcount it's that arms to your can look on not are guys you us you the can can of the us first you still at done Guys, tangibly or any margins be 'XX, just get forward? moving cost basis guide what with perhaps to around point the of but up. or share negative -- KPIs there year, reductions half kind like XX rooftops will anything impact kind you in that what of on done the Is cost have structure going anything kind

Matt McGrew

kind to maybe mean $XXX think, year. million We almost year. it, the ended XX be to like we level, of about high an I had of, of with it's OP is sort last onetime XXXX at Scott, bps in think XX.X%. adjusted way Yes. you margin the a approximately Yes. call costs And the here said, up we operating going of

that we lot sort as to of some heads you we knew down particularly Some last of metrics year, tell a pull when And did that would that of of that. million XX to would capacity day went largely the from and out. largely, did need that, the XX that it, that at last that going what we was Cepheid there's million, saw of tests we come reflective year, and I around we that come I to were about back a if was volumes think lower

growth I profiles. little seen think that other Sciences in you some well half businesses also Life saw it second and in the a difficult bit at as some others of more have the

I what's a largely, think here some to that be it cost difficult spot. we're get it and but the a good after rightsize trying there so I to structure for in are it's half. there, rooftops first is to more think heads, going

that So Scott. on $XXX mentioned, as respiratory bioprocessing in the But offset and basically a volumes, basis you that XXX that points do have million of been lower it. would all benefit, about have we of ton,

as really savings, from getting the that and so is [ million $XXX we're through bps ] you will, if that And the flowing deployed margin we [ expansion. cost what of ] XX

pretty bit go. be of volume we way. of little long hopefully, with have, a volume adjusted to durable bit And here margins we is going should gross operating in as a a that go the So little

Scott Davis

that separate the call haven't kind of is imagine perhaps and I consistent the versus with you China? secular, still there? while. and what I'll guide cyclical and such I you can maybe a Guys, Yes. kind guess, would in understand last pretty out do impacts so. conservative. quarter is are which how the government other of policy -- us What I to I that, China been understand help

the open there a us So perhaps that space, attractive that market just perhaps still Or white makes It's less and to I'll the can term? margin has maybe of help of is understand takes puts sort if up it some you of you change been at kind guys there. interesting? will. long that. lot there it And

Rainer Blair

start me this. with let China,

innovative health to term. priorities, is and people Chinese accretive for growth. government be is are specifically as the China a environment in reason the they that the in type going of in believe that And pharmaceutical has with that is market frankly, here More slowed it generic to to process, continue very or are and more the Chinese difficult certainly broadly, care. few also attractive biosimilar prioritizing terms among our And the an and while more both We become drugs. building the pause own prioritizing that industry their has overall long short term. but funding taken

that expect work midterm. We in to the here itself out process

then, of But guide, of stimulus perhaps of even what to Chinese this in the that we because from guide, China year here as the half. care more challenging will high see that expect than digits. down the health planning challenging single actually tough for a assuming the Yes, government, the our be comps Now same in more reversing but to course, macro we're not be we're in market. it the that macro, second of and we relates China

the So essentially a the we'll it's be level has it in we those tougher assuming then see the math do then and second in the will Longer we start of innovative and China favor. half, highly and intact as we're term, in biotechnology see comps our is the activity significantly second that drugs here but XXXX, to particularly the in the full half going and levels, where through tougher effective working is activity get the year in higher continue. the to first believe not sciences. as half for we And life requirement where the remains been investment

Scott Davis

luck guys. helpful. in of Best Very 'XX,

Operator

next Ryskin comes of with Michael from Our question Bank America.

Michael Ryskin

got on above any just earlier from first, I point couple want the I X bioprocess, Q&A book-to-bill think you expect you out your follow the in that it up a I at during of right. mean, to I called on the make don't year. to sure comments

backlog continuing I already all a backlog be means X.X the cited with of normal at that sort So that mean, you but quarters. level you'll deplete to year, is the

year of well only as doesn't gradual book-to-bill for improvement to in like just to you high of And XQ do this year? if just going that So single-digit from backlog the to what see X on, improvement then and underpins of is start the XQ, sort that, yet got rate, you're over goes what growth related calling your to the I'm the X course that break of sort year quarters wondering then X? if how you've get

Matt McGrew

I I close close Yes. the talked it if half. second that way in math, we you go mean, the the get about I guide, think I mean over mean, gets pretty did pretty I but it to it X, does do say didn't the X.

we're what So you're it a to call 'XX. in still is to bit But right. going I see think -- little early I think it's

your and far half it make growth We Mike, X, as we're pretty is want kind of thinking question, to right, as but was to the think, it. to rate half, for will first close through And second are gradual sure? about the over the how the half. calling improvements not book-to-bill in second X get I year, That's in that I

Michael Ryskin

Yes.

that and improvement. Just visibility

Matt McGrew

like million. you're I I $XXX right? mean, second a Well, not First to half, it's said, about number, huge Yes. half talking

the we visibility -- destocking will So it the to do think past I we we are first little the year as continue half. inventory the expect we so and in is improving move bit a as move year, that into

given update update But not year. the going obviously And a to get the that's you second inflection, the if we that, to high modest can And of with half not of hundred destocking, aggressive down the trying the up, ramp the just guide second working anticipated we not a be about of right? is so how an digits. a better. of we assumption we how real it inflection step-up inflection couple do going million that in only comp a are just will admittedly, guide of little higher, sort $XXX past dollars They're to getting with see of out that certainly, and to either in teens. a better on to are I half things like not half frankly, something single step million ramp bioprocessing. feel having does no also we're or through we on second a lay and steep billion, be everybody. an And have It inflection, math happen, get thinking the but an think having And way, are that's may of high get that kind constructed bit $X reality. if that's if Remember, happen calling we the I

confidence what that going I is be and us think help little destocking, to the visibility. So will that's customer got of sort we're the some behind we've numbers. think gives we've comps got those bit better a We

Michael Ryskin

not the right. to I second half second half, half, half first second All $XXX million to thought was Okay. but I can...

Matt McGrew

half No, second sorry. half that that to second half. Yes, second second I'm is to half. Yes.

Michael Ryskin

we'll follow Well, All either Okay. offline. up right. way,

For a customer and and way, Can -- the and follow-up rest is maybe biotech ask another perspective. about cautious. want the your pharma want for to segment talk on bioprocess a still bit I side think I about biotech, just putting farm from it bioprocess somewhat outside you Life a Sciences of put question. of the outlook to little seems like

of You're low talking levels about demand.

for how any still are thinking year, Science in sort post Life curious, just about year, and those segment specifically the biotech companies I in the recovers early Just know in but of signs. early still the January, how budgets pharma XXXX? we're

Rainer Blair

of be expect last research, was we or whether in level normalization dollars instruments, And demand, and fourth or the about through normalization an market, whether science for just just set down which years tools off lower continue expect life so, pulling continue X life and were really quarter. we in Also of Life down the where So was anticipate and to consistent of forward we largely And QX. of it that by we to at the saw see But with subsidies do COVID similarly coming the to Michael, this here over to we mid-single buying that and China biotech half loan we because level the that then in science demand, end believe numbers quarter, first digits, began additional was will QX, second which here. of that Sciences XXXX, in infused pharma XXXX. levels anomalous think these if stabilizing. showed that the and

for Now is portfolio. -- mind, keep about instruments Life XX% we only Sciences of us, in the

we we occur, for it's good activity do not we order going at it's quarter, may level. across in believe here do half that take to stabilizing the a lower think some that but time in be here. this So Nonetheless, first first to read normalization

Operator

Our Rachel from come next will Vatnsdal with JPMorgan. question

Rachel Vatnsdal Olson

So I a on touch to more bioprocessing. want bit little

year. can noted customers may that too that about not green But year. if seeing expectations inventory. modeling last they lean you're the inflection from you're You've gotten JPMorgan with call around if conference conversations in shoots you'd last look customers order on this the shifted these XQ mentioned had that that an at And back you've business at any talk on you bioprocessing signaling that your have trends of year, then you

you the guide about can how So how this that's and as with to customers impacting those talk conference year trended us well? at the conversations

Matt McGrew

-- Rainer did than I conversations start, Maybe being more had Yes. I can he if of we're and probably can customer honest. the

saying, think and customers is it pull There were Six something maybe guide this would antecdotes. no when into quickly. and characterize shoots, no I mean way green no from I there we forwards you I I yes, So about I think out about think quarter. the were ago, quarters needed were think months coming the we There

-- have be say our I think the little think half to widespread the combined why we see this a enough where beyond X, is that first I bit don't we more of we to anecdotally. do. next sort started have is to to which be of with it pegged X But the months, we're here going able tracking the in inventory. of

to us that to anywhere. aggressive the inflection going as confidence of little bit And of destocking head not wanting a like largely we We've be feel the to frankly, a into do with we how think which call that's book-to-bill it of of get we better bit got anecdotes better combined at. and and year, get the much up, little we've sort a as funnels So big first we handle know do that is got we a behind slowly is the gives on seeing, real but sort that earlier, into talked some modeled half. where through we as are kind visibility of the we about us these getting better sort

-- seen X, here of over So X months. we sort probably that's the the course we've how what of last

want there, anecdote little the hearing out are that discussions is of a a and if negative now call talk see to will. probably less sort call about want JPM? I'd bit to of better maybe, could, starting do And of ones, more you the to Rainer, at customer situation good it shoot, that but I you green things you good a So it anecdotally, some suppose those you

Rainer Blair

conversations in see half customers to trend order but continue normal only out of year. they're we to about first, a the second that more how the returning confirm to thinking of just planning Really patterns of positive the not

of saw directionally what improving saw was and seasonal sequential we certainly, these some order support the are So which all conversations there. also believe, but of we sort in also positive patterns we improvement, partially

will So and where But what referred what sit slower point today, which broad-based ultimately, also Matt be at the update we we patterns looking think first accordingly. that past and exit that's we improvement to single continue half we're order is will of and a itself for, we positive in manifest seen to then previously related about exit where comps high which the in or some the talked we've digits the rate. then in half really second development will that the with here months that we better

Rachel Vatnsdal Olson

then on Great. wanted follow-up, more the within a bioprocessing. pace And my press of bit little I recovery just to

though, their said, recently one to So peers that levels. your customers companies slowly sequentially one crossed of working really quarters. last over been that only of manage picking has inventory has the their is X.X book-to-bill with just the few been level. few actively They up or That Danaher

And isn't me, some guidance of recovery? to at is recovery why in in this should massive that shouldn't reason a think excuse we customers' inventory we modeling inflection point impact a year managing V-shaped more of that How recovery, for levels about what see the So bioprocessing. while on there your I appreciate -- pace Danaher? the V-paced some does

Matt McGrew

mean, it's to going -- tough, right? we I I same of bit Yes. Well, in boat. while all think a be little Everybody are kind is the

we get think of everybody when sort different have about inventory timing I destocking. slightly the will a through

not. have. is our customers of be be the mix part to to it's going it's were part just And going we heavier of the going it and So we to sort I portfolio. geographic or kind Part breadth of of of think our be of where

into there's think goes a it. lot I that So

for be think will So it little bit I a different everybody.

I might each think of as different be well. every kind modality

culture cell filtration. chromatography So from different and media might be

I that And And think of So with those some is seeing, a other low second -- folks think be for us and lack everybody different were year, last see your at have V? of in only going little more, see we're going could we sort I now. what I want in it or right combined Could you of question, think a did to saw -- of half time. to were of in a we timing. confidence I to we not it's kind to down but So a a don't mean of bit I I there mid-teens think think things singles. first down all the enough to is right? -- lag that possible, model better we

It is it able transparent Sure. We digit see we for trying Anything I not the if when not the impact. it of would it I when be But it. for in suspect. But enough to an trajectory, that, expecting of forecast planning recovery? single some have know. high single everybody, exit and what would we here for. duration and magnitude obviously digits will at guide, have is happens guided on that on we Is But be And do the or to it obviously year planning seen to if it, V-shaped turn we year. in we're we point, it. it exit the again, the as call that's we're people possible? better at going we depends update order the let happens, of But a see and than this we're that we frankly, have impact if with -- from specifically we're -- high what we it book if possible. Xs, obviously here an exit this plus, to about talk will have we earlier, think

Operator

next Souda Leerink question Puneet from with Our Partners. comes

Puneet Souda

the when for see but And at start let a some you if tempted -- to expecting instrumentation in on that Could And me to I'm XXXX? sort normalized provide level? first you can bioprocessing, we in context first. My instrumentation ask recovery? what could tell about us with maybe growth instrumentation you're potentially stick of growth

Rainer Blair

half digits. the Instrumentation the our the Science And the pretty second half year. business and So significant be that's the will, on then at Life of we first down softer first some are persistent first but slow, of that? a really in year, are for single low based of year we the of here in of all, drivers comps. What half, here improvement some looking think Well,

course, and a high current You result China particular, loan to last of levels will will the year. at half that half the mid- activity first in into put in teens first the in year recall us program, softer of growth

constraining talked available their China get that the and changed base here. half about bit additional along anything, the remains as the fact their don't just also recently and advantage taking the pharma, normalizing a that having the of through of dollars biopharma installed more lines during pandemic out are of investment here to will that we think we improve a geographically, year. second the year If expect half weak, be first If of dynamic. We we

at starting of activity Sciences Life the So really last levels second the to stabilize, half year. of

a We then second and the also here comp gradual in continue expect first see that from improvement to half through the perspective. year the of

Puneet Souda

lastly, thinking Veralto us just DBS expectations and about Got on it. seeing of I you are on And antibodies have deployment ask That's what that update of Abcam if overall? efforts And could 'XX? about How markets the are the for in you could after And Abcam, you RU there? terms sort the in spin. you then helpful. capital

Rainer Blair

December. closed course, and up DBS good working had early and first team, a couldn't where pleased we They be way you is with than So here a team running. imagine is proceeding we can the we're really the finish Abcam, in year, the all, And and the that are of more in to of having implementation pulling. focused

on So deploying you to portfolio continue comments have, to active always. post we capital be capital strong, my around heard Abcam the continue, believe, and that we'll always we work earlier differentiated. sheet as as Veralto deployment, which to is the optionality, our is relates balance strengthen it spin, way. Then to on as And our

Operator

or the remarks. closing question-and-answer for additional Bedford to John today's back conclude will does any turn session. This now I call

John Bedford

follow-ups. we're for a Thanks, Have good [indiscernible]. Todd. Thanks. around Everyone,

Operator

disconnect time. does today's your any participation, at for you may conclude thank you We This call.

Danaher (DHR) 30 Jan 242023 Q4 Earnings call transcript