DHR - Earnings call transcript Q1 2024

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Operator

Hello. 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 First Quarter 2024 Earnings Results Conference Call. [Operator Instructions] I will now turn the call over to Mr. John Bedford, Vice President of Investor Relations. Mr. your begin may you conference. Bedford,

John Bedford

Matt and Good Officer. the and joining Vice and on for With morning, Chief and us Financial Officer; President everyone, call. our today us Blair, Executive thanks are Chief our McGrew, Executive President Rainer

financial to that future G our relating financial details and website, provided supplementing anticipated call the presentation earnings during Regulation point out Quarterly like by of reconciliations SEC a and the release, on containing call measures www.danaher.com heading, to the today's our other I'd are non-GAAP slide any the information historical performance Investors and note the Earnings. of available all and section required under

today of The replay & on will Events be Investors archived under Presentations XXXX. this and archived May will later call our this be available A the call call. audio until next quarterly X, remain heading, section portion also the will until of website of our

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

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

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

Rainer Blair

and much, were everyone. joining to good order team very and on gain Thanks Cepheid a start trends We're and continue appreciate market in call morning, business quarter. especially XXXX, bioprocessing you off see to John, today. delivering we us the earnings pleased improving We flow. in believe better-than-expected good share We our at cash with revenue, the to our in

further the outlook, Now our previous this order our improving which funnel guidance. trends year and better-than-expected start is to unchanged supports with paired from year, full

Our first quarter reflect results positioning portfolio the of Danaher's unique today. also

markets, growth attractive positioned well are by with revenue margin, high recurring long-term drivers end in secular businesses Our high underpinned all business models.

cash going positions also free our to generation us well strong flow Our forward. enhance further portfolio

Now Danaher it's portfolio the Danaher, or how DBS. just the run it's using business not differentiates Business that we the System

customers our us executing DBS which in new of businesses, to our process deliver position both to commitment helping team's enables for drive and impactful Our innovations with performance. long-term Danaher meaningful sustainable to improvements are

weeks is of example ago. Kaizen DBS kicked prime a of just off the CEO power we Now the X

material of in our During opportunities associates come this pivotal most to for thousands presidents together annual significant operating and of our event, most improvements and sustained senior some leaders, our company address businesses.

the at and organization customer levels to a competitive businesses. across our Florida of manufacturing to manufacturing last our commitment at improvement all how year's up on I just in culture, our sleeves reducing and times. DBS increasing of focus Pensacola, fact, to advantage facilities experience, lasting lead one a rolled our and this CEO contribute week, Kaizen can underscores continuous better is In throughput my filtration

So with Sales X%. core quarter at take core billion $X.X the a revenues first Geographically, quarter revenue results. that, and look our first were were landscape let's in in declined in XXXX China markets closer challenging. markets High-growth across including down teens low where double high decline digits, with in offset diagnostics, biotechnology. the a remains declined slightly developed by broad-based declines strength economic

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

$X.XX. operating diluted adjusted than in cost the volume. the of points was than quarter, $X.X per free net profit more Our was impact free cash of We ratio in lower flow income conversion earnings of XX.X% more to basis XXX%. net margin down billion share cash Adjusted by of initiatives common favorable offset as XXX were resulting a flow generated savings

XXXX take across our in end results XX%, bioprocessing revenue in what So give markets a on seeing high and portfolio some our teens discovery we the fourth our now let's In Core sequentially declined and to ratio the to with segment book-to-bill start better-than-expected we're increased down biotechnology year. closer digits approximately and you a today. down look modestly color and approximately of at from the XX%. medical our bioprocessing, X.XX. had increased mid-single quarter Orders

a this the decline first particularly Now encouraging and typically fourth order we quarter as the seasonal is see between quarter.

Europe, In through larger progress customers North making are their steady excess their returning order inventory many working patterns. America our regular to with and

have to We of inventory expect normalized levels quarter. these exiting largely second customers the

in the with are improvements environment. overall also funding We encouraged

the market. term, these it the near improvements indicator a impact of to health While we for activity positive the expect in long-term don't is order bioprocessing

China, customers and to Now prioritize weak as demand activity are conserve remain in levels capital underlying continuing programs. and

to of also business. high gradual a revenue single digits there a to of growth rate is as no decline And the Now exit core low XXXX, we revenue better change for a expectation or full through year our to of improvement our single-digit assumption core the no year there's our XXXX. change in bioprocessing

growth medicines the Underlying through market XXXX. and of to full confidence the of market. biologic high Despite or near-term development for robust the the therapies breaching There digit biologics better is rate for increasing advancing again at pipeline long-term an a projected underlying headwinds, market. profile year number trends our in health the demand is and grow reinforce single also

XX% grew number in year. reinforce revenue core fact, long-term the high These last for approvals positive conviction the of single-digit ahead than growth franchise. genomic for bioprocessing the biologic our In new opportunity trends in trajectory and FDA significant more leading our medicines

reducing capabilities faster investments mixing how cell geared drug to Now substantial our towards Cytiva's make in in customers a manufacturing. improving helping recently time is biologic we we This production. productivity innovation of magnetic innovative drug continue reduce example culture mixer specifically loss. enables our another biologic cost This great leaks released the Xcellerex and complete media are first Pall single-use and risk systems of developed, product new system for significant Cytiva lead batch also Cytiva to and prevent of as can team. release and is common Sciences milestone Life large-scale mixing combined mixing leveraging marks R&D more designed to consistent be with and recently that the to the other

revenue digits quarter our segment where core with revenue saw half by the our what declined trends XXXX. Life to in instruments of turn Total let's largely second in Sciences consistent in with first Now Sciences we decreased Life collectively X%. mid-single businesses the

and and has developed improving We quarter levels stable but at increased the Academic not lower markets, activity translated yet activity see funnel orders. but biotech pharma In applied progressed, to activity as did a of for this a weaker demand. In remained and comparisons year levels. more better, result stimulus were the of programs demand advanced comparatively underlying result prior lower by our performed particularly of declines instrumentation. China, markets as as activity driven difficult

gene quarter. consumables and next-generation by delivered editing genomics in Our across the protein declines core was writing single-digit growth offset revenue and plasmids sequencing business low in Double-digit and solutions. growth partially

the While term. in current exposure years end Life Sciences investments long market for growth Sciences markets in A our positioned the combination accelerated of end Life our innovation and strategic remain over and last are several to trajectory. conditions well acquisitions increased our attractive challenging, has businesses

with opportunities XX% comprising recurring now Additionally, see we margin segment, more for the high-margin improvement. future revenue of than

core by move our X.X%. Diagnostics revenue our Let's segment, increased where to

Our the in quarter clinical a execution, leveraging businesses System and of Diagnostics positioning. delivered XXX portfolio. and performance Immunoassay the digits both solid diagnostics instruments improve Business mid-single years, with strong growth have recent rates consumables. consecutive result improved commercial Fit The across System and Automation Coulter the both direct Beckman over mid-single-digit and was core revenue Danaher Analyzer, growth. the including innovation collectively the and is seeing for fifth segment's to better product the Analyzer offerings We're XXXX DxC few also competitive Beckman's DxA new last our introductions Chemistry retention the expanded DxI XXXX up win

received recently system, Aperio Pathology scanner biosystem clearance. XXX a FDA slide like And XXX(k) DX GT Digital the

predictive algorithms, standard benefits pathology productivity. including significant milestone, the pathology used slide widely becoming can and with one imaging clinicians, to closer clinicians. in Digital labs, of moving capabilities this pathology GT more improving analytical care through for to now many be step Now digital the increasing provides enhancing XXX

timely a diagnosis which of patients. and of more All provide help accurate

at innovation So this how highlights Leica. also growth is clearance long-term proprietary driving core

test core digits. volumes the Cepheid's approximately mix believe Flu COVID-XX, diagnostics, driven quarter molecular by X-in-X million, our revenue Flu revenue double for we million during I mentioned of Cepheid's A, of the in continued exceeded of RSV. higher $XXX the share favorable gain to In and quarter. market our team expectation earlier, $XXX both And and B increased respiratory as a

to global billion Now continue full year of infection for and approximately revenue based trends the respiratory respiratory $X.X current XXXX. we on rates, expect of

health, The globally, pandemic, grow testing pandemic each We're to drive this than up over a customers infection in assays Cepheid's return systems drive increase the use assays. sexual XX% threefold systems the seeing growth in customers to adoption that growth which utilization. We're menu suspended through XXXX. continued has were to protocols first to and rates as thoughtful today were the Group Strep team's to that approach more installed helped which continued during also mid-teens A with base quarter beyond cases and than such the clinical hospital-acquired increased placing since quarter. in seeing in more XX,XXX

portfolio. Cepheid CLIA the with is which our Now January, growing for waiver latest received test, Xpert to health clearance MVP the addition expanded a women's Xpress FDA in

how narrowing easy-to-use failure. at driving testing great CLIA example can easily closer patients Cepheid. waiver, physician's and a local office treatment improving With often office that and tested reducing treatment therapeutic gaps the critical Cepheid's molecular need a growth in now visits accessible or significantly patients, care to for bringing the long-term provide associated is This customers testing of accurate, with the clinic, is outcomes addition like to of multiple a settings are more the

we second and the So year decline In briefly for ahead look expectations percent let's quarter quarter, to the now XXXX. mid-single-digit the at the range. revenue second expect core full in

quarter adjusted operating a of Additionally, XX%. profit margin expect we second approximately

year For change there the previous to XXXX, guidance. no is our full

revenue margin year adjusted in XX%. full range a we decline reminder, profit a As the a operating and approximately anticipate core percent single-digit low of

and expectations our up, pleased forward on So we're the we look through quarter first wrap results of move deliver as year. to momentum to to building ahead this

Our in organic team's innovating a that with has with all our solutions to ahead to well to Danaher. executing deliver growth a improvements commitment for are portfolio highly future of our created end our markets. us there's attractive in our businesses positioned and breakthrough The customers, so bright enabling outstanding meaningful is driving investments lineup transformation DBS paired more franchises in and

long-term a higher expanded for are science life flow. We cash and focused margins and stronger leader positioned diagnostics growth,

we So of create us the leading combination long-term foundation provides value. differentiation strong and talented our strength of our unique this to team, with financial believe a shareholder and sustainable, profile incredibly portfolio,

I'll to And call back so turn John. the with over that,

John Bedford

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

Operator

question first with from Research. will [Operator Our Jack Instructions] come Nephron Meehan

Jack Meehan

wanted bioprocessing the I focus here. business to on

year So any pharma driving positive like that? Any unpack versus do a start orders would seasonal what bucking customer trend commentary And be you comments think you Rainer, way. across types the us on trends cancellation can is CDMO? in to for great.

Rainer Blair

for start QX the seeing question. off we're thanks we Maybe and what with Jack, today.

Jack. a talked book-to-bill which from from the orders X.XX, right looking the encouraging. to digits increased modestly of perspective, we expected revenue decline about our in to approximately And start sequentially, as year. grew orders, at a and QX, our to typically QX we middle And range, had mid-single we So was that's better-than-expected so

as regarding we've that a about with talk I -- in both sales, recurring expectations. equipment line I'd questions equipment recurring orders versus thought some gotten and our our also And I'd orders So revenues here and and characterize minute. for

those revenue the quarter. Our some down sequentially versus better sequentially recurring grew we our business while expected. headwinds, was and were And in quarter equipment and we was fourth orders the both versus growth fourth as equipment saw modest than and

So here. there's really no new news

larger Western increasingly ordering to customers our patterns. America, in Geographically, Europe North pre-pandemic are returning

of second the we So to expect we behind to the largely year. half continue us destocking be as enter

not we're Now orders. emerging environment is while improving, funding seeing yet biotech it the translate into

So early but days, helpful.

activity to weak. China. on underlying Moving Demand remain and levels

year, it look to an quarter the year. put year. thinking the as together, the and about really we the second you the was no all And start encouraging quarter first we're the how to full rest there's if to So ahead of change

We be down expect the first half mid-teens. to

exit we or talked believe in we'll As with growth. better core the about revenue digits continue year to high January, single we

Matt McGrew

And Jack, you as know goes, up. as cancellations far brought I that

during would the the around quarter, wouldn't book-to-bill positive another here was quarter, much of is Rainer were kind really Cancellations sign. X.XX-ish, of It say minimal that So said, I sort there. have think this like been different. pretty which I right

they much we were think, they the saw quarter. last here bigger than much, I the several quarters, were in

there well. a of a So bit as tailwind little

Jack Meehan

Excellent. And bioprocessing question. another

others. to what contrast dynamics shifting you versus guess, As trying new we was the to curious compare competitive industry. the everybody is normal at in the and get back here, commentary normal is I how all your see or I new

Just if of would of call the think up second-tier were I'm there over anything in curious you're Cytiva some stock. there's when is narrative back regard seeing. years, out if you couple were that out others picking that last and that you players share this

Rainer Blair

improve would mantra, wouldn't. we Sciences franchise. business acquisition we day. you every Life a very business feel I through the Jack, now Pall bioprocessing Kaizen the And improvement Biopharma really of bringing mantra, Cytiva, continuous strong do have that the GE we with in I together that tell really we continue like to and what the and

that believe competitive continue not but and highly through case move the increasingly future. only be so the and a we as And franchise, the have will we that we near so to year

Operator

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

Michael Ryskin

going that the ask on then follow-up to strong and from I'm topic. Congrats on I'll on one trend. bioprocess, move

and saying, the second seems improved just you you orders I quarter. like XQ mean, it some exiting on surprised that you to XQ positive as commentary were had start, So Rainer, were into inventories

additional the bioprocess the year, why just given more XQ? see seen to just any end you So the you're feel in? the to the where putting so you like conservatism sitting are waiting did confident of ago, raising aren't are you given guide from just what progress there X for you've market than at far? Or you Is months

Rainer Blair

some it's revenue said, start no change, Well, Thanks, Michael. mean, year, There's the like still core there's had year early. encouraging I to we full -- we said, our really but you to an as down low run we're of what for the single the quarter order build digits. to really looking through growth is the And rate in stability here and momentum to consumables. continue continued second

of see demand course, term, longer view towards like term with we'd the equipment longer And improve. to a

emerging don't to important yet. the solidify, it's about the business, orders a in And that's of but small see then for only of long that the While materializing part course, it's good XX%, biotech term. we funding stabilize see

So the guide. properly to we're with a and there's think bit little we go more positioned here,

Michael Ryskin

terms XX% anything of how do to really, in margin the in think also to about margins go of then overall of the over in switching as I'm You're we mix like ahead the then When of leading pieces contributed. the Cepheid should that? came side it really and bioprocess, versus mean mix and through And unchanged. how sure of think quarter. seems quarter about in combination expectations, just the we Or year but second a I helpful. pointing the volume, you think then key That's XX% solid to from Okay. Anything for just there? XQ things, again, that's rest you we year?

Matt McGrew

Yes, Mike.

right. So think definitely I for QX, that's

and It's respiratory about XX% is versus decline operating was lower We're QX million. adjusted to for due QX. -- You million sequential was QX a was $XXX at is all sorry, the XX%, like margins. volumes thinking or QX that respiratory -- talked more approximately Cepheid. that That about $XXX X revenue

get, operating it's a off. that So margin leverage the when drop pretty we big and of the business that given And pretty declined. meaningful profile

I as is and So all volume maybe decline at well. FX respiratory related say Cepheid XQ the to some would

about that But than sort now past, endemic likely have margin sort that versus it a way point of up season. we the our were an seasonality good to COVID out you think progression you're does you given different and to we maybe of sort of really state we're of the as bring in respiratory where see back in come in that

right? volume of So if anticipate and season, quarters are that the Cepheid QX we you highest lot, about and by quarters north think are a which the to $XXX being respiratory going those is QX, QX million both QX each. at be

QX $XXX we about million of sort In of of talking QX, couple we're and that saw dollars. revenue did to, only hundred we QX. a in guided You as million

think a profile, maybe be volume to volume the Only what -- forward. billion. margin was saw than the I past QX a respiratory $XXX that's and it's we margin little higher and QX and much leverage, million and business. $X.X quarters largely you're higher So operating going because pre-pandemic, Danaher's going see XXXX smaller in that's pre-pandemic different And now

So help through is a as as of I we bit dynamic people hopefully, that have showing go modeling color this forward little of little do just now itself some gives different and get a think a bit of here we little a it probably bit we stuff. because

Operator

Davis Scott Our next Melius question Research. with comes from

Scott Davis

I minus you Guys, I'm down. looking detail a flow bit than on a X% mix of and there would more ebb the they're thought bit some a perhaps have the the give breakdown down of why and Life see core. Can issue? little Sciences They seemed on margins, little at us I more and

Matt McGrew

above actually got you've being volume think little that down, if and at got at well. QX in transition we in margins look thought either bit in XX%. of also, to and that costs has probably you I here, Abcam number Yes. I as related there that Abcam Scott, kind come in the I some we've came thought where mean are the a

And low thing had growth single so of came think it impact we in and quarter, probably around operating still leverage I down, is the thought. the of big the dilutive kind as here of some core with digits expected, where in Abcam but

Scott Davis

Fair enough. Okay.

talk some back bit going remarks, your little a positives us talk guys, So reads with I negatives? didn't of through you it now. mean, perhaps you business prepared just in to but early had Can you've the time about and of of the Abcam,

Rainer Blair

you we in Danaher the first now on on and and as behind Scott, Business and December closed we the Danaher into the implementing place, us. transition And know, quarter Danaher a in Sure. business President really the CFO focused and they're full have new System. put

to we're continue and need a fantastic in it, to opportunities So time to after long and we a believe this cost going through about. the to of is we term, grower get going market. continue to single-digit high great some of course, growth we're a little work spoke And

Matt McGrew

before. sometimes put challenges Yes. that -- followed new Scott, mean, had you've these enough I the And you we've us business side. in a on as some that seen this you've got team, a long cost

seen very, similar. As this. we as And sort IDT of DBS, very was before introduce going, get slow starts we've like maybe we

like not I quickly we're like after here what as really So sort are at of surprising, to going -- some said, the I get of the costs we term. think do Rainer And I well. pretty where long it's in it's but

getting that, of I year So us after it, well. that I think do the for we're and here should but some as expect cost balance to you do think the money to will it

Operator

with Vijay from Our Kumar next question Evercore comes ISI.

Vijay Kumar

guess, helpful. comments first bioprocessing, one, for on I my those were Rainer,

but the changed. prior Xx. activity the wondering 'XX guide trends, exiting you of quarter? X.XXx customer about progression change, With in the know maybe change? the was north order those could should if the perhaps I'm the given rates Xx I fiscal X.XXx levels, assumptions exit talk didn't have and for I the in the And think or

Matt McGrew

really bit the can I color. saw take would say pacing I a did January, some in better Maybe start and that the as that quarter. we through that first, continue Rainer through add little goes, as and far would the I'll that quarter say

not given in a that I'm sure So inflection big it was any month.

framed I digits. far I I -- from rate, quarter, the As low talked exit deliver the the about to that. year, revenue don't revenue change order for that to exit single-digit see our initial here, us to think where high as in in we still full going as guidance And would every of to think anything would we sort not any that. down the need book-to-bill there's We've X.Xs. change single for we're the

in range here so anything or don't we for in why we also think with QX, updated any right think of that's guidance. I change and not And I have reflective and that that were the that, there's changed

Vijay Kumar

the think Understood. if there's given you mentioned IDT's declined that your And China some of this comments the what you change perhaps, BIOSECURE China, programs, IDT some have exposure, was up that in IDT? market? is end around And I China, maybe Was et ex-China, helpful. and Any incremental? the China? in quarter. loss would think it IDT the or commentary. that my mentioned to matter but share new be Does business Act, any, in noise I follow-up, on know view I been stimulus, Is comps, Rainer, loan Does China? cetera. on come

Rainer Blair

Sure.

is with we to year, our down the be for in we program in broad-based perspective China. high very equipment digits. from markets terms So which discussions following an heavy play and mean not care that's ranges around includes off know health our I to you also And of starting own. agriculture changed the have single closely replacement that are we like certainly, industry these stimulus expect that full

how clear provinces. not to the it through trickles it's central implemented, that's be early whether yet But via it's whether very government, that's to days, and the

our And perspective be the XXXX, expect to decline impact a to in at here single-digit don't year. stick lot with a this have a large high there. of point, for that So that's we we and seen why

monitoring -- we'll that. moderating keep So of course,

playbook And is performance, this very comes XX%. the that's we're margins with the IDT small happy very China. and company mid-teens of actually and IDT we've over has when been at in exposure operating a IDT not the has point. growing it acquired doing really since which Now is IDT, part well, to IDT's

Operator

Research. come question Schenkel Doug with Our next will from Wolfe

Douglas Schenkel

guided. So Sciences, that a was Life that you as than segment, better

instruments You about mid-singles. declining talked

actually was good going the wondering of what what than than on I reagents reagents extension, then of the what sounded weaker by And year. pretty trying consumables. is, on a of and You activity expected? guess could little and I'm expected? just mean instruments kind there the you that I'm trends stronger sort were were about to for rest think and

Rainer Blair

more quarter Thanks, 'XX Doug. largely of around we our Well, thinking with academic core in up digits. which with know to and markets, the just about of businesses, markets quarter in first demand. And tools, you half mid-single applied Life And for through comparatively what level a instrumentation. seen customers you a we've of consistent held at what in give second growth developed Science saw first sense, the lower albeit represents biotech better our down stable, advanced pharma XX% and the are is particularly

actually later orders yet. improved starting haven't but translated the we're activity see to So for to in those funnel year,

-- activity, are what So yet deals. with to the in not they book kind up times that for it's cycle good but of being more it's order see showing those the

year, last last sort China, at China of execution if of year. plan important stimulus an think in the the Now and -- that's we this of part you were course, the you market, peak about of of

market the QX. there. comps that, here, So And in to to just of the end course, and in addition tough demand lower are you've got macro weaker both QX due

is to the and closely not mentioned lastly, Vijay, discussions days but following the in around to and we're here, any yet stimulus towards it able include really those I then that we're as And early view future.

to we continue go monitor as that forward. we'll So

just here normalization And there. that to life that then what coming in should some trend seeing is then this expect quarter. the see as half, And we conclude half comps the of the the in tools last science off continue tough first on second we're expected, improvement second in year. I'll we here market But

Douglas Schenkel

Super unrelated helpful, Rainer. One follow-up. quick very

today, as as about stretched environment how I sit are rates you're billion, right capacity. M&A here and especially sit $XX $XX for where probably funding has the deal here if the think in wondering, I'm billion you now, as maybe is we as feeling we Danaher today? much given just where right

Rainer Blair

great on there's our higher doubt know, capital the But our Doug, work harder higher. we're rates, M&A. our And with on bias towards as bar for as going we'll is, to that return no work compromise rates. with as to we have And allocation we expectations our is as as capital we higher interest very that that you just always not means those is targets. active here, invested we're earnings funnel the here active nonetheless, all and meet around have hurdle discipline But continue are, M&A. to

Operator

UBS. with Leonard Dan from question next our take We'll

Daniel Leonard

Rainer, you across does of improved thinking you your differ hasn't benefited improved business that business think Can operating times in yet. a activity? a do elaborate How bit And the lag improvement units? biotech a that there? you'd long of between your the you've couple different mentioned how funding see funding and on

Rainer Blair

Dan. Thanks,

seen to the that be perhaps stabilization funding. here, have we operationalized improvement some even slightest So a But or in time. for will biotech take

In fact, of funding. changed biotech the in that we have relates believe our so to our it as guide much time businesses we on perspective not any

several early it's positive any business. days. here of take too just difference But will helpful that to biotech slightest to funding early growth. showing and across the It's see the make So discernible it's the stabilize even and quarters and to see

Matt McGrew

about anything order to perspective until year really thought Just haven't kind give you a how in from we've contemplated sense on color an of it, we goods. of next our

Daniel Leonard

on plan. different? within China China made are comment also I the Sciences, markets And you Got whether And plan, that applies just the it. decline Or a improving that in high-teens funnels framed end but how in you in Life core curious Appreciate progress different as quick China being versus know on whether with line trends curious to China. as that. follow-up well.

Rainer Blair

In only what's quarters on In were quarter. gives then were the China, nearly line Sciences, developing. XX%, last low first but in XXXX. give we first over high back a we we've comp was a market, our to sense biotechnology is how of with you going high seen which the not Life in what to single the down down of teens that here. digits, half in the So segment you And that's sense the in Diagnostics, of prior down

skewed remains to biotech biotech we and in funding, China, be the relates correct expect to are it it returns. to be more that you seen when As funding towards that markets than developed

while what that very seeing is markets. we're a in we So developed the low in stabilization to there, see contrast a level at stabilization

Operator

will question with last Vatnsdal from Our JPMorgan. Rachel come

Rachel Vatnsdal Olson

the on quarter. Congratulations

BIOSECURE the potential So bioprocessing. I just how wanted Act thinking you're impact to to ask on and about

So working we've are CDMOs and supply given to that at chains starting companies we've BIOSECURE. biotech and stem Chinese their with the of headlines some around look heard of pharma already some seen these

us from timing And there growth if a but and willingness just from think I to be on pharma you end other biotech to this about then to as what we air you and some So And their geographies? with of the customers standpoint? can through Chinese with or manufacturing so, pocket from other additionally, shift hearing longer-term partner type dynamic shift this Could walk how could CDMOs, your implication are should there? geographies? you customer also conversations guess, China

Rainer Blair

Rachel. Thanks,

of said of difficult very look at as this not BIOSECURE details many there's can plays Act, of imagine, that yet. course, we to the starting not, they've or that, out known developed passage potential ultimately starting and this say that to the is, and their And their are course, to thing. terms sort how customers manufacture. risk that ultimately are factor in a if are take to of as measures molecules to So Having you it to business call business, derisk as you want out and suggested,

from other the anybody, our of manufacturing solutions and follow perhaps to the can important if a than they That's capability, technology with should more shift clinical it's our with support our note So deliver and course, trials, anywhere so perspective. global business globe service we really to solutions our molecule. around -- locations, and full that

those So we have that ability solutions. to follow

to a again, In where need is timing, mitigate risk. terms business and pharmaceutical of companies minimize this

be in So going to companies work other pockets, search possible. here perhaps trials and course, transfers And there seen sure supplier and be as service that clinical of their and as that transitions the terms next making do it their necessary as of for terms technology smoothly to remains any run for should of in great air one partners we're from pharmaceutical manufacturing. to

Rachel Vatnsdal Olson

follow-up on just then a And bioprocessing. as

in high by or single you from that What's guide? basis. walk were rest where on the was assumptions us both You weaker, equipment, cycle for geography highlighted And full of your trends digits year the through you XQ. of to in consumables pointed well? the then Can from that assumed trends those for is kind really towards growth the a of above get any recovery core on on just specifically equipment as versus year-end, bioprocessing a consumables and strength year standpoint to then

Rainer Blair

level. course, X%. major where quarter how we first orders don't a saw recurring was top And terms of driver And here place in that XX% was a we book-to-bill of focus between can the is the it stay over improvement as of our I the taking represents and Rachel, you here the destocking was, we revenue see pointed of that actually is of quarters. guide prior in out, We about down quarter. And quarter the and also year were the that's consumables the in say bioprocessing. of break full equipment. the And course, happy that the to that's where we the what for at growth or sequential in

recurring for digits, about year business of equipment. the think down low XX% roughly full the guide our is for bioprocessing, single here you is if and So XX%

I and think that's splits. best about to that the our that guide way in terms of how think

Operator

call this you. like would over to closing turn for back or Bedford I Thank John to additional At any time, the remarks.

John Bedford

the of Thank us be and rest a Have We'll today. for all good week you, follow-ups. everyone, joining around day day. for

Rainer Blair

Thanks, everyone.

Operator

This XXXX Conference First Earnings does Danaher's Call. conclude Quarter

a You wonderful this and day. time, may line disconnect your have at

Danaher (DHR) 23 Apr 242024 Q1 Earnings call transcript