Mettler-Toledo International (MTD) 10 May 242024 Q1 Earnings call transcript

Thank you for standing by. My name is Sarah, and I will be your conference operator today. At this time, I would like to welcome everyone to the Mettler-Toledo First Quarter 2021 Earnings Call. [Operator Instructions] I would now like to turn the conference over to Adam Uhlman, Head of Investor Relations.

You may begin.

good and Sarah, you, morning, everyone. Thank joining for us. Thanks

is On Vadala, Chief our with our today the me Patrick Executive Financial Kaltenbach, Officer. call Chief Officer; and Shawn

and This Let call at website is on the that copy release on is administrative we cover press A for website. matters. also the the me being on available some mt.com webcast today's and is of our will available replay to call presentation refer

Securities the This These XXXX be Act financial implied call to and materially achievements U.S. any include may of will results, statements. Exchange statements XXXX. our performance that cause or uncertainties of by forward-looking within the of meaning different Securities statements risks, U.S. other from and factors and expressed condition, actual the forward-looking Act involve those

these recent company or For our and except by the to statements, any obligation and please law. and risks as on required provide report a Form SEC. uncertainties, discussion any with annual forward-looking filed XX-K to see any of undertaking The current reports quarterly or disclaims revisions our updates

use available financial On is we may in measures comparable the and these most measures website. non-GAAP the directly GAAP of measures. A X-K provided the on non-GAAP call, our financial is reconciliation to

to turn now the me Let call Patrick. over

geographies. the much our Adam, of first product better the Thanks, details X results, call our our of and were for today. and are on joining quarter Overall, across appreciate Page you first which than everyone. We most results Last financial quarter good our morning, categories reported night, we presentation. you anticipated in outlined

fourth product benefit this shipments had As discussed from from quarter a last recovering quarter, also delayed quarter. the we

and our to and all of are this behind than shipped more disruption expected delayed recovered we us. glad However, have nearly orders

and still in the economic soft, While underlying executed and demand considerable remains in this quarter, China, global environment. especially uncertainty geopolitical there well is market our team

growth still We to expect due and easier continue half of the we year, and largely will we sales to in outlook, to the cautious return to -- maintain second comparisons. a

on executing growth as so our will Otherwise, we emerge improve. our initiatives, productivity and we on remain stronger focused markets

Shawn this come me the for for on then Let turn cover I year, guidance the over the with results and and the quarter to some additional our will call financial Shawn? back business. commentary now to

Patrick, year Thanks, good levels, morning, the a from quarter million, U.S. unchanged and dollar prior everyone. on $XXX in and in both Sales basis currencies. largely local were

benefited our quarter previously of product by nearly Our from guidance approximately above our delayed of sales all an of disclosed XXXX approximate of quarter fourth the from in the benefit recovering X% shipments X%.

On Slide X% X% China Rest of the Europe the declined in sales show we and grew the currency Local in growth region. sales sales X% declined in in and XX% #X, quarter. Local Americas in Asia by World. currency

quarter our sales Rest Excluding XX% XX%, the the with X%, we delays, X% Asia, shipping the about approximately in and China. estimate Europe fourth recovering Americas including approximately in approximately benefit X%, our declined down down decline a sales from World, of QX down

by growth product On area. summarize sales we #X, currency Slide local

core quarter, X% product the with flat increased flattish. For inspection Industrial sales both Industrial laboratory were sales and and

Food quarter. Service the declined in sales X% Retail X%. grew

X% we and delay Food estimate with product Excluding approximately sales Retail inspection laboratory Industrial X%, and Industrial benefit, declined shipping flattish, declined the QX declined product X% down core XX%.

favorable rest offset lower Slide mix, XX #X. is summarized of of margin pricing the P&L, partially and productivity, headwinds. to due to XX.X%, basis was on move now an by improved the positive Gross and me currency volume Let increase which points

cost the X% year savings includes period. to the from prior local the $XXX.X benefits prior R&D local amounted and in to a amounted $XX.X million, to currency million unchanged quarter, in our over decrease in compared initiatives. SG&A currency

in margin million adjusted quarter, XX.X% Adjusted $XXX.X Unfavorable operating Adjusted the the prior profit year. X%. which basis headwind foreign operating a flat profit to approximately year amounted with was of currency of approximately from the to amount. represents was prior operating increase points XX an

on expense P&L. A of $X.X in million million. comments to Amortization million amounted to final $XX.X other quarter. the was amounted $XX.X the couple income and Interest

stock XX% Our timing and quarter. effective for in before tax adjusted rate This was rate the is the discrete items exercises. of option

was from shares to over prior X% increase X% a prior which for plus decline Fully the million, foreign amounted Adjusted excluding X%, the or is the approximately year quarter diluted $X.XX, EPS year. unfavorable currency. $XX.X a

in prior the was timing as amortization, the and me costs to on in $X.XX exercises. of tax of quarter EPS covers Reported $X.XX flow. of On compared included $X.XX from $X.XX intangible option restructuring P&L, stock the let the and a EPS That year. headwind comment cash now basis, a $X.XX reported purchased

due $XXX.X quarter, last to a per prior levels payments amounted the In free flow adjusted incentive performance. to share cash lower capital, working on related the favorable million, cash including year XX% basis from to year's increase a

me Let turn the guidance year. quarter second full the and our to now for

our mind review the factors. As following guidance, keep in you please

negative their First, business expect second we quarter. a customers conservative be forecast continue change in take our while will approach cautious do today, investments our we to and with not in conditions with see any the

again, over our to XX% in second quarter before again in growth year-ago China easier returning expect half, second the decline comparisons. We in significantly also sales to the

and the foreign created in Additionally, there rates. is uncertainty has volatility geopolitical exchange in which risks, also economy

this last mentioned levels. compensation Lastly, will year variable to we face relative year prior higher year, as

turning Now our guidance. to

approximately X%. For the to we second expect of quarter XXXX, sales local currency decline

an in be headwind quarter spot to recent sales the $X.XX We be at expect adjusted quarter approximate for of and adjusted second would EPS. rates to X% to Currency the range $X.XX. EPS

expect we currency is previous local to which X% XXXX, X% grow to from year approximately full the X%, of guidance For approximately sales our up growth.

an X% from EPS unfavorable $XX.XX. of exchange. headwind year adjusted in $XX.XX adjusted $XX.XX to includes expected approximately our full sales range of the $XX.XX X% This to of to foreign which expect be guidance growth of We EPS compares to prior to and

Lastly, models. you I share help on to other guidance would details you to update our a your few like XXXX as

be including EPS intangible purchased a per approximately million. is amortization is or to intangible amortization amortization, total from pretax share. Purchase on and million expect basis We $XX estimated $X.XX adjusted at excluded $XX

for forecast expense the and income other $XX at is at Interest million year million. is $X estimated approximately

our discrete XX% items will We rate expect tax XXXX. before remain in at

XXX% adjusted free income. We approximately of adjusted representing million, net a of expect cash approximately $XXX flow conversion of

repurchases million of We continue I'll it my to That's turn Patrick. share side, now $XXX in XXXX. to from approximately it back and expect

Shawn. Thanks,

our Lab. with some with on businesses, starting start operating me comments Let

from delay currency compared local but business This Laboratory mentioned declined in than pharma in biopharma sales cautious As anticipated, spending quarter, especially we Shawn X% benefits QX approximately earlier, excluding our saw customers, China. last and shipping year. to this better our patterns we the was

enhance directly made We innovations needs with in go-to-market that have is a very demand. our for program, marketing of pipeline approach product sales period differentiator solutions that address this and productivity competitive ensure a strong end market customer we Combined regulatory of new portfolio reduced our compliance. and Spinnaker our their and have during enhancements the significant

shipping also declined about delays. for better sales and than excluding of had expected Industrial benefit X%, the were the we Our quarter

enable in Our soft have and sales customers' than we automation upgraded digitalization environment, logistics of expected facilities. benefiting performed would production economic our Industrial core and a have better products portfolio our from in products that of

opportunities about home increase to in be supply shoring We optimistic also chains. shoring continue customers as to growth resiliency aim near their related and to

growth. Our product service product in a with benefits introductions and recent better-than-expected strong inspection from also business had performance environment soft market

first Retail quarter Food with Lastly, expectations sales project-driven in last in of year. significant declined against growth line the our sales

me our benefited declined geography. and in strong in offset shipping a let delays. decline benefit We Retail. Starting additional from in make project-related our the Americas, growth recovering Now slightly excluding which Lab the quarter, comments from the some Industrial by was in by sales

and cautious somewhat expect second customers starting comparisons which we our expected, we as biopharma pharma face year. As the have of especially in easier in year, improve the to the half been

year. our to hub our benefit about European the very in expectations were strong Europe, and across our declined faced with logistics growth related businesses. each excluding delays also in difficult Retail very estimated line in recovering comparisons largely from the prior X% Sales of

across the the risk from energy the see of potential conflict to European and soft We indicators Middle prices East. acknowledge most in to continue Europe the and economy economic

to However, well opportunities. we us have very a positions capture strong team very growth go-to-market approach and that

Asia, were strong of World Rest also China although to the Lastly, few relative in demand past results the slightly weak than remains years. growth over expected, better very very

new growth significant a remained the of to pockets semiconductor our target advantage market the to opportunities, including energy industries competition. approach against and continue and competitive has We

opportunity you so for like why the businesses for the optimistic my the and company. long-term on growth all share on are to I'd are we with Those comments our now quarter,

bringing tools long First, the advancements support have long growth continue the and in time and life healthy I the customers to the a term. science in over analytical are market market for to believe will industry been our exciting industry our

and We also as in energy. fast-growing semiconductors many alternative see segments materials, new sustainable such opportunities

look goals, while automation including and digitalization. Our customers their to quality improving and to continue achieve in help also to us productivity supporting them efforts their

portfolio culture and our to for is continued diverse at success. markets. important and very the target heart essential of we Our industry solutions is differentiator, is an our innovations and with the of new broad Innovation our lead

past have few accelerated new our coming years. constantly with are the rate of We out to over and innovation market products

products our stimulate support share proposition help gains pricing. New support replacement market and value enhance cycles, that our

tremendous the and to and and the automation uniquely creates and a provide logistics. chain. throughout R&D insights to serve productivity through value opportunity This features to throughout positioned value are for us our also customers products production add from drive digitalization We chain

Over X research we development over X invested and into $X.X the areas. billion years, in have key past

advancements and features that of First, products. new increase the technology value our to support products

simplify application expanding have And to investments our and enhancements significant to Second, we share making serviceability are software an our important development our to market The innovation contributor gains. third, manufacturing products. and been complement design and products. leadership of

a are to and seen I'll and have our biggest balances, you new in have start level brought our of portfolio report. to like year, and future. may with recently of so featured with about laboratory we excited our which the market redesigned you of advanced few launch examples our innovations standard entirely we I'd annual share why

further gain share ample to laboratory our are weighing, We access growth expanding global in the have includes leader to that market also but room segments. market

for to of the way address requirements. seamless weighing data with the better all XX% measurement user Our and new ] interface robustness, increased range Featuring applications up advanced [ harmonized to opportunity best performance. this balances in products a up entry-level management,

to instruments Weighing and process to our their preparation automate the approach LabX and and packaging and is broad data design sample connects portfolio of a our sustainability critical analytical higher-end compliant power consumption. reducing capture. improved using software also help balances Our and step in our workflows secure ensure improves

is app, competitive typical This very new in we of considering features. analytical the quality introduced are a digitalization important we and with advantage, a automation control instruments new about several instruments that and recently found XX% provide

launched number we example, titrators Karl For are And titration. we X in month, global completely two new the last player models. Fischer

EVA and and allows for the content Our are control new our and for up efficiently new determining faster challenging water analysis times. ideal rates algorithm titrators speeds cycle of samples reaction

also solvent exposure ensures system hazardous minimizing to safety an has chemicals. It that automated by exchange potentially

with Importantly, data seamless automated management, complying integrity with have while all LabX with our enable regulations. workflows compatibility our to data new full secure titrators software

and is battery instruments been of analytical titration important lithium segments to of for determination Hot have important water an an production. driver part growth

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the our process this, to samples InMotion our used on is solution that fully Six a and titrator. for customers' footprint. team with need cost-effective unattended very a new InMotion titrator small automated X up Karl a developed X With To customers sample can our addressing with only address our automatically solution X, Fischer prep

with sample differentiator been development recently fast-growing instrument changer. a also of called thermal has fully new important such Automation our we thermal a materials, and for X+ in new automated DSC markets as the an introduced analysis customers analysis

from result to generating handling This the instrument results reproducible efficiency also resources. entire increases sample workflow the of with assessment, less

valuable intelligence results time artificial saving software of experience. consistent effects detects providing and measurement Wizard automatically evaluates user's and reliable level types Our many of in the regardless of thermal

different neural are that the customers trained for package dedicated experiment. so can download software also appropriate has their most data on Our networks

automation digital focused advanced been Industrial has core provide in features its its products has Our that product into seamless business very integrating systems. successful and load on into development automation cells new integration terminals and factory connectivity and

The indicator Industry scales for a manufacturing. to from an integrates customer's a and biopharma our ultrafast weighing which process is sensors connects weighting this our dosing filling, of for ready-to-use Controllers and Programmable automation. weight of across tank automated into food preprogrammed, XXX applications seamlessly example is great weighing A terminal Terminal, variety applications control our industries and Logic

an It for server to the single or launched our to cloud. data And network, also eliminates been integration new product and combine our seamlessly and our system. has technology of need Industry time and operations very customer unique very XXX line additional This XXX IT and portfolio. to on Industry because programming gateway customers' and the successful expand feeds recently a have cost it derivatives IT and been saves ability to further communication like

of our manufacturing customers IT solutions. We systems, having helping simplified integration and a have capabilities also in standardized weighing by expanded our pharma

hygiene low-profile hygienic safety scale family unmatched terminals These offers pHT floor to features. also new that advanced and our connect

well cleanliness seal risks is pharma These offer industries Our also fully scales design contamination and load are new scales where procedures cleaning very digital unique, that has and like reduces simplified suited cell. a paramount. state-of-the-art a for

success the past relative and new other We core XXXX have Industrial of important this the with this to launch product, had been and have resilience believe of very business we contributors great this products over year. the

We have inspection value our over that the differentiated are business bring year highly several new to products also recently customers. across considerable the past launched and product

these the X-ray to series drive including technology innovations, market inspection We segment. new expect our gains, of especially share in mid-market help

on build leadership. market inspection an of have product further of innovations will our We that pipeline excellent

and are growth we last new the to FreshBase with important business which gains our the seen pleased success Food of with product year. scales, an introductions that Retail like strong also Lastly, our has was market sales contributor share

our bringing exciting scale to technology an innovation recognition forward new Additionally, we outside plus markets FreshBase with additional of are AI looking is advanced to image China.

to we brief portfolio as new a chain. regulatory a accelerated year many ensure stronger certain few we overview our have to their most we compliance So new a growth of come and value launched and These provide is to capture and customers our have the that than more to year, products over opportunities. have past investments innovation increase importantly, insights, continue that value throughout and increase help investments is productivity continues ever proposition gain this their

open now the prepared our to remarks. the like That Operator, is I'd conclusion of to questions. line

Stifel. the first of Your Instructions] [Operator line from question comes with Dan Arias

logistics the then Shawn, given feeling the on held $X.XX, that believe, sort you're you you line, results year organic XX raising might of the the back quarter demand? was way a it early bps-or-so I given and bottom guide that that in on in and maybe bit that XQ on that is issue the last just better about the reflective of that saw year unfold the better or is that

Thanks Dan. Thanks, question. Yes. for the

little in bit as you we largely think doing a that the shipping delays I had much it's pretty to better interpreted. QX. related It's on

than changes better results the general. though we're in in in not negative But even little seeing did terms a we bit any course, that QX business. Of of

prefer until more to be half cautious we a closer We to little second and bit have the here also get bit visibility. a little

maybe on then China. the And for outlook

in You what continued easier comp. pointed not given surprise sound But the on challenges quarter. is to some unfolded way expect a this you have That's it deceleration like QX. exactly an that does just things there

points you something Is little X have green seeing easier quarter? gets across comp there China that a the that? the been this think the shoots And to cycle discussed are I earnings next bit of quarter. any

be that course, there et weak. second said, had than expect in very heavy Shawn we better based more decline have of last was said, and inventory we That where expected. the seen some, has There take than years the somewhat mean, China we quarter on been XX% have this, COVID we spending year compares have against QX definitely quite we'll still quite can in buildup, Look, in I China. investment tough during as also it pleased result we been see significant I cetera. to QX a Dan. and before

much us. half the comps for the the of become For will easier year, second

positive announced. regarding your So expect that the And we questions stimulus was regarding growth. --

I positive for is sign the definitely a think this market.

we the whether yet to I see the not it any seen to also think the and it have confidence have market. needle, will We but helps impact reestablish move yet, in

will stimulus the So help.

most really think developing also well you think Chinese I for positioned is the that understand importantly, But need executing that products to we local our with portfolio we well our team really product are with market. with local there

I think even recovers in market momentum. and the a market gain we are to great compete to as in more this position

about to just the specifically maybe comment And deceleration. address potential Yes.

I look a if we're comparisons in at what the of here terms think the in it's hitting look just year terms, kind multiyear lapping terms maybe dollar of a we're like or comps. and of terms ago like also terms watermark you in high just important renminbi to at in trends QX of

first actually, So difficult a level QX have we more comp had in that than quarter. comp in the the we is

Your Nephron next the comes Jack Meehan from question with of line Research.

I reflect a quarter just little was if wondering on could first the bit. you

local the walk that? were capture X% came us upside better just logistics. flat growth, of you guiding come from? a you through point the currency Can X%, to from posted You down about did rest Where of to

shipping We kind of despite Yes. little start cautiously a we to than customers Hey, being down excluding pleased it, expected better Jack. the benefit, more we rest of year. did the Thanks, -- this we're X%, expected.

didn't quarter. but thinking -- beginning as did they as the that the think they cautious they of start we're were weren't I at cautiously, glad we maybe

area. be by we're just If some broad-based, meetings and the come very it week, that if internally, Patrick executive region controlling. we things this earlier at actually like did or we pretty you walk I think it feeling away where, just it from, about I kind really product out of by where good And came look of whether look was the

executing and say, that high. of about innovation are The I rolling of also the the whether out a Spinnaker different other lot is we're execution so doing in talked corporate We seeing all from about lot programs. products X or would believe a things on benefit and terms and the all organization, we're I have just work. that to teams that in it our talk last good we're new we be some very launching Today, programs well, call,

you do full XQ the segment, the just the then walking And and guide Great. are? year by of what mind terms through us in for just expectations

Yes, sure.

So let me business by start area.

So guide for our digit. and to year the shipping flattish. the know be you to Lab that maybe is year, if for down if single the digit for up QX Product don't inspection, full be low- to also low delay I could would be I full exclude add, mid-single

Product we it Industrial, If would the the up inspection the up QX I'm low if single in same was inspection. be -- product and up low the be shipping full at sorry, digit be full would for you year. core would that look and QX digit year single digit in exclude low delays that single for

down And would mid- full shipping about the year, down for the flattish excluding XX% single down full benefit. year. digit of Core the the for QX Retail slightly, and be high-single then would digit year be the Food delay and excluding similarly, to the high-single down and the digit be to high full mid- for for down Industrial full shipping for delays would year QX and for benefits

slightly then be full in terms year, but shipping flattish, -- for the Europe excluding delay would we the and would of digit for Americas, we year, the be low-single shipping low-single then QX, mid-single up be QX, the up full for flat the delay up And for for digit would benefit. excluding benefit. we be digit up would

down high-single the And would QX, mid-XXs for the delay in then digit, down year excluding down be shipping and full high-single China digit similarly benefit.

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

points, beat Maybe QX on at QX Shawn, you, by Congrats your the for expectations. XXX right, basis good you minimum a to relative execution.

half be points cautious? XXX basis around a changed XX which raised makes annualized so anything you've that's the points, more you by back little perhaps assumptions to did that bit want basis guidance So

bit for -- not in negative I to negative seeing be changes or the little only anything quarter. a Vijay, backlog, and We of a the the business. still No. cautious it's the into bit just second kind of want thanks We here we're have mean, feel question. we're we're new in No, going year. worth X.X seeing early I like months' clear, not just little

more just half visibility And but to we'll And think a better QX, like second our -- visibility of think position to the I the the end second of skis. to like the bit little the be we'd more to we're reassess But in have get I just little before year. still after bit optimistic the out growing of second half. we we and about have a in over half here kind a

Understood. for you visibility is Mettler? do And expectations Patrick, you -- or a back have typical backlog for that the out play activity, sort any are half? to mentioned What say conversations of funnel customer China stimulus driven hoping and visibility, or in half for as back by is you being for maybe Shawn When follow-up. you backlog, right?

Look, have Thanks as months Vijay. X.X of for the backlog. Shawn just about said, question, we

look again, have for pretty last the most comps on us When a will have fast half, of what at we in our businesses. we second based we much year. the easier seen So turnover get

So that, course, for the growth half. second positive of a implies

great We customers. with engagement our see out in good are very what and discussions customer during teams also QX there

that I at interest moment. are think we however, is that sales confident positioned. products really times are somewhat new longer and cycle our we well there's we're the are What great launched just in the we still that seeing,

well have with to We we the said what the engagement, have to honest. we don't the of in see any terms half, for customer given we are we be see trends changes goals are negative also quarter. we first where the But portfolio, given as Shawn mentioned, second we think in what to positioned or achieve

Michael of from with of line the America. Your Ryskin next question comes Bank

there's market ask the where most go through think going as one conditions you I year because interest. that's about another I'm the to

in looking out? only for for following you just year? an about improvement on comments I time is Just Is you're months mean you anything it as there. until want don't up there of the through your a just X call particular or to matter go of really you're X

it's whether indicators in it's you're unlocked, there just Just reopening budgets indicators funding whether are any are China? that looking little specific sort levels, whether in like of confidence it's go recovery through PMI, bit of Or gain whether as in for some the a us that being a markets you walk what the through it's acceleration. the year to more

Shawn. this but we'll it Mike, Yes. echo repeat large we degree. to said, is Maybe entirely a to what not just probably

to comes in on think this months' of worth I see back our backlog. activity pipeline. good sitting X.X We pretty do much it

being think, are bit we Patrick, I the As quarter. order elongated a first in before, cycles mentioned seeing little

the Certainly, only good. activity those we of the it would quarter. it starting about be actually nice on think to -- I happen comes here But is in X.X backlog. second sit But to see worth to conversions back months' the

We some on the difficult have still second in a here basis quarter. multiyear comparisons

It a the quarter second get our those easier a would comparisons. about addition see nice see largely the just to has to in half. and here story second think here in market half be kind to how growth so nice it -- of more kind been also be easier bit develops closer we've been to comparisons that generally to And little just would gain then I of few and -- second months

for and months. of world kind more the that but it's we'll and how there, just plenty risks And see to here risks specific geopolitical nothing course, plays are uncertainty world risks, there's whether business, out of few economic our the of in out a or

want a pretty role the to on probably you ask XQ I that recovery that. business But underlying better, And of one earnings in can color beat lot have could decent parse P&L. it mean, out? being much on I sort recovery. obviously, played the Okay. shipping, the I you handily, what the gave P&L of how if color EPS? shipping terms wasn't for was mean revenues benefit Any been give you in on a the of would and

XQ XQ. I'm of $X versus getting EPS is roughly what And essentially guide at flat your is

a step-up. see sequential normally pretty You nice

So trying XQ? better recovery the again, just that. I appreciate a sense cadence get of noise had like to that to But margin XQ the some shipping to

Yes.

sales So of we we of in from the said, shipping quarter, first the delay terms in benefit. about as of benefited X% terms kind

we was expectation that about benefit X%. going to were Our

So we benefit. had a X%

the kind of reported second draw that at you own in is have not. see our take look what guidance shipping number QX, dollar regardless if maybe more delay for maybe of QX a of to that can conclusions So and With what you your meant of just that importantly, sales But number would or benefit. sequentially number we benefit, reported the actually similar very quarter. in you

points of doing a terms in side our execution of guidance than on QX, and our think you some to the little we're savings which if And QX, bit is actually look measures. at productivity the I it's higher EPS cost for good

parts. of prior if quarter second year, moving the Now at course, versus you look there's different

basis our a expect prior the comes the be versus have lot about gross margins, prior foreign to we a You headwind that has second look to the down versus and X% we do in quarter XX year probably If year. margin currency. being down points at to with gross when of it volume the

a course, a higher our little Red investments bit. in service of that the offsets with making then And with noise maybe bit we're our bit of topics, some transportation of little business. There's well pricing, a Sea little as some costs of

we came one for the kind And to full that here expectation in and in of of this QX was have X%, Our the line pricing things comment year. continue year just gross into comp expect will other our below for last the also the the about with relative and volume second addition we said terms going which kind in variable of and year. that on the headwinds, quarter, first then in to I to margin the P&L quarter higher maybe

actually now we're points. you exclude all that kind points. up year if back operating you you step is pleased it's to about margin if then pivot XX be up of probably that, from going to and And year, full basis about maybe basis XX probably full But our the currency,

a a margin line drive top pretty improvement. growth, in good continue there's about where So year to modest our to we ability feel operating

the Your JPMorgan. of next Rachel question from Vatnsdal with comes line

want the Industrial to performance quarter. dig in into I the So

You then industrial and also to you expect high Americas on mentioned singles level XQ but in in be some project core strength that activity, said down some you XQ.

of Were half kind the walk example? XQ, year? you for aware drivers that there that us be the of to through can the of in Industrial of need any first we in just So one-timers core business

start Thank and I'll chime you, Rachel, let Shawn maybe as well. in and

Looking of are performance of very proud business. it, the Industrial at we our

I it we and enhancements mentioned outstanding they really made have Industry I customers, other the and it to down productivity launched over last up XXX year. terminal pick really nicely. for think the things the we driving portfolio our comes

QX When strong major we seen at in tough a I the have you against Industrial. outlined driver the a compare in look for last very mean, very we year QX, decline business that is

scales with the XXX quarter, the the momentum look and compare momentum that launching. In simply a to new based more or the, I even XXX we industry the attractiveness gaining forward we products customers like year. that the would see indicated engagement the on decline of we very So the and tough we a are concerned definitely or say, not of versus about are new keeping I last our our Industry products

last say, because overall, decline the a very I year not is had in we a concern, purely would industry. the big quarter So

Yes. other of Maybe to part get the question, your just to Rachel.

activity in is the U.S., quarter first The lumpy. project that certainly,

we the second quarter. that so will And see not certainly in

the And that. So of it of a in here point larger there's other mix business China weighted maybe is our I has that other element then core make Industrial, businesses. an towards versus

And then of a at if Patrick multiyear as of China do difficult comparison, we look that have very you business, kind the mentioned. comparisons maybe

a headwind versus bigger and a be will it there bit that -- it So will a be of QX. saw little bit we little

for that And commentary biopharma want gave. to into some the then I just of you my dig follow-up,

seen up? April of customers customer and earnings that pick then But that May terms season. to been as in budget we've activity just us spending assume the from can early here So biopharma you group start guidance of open mentioned any those have unpack does this you biopharma across some for what slower And level then the in of from to starting sector well? year, up you hearing

Well, been to when the here soft we really the talk in also think still biopharma our the second first year, expected biopharma, I definitely about in is has quarter we business look, Process Analytics focus and well. Biopharma as customers be we business. quarter, given on soft the

second same also China, biopharma, the I mean, engagement about other inventory businesses seeing true is still just we for now, half inventory some at They're for expect and the they're compares. in we thing momentum underlying Pro the are growth especially you when on easier still sitting we sensors. down. with many there some that in facing we talk are look right When issues our working

into again our fact, On customers. the single-use biopharma recent single-use sensors more that for PendoTECH we're sensors encouraged by, also in from you actually interest that business biopharma, come in use

And part to year. pipettes and some the of relative with course, dealing of that in destocking certainly the seen pipettes have we issues improvement last we of biopharma, other were

Your Goldman next question the line Sachs. of Sykes with Matt comes from

I've missed and business. -- commentary but if some sorry maybe around just maybe services the it, Patrick,

that I on course the just expectations think over made your quarter it mentioned expectations QX, your year? in of the initiative services was you've and full you for this but any strong and progress

service growth the Thanks. had proud growth demand see good. quarter are against Yes. We in our Matt, year. first very mean, about business. in strong a services. last of X% our for first again, strong Very very quarter we I performance We the the

that We well. our compete to marketing portfolio services the We with a more customers. have we of out programs have We deliver opportunity service more connect and can lot of to installed installed there, extremely to we in connecting base, our place still we the the out continue of that business. build dedicated base have the to

forward. average moving will of our remind of on a us to also growth of that profit is I like than for higher actually -- services I'd operating you the the our think drive that lot portfolio. profitable

a such that's So big benefit.

we behind that increasing all also strategies that that the year. continue see our help broadening of and down we areas Services momentum one will cycle dedicated And us portfolio invest the services. reach the last with to the continue to the is customers campaigns go-to-market to and through

opportunity and forward strong service team, see more there moving we very a services. have for We out still

well are services by very customers. Our our recognized the market in

many very cetera. tank et to unique of comes that example, for the solutions like, have We our cannot competitors offer, solutions it RapidCal calibration, when

invest is, business. in are So continue we'll a strong big and again, it seeing we us, this to for demand, and opportunity

full time. but And a for on for cautious Europe. little digits color then more low-single you're to I digits been and some guiding mid-single the QX for year, on Europe you've know maybe just

You kind caution again. of reiterated that

additional end-market from are standpoint what I'm in just over the succeeding Europe? of an for But course the the you're sure any year? comps caution seeing any And demand reasons color quarters. continued helping on from

Yes. Matt, that one. maybe this take is I'll Shawn,

Europe. execution we're the our very So team with pleased from in

organization most And to in marketing and our Spinnaker our of best benefit tend customer. have sales programs We I to there think direct in terms sales feel direct Europe. channel the the always we of

So I feel the about. of good very things that think that's one we

the Now is soft. that the economies side have other of been

You of look end Germany, of see energy especially of affecting countries the in our you cost region the larger some markets. like some some at of elevated PIs, the

certainly there's uncertainty So there.

like the from to kind and yang. going the it's At time, I there's But second here to as a quarter, of same benefit some timing Easter. we be a yin of otherwise, look think the

a hand, and we fighting hand, well. team other on one great fight on of is but think lot market uncertainty, feel like a I I doing see we're the the really

hot teams semiconductor reshoring there just with do and to in say enough time, segments of economy and available and the them. Europe, for cycles, always And some the people I those lithium there our replacement at good as to they're to identifying these capturing same think stick great or need opportunities tends battery are when opportunities we of be job like of but really to kind a

question next with Baird. Catherine Schulte comes the of line Your from

see and revenue. shipping recapturing lost recapture the the to much pretty expectations of all of great First, delays coming in that above your

it comes to protocols smoothly got you to You place resolved? move Just in fully processes and provider, would logistics that situation going forward? say when new the the is

can, QX looking that Yes. we had I'm KPIs at Thanks, we could performed Catherine. all the we happy not keep I a the in locked everything we say, for it and how the us major down. that today, team because bought months is close good a great course, resolve QX. of is say, have very, would very right now. that We a performance performance how I'm in of happy issue to eye on with But enough couple Actually, really very in of situation. are

fixing engaged Our really team, situation. our the own team with has been deeply

we strong resolved. very these I to again, logistics provider is have and happy own have collaboration our we external very this issues come we that deterioration, all if smooth, get implies back KPIs monitoring everything teams teams into I'm now, which seen And logistics will these running between see By have with. action. any

think issue deliveries, of and cetera, moving better outstanding where are it's everything as make not we when this really times this today, but do we is now I an in et quality improvement plans logistics are and We center, even we satisfied there comes mean we definitely sure today. delivery experience But though at not performance -- with continue deliver this also forward, to partner. still Mettler-Toledo, and customer place. do front it make even here, to can continued that is is

that we see it, issues in We we to again, sure great monitoring place we made in term, and progress, any have potential we but keep don't deviation. that don't the make miss KPIs any near I'm confident

implying maybe slower you've on what increase typically historically. sequential And guide, then seen it's second the quarter a than

guide? on So uptick side like It you in more areas where the Industrial give maybe that's some you just are if but feel is slower just can historically, you the conservatism sequentially any there. looks than talk a through curious that of color second could quarter

Yes, sure, take Catherine, that I one. maybe

delay in pretty think but I there the similar course, of exclude that, like still QX, CAGRs and So was you if -- QX. benefit QX the multiyear I between shipping look but

this looking we're China we is out Industrial of there is kind making like ties we're earlier multiyear you of comments just the that, a when to we China like have business, pre-COVID at business. Industrial higher or that at on comps. say a the stands higher CAGRs the that but where look do Sometimes things of if kind And about I of basis, said percentage before one

affecting some on little disaggregated I X-year basis. it looking more bit a multiyear you a a the of sequentials So start instead basis if a of maybe at that's basis, think on

comes from with the question of Patrick next Citi. Your line Donnelly

we sounds can the Rachel assumptions I as asking on, that the be the about XQ kind improvement want as to just you comps get work Obviously, through up biopharma, the I China, talk will of think think, down follow way easier, about I there. our was like XX%-plus. underlying it year,

just bit but work in core through the easier, underlying -- the just you're about there. to a maybe talk Industrial the you love can is But I the are expectations comps would but assuming little away as improvement get like talk soft, still underlying we not expectation...

we're Yes. if for high-single at digit. expecting guide be I our down like China, if -- you mean I look year look our like full still at think you to

to year Industrial I on businesses, of think that, the a a it might than be than But because that's think better if bit what try I maybe basis, break largely you between Lab. in saw out little we full QX.

look we side as maybe because at some about. Industrial on a kind of that of longer-term similarly, probably think bit I QX, comp talked more these issues they're like of we down little the

the was you disproportionately about last think Lab setup comparisons And if the look have we I versus in business. Industrial second half going -- if year. you good certainly think the a the at down business year, of terms into of

Lab the benefit half Industrial in of So the more the I than second the think from year. will that

very In way. either terms quickly of the can things change in market, always China we say

of another good think under before belt a is nothing the necessarily of the mean, this half have half I about guiding about everyone any about to the I is types potentials think headlines, year. too insights. thinking I of new the second quarter get stimulus talk second for So now, that's the of for just right these hearing our particular I example like influencing think we And we year. we're how seeing things, don't wanting and same much but

in multinationals to of level. reinstill as the confidence probably lot builds, think including investment confidence terms of that happening instill to from more governmental see country. is that reinvest, I more I think I the I And people to really economy that outreach can there's companies, -- bigger to happen in starting country the we're think start to the a confidence in we'll the probably theme think to a in perspective been

long priorities of growth. we term, for a then we're look that growth lot China. very the But even we're mid- with of I getting trends still talk just government's to here. automation There's and some When align how well digitalization. optimistic at and about positioned we the China think a into opportunity well in for you lot really, And really still that with

closely. Yes. And really in good very good see We engagement customers with team we has China sales very monitor a well. as The engagement.

help will back of us growth out I interest in customer that half. there to lot a there's So to get that second also think the

where of we about those growth after week of pockets growth just just agile Yes. executive there always an -- at some to as been level And pivot kind then throughout go were our the And them. are. programs that certainly, a the topic such the team opportunities locally has off with that feed identify doing to of was that, this team talking our to they're and to

So positioned as like improve. we're well things feel we

being cost side the you are a Shawn, then, talk the how about would be about pricing helpful? Okay. still given, And nimble softer And thinking bit Can in just you through your of That's helpful. build. and year? cost piece little way on maybe you're how quarter macro, again, just similarly, margin on you're base the if the then the you the work a just as

Yes.

as kind earlier still at full of Pricing year X%. in quarter on pretty of the X%. of guide pricing in holding other We're for the mentioned expected the I kind questions. came much at So one in our

going do that. to than Of we're course, better to try

to doing all innovation our on the we're enhance things proposition. think certainly continues I value

so good on as see that well, I topic helps. execution this always And too.

the for see it out the year. plays of how we'll rest So

continues volumes. I In be the kind terms costs. we terms as second of in with lumpy saw margins of do on a quarter quarterly of with to material But job think good a can it basis, team the

were some think right? kind just to We've and of it's done our a rest we productivity the think, of -- of there's modest lot very balancing cost savings the current in through cost a I have see kind that organization our like there benefits in continue the of we'll that terms then structure, I in And year. act, volumes. QX of, adjust like overall in good saw driving of things necessary to terms to we

-- business to creates continue on. creates it of that the we've reinvest also very course, to us success, the in ensure ability focused But the for been is to always that long-term which something

the very we in good And mix balance and so think I a have business.

our organization. time our opportunities the and Of of are of here I to different investment growth start time, going planning into month, same opportunities, look at continues with where fall at throughout lot cycles of kind go really and productivity we that kind the the a until and the spend we normal then to Patrick starting driving teams next course,

the of Cleveland Research. Joshua next from Your Waldman comes question line with

point customers started that to then that maybe part types QX started Shawn, more of that on any provide or a in to of on Patrick sitting can sidelines you latter January color improve? accounts Any 'XX just open to the First, on to up follow up what and previous were theme. or in you'd the

segment, better to our product saw products and the Yes. end expected we it performance, drove would could better If actually, as little good Look, one saw for business that our in we food also good point there. I than the said, markets and throughout think maybe really very bit we be interest market, inspection a the I interest portfolio. mean of product Food, performance I

customer that X-ray metal engagement new drives interest, definitely -- well. that see and by so strong product cycles, a about still be lot mentioned I portfolio. topic elongated honest. sales our there products, same of market while lot detector a the we is of driven is new There's that as That products, new to

we midrange the us also more into what getting market. And call

historically the market. that high of have been We more on end focused

markets one portfolio geographies. I more all more We really for meaning market cost-conscious probably -- that of segments have a across up good But say expected. But the is customers that of the and and now mid-range maybe there. where broader engagement overall, need customers, opened performance saw we would bit highest than amount that don't a end

to or versus you price commented price-risk forget is comment a then, on Shawn, tracking just And curious how on kind about expectations? share past, to success support think not And are is or you maybe I upside year-to-date? any that question if then supporting expectations. price. in it line times I But using the gains, maybe recent talked recent examples tough driving guide if in share versus the could point you stories of or related you guess could whether tracking gain, you

any versus Yes, I upside maybe what the on kind anything strategy, example, mentioned strategy, think go-to-market Patrick driving you benefits changes for from expected go-to-market guess, like that here of I year-to-date?

Joshua, one. maybe that I'll take

price. So with we'll start

in mentioned, price it at I in in quarter, the expected as came X%. So as came

happy were that. we with So

really good the consistent proposition, innovation value so be our feel in stuff with that previous talked I kind We all year, to strengthens earlier pricing of very expect about as our is that the market. helps the QX proposition, and do mentioned, And which our always of support guidance. X% full about value kind again in about we for to price we

the but to than of we as same kind -- better of at so go that do look if the time, year. can course, we see we And will, through

I always of if Europe, I we're tell region, I we're look was market good It's terms much But results example. share some gains, think well. In taking. think, hard to share a do by of executing really how at our

comments right? food, even mean Some executing is of the that we're on I well.

We products not in in like no are are in end that particularly well very some the quite markets, these being teams softness well market. the there's have but It's doing received new the of there. U.S.,

Spinnaker. to the of of well mean, terms continue I just I go-to-market very umbrella within do approach, think in So we

to to a has growth opportunities lot pursue those really use really opportunities. -- allowed and be program of That us identify analytics

great of the have lot a help to We selling, team, to with conversion value prepare tools help and cross-selling.

I effective. of are we programs so think have the a And very lot

and you go to back next the the the out to introducing generation about we X. If beginning of rolling Spinnaker year, of the organization, Spinnaker talked

it's organization say different it's build creates Spinnaker think like share program still because focus in early driving and I generations. momentum gains, the that it to not on little a general certainly, waves kind the a other on all but in is Spinnaker and the X all they of

call Adam This to Uhlman closing I'll concludes session. the question-and-answer the remarks. turn for

Great. Thank for this joining morning. everybody, us you,

feel If out We'll you. to to And a please all have have any follow-up hope free you Thank me. to weekend. you reach you I talk great questions, soon.

for This conference you call. concludes today's Thank joining.

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