Donaldson (DCI) 1 Mar 232023 Q2 Earnings call transcript

Good morning. My name is Emma, and I will be your conference operator today. At this time, I would like to welcome everyone to the Donaldson Company, Second Quarter 2023 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. Instructions]. [Operator you. Thank

Director conference. Senior Relations, may you Sarika of your begin Dhadwal, Investor

Good second Carpenter, joining earnings for Chief morning. you Thank Donaldson's President; Scott With today Financial Officer. and conference me quarter are CEO Tod Chairman, and Robinson, call. XXXX fiscal

and and XXXX. performance update morning second Tod summary our outlook will Scott This on a our provide of quarter an fiscal for

provided Solutions, On now This reminder, our our results new we Mobile we January our presentation segments: earnings Sciences. Life are this reporting supplemental be X-K regular historical Industrial a X-K select and Investor found As three Solutions under ir.Donaldson.com. as showing financial on an XX website under Relations can quarterly as performance well structure. segment at

or non-GAAP adjusted discuss will results. we call, today's During

For as results previously of the associated non-recurring, largely the million of other non-GAAP well restructuring our exiting related the to margin fiscal as $X.X costs XXXX, pretax, redesign, customer exclude and program. changes, lower with of organizational quarter announced second

reconciliation A morning's non-GAAP within provided release. press to is schedules metrics attached the this GAAP of to

any keep are statements press please and our described that uncertainties, are forward-looking risks mind in call in made during which filings. SEC release subject to Additionally, the and

go call the to that, now I'll With turn Tod ahead. Carpenter. over Please

pricing Thanks margin favorable operating quarter and everyone. Donaldson an the earnings input Sarika. report stabilization resulted expansion I XX%. second in by Good continued morning, company’s results. margin strong am to pleased driven Significant costs above gross of

year second high. achieved operating the an margin at For in quarterly a six a quarter we row,

the market confident end organization Donaldson we to operated serve designed and direction customers, our are which I quarter, our heading. and new am in structure This under excited about better

our supported manage now investments. efficiently more our capabilities, three strategic and positioned operational are organization the balance sheet strong We segments targeted by to with

Sciences a have to accelerated and newly on focus the now sharpen created we task straightforward our segment more Life pursue example, For growth.

of biotechnology company Isolere by accompanying reagents Based million. and for Isolere we in stage filtration an Life approximately Carolina, more Sciences and proprietary product the faster Durham, and Bio, to manufacturing enabling changing to quality used solutions, therapies delivery accelerated early our In with patients life and portfolio is competing of streamlined globally. timelines North designed $XX purification substantially affordable processes added This acquiring compared biopharmaceuticals. February, novel and improve to to purity develops for technology

from most components the compelling One a provide ability portfolio this our customers to be integrated Purilogics products the is the can suite process. through full of downstream those biomanufacturing for which acquisition Solaris of of into offerings, Donaldson and including of

approach segment. This string to highlights pearls the of grow the we Sciences have taken Life

but are second As later, for these a we we’ll solutions, little we capitalize Donaldson's execute sales the path opportunities about quarter go-to-market forward strategy force a ahead. focused highlights. I'll building combined to more talk our biopharma cover on first

versus the Sales were to business. decreased and translation year-over-year, currency by up headwind of second due of softness aftermarket X% primarily Volume $X.XX offset Adjusted pricing XX% a X%. of was Disk of this XXXX. up quarter, driven by our slightly EPS Drive XX% approximately fiscal in quarter the and

margin off coming benefits are many peak actions, levels. see remain undoubtedly to from continue costs We elevated, pricing and input while slowly topline and our

profitable to reduced Each growth global supply focus delivery quarter, Overall this our improved our remains more for on improvements rates, future we those solid, M&A end including on-time and execution, market also while with thoughtfully we and rates. plant our normalized, backlog through and demand investments, term in fill quarter in near chain seeds returning R&D. we conditions, are

progress and we we Purilogics. with business with integration with the pleased of am have the Solaris the pieces together I making Sciences are Life put and

inorganic actively in pursuing way still are organic and this business long a opportunities, and this to in However, space. building have go both we other

investing also other as higher in areas margin are We services. such

For added for of service equipment. Through offering rollout that filtration on and we industrial through online. this this our services. service the our leverage maintenance example, keep These quarter, the customizable based segment IQ and complete technology managed plans based compliance time and to within offering, Solutions industrial needed to from services Industrial Donaldson traditional proprietary plans repair range critical, equipment our condition maintenance to and provides filtration

summarize, the investments From weighted a expansion, heavily groundwork with America an largest capital expenditure in from portion. also encouraged are for for the particularly are laying are North seeing ongoing by we operational capacity future. and Donaldson's improvements excited growth To standpoint, about towards we the are accounting we our standpoint

$XXX detail $XXX and FX Total $XXX an Solutions, were million, our quarter some in provide levels Exhaust Sales was approximate and equipment were with headwind. XX%. XX% up compared Emissions X% Off-Road X% we'll in up added of on and million production million, sales. XXXX. in strength drove second Europe sales. Elevated Pricing X%. total about sales were Now, up Mobile company sales In business

$XX benefiting X% were from prior from million, sales strong, a truck year, duty heavy and On-Road medium increase production.

businesses currency, regions. in in Excluding both first up our of were sales hit all

aftermarket Mobile year. approximately $XXX down sales were million, Solutions prior X% versus

more improvement were Excluding as conditions by has partially inventory in lot pricing global customer currency, of roughly was offset OE channel both independent levels. Not in inventory X% normalized return channels. sales surprising, a supply and the to reductions up the chain

about results. I impacts the Year, and quarter would New not did February weighed in Broad of timing Solutions, last end year versus year, China. January zero be pressures, the remiss on from Mobile talk COVID fell which if second Chinese market I China all based of this for negative heavily Lastly,

XX% Sales environment declined certainly constant has in been in China challenging. year-over-year currency. The and XX%

differentiated and growth continue to term our offerings, China share a as given long However, and we view market technology high size the opportunity. quality

replacement project XX% X% part and $XXX equipment and IFS Now, power Industrial XX% driven X% I'll drew million, dust collection to Filtration and segment. Industrial FX sales turn headwind. generation Solutions added Solution the to Industrial sales increased was Pricing million. by $XXX new a to or timing.

benefit the to commercial industry within continue which prior were recovering aerospace Defense year. now from XX% and Aerospace and up the versus sales, Industrial Segment fall

XX% Now, weakness Sciences segment. sales. continued Sciences million, Drive on weighed $XX as segment Disk down heavily were on the market Life Life sales

Excluding Disk increased have sales would Sciences approximately X%. Drive, Life

seeing are and and areas and we beverage remain sales We strategic updates in the on forward These encouraging equipment. growth look progress providing to for future. bioprocessing key Donaldson, food trends our in

Overall, commitment our and I'm the continue were will results balance on our XXXX of for first fiscal half we financial robust, confident to year. and strategic deliver the

our tightening year to are our guidance range high to end we range EPS such, As our conviction. previous of the full reflect

decade earnings pace and are of operating We performance to record and year another high margin. our multi on remain of achieve sales, proud record

over on details on and financials more turn it to Scott fiscal Now, our a for more for Scott. I'll outlook ‘XX. the update detailed

Good morning, Tod. everyone. Thanks,

In through the redesign. This positioned the this heavy is well I employees our for the of than solid. around Our redesign for was are of ever results truly thank now our growth, this lift our certainly this future our a customers, I company, the globe teams and better for but completion maintain profitable while quarter the to how a regard. in believe we delivering view, reflection organizational on working their were focus contributions

$X.XX minutes, the I EPS but will It XX.X%, up lag second To the balance income was versus of summarize few as basis margin our on actions quarter, XX.X% year-over-year. the of Gross was for of XX% provide fiscal noting that a margin quarter on in increased XXX inflation. for grew of pricing XX%, worth company details outlook points and give improved of results. historic X%. the first adjusted low timing very sales XXXX. more our color I will Operating second the in level gross quarter was XXXX a of levels the year

of standpoint, course gross our costs. of improvement year-over-year typical margin our a pattern, increased mainly inventory sequential to basis now is plays in the points, did role not Pricing stabilization From seasonal and a significant due XX input as follow valuation.

step we quarter, we third sequentially, forecasting however the year-over-year are a down to for result, a gross anticipate improvement. still margin As

Operating Operating the XXX of in Operating as sequentially. the margin The resulting versus in the up expenses increase was above basis slightly sales expansion. part was year percent recovery. slight point of XX.X%, large was XX a prior prior related XX.X%, a margin pandemic margin due we as were early ago. comparison of year from to gross days basis still year XX.X% were up

not sequential operating in seasonal gross pattern. quarter typical expectations, third given step but Again, third in corresponding our margin this our the down Further a margin quarter, following we improvement. does also year-over-year anticipate a

profitability. pretax margin drivers margin Now, Mobile basis the segment expansion, pretax XX.X%, were I'll up touch prior from on expense leverage basis up points Gross along Solutions the XX%, Industrial was in with points year-over-year, segments. XXX margin operating the a both XXX year. was Solution's and profit

we Drive Disk in XX.X% down a with Science expenses driver, decline increased Life to XX.X% the in largest sales segment. The pretax side, On year invest notably continue was heavily margin operating as was combined ago. from the profit this

have margin XX.X%. been profit acquisitions, Excluding pretax would

sheet to statement Turning balance a cash highlights. few and flow

Second quarter year. impacts Cash working of by XXXX. the inventory prior in normal expenditures expansion improvement North quarter a mainly conversion, in roughly capital return the following million, to America. capacity about to were conversion XX% $XX XX% in more investments This in was versus related capital driven the negative reflects levels

with share In terms and million of form repurchases. returned deployment, $XX of we in million to shareholders in $XX capital $XX million the dividends

quarter with of to shape X.Xx. entered debt is Our the great ratio sheet balance in as we a EBITDA net

to Now updated outlook. ‘XX our moving fiscal

industrial segmentation, new through I our to the and bridging a changed. our said, for level total company exercise high the won't back engine sales and at each sales, go not For previous for That segment. given materially of guidance legacy has segments outlook

to improvement which above Pricing about between from we last This X% XXX basis includes negative of what expect impact X% X%. contribute is increase sales X%, fiscal previous currency X% X% of between expected quarter. translation from points We and sales. should to guidance XXXX an a of about and our

will half than growth incremental second year-over-year reminder, to a sales begin fade. first pricing as As half benefits lower be

X% Mobile forecasting a between revenue we are increase of and For Solutions, X%.

initial recent expected sales end market stronger demand is to from the aftermarket Given expected our expected as Off-Road fit is mainly trends, forecasted weaker sales. than different of be our projections products, to now composition offset first for than mobile

and digits low are Off-Road be high single and single On-Road mid-single projected Aftermarket be to sales digits. up up to respectively. expected sales are digits,

in customer reductions supply Tod to in channels. response sales aftermarket both impacting conditions inventory improved are As mentioned, chain

growth and X% continued by to of expect digits. forecasted Solutions single Defense. segment, in and new are between double In digits, projected particular, sales Defense and and IFS Industrial grow and Collection parts strength in driven XX%, IFS, increase low replacement to Aerospace high we Dust are sales and the Aerospace

Disk forecasting been have the Life X%. For segment, a Sciences between of negatively we sales X% results. decline sales Drive are and impacting

the in do of in anticipate stabilization year. the second sales a However, half we

We beverage and and equipment in also food expect or continued Solaris strength bioprocessing sales.

narrowing perspective, From our are discipline, and we driven improvement. XX.X%. a by to range to the environment, guidance continue the operating XXX future given into back we exercise the macro margin, to primarily reflects our year, particularly uncertain expense building from In between point operating of business. while terms an gross its of basis through margin for are we The increase committed midpoint XX.X% reinvestments prior

EPS, XXXX. range The of $X.XX expecting the and within respect a approximately now new from range represents towards With of our of increase we record results higher and XX% range $X.XX. fiscal $X.XX of $X.XX previous to end midpoint EPS are guidance an a our

cash previous our is balance as than our normalize. our benefits as to Cash the and averages XXX% improved guidance. our driven from conversion efficiency historical The from chain we range flow in to and supply outlook. by is of line processes, higher and onto in continue inventory XXX% be strong and refine this with conditions year expected Now, cash conversion sheet forecast

weighted with and between investments forecast and expenditures is heavily expansion, growth $XXX tooling initiatives and for $XXX This technologies. capacity new capital million. along Our equipment towards includes million in products

specifically in growth, commitment remaining capital Isolere Life by evidenced as to the Sciences in dividend additional well our acquisition share priorities and investments as repurchases. deployment Our include as Donaldson’s online services, and inorganic

Tod. call back to Now, I'll Tod. turn the

professionalism our truly to excited my express been our team. wonderful. to Thanks, dedicated and I to their the deep to I'm Donaldson our redesign has through commitment path our organization would Their customers like about and forward. Scott. gratitude

our Looking remain for to ahead, communities the people, in advancing led and filtration filtration customers our Donaldson's cleaner our goal world. in leader a technology and is support to

R&D day foundation, for our every people. engine. They our strong developing are on to products at are our and margin our example in technological services Building innovation supported work our higher supporting First, hard engineers growing are our by higher areas. growth commitment on and

supporting customers. Second, our

As a our own goals. corporation, we sustainability have

work suited well are not as However products – to our and our they be customers inherently achieve their to to and goals. understated, support solutions sustainability

Donaldson. last key and of different an Sciences, communities. expansion filtration is competitive improvement but our the into in one not we play the supporting verticals role begun important our separation to advantages technologies of And health. now have of able our to least, Life global Being human leverage into supporting Through increasingly

In are including on term. additional Donaldson’s providing ESG our long upcoming and our optimistic the strategy, term out and over will forward initiatives, we time key those growth we at look Investors related long share closing, to At incredibly as We we drivers innovation Day term longer color financial objectives. to look that also April X. on

back the line the open to call to the turn for operator I'll questions. Now,

Blair line Instructions] from [Operator comes first you. Thank Oppenheimer. of Bryan the Your question today with

Your line is now open.

Thank you. morning, Good everyone.

morning. Good

the but victim of as comps think if I the given your I and think a in outlook, cadence, provided very nuance at back Another high you you we that. missed should in moderate apologize top success further that decline quarter, this bread how crumbs I face. a level, we QX, QX, somewhat of you're the EPS QX, to about QX stacked own guess half, a I in suppose I think of in solid – and about line guess the moderate growth more you know know as

Bryan! This – so Hi talk Yes, you. to to Scott. is Nice

So had XXX you FX improved excluding year we know flat, the for held relatively for which by basis us our points. guidance

cadence. this change you the back at that of that look in our the know year the of It our when revenue So was is guidance kind we largest interesting year. half impacted

at with and throughout You look starting year strong you the the know million billion. last $XXX year $XXX get you throughout know to million, and steady a ramp the first strong quarter year, we revenues year, of so ramp to had at a if $X.X ending

or level to know Donaldson This with normally and normal get revenues tilt bit half, we so historically to we a seasonality XX/XX said second that's to the the going and year, traditionally are we were much a like billion. for the to more little to year XX/XX you throughout $X.X just our return been of have flatter

know but are percentage to prior the half in back big And strong you give going year-over-year, our get you compare consistent. not guidance, So when of swings because know relatively the quarterly year year. revenues ramp you of we're the you the the from

terms future would and know there's to bit moving you with really inflation, about and variances little and of gross profit operating and your talked a say variances the a some lot we're going quarter-to-quarter inventory. stock have of going get, on we sure in year, gross little this that matching terms terms in In of bit a from margins you margin you're the FX, margins we're unseasonal of in to accounting terms questions I to make

hope our statement, easy moving the get volatility really look you And accounting you have you've some margins that when income future, second first, we some we you you our our and together, more them third to the make at income would stuff move lot will and got look we at that and know quarters stabilization put of a in currency to around margins, got stabilizes, because stabilizes gross inflation as in and and little a the more statement, understand. to and

and But script. that's we're the if our quarter, third trying second gross strong added quarters and comments manage why can just to together, quarter in you versus the margin you see you we the know put improvement

that's your a hopefully your helps hopefully, that helped So comes question. few with with and that puzzle, bread more

absolutely! the appreciate I detail. Yeah,

that out declines terms and the a decline understandable. which Drive parse investment, versus Scott, Disk what Disk business, declines impact the high to margin. Could growth percentage of It's in dollar know you QX you weighted is profit of was of Drive In impact the the specifically EBIT of contraction? revenue, meaningful either terms Science decline was its said in Life margin you or

We've Bryan, not is this – Scott.

really of we've disclosed not So level that detail.

to our Day Investor you We give investment our at the day, more at strategy. relative will forward looking

we on we'll On XX% forward has lapped to experiencing for very think now look it we're Disk with would tough have I this, quarters, right about Drive, acute. and crawling look decline three, XX%, forward. able be to then between relative It's comps and a to Life what few a and start more we'll for then and the down Sciences, have been

it bottomed. that believe do We has

has but In fact, for December, it it to future. looks these like in is at bounce levels low bottomed it also going the foreseeable very

platform on Okay, a imagine we'll understood. this Day. And more more quite you Isolere forward of looking mentioned Investor be path on your of a and out Investor color how of Purilogics, great I to at how front hear terms to It bit in next your Sciences month capabilities furthers that signals little will and build the Day, and terms hear pearls of that Life platform what M&A Isolere together in thestring piece forward. Solaris,

We'll Absolutely! you story complete X. that give April on

I’ll leave Okay, it guys. there. Thanks

the comes Your Alexander from with question of next Jefferies. line Laurence

is line open. now Your

Hey! on question. taking It’s guys Thank my you for Dan Rizzo Laurence. for

the given that COVID exited you're in it are pick You is anticipating trends or New but Year, up was order as that, China mentioned down seeing and future. something the obviously the we've you

It'll the with outlook story We more this be so us, feeling We're China. tough for pressures you more positive still delivered that lies future still across looking. present, quarter the ahead. China China even and the still know

we now and with of back Okay, idea, terms then the levels above in strengthening are pre-COVID demand?

in modest more business. still we're that No,

certainly know You more modest. well, but performing

if easily, guess you I towards final the outlook months, hit or still Okay. based of you into in could a know? upon mean not but And could then what low your few I recession, next hit end – we question, you the U.S. easily still

because the simply know We everything have that's and in we're everything just we so, the incoming seeing why it factored range, business. believe. on Well, in we the we we think give

understandings, in our baked etc. backlog we've know You

we've takes guidance into account. the that that believe given we today, really those So really scenarios

be considering, into only indicated know is we've anyone guidance earlier, with you the answer the headwind we a currently more point we we baked more our Clearly, by recession would half we that but believe if is second the that this see than much would outlook. and modest is our was as know severe everything bit at

we a this very to guide. approach prudent balanced taken approach believe and we've So a create

All right. very you Thank much.

comes Mason next the Rob from line of Your with question Baird.

line Your open. now is

incidents had – isolated the clearly and sales how where I little in take a but stronger to morning. being in if course quarter last think the performed it not of that The just aftermarket for to question. that it you your changed changed, composition made it its could? with channel, the taking Thanks good began; slowed outlook noted impact, channels within had you first OED you really Tod, how independent know Yes, mobiles when and the having comment run the OED bit you overall in destocking actually bit. the long is, know you how and that you may speak quarter, a

Yes, sure Rob.

it at expected So with we're than more clear bit when would you look have a destocking, was this point. at that where we at it's

the would channel have I more as independent expected. the channel independent about you, than severe OE channel was would tell However, acted we the and

pretty channel. levels little a independent it our of bit taken we've had so while the the distributors. into guide. as that a we're at pull-through comfortable We number feel across there, have We though down within We're on account step could more, out and people

channel. parts, is they the bit a knowing result. that couldn't more most OE little to the inventories we should they relative Perhaps pulled quarter that but down have would would have year the one aggressive were They their inventory last expected. went we The net a the we further bit when expected this that's that, than seen get have actually buildup than

suggest, a there's have we to to it's a into just with net-net, where hey, bit we we're So more expected. than would line pretty here and comfortable interpreted are. be little Nothing something

the to again, mention some from catching this already called the charge incremental year, exits. of already cost Just, or restructuring you've earlier up in to actions the called out, it? those out is you've restructuring to this program also away customer your this there a move was just business. assigned choice And of Was some

actions are during these mean I some quarter. the we took

is with focused continuously margins, our And we're reasonable managing our you our managing we we talked relationships particular remember, it's So out this with work of we This company. to good pricing customers. have program I particular we on and had year. move about think another on program, and last one for our to that ourselves program and focused a commercial and the customer want work

want want to we manage required, higher we have to You revenues. and [ph] capital know the don't

to something account out for situations did focused take bigger we're than think a this that was on. team one pricing the on a bit of in quarter company. So continue job little the we're average, but This something to doing are acceptable don't we is focus and our a and is to working it, of it's to going good think we I that managing really and ourselves charge

I see. real in I see. If I quick. could slip one more

margins moving down versus Just much the should margin Scott, half gross of I You the inventory pieces the some the outlook in for a know valuation touched looks return – it with midpoint margins the first would would How investments... year, half. to growth But maybe versus [Cross at like and again, the margin. in more line of OpEx? you the X% the volume of your in the step there of Talk] margin second think just second step at level step down high gross to half maybe on the on just guidance, is you

a question. Yes, fair

and the a relatively lot stable. easier OpEx you think control as I spend, will you be That's expand. to

our of the the those margin the I for I we those, of we it apologize of have excellent and off. a as live that to gross related think times we job volatility off variances I it's statement, sure an for making income finance managing rolls account does and roll is to the and in and team inventory in, our kind think function but all properly

volatile. bit And it's a so little

you smoother understand. be in think easier year everyone's gross challenges know do of terms little a volatility I and you hopefully That's we of say, and the second margin which the to want have quarters lot have those margin understand try know. and third a in look But a balanced of especially a at view think more first, quarter to to why a I you'll together bit take sequential you to quarters, view and will next comparisons it. it the little of better ability I

everybody a going give you last the to and the feel, quarter. to XX.X% QX year then then know then quarter year, this a Just a if second did full last in and for XX.X%, XX.X% track year, you XX.X% of margins back the XX.X% year the in a we QX and of in XX.X% for a first

see as expensed inflation peak coming you So in the that we're capitalized kind experiencing and off. And this of of can is are strong think. actions is inventory the we being pricing with costs promised, it, this then our and we through the

we'll and Our about it forward that, so happy there. from costs to stabilized, we're have take seemed

you hopefully So and both a gives little Bryan. you that color more bit for

does. It you. Thank does. It

next question Jones Nathan Your of line comes Stifel. with from the

line now is Your open.

food Life morning. I talk the beverage opportunities wanted processing Nathan This business, on Outside for talk Drive of Jones. and the about and growth to higher can is Disk Good just about and you Matt the Sciences. there? in

we continue the beverage XX% and we and beverage in real Food and above momentum food within forward. have Sure. quarter the so our initiatives pressing positive grew Matt that

Drive that significantly. the Disk has in headwind rather Unfortunately, muted obviously the

to view at strategy pieces, I it how very Investors all emphasize give Life do that of to our acquisitions made, we'll when Day, beverage forward-looking. contribute initiatives comes really Sciences again, we as forward-looking the of the well our that have to And strategic as want food and a

is aftermarket to turning to believe inventory, is sales, you of Do normalization? And underlying to the Okay. there regards an markets all back then Mobile more to inventory kind contract? with starting contraction due

overall still over-road It's good; mining the more inventory good; is Ag good. is more very trucking is holding It's balanced. holding construction channel. across good;

slightly, just more management. just and and people sign it's really down confidence, walking chain have inventory they're of supply so more So normalizing a

Thank great. Okay, you.

next the with Cumming comes Your from question Dillon Morgan of line Stanley.

Your now is open. line

on Hey! apologize wanted Good this morning for Life to guys. I just time. one Sciences question. to bit. little fixating I Thanks back the come for more a

through Filtration. is just the Sciences? you market challenged Life Process the right, in can relative know a forward outlook going about still think positive to you talk I how you decision to Disk You have Disk Drive talked include more secondarily more for Drive

was it what the to include about more Drive you caused margin Life really I the, know impetus know the Like profile? Disk You in guess Sciences?

belongs sector the the all technologies are those Sciences Drive sector of and Disk in into membranes the directly sector. into because apply technologies Sciences you really included Life Life are – how how that all

to inventing etc. So expanded Polytetrafluoroethylene, businesses, of medical to we're when to view at be allowed look go is based of out And we applications, Life strategy able other to the how our make us Disk long-term into membranes really what you critical Sciences. Drive based that has

membranes So, happens into It that why in sector, how in and markets, builds up over foundation to into it end view, now and the then products that's parlay deliver and it's enabling to our can to directly and that that's foundational problems between really solve customer great invented in technology it's a Drive really then belongs us for Life terrific been inventing it's Sciences to why we today, there. Life Sciences. Disk be

Okay. benefit at level. in actually sure idiosyncratic the lot the out Industrial kind I'm in I that if ask felt more that expansion not makes just was of margin I'm driving of bit. can you inventory on And the you more tailwind a what can company or I there? the the margin valuation, called if expansion acutely then Industrial, know was Solutions a quarter. expand benefit if But Yes, gross a was on of kind just margin sense. outsized that price/cost if there wondering

they the volume Yes. Industrial price business pretty significantly, a in and good and XX.X% and strong grew had They XX.X% they really currency. I local had mean so had quarter. good

So their quarter, includes drag. our hitting incremental a this strong Industrial team that is they and stride currency had and margins

we well, performed business the of COVID. here off were So coming and

a cost had have issue we and so, we admittedly weaker last So year. comps there

last team So company of the and were you the good coming performance weak and so for we're really weak for operating off Industrial margin margins pretty and comps strong the quarter, growth. that see overall year this

we're for grateful really their pleased And so and performance.

Great! time. Very helpful. Thanks for your

There over are call for to closing Carpenter the turn Tod this time. I at no further remarks. questions back

and call. participated That May. Goodbye! great and you results in everyone we late Investor seeing day! X third to look our at our Day, concludes Thanks rest quarter forward of who today's Have to April a the reporting

attending. concludes today's you call. This for Thank

disconnect. now may You