Danaher (DHR) 28 Jan 212020 Q4 Earnings call transcript

Good morning. My name is Maria and I will be your conference facilitator today. At this time, I would like to welcome everyone to the Danaher Corporation's Fourth Quarter 2020 Earnings Results 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 turn to now call the will Mr. over I Investor Gugino, Vice of President Matt Relations. Mr. begin conference. you your Gugino, may Matthew Maria. Gugino Thanks, Good morning, everyone, the call. and thanks for joining us on Executive Financial Officer. With President our Rainer are Vice Officer, Chief Executive Chief us McGrew, and and Blair, President Matt today and our call point by today's available SEC financial relating any the like Regulation presentation to release, measures slide other section of under Investors www.danaher.com, Quarterly non-GAAP the the all that G on out I'd reconciliations call provided earnings and our the website, supplementing and required are heading during information to our the Earnings. portion quarterly website be archived later call. audio archived & on our the this under remain of Events heading section The call today Presentations of next the our will and Investors until of until will replay this XXXX. available XX, be also February call A

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

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

As and its the sales impact Cytiva core to period sales, Danaher's sales revenue sales that core we includes revenue of a the acquisition period sales profile, are would calculation revenue result the acquisition. I a Cytiva on overall core growth, call references Cytiva to presenting the the Rainer. to With Cytiva period-to-period to current over historical to of of and growth turn that, basis size prior on like Cytiva to growth including the comparing

And Matt. thanks, good morning, Well, everyone.

through go Before past financial XXXX we and our back the reflect to fourth quarter a moment results, on and wanted I take year.

challenges we unforeseen pandemic. XXXX year was the the As know, as that all many a result COVID-XX of brought

in on impact very we'll a to health has our continue work we're to the fight which doing global had devastating many to a That so And tirelessly also pandemic. said, as helped the the COVID-XX, vaccination overcome pandemic. testing, While XXXX and our with work there effort to our contributions It's combat still and lost to was not have much us performance in of being these to contributions tackle the crisis is financial and that of support around made such more the on world. also part to progress driven we're beyond, treatment by necessary. global efforts be proud XXXX

turned whom world. the customers, our them to And suppliers, we opportunities of Their inspiring. over I our associates' called contributions as since also and We're many on impactful of past I'd and have invaluable like additional this dedication grateful presented throughout struck continue collective in thank are humbling pandemic, the business the our the community. forget a pandemic. and to into global truly recognize won't most and for efforts times. incredibly meeting these the difficult XXXX, by team their upon both I'm efforts support our onset to and making partners, customers, help difference patients back teamwork, So, challenges the look demand been and has during They met and year.

of values team the that we five believe at action truly And wins. One I our is saw core Danaher XXXX. in in best

with XXXX our that, So let's results. turn financial to

XXX free per XX% year, core the we share XX% $X margin earnings growth, For points of of full and delivered basis expansion, cash nearly flow. revenue operating core over growth, billion

in played over In that has embraced XXXX, the couldn't and $X the largest We of innovative early Danaher in March has the billion therapeutics. COVID-XX our in pleased history, the year. results, with driven and role team more a highly supporting Cytiva and of acquisition growth in by be development bio leader revenue welcoming closed also vaccine a to and major XX% We of talented, processing business a team production is revenue. global last than more Cytiva all and core engaged business system. Cytiva's generated Danaher

our in excellent markets underlying similar growth business by the up Developed Western we US approximately revenue Geographically, X.X%. up now techniques, double-digits, basis techniques quarter. closer of both while through growth, the at were fourth and of billion approximately to the revenue and our and the and enhanced investment accelerated were contributed growth we results. base High revenue COVID new mid-teens, growth related with pandemic. up Europe. core points deploying We believe $X.X markets execution, So, generated capture by quarter a China. let's core new quarter driven broad-based growth continued X,XXX share tailwinds market businesses take another and product was customer saw XX.X% in many look new during consistent innovation, engagement commercial with to engagement sales across during revenue low

And of was core including margin up XX.X%. was profit of points points, XX.X% basis gross expansion. operating profit Our our XXX margin basis margin XXX

of year. per respectively. quarter We XXX% common versus earnings the free operations cash platforms. was share Our of the up $X.X of productivity billion up a in all XX% full the for our $X.X Danaher driven core diluted on flow billion performance of generated growth $X.XX higher across and and net and the impact outstanding combination last system revenue margin by Adjusted of business was year, and XX%,

conversion of and positions Danaher. Our free and marks year cash year figure the pursue than actively to XXX% strategic more for earlier our Cytiva consecutive M&A combination gives well this degrees The net opportunities. income cash flow the XXth for balance was XXX% exceeded and to us of the flow freedom after as anticipated has sheet full closing generation strong

and capacity growth and at innovation growth. positioning Pall collaboration and Biotech while and treatments, Cytiva our opportunity expanding the flow took and to investments We're COVID-related performance, long-term support also Cepheid, across demand to production for Danaher, businesses for strong continued Given initiatives impact including margin we high increasing cash the accelerate testing projects.

let's led IDT. Biotech, core Cytiva a of growth look of Beckman revenue take So, Life XX.X%, acquisition, at more rates results increase the our of Life or portfolio. the across Sciences reported Cytiva, with now by detailed a result Sciences, as and XX% revenue core Pall at more

see an therapeutics. on up We the and during related continue strong saw double biopharma activity COVID-XX business customers in we our demand biopharma also focused vaccines was and from acceleration and to quarter digit, non-COVID our

improved and to support COVID-related saw instrument Life out more customers academic businesses, tests and treatments. oriented order automation the development In as and building also production Science and and our genomics We capabilities their installations digit of revenue demand this from in fueled quarter, new Triple to SCIEX research uptick core benefited Quad delivered reopen. as activity in continued growth and products, MS. the the for and the labs such Echo XXXX mid-single by trends

core It's Beckman delivered team. $X revenue demand revenue by GeneXpert more elective moderated Diagnostics and upXX.X%, Radiometer through mark. placement. year led billion by diagnostics, Leica a passing hitting and billion annual was Cepheid the businesses, XX.X%, resumed $X and checks with up accomplishment our single fantastic milestone to one than pathology acute growth. the December, by reported Declines revenue at high wellness growth steadily revenue as core core over both quarter. achieved Moving COVID-XX in care driven tremendous Coulter significant procedures at in after testing a Cepheid, Biosystems, and just a elevated XXX% the Systems digit

segment, revenue core Environmental was Applied was our X% to up Solutions X%. up & Moving revenue reported and

growth to impressive we running. ChemTreat offering up innovative day-to-day water facilities accomplishment by water year in product Across XXXX, our Our water team's growth help identification as by and enabled growth presented to our single-digit businesses for quality with consumables market, continued year, revenue the core the the our positive given the year. and quality activity identification customers platform, project so delivered and pandemic. through their and down and got moderated revenue in marking continued of our combined well operations. were its Across unprecedented Equipment core offset continued delivered Consumables challenges to businesses, coding And our focused core an we moderated. back mission-critical demand achieve held globally our moderating any to customer in keep businesses by we the water more but revenue water customers in support and solid management. the and packaging full slightly. end product as At platform services platform color declines quality portfolio, essential quality results operating consecutive declines more positive and up as execution, platform, municipal and saw positioning chemistries industrial for of low the was XXnd pandemic. declines even resume our

saw through stability we are around growth term. during to the drive demand. our a vaccine consistent COVID what geographies. by customers processing Within working you Biotech therapeutic infection to their me and we in environment this end Life remains saw expect comprise targeted rising Sciences, the most more we some than across quarter, impact Pall lockdowns certain the yet record persist and continues and quarter, in up fourth have what markets segment bio order with activity world for new give rates Cytiva material we quarter our of trends October in COVID-XX activity and in and XX%. context exposure, near combined pandemic and relative not as that with back Despite broadly was seeing we're and the and color So, let seen on Customer to new regions, bioprocessing on adapting this demand. the

manufacturing our capabilities significant role in to of ramp the As bio the on playing and a working workflow, a very are while up treatments, and processing development compressed market and vaccines massive COVID-XX timeline. a teams across production leader

of approximately of the are US tireless so therapeutic the than have that of many very the We $X.X majority the which several the proud authorization vaccines people estimate with strong XXX therapeutics opportunity We're use stage Non-COVID-related our quarters. the we team's what Biotech stand emergency at we around recognized FDA bioprocessing will or received line including directly roughly with associated impact in we in Pall be trials. all remains globally, XXXX the billion, the late today, where saw lives involved and and world. activity recently XXXX. vaccine revenue projects COVID-related of and over in clinical vaccine efforts more in last twice will in Cytiva we underway are amount From and

Cepheid end as rapid test the demand to earlier, X are and increased science clinical I continuing in both In in reopen, and in research the point Turning the capacity limit albeit approximately market, one production million diagnostics, settings. lab March, number and at COVID-XX social first labs quarter. meaningfully heightened any capacity tests cartridges for fourth measures and other Since mentioned for in molecular distancing to people our lab as molecular at time. testing continues life of hospital shipped academic launching care the has of reduced

diagnostics. installed help XX,XXX position to presence reinforcing instruments XX% and B approximately tests As The tests the in team point new needs leading more in RSV. and four-in-one care shipped XXXX market-leading fourth number in base increasing molecular XXXX, and also and than offering Cepheid's differentiated for a COVID-XX, its COVID-only beyond. year-over-year were meet were position of combination at tests XX% customers business the record Flu the the and Cepheid's XX% Flu A, by respiratory of globally, systems over in anticipated, placed to of quarter testing

of the seen in XXXX. we X today, pace expect seeing any elevated and volumes have duration are of QX. and we a remained lockdowns, labs, million As positioning this saw and still hospitalization rates but a elective at patient this at COVID-XX strong result ship reference not procedures at steady tests infection to for new checks hospital Across quarter per wellness activity through we least continue patient recently monitoring closely as as similar that implemented impact We're point. areas and material we've the

test. and possible. Beckman's with to having volume This make Beckman's and tests the with Diagnostics a associated testament immunoassay help test the to testing higher six COVID volume antigen months. addition challenges related high menu address the During is test on our team's the important quarter, to mass test automated Coulter scaling of up is its to Beckman innovation, run addition COVID-related can expanded strong antigen testing new automated analyzers antigen of COVID offering cadence a many in launched diagnostics another as Beckman designed

in as food water and and operations, capital on treating customers remained side we're solid Finally, investments. safely applied and the project like consumables initiate essential testing new packaging the equipment markets, medicine. sequential encouraged to see improvements business and as customers And sustain

Looking first XXXX. ahead year the to quarter now full and

core revenue related to teens anticipate growth revenue deliver non-COVID core quarter. that to will with revenue approximately COVID-related mid-single basis mid core digit contribute points We growth businesses. We to our high tailwinds expect first revenue the growth, in in X,XXX

COVID-related approximately that revenue revenue full growth, with of year core our anticipate as low businesses. to growth related core moderating comparisons. with digit in tougher points for XXXX, tailwinds the of revenue the year, prior-year high-single second in to full For expect sequentially will half revenue we double-digit to a core XXX We mid growth the basis growth non-COVID year contribute deliver the result

So, to Danaher. wrap year up, XXXX was exceptional an for

took believe a several to support company, Danaher was our dedication. pandemic of efforts humbled a stronger for opportunities last bright, customers the into as also made thanks leader. future transformative have the few to science their This Danaher, contribute all presented is global and build also over Danaher's our and addition Cytiva. them by was strategic of portfolio Our year team with turned across to COVID-XX. of against moves one by we a establish and the years We're directly better, XXXX technology the fight businesses all and the associates that to and challenges

strong Looking the our the team, sheet, in system, balance believe powered to ahead, Danaher of and we all beyond. combination excellent and by portfolio business outperform talented positioned XXXX of businesses Danaher

that, Matt. to So, call with back over I'll turn the

our Rainer. Thanks, ready questions. That to we're formal concludes take now comments. Maria,

Morgan. [Operator line Instructions] Our the comes Tycho from of Peterson of question first J.P.

is order book of of Nice timelines COVID you sustainability I'm tied you on comps. kind the if curious tougher vaccines, but could about alluded you as Cytiva you $X.X the quarter. talk lap Rainer, I the expansion about manufacturing Pall, the to billion talked book for know revenues order then question more capacity to. in the and

have of see well, of we've to we're to we're sales really the the as trials terms that volumes other coming in we total And the vaccines. that relates see the expect vaccines clinical the into that's quarter billion about backlog of the the year $X.X well approved the related it COVID-related In of marketplace, billion. at there on $X out sustainability as book, as a based to order Morgan we about looking this mentioned way thinking about – about and as first we and at J.P. is here this,

to sustainability billion. have to sure here So, and be backlog that we able cover strong we that $X.X make good that think we

to Biotech make here meet demand, occur capacity even we to coming the and whether to or able had to we back the your capacity Additionally, that agreed are have expanding to beyond. sure continue and of that with to had and we GE continue Cytiva, point, year transaction invest continuously, XXXX after to the elsewhere will that prior capacity the close continued in Pall order close, then, We expansion. with customers' through our been

For dynamics McGrew, here. on the margin one just

margin between in to about a Pall two As and levels, Cytiva, tailwinds for view we think were these tests the trend kind implications your what of million these at the quarter year? Cepheid, continued X then

before. to about way profile similar what the it helps maybe a it kind Tycho, is think seen to that to margin sustain of we've

maybe we So, I or sort we a fall of for here core through perspective for and the assuming to are about about QX XX% both think and XXXX, so through, for if well, you see said, frankly XXXX. going fall on a growth as QX like are from

inter-country, But seeing in on we of back bit one. a getting quite growth pressure, around supply the think little then, you particularly around what two, doing of a China got They're having it. they're moving what well. couple really that's sort bit we side, – – and of aggressive see chain as moving we've slightly some now. in as we've And quarters. the fourth been last the the to travel And want also been stay China targeted we a are starting quarter, pretty little be bit lockdowns, is from Now, down freight know we've to and I at in will, But if inflationary you investment saw significant. in

So, I something we've is be fall through I next both year. which XX%. be strong sort think more we're maybe about, given think those you instead be talked that, sustain good of able levels will profile, like continue businesses pretty of seen, pretty the it thinking like margin might hopefully to here what will of again, that But we to

ask meaningful. do transaction If before hop more a you seems to do just one incremental willingness I could provide talk I like framework larger and a color you desire on on could telegraphing Rainer, can you're off any M&A. more Any something to about? it

out standing free about that work have Cytiva, the we'll to question, Cytiva always operating talk It's the the just great seen, of as more had. that deal. – as here definitely sorry mid-size well up Cepheid on freedom of XXXX performance do we earlier to having to smaller and in the of better the seen be raise here flow no here in we've deals more likely but now. done And cash M&A see be we've between I'm here degrees focused an able to and for January we Cytiva, closed game, with as we've still But them that company, we've than equity

question of comes the from America. line next Our of De Bank of Bruin Derik

I of bottom guess margins sort just up the question thinking following on about and just on the line. Tycho's

for the is sustainable You that the on that XXXX, basis of there but in to didn't give to a EPS range year? an guidance for reason $X.XX isn't quarterly $X think any rest something

of the I I your fall of whatever go and take put you itself. think would and care math back kind through the to of think kind XX% revenue assumptions I'd sort VCM in, take

that's placements area. going Obviously, about of demand investors of from has that only competitors, you're a is is or it? ton diagnostics your companies One not be sort instrument placed sort a in tools big there all to but have selective instruments. that glut used, installed coming what's is the other for placing Are to you COVID worried past question get there like of once of going of enormous be placed being your diagnostic molecular the out in instruments, you follow-on base? thinking your up of don't where Cepheid The a numbers lot we're very machines like, are question selling

about instrument think of here instruments. the we've we about And we that an year been in the have installed thoughtful placed growing very over now and Cepheid, XX,XXX as have XX% Our placements over instruments, placement of base XXXX. those

long-term. Cepheid those and and time, to it has just GeneXpert and At the helping being made for at all, fast, about and thinking solution we is during for to the sure of the be point First perfect answer of has a same care we've decisions be the making are placements those right, been the and diagnostic the that. where here have pandemic

tests. US menu aware molecular over and over the You diagnostic the of XX outside Cepheid with US largest may be tests that XX has in with

even a the find so, where that we've in there, placed they on primarily based those we post-COVID great menu. full testing see world, utilization And would instruments

question cleanup the follow-up one or think segment Just we should one EAS in just question. How about XXXX?

quality here in the sequentially EAS growth, particular And but that we're flat has positive been here really had pleased The improving XXXX. was in well. water segment has throughout XXXX fact also essentially PID as with

up, to as range, here we be see and they as funnel. as and so, consumables customer placements recovery, go not in that the only instrument we've recovery decline but continue remain seen our been, that digit the solid in will through these as to we mid-single see XXXX And start moderating in have have those expect as we which them picking been projects

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

feels at Rainer, QX And on double-digits with given me here, mid-singles seems here, what's Correct start back business guys like pretty XXXX. here. in XXXX in maybe the obviously be at the Life mid-to-high impact. disruptions. acceleration XXXX curious accelerating some were is for easy in that business the inclusive here the base the the guide back wrong. Life of you solid a I look a print if in it I'll here Science, teens, of It assuming just driving right? guide business days Sciences the XXXX? mid-teens I'm for I'm of base base in at The half is the in Congrats comps mid-singles half of guide growing assumptions particularly the to the and base why and

Vijay, that's right.

have up able seen are but more their and acceleration to online. full improving sequential not have business more have to social labs instrument-related certainly to the course given service businesses protocols. continue yet, out us been to capacity of of They our back bring lab science and distancing been as work continued open. they life They've a access installations that's We

in XXXX. So, that's that been to continuously improving expect here trend continue we would and

the accelerating the is think have at well as mid-to-high we COVID about basis XXX, as Now, here, teens, mid-single XXX tailwind business which here X,XXX acceleration look, points we base basis guide to there points. our digits, as

got flu, a in that actual of of COVID quarter rule the we've very quarter flu the days an had quarter COVID of lastly, if think already also more test. you Cepheid will, we strong year a just in a well last couple with keep the there. out relates first to mind testing tailwinds, to placed as physicians And absence in XXXX. first trying less were And as it the then So, in we're working reminder, as

said the to I clarify, margins zip know to I Matt, guys? XX% we seem in the XXXX. operating but incrementals, Matt. right XX% want for code for can Does One you you ballpark that of fiscal math, just north the do for I'm – getting

are you about moving Yeah. think the through below kind each they Again, pieces the some there but largely line, at XX%, here fall if other. of offset

So, going I think whatever assumptions that you be sure. to is it that pretty a your we straightforward that revenue I good are be bottom land Where think to that for about. on pretty where come should out the way think will dictate on

quick that high antigen high Rainer, up I one last model mentioned the volume antigen for opportunity. the on we your an you Is about know here you, about upside screening should release guide how in or one the please, tests? think volume of for test. press in sort

we The in you're instruments. just on base about December. our of that XX,XXX launched volume high antigen will installed here right, be tests, And in fact, that available

been moderate installed applicable testing for antigen on schools diagnostics broadly the mean for and our for but the throughout here in as Beckman. US, those as institutions. the opening our becomes to antigens volume up will terms serial but might the of not test base large a under to from Having how it here of it you setting planning very that, is Biden world test as until test other also just results of people we've standards be including applied administration in relates here, start how perspective, think higher volumes us what at it in a said in So much clear assumptions

impressive again the Congrats on here. guys Thanks. print

line of of Our next Research. Davis Scott from question comes the Melius

a water recovery incremental the Just on the difference one product E&AS, nitpicky question. ID? versus between there On in meaningful leverage is

businesses perspective. through Those are Not really, a from similar Scott. fall pretty

to XX% XX% ballpark? Like

I a think that's place be. to great

then is number, versus or geographies And four-in-one of the take you there around a the in thinking like rates – around different higher guys world? the of that is were take when uniform particular the Okay. terms different kind XX% rates, in four-in-one geographies

geography. by it differ Scott, actually does so

about do echo can Let okay the me you see something now? Can if here. me I hear

I hear can fine. you you

Okay.

XX% So, COVID-only Asia, that are of the COVID-only in is XX% there In the not for real test there the a the by as you seasonal. differs US, as at geographies, fact, particularly looking as and prevalent in four-in-one. pressure flu is and

the Europe, As the adoption here we as that's little you roll go four-in-one, improvement by of increased staggered but to in. country a

question Cowen. comes from of Schenkel Our Doug the line next with

quick on of you're for an looks think a about around follow-up imply That as earlier growth recovery question. state seem base guidance a a steady business It like your assuming we stack two-year Maybe full portfolio. X%. doesn't the just to

the be on So, confirm want line but this, continued this we a I to year recent based the to year. of know think answer clear seems some – assumption trend just just and in that's to I course for backlog, the reopening it, but embed like with philosophy for not recovery full over the

thinking how Doug, we're it. about that's exactly

This if back a while to continue the vaccines not of know. hopeful are a We better pandemic, are you will, post-COVID improves, the pre-COVID be we there that And year. to transition and quite year things and rollout rate. be middle the a to the we're we all get is is, that as XXXX going immunity in as probably to not expecting the still adoption year herd

that that mix that, And remain then Pivoting of expectation only I quickly kind is to off sure COVID back and the just kind that of like seem four-in-one million want believe, said to make test per that's around assumes increases. the ratio? capacity to quarter the will that's And Cepheid kind XX/XX of of over building why? Cepheid, so, if doesn't in case. of I X you that It should any in reflecting XXXX. continue Rainer, guidance potential assays sell the

know, one. that exceed and year QX shipped in by first to in here X X million. the We X shipping planning QX. with were cartridges QX we we million able you ship start last Let's And in were as X million, of to million may

the think situation, actual as as pretty our in it's in about So, of yet X work which we to a we capacity it And number do working pandemic, take further work place. the view we for are have here we'll also in million improvements, on, relates not capacity to quarter continue increases, the and updates. And those dynamic think on we course, continue the year. planning we as per provide cartridges full good of and investing we to to on,

the I XX% a the we're it of XX% That's with good COVID-only how assumption, terms as in four-in-one way about planning well. mix, that, test. tests is you're the think about that thinking thinking of and about Now

point, to regarding going capacity dig Just large to molecules. over one just transition-out expansion last want capacity be in COVID-XX your comments on within other well to building positioned at you're the one. Presumably, some to I bio-processing.

of that advance building remarks. even you've mentioned as were your prepared You the in pandemic, out in

So, think can the an that sustainable COVID-XX tailwinds vaccine at therapeutic related forward bio-processing be we look XXXX enough you least to levels to even levels? abate? air demand that day is sustained Do to trends and there where think you a XXXX revenue do at support revenue when pocket at or

has it Well, that grow well not and so chockfull, that very, and when at and to as are we vaccines, very it's drugs been look that continues vaccines, pipeline therapeutics business of COVID-related and solid.

today. very be that's here, we of to So, to relevant things expect there's being that One a Doug. pipeline the traded capacity couple

road. it relates where there that not for vaccine forward see about you vaccines. is investment only technologies develop many increasing with fact things bolus are That's pulling vaccine COVID, the well. that, of manufacturing had we've biotech nearly But looking looks companies projects one to new time, of to will also is us of into gone In do second some as now we at for at diseases that to it are get the as our be of yet number down as think several the We but though planned years that as point kind investments point.

it capacity, relates as So, incremental feel good we strong. positioned, right to we're really portfolio about going this to we where the our utilization and very is think be got

base of low three growth, biopharma ago, above where four when back out, about a little a said. that's that core Yeah, was core think years said, got we're kind Rainer double-digit how kind laid seen as probably and side just where maybe to business, even I the couple thinking color it just everything in seen Rainer given what think kind of tying we've and what bit seeing or capacity we've around of to quarters the about here a today, sustainability the bit of give you everything as little a just of you he we're we've of last

XX you top it QX order put lot at on going we've XX north the you're therapeutics, talked again QX. forward, in as north of of was when we looking on unknowns obviously Now and that still the but growth of seen was in and vaccines here what and Cytiva at, QX, well of

in got XXXX, So, Cytiva going and good I we in really of the low-double digits. we we've sustainability given as given what growth think head QX in backlog, base order sort given saw into business, the

Beuchaw from comes question the next of Our of line Steve Wolfe Research.

of really follow-up. make could for the you've about particular of that to solution It's companies collaboration. us remarks, I almost appreciate for wonder has way back could around prepared point a talk have problems you accelerating of one your innovation that in investments. made it. and the And that the actually wanted I'd through gone identifying to emphasis, of those of rewind you and areas if part Rainer, investments are all areas one COVID. flag sort about you any I do And to how the emerged high-quality beginning I us if

and pandemic thinking than not capabilities from looked that or exit we've are this businesses the across whether an COVID opportunity are our about these way growth at stronger businesses investments benefiting particular application. The tailwinds is that that's We've portfolio. that we to our very in in been entered, always as broad strengthen

perspective where and are, we identify and a together but invest on case just And most attractive not in in we positioning been the strategically competitive with work for is our near-term, do the to aggressively that's projects we return teams now. advantage so, here for several will here also us what then those the quarters

continue So, that. to do we'll

a rollout could having puts Dx. businesses. and earnings you it takes. perspective I margins, and are the of to a questions core if in bit try asked the out lot a and some and I'll COVID you the has Look, impacted been could I replacement extent us to just that. what round see where about give with cycle about ask good on have DxA wonder Beck little it

– Dx, about on So say, any core you're for should Beckman XXXX, perspective what how it. appreciate Beck I core that's and for would going thinking really

practically be going up we performing, couldn't here DxA improvements business just way, business we've a in back to quarter-over-quarter pleased launched positioned. to be second couldn't Diagnostics the fact, was Beckman just more and and I region the and that if with sequential to continued initial interest the how say, in and see we've see with for every has the more been that's pleased that. we But

launched earlier kinds analyzers investments and just for speaking of with XXXX as the as the we're hematology DxH's making. along were DxA six launched well COVID-related You new about tests. that just XXXX, Well, growth we've the these

So, to directly also an Dx. as that's just your example it first question Beckman of relates

what well wanted we Matt, did So, there? and us. we've hear been for tracking to that's the DxA add going with to been anything want exactly really you

to question wanted to growth expect of bit here a patient we're of them address XXXX. the think be continues year. sort rebound high-single a we of perspective for we up Yeah, they'd thinking just little in I the of volumes, I what from the that digits sort with as do the here And sort thought

line Our Nephron the next Meehan Jack comes from at Research. question of

equipment. wondering bit on a was I more expectations if could capital color you little give around

just that half the note, on the think So, you into but as given recent year you you of a strong do first flare-ups, sustains go ended obviously some the the of year?

you are Jack, right.

up We seen here. the equipment capital picking have purchases

that with And digit in many then strong instrument QX, of we open We labs high-single close end there. businesses here. performance some saw that's type of increased. in up, the very As those

fact, and double and to well to work here QX see our XXXX. our reflected as social And learning digits see as going both for that. and We've here In continue we they're pulled necessary in continue customers pandemic accelerating that into we we for also businesses see the guide with XXXX that to distancing measures. the low around at a

just I color on know guidance. the of on into bioprocessing, lot built one already you've a the but expectations given follow-up

in it of the XXXX, tailwinds kind saw the you the benefit like second but have $X.X you in looks that COVID doubling billion from annualizing half. So, you're roughly

there playing talk So, And maybe is out is side? maybe assuming how the just about the there – anything you anything demand therapeutic What throughout tailing the on see off year. are there? you

bioprocess think further we had that at Biotech that acceleration the here Cytiva was and XX% book, acceleration we that seen over in had from of growth continue. a here what and order orders As recall we expect and about QX Pall we to

solid. well revenue just position as vaccines it, backlog the We $X $X.X billion vaccines And you know vaccines, approved of you our behind entered assumptions really confident but clinical on So, the and here are really the is projects that XXX are we're But over had in strong. in that which billion supplying we trials. that positioned are also those therapeutics. is, both some are we year with and the Project Warp as have well that not that Speed,

absolute opposed actual of in to trailing a we while half more expect the So, XXXX, demand. do as the a that's comps moderation the entirely think to of as off related second you about difficult year,

believe we that continue. will that So,

is through, position now. sense, some that half Jack, Biotech, the year, of Cytiva order give and Pall flow backlog To call that the grew, at how north going it, saw second to on XX%. we you of book got we in We've

be in to but and good is said, the in at QX of XX%. year of north the start in Some here off during we're core and came some going growth pretty of XX%, to a shipped Cytiva. to get give you Cytiva what going to probably booked it us year

So, think strong a good we'll start. have I

of more of sort to as Let's stand vaccines the approvals. through see systems kind make But of how that billion we $X.X it their through the sort with the framed order way how year opportunity. book we've develops that's the as sort of and now therapeutics

comes of of Citi. the Our final line question from Patrick Donnelly

the just for which a core on more double-digits baked are the a the And geographic in think was about level just growth that you one, quick Maybe XXXX just China, recovery growing markets then front? talk basis. pace I in of expectations a low also, high basis. on the there, Can on quarter strongly?

both you say, As we're what forward. in QX, very nice well going did see in as China as we a recovery planning here here,

double-digits in across XXXX low China businesses. So, and the really that's in

in in just in well businesses starting saw to you And markets. QX. China look Diagnostics EAS our we applied China So, both also to as the terms the healthcare over QX, forward in of businesses, in Life here, businesses our has sort expect as in the as XX% related be in growth as not ramped and Science XXXX, of but with that really we

very getting there strongly. gates of So, out really the

Of in course, QX there they in And the full as we had about comparison see of think mid-teens. XXXX. a lower we China the really year,

So the which digit. very came strong performance, low-single very at after year, solid recovery in full a really

XXXX, to So, mid-teens, a recovery China low-single speaks there. digit; strong XXXX,

$X in million overall, I back-half? on just I market of and a has that, as positive here up guess, Are a that a and the one gets then, Cepheid the see go kind that more Cepheid. this you on I And for being as guess few it think the bigger you. point-of-care the you thinking assuming COVID and sustainability But maybe quarter, been the more on inflection on touched important about testing are times. becoming shrinks of go know Thank about you of you Maybe a a piece ends piece? do market more the we back as mode? point of this how

second Looking in how COVID testing second hard play here, and to point-of-care it's now to the in will forecast general half. testing half, COVID out the to very right

those but, how talking the yet tends other are don't fact, even not variant, think have a we're knows we now of the or occur. who often around more as about world course, vaccines because about in yet. to vaccines what's vaccinating be rolling US, Just that of will in dialog at And the out, many happening already about rate places

of that center planning assumption. So, is heard of result what at to long-term we the where the it's relevant. half to petri country. point-of-care, interact are portions the that need outer public really of that's that make circles accurate world as need concentric to point-of-care of is therapeutic Cepheid second the those is the is whether a with a have not very although high then, in less at something next. where assumption happens in of going metaphor, solid particular, for if we becomes to herd in whole continue here. a And And concentric time, quarter vaccinated planning happens to of that decision. immunity time. be interesting even million the that ones is whether travel, they're you durability general each terms a that's is per other, immunity make it They're because may X some doctors to going durability that's testing dish have because this time, circle see in achieved decision the turnaround the there but they fast a the as increasingly in for a And as relates over to going and, herd year, think that The mind, volumes Keep that likelihood testing will an continue the high

to like or was to management the I'd our final for closing over remarks. turn additional any floor question. that And back

Thanks, joining day Matt. here And for round our us everyone Rainer. questions. Thanks, we'll today. Thanks for

everybody. Maria. Thanks, Thanks,

Thank gentlemen. you, and This conclude today's does conference ladies call.

You now may disconnect.