Danaher (DHR) 20 Oct 222022 Q3 Earnings call transcript

My name is Shelby, and I will be your conference facilitator this morning. At this time, I would like to welcome everyone to Danaher Corporation's Third Quarter 2022 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. [Operator Instructions] I will now turn the call over to Mr. of President Vice Bedford, Investor Relations. John Mr. may you begin your conference. Bedford,

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

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

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

you to all us Well, thank on joining you, appreciate the We of call and good morning you. John, today.

in. right jump let's So

positive single-digit high growth quarter particularly has for We're grown Our earnings high nine momentum solid better our the XX% revenue or growth across of with quarters. segments. consecutive the core base digits business better portfolio performance. continued and single strength in reporting in all third cash with consistent This three the flow or core performance based pleased was and with which

reduce challenging has We reliably growth gains many structural done continuing results were accelerate to ability environment. job running proactively Danaher playbook a to innovation contributed serve our meaningful driven believe market customers, outstanding the terrific Now costs businesses. operating a high-impact these through in execution well-rounded and share our They've deliver investments. to team's by of while our to

and EBITDA revenue segment the product areas to quality profile, very now, recurring the and new today for years a EAS Now EAS of refer to adjusted announced company, & last approximately most with to This averaging identification separate of a durable the comprised fundamentals, we'll business our core over our financial XX% intention be will well XX%. mid-single-digit ESG which during an outstanding the market. be five company. strong we revenue quarter, with water Solutions attractive growth models and attractive margin publicly-traded Environmental businesses of positioned create also will Applied in as

greater deploy company, meaningfully the System will to that along have with improvement Now stand-alone of outstanding as EAS a will a same have Danaher capital its opportunities the EAS of towards as foundation, the commitment Business to as part course, will Danaher continuous today. M&A. EAS support results And

course, Of to we forward in sharing more months. here details coming look the

recurring end and focused a in markets, we great leading sustainable profound diagnostics life As and models. sciences positioned portfolio making remain for tremendous performance. leader delivering impact revenue to our will in franchises long-term by We've and us highly strengthening and to more united on committed a separation We establish all this competitive opportunities human set innovation a see lineup Danaher, science high on of business technology and as health. durable, advantage areas, attractive focused of common a continue these got

base revenues growth to Western demand XXX let's revenue events. additional with managed better through more we teens digits growth with results and and up to digits. North business. core despite Europe including activity contributed testing in $X.X billion, and double-digit core So high strong funding revenue healthy. grew we the across delivered growth, that, Sales High turn America's up macroeconomic were third to delivering was our with In remaining high our the quarter. developed all basis core deliver or core headwinds single-digit markets our markets mid-single continue growth revenue X.X% core quarter. teams Core were core quarter revenue an to Respiratory customer in detail. China, revenue high gross see in ongoing the COVID-XX geopolitical growth. segments three levels points in in single XX% effectively Geographically, current

XX.X%, dynamic disruptions as productivity disciplined experienced we chain quarter. the profit to actions. across measures supply began operating stabilize. remains the our freight expansion, third globally, and XX Logistics had margin XX.X%. businesses environment price margin points fewer core our The in of by but improved costs was operating management, for operating We basis and in third quarter margin driven part gross Our was cost

electronic saw supply tool have components net minimize inflationary leveraging up were impact share also per though teams Despite these of the We constraints in difficult earnings diluted pressures. common procure. and to chain year. and last our $X.XX to availability, proactive taking job an challenges, of set outstanding modest remained improvements Adjusted done the X% certain material measures versus DBS

of flow generated $X.X quarter in $X.X billion also free and the cash We year-to-date. billion

Strength revenue So our what at core now In In and Biotech. Cytiva some our drove XX% over results X% Pall let's was end Sciences on high non-COVID achieving broad-based businesses core single-digit better portfolio in take seeing with look our and robust markets segment, business activity at across up revenue Bioprocessing, growth. our color in levels and the a X%. give most today. revenue was you reported or grew Life growth we're

therapeutic As away program into expected, other our modalities. COVID-XX vaccine and from transition customers and programs for continue to

September, expect the continue Bioprocessing We In full opportunities our tremendous to in business year. Investor in Cytiva business highlighted fourth for we're hosted trends medicine. Bioprocessing Day the quarter through positioned genomic and biologics resulting these growth our growth at to long-term for revenue an high in core we the single-digit showcase and

Sciences to broadest therapeutic group. will portfolio with unmatched all customer the The and bringing service. solutions We industry our biotechnology monoclonal further scale largest biotechnology in the therapies. modalities together group also with antibodies global best-in-class the major offering announced emerging of to that Cytiva and across end-to-end mRNA-based extend as the has The combined have cell, allowing Pall's for we're Life industry's commercial the gene reach us team,

With We focused Life to yield positioned also therapies the to is Sciences quality, products our across the portfolio around aligned become life-saving bring Group joint uniquely Pall's faster. believe our needs solutions ensure cost. and efficient best innovation customers' Cytiva are will forces, and customers market joining more and help and to more meet Biotechnology

solid base core Leica instrument revenue Microsystems Life growth, major Moving delivered end markets. collectively remains customer demand most Beckman across strong Sciences. double-digit globally, to Funding our and led SCIEX, business They we Life and levels Coulter Sciences businesses. by saw

continued solutions a of system cost-effective sequencing is Coulter's of This easy-to-use Ingenious innovation and preparation investments strong innovation We our example in Ingenious. impactful to time our are of hands-on manual The construction. transfers is Biomet library sciences delivering sample reduces the that customers. life great a with in Beckman next-gen our introduction and how pace

led had RNA and double-digit sequencing growth, another demand genomics solutions. strong for quarter next-generation of plasmic, Our core revenue businesses by

marked themselves, DBS with lead for part more of be as with has couldn't increase and results growth anniversary processes and times year-over-year job meaningfully than the a embracing reduce first pleased to quarter, we XX% speak Danaher, Financially, more capacity. revenue done Aldevron's the tools and The This tremendous team's team acquisition. performance. since

to help other across Now this and capacity outlook. future, opportunities certainly to customers support to commercialization the the needs and therapies. accelerate Aldevron a our equally mRNA towards the it's businesses important and today, view the we're nucleic collaborate supporting solutions about growth of unique customers' genomics create long-term excited With acid-based development but our is

core led in quarter, X.X% our Moving and Diagnostics grew advanced to and Cepheid. core driven XX% revenue mid-teens up segment. staining. grew revenue Reported strength by Biosystems by XX.X%, growth core the histology Leica revenue at in nearly was

of COVID-XX, PCR customers with Cepheid's and ongoing within season of for with by for is automated Leica led mid-single-digit Cepheid Northern Coulter in care a despite our Flu our a $XXX XX%, for the core volumes expectations testing. demand in respiratory revenue In advanced volumes led test menu prevalence severe infectious Cepheid's is of double-digit seek both gold China. results virology still growth In Hemisphere, COVID-XX four-in-one but and circulating non-respiratory approximately million for seeing moderated, A, momentum point Molecular customers viruses, disease at fully standard. RSV. Diagnostics of productivity innovation, to preference growth where testing core across solid improve test purchases a global elevated million. early combined in Flu As testing, $XXX revenue Diagnostics, to we're higher labs, approximately Higher approximately the their respiratory symptomatic BOND-PRIME, by headwinds in and more B testing delivered advancing strong Beckman of grew have the respiratory exceeded respiratory platform. anticipation

expert consolidate platforms to of of see utilization a workflow. for the leading unique The clinicians Now point-of-care testament. best-in-class their are combination we're broader Cepheid with starting significant PCR Cepheid's testing results accurate in value opportunities our and onto expert. lab fast, gene increasingly to customers quality interested gene also provides Customers

market share Our tests opportunity forward. we increased has funnel moving continue and to gaining significantly see for year opportunities this non-respiratory

low single digits difficult the management and to business year-over-year in as and was low grew and Moving in Reported identification grew due up digits, identification, Applied year. comparison & digits single Videojet digits. grew low marking revenue low segment. part up was up was packaging Solutions QX mid-single up revenue X% and and Electronic single quality double grew was XX.X%. digits. to Environmental Water coding color our a product last mid-teens, core

markets, as beverage as the end chemistries markets. and and for Now during grew each growth. Hach the food was well quarter, solid activity saw project industrial and teens consistent the consumables Quality, of we quarter. ChemTreat during solid half Demand analytical strength first the in high In major Water remain year, municipal consumer equipment our end third driving broadly and with the across

WesTech, instead disinfection systems such environmental water levels, X Ultra UV solutions Low highlighted raises extend Now treated last helping light Trojan innovative Chlorine membrane Trojan, solutions people Range Trojan. impact trade and from of Analyzer week reduce and industry At chemical and at efficiency by are treatment the by sustainability the wastewater life quality their reduced with that to team water chemical billion detection costs. day, the Signa POC's the the treatment of parts over of several benefit billion treating Every XXXX+ per Trojan water improving ultraviolet the standard method. customers annual water UV show, process. traditional as maintenance

few of is these So positive a how water making operations platform day-to-day, customers on examples impact water the just supporting and are quality mission-critical a our world.

and color revenue business. what fourth In base at briefly high we and growth end in that seeing the on now our single-digit let's the with look fourth for expectations we're full expect core in year. quarter, the ahead businesses quarter our So deliver markets, to

flat a core We to low expect from fourth testing, growth headwind being resulting COVID-XX to in quarter. revenue digits revenue the single down in core low single a double-digit growth high

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

testing growth, high the is business. our expectation single-digit for the of year third of overall core growth guidance revenue there revenue COVID-XX is mid-single from base full XXXX, no digits high prior in as our single-digit a to our in Now change now result core expect We which quarter. up strong of our previous performance

expect We profit full operating continue XX% of for through fall to year. approximately the

wrap results. to third up, So pleased with we're very our quarter

customers. These innovating to a in team's of support commitment Our reinforce also durability. well-rounded testament strength results performance to really and and our is our executing Danaher's

secular models well is portfolio our drivers differentiated markets resilient of Our end today our revenue nearly long-term recurring. and XX% attractive are being with positioned business growth with in

combined putting power team of long-term So proactive together, Danaher it provides our with and of outstanding of our talented strength portfolio delivering application the sustainable Business sheet, results. for the an balance all the System, the and foundation

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

Shelby, that formal Rainer. and questions Thanks, now we're for concludes ready comments, here.

take De with Bank [Operator Bruin our America. question Instructions] from We'll Derik first of

on just there's on market in one the of obviously, questions the market the little gotten stocking the and was you're inventory your growth competitors a year. question -- Also, we've a detail about bit for lot sector. full elaborate you're on seeing talking Bioprocessing So, of Bioprocessing single-digit of sort in which what about given high you Can talking more that yesterday hit inventories?

high prior double-digit single commented to you think quarter. I

us through COVID on this dynamics? vaccine Are lot topic of So can -- $X what's a looking you be billion the year? in to for going more you going is? given given sort like that's still sensitive that walk how color Just for

Thanks, get after that me Derek. let question right here. And

and speak the First as certainly about talk I'll about well. all, here topic So of let's XXXX, inventory

to we're I core very and single-digit Bioprocessing, reiterate customer expect strong in high demand seeing that think XXXX Important overall, growth. with we to finish

in splits of up that a Now sections. number

to across is with production are into the the is the trials to non-COVID growing there, product this funding Phase Bioprocessing over the is pipeline We're move The commercial underlying we and strong. fundamentals start accelerated all XX%, really and X has seeing clinical see from Let's And that. well continue here modalities. progress. continue

So gain seeing gene we're even yes, starting sure, their monoclonal therapy antibodies, but cell and to approvals.

if is on driving Additionally, the which top pricing incremental you some non-COVID is growth, above levels, the historical areas. of in underlying will, demand

in to COVID-related have been variance. that's we Now my customers to continue think speaking happening. And that, the is reconciles if can do mentioned about our I of is some with we that marketplace. for something a prepared seeing vaccine projects. And as surprise relatively us. away I address That's also in any People from in fact, are We're remarks, I time. newest don't the move will the seeing slow. inventories unsure we're confirm current it think And that vaccines, uptake what that

a that hold they in talking move seen the as full manifests previously. in what perspective. to modalities projects to bit a here where that had that And opposed on that million the year in uncertainty in forward. reflects to there, And starting for there's we So, go the of billion the from the customers had that I with $X think, of about revenues we us, see naturally and public to other have here as $XXX vaccine been we we COVID for drive Bioprocessing

of larger the business their the moving see customers projects why other into their COVID see from their efforts, driving do projects, we well over part we that financial the XX%. resources explain at helps So, away these energies, and and and growing

pockets do stocking, there but particularly programs. where are therapeutic seeing we we stocking, Now, vaccine of either COVID-related, see were significant there large or not

have players in those those large that, invested So, than large to Having positioned heavily which normally best other inventories those that programs players those higher in players the redeploy that, to projects. also here are those, case. are inventories is said fact,

in here the an do those we coming expect burn with players inventory down So, quarters.

inventory and ourselves growth. single to reaffirm the situation some in high points how we as year. And of digit I want we Derik. continue to relates the I and there, the here just -- We're that's see then concluding that's Bioprocessing other So think high the be single-digit year-to-date, here, it to

the on non-COVID the book, growth the in Got there? it. growth And order book Bioprocessing for order the

Derik. Sure, Sure.

are for So I down as expected. bears commentary and over context. our that's QX, And some XX% number which orders think a

order of year. in First the of all, prior excess of are we're XX% off well that in coming comps

in conversation sometimes bears isolation think And many and investments. stack impact productivity so meaningfully context. well take as and be And are is that something And order become that to right it's to three-year over lead some able the more is viewed XX%. important others numbers to to that these done chain known rationalize investments. We've perhaps is do order not And capacity that a that's through that has reduced placement in we with The I secure. the through time. on been that because order pretty the our our done we've We've supply have cadence of significant able customers.

times order in an XX to order one in to has order then they a XX XX-week give if sense orders they To change time. one, their product up mention here, lead weeks, if all some wanted weeks, which go bioreactor a example four lead been it's the from a marketplace, order would over patterns. if categories you time, case customers would to time and four the that, a customer with the just if in XX-week there's at bioreactors, But fundamentally bioreactors of lead follow future. other So

what seeing of of the pandemic long significantly. the So time times from marketplace a fuel now constraint right lead red-hot orders for we're ramped is normalization really a coming up

be order market. now yes, order and customers COVID we COVID to well the non-COVID it currently, the about been volumes keep a burned had And rates a is there prioritized. that, down been chain previously strength talking in there's up of down. And XX% and much to adjusting of We've that's at That's their growing are larger supply the because course, also over mind, And ramped market. expected. backlog then So the see cadence. significantly but normalizing

now context of the So, to to a seen not market repeat, negative were but the and is that in readjusting. be orders unexpectedly

non-COVID you about the had as Derik, asked And well.

book-to-bill it about the the if essentially was there in think So X.X. quarter, you

what? sorry, I'm

Essentially, X, X.X.

Do to across -- expect still one final still significant you just question. do And next year? take it. and you portfolio the Got Okay. price

available continue us as price We for think well. think us. that we next And to about is lever lever year a as to

the year. points taken steps That's from necessary here the to XXX the up have We of first points in XXX basis We're basis do in the over that. quarter. half

fourth quarter going to the be as momentum we're the expect to keep new and We that going here in well. year similar, and try

I different is commentary be numbers. that, Bioprocessing Derik, for overall, would but that that any And think don't

take Davis with Melius Research. We'll next our from question Scott

costs you not last cost when a bit would little demand a back costs for imagine there the Go give come where a of extreme Cepheid. of there a quite I is the Are But or and playbook focus supplying tailwind stabilizes? are couple of the to years. -- was main of just to that there were a on can cost growth business out kind bit side while little you margin

course, as order non-COVID and So well fuel the to significantly to very we to supply continues demand very needs in carefully grow have, testing that serve the watch -- drive our And the you be, needs to, to also business. in the to to growth of here. suggested, but pandemic, the here during one, pandemic invested of able be where capacity our

we nice be very prior to very not growth XX% underestimated, very the in the a strong year. the strong saw off had You comp but in COVID, growth in of non-COVID

in for an of up of we that adjust capacity we're focus. to capacity also downwards, capacity, So And cost adds but need. both area great able us is of units terms and

or required. as both to capacity lever perspective adjust from that we'll as cost So up us, perspective that and lever a relatively a well down, continue is for as a flexible

is And -- how if can helpful. wide little bit Reiner, funnel, a when think So picture. you let's M&A go bigger the lens. we the about that's

big asking. of have obviously focus guys a You lot

health, identify opportunities, and space very cell limited have I lens gene And to to capital our about allows on time, and investment Scott. for want very some active and that impact wide a us in as now therapy. large deployment opportunities. would a broad and here is deep always. as as such, profound that We've order funnel talked not We characterize our to human and

Vijay ISI. Evercore take with next question from Kumar our We'll

Congratulations on print this a good here morning. steady

that numbers, that. on lead vaccine just I next I the vaccines, have times don't I point year. Has back And color. what for on given maybe including outlook a think we changed? question. your vaccine expectation to maybe revenue all Has billion the prior know but put finer high you appreciate for implied coming I order the that And singles that Danaher was for know down, changed? Is Bioprocessing $X.X of by I 'XX. think expected Just the

about there's well focused you environment. because as on in say But can the and lot fourth 'XX, such I full in As think we're of very dynamic fourth here the delivering imagine, data the year. a collect quarter as here quarter to points a and we that

population, course, think so a opportunity needs think all room to still sell-by we variance And is business and that for COVID for about. things there support we the as million of think watch the that's you that order the Bioprocessing But dates the closely. about to number $XXX very replenish of we expired XXXX, of can in the that

non-COVID to we very the which, modalities and a activity Funding of there, continue strong. number think stage grow are will broad, late in continue the of early, is own again levels business, will importantly, course, proportionately robust. business, part to the much mid- pipeline very our larger More be project that is in the that be of

update Bioprocessing But January situation, a fluid of today. a watch have view when we'll course, speak XXXX to for not all that, on and it's again. do and of different we we So, continue in we

not sort the base on That's but helpful, any here, would vaccine just clarify, of And on the Rainer. side, correct? change to be that sensitivity

would expecting That's taken business to minute single XXXX, down mentioned to XXXX it that today. we were looking correct. non-COVID we process. see billion And Derik million then ago $XXX COVID And vaccine, revenue. I We've we of for That's here to that the a $XXX to in file in from $X by million. we offset deliver for so the digits high that that going course, of $XXX see recall, way that million. sure is, therapeutic It just XXXX, forward

for FX rates, assumptions and how your on one year, we quick pricing One Matt, Rainer. for color, about incremental on I for current think you. margins the should next 'XX? think Based Appreciate

'XX? For

Yes.

I'm where going quarter it If I guess and that. before to on FX wrong QX go and get the quarter here margins is. ago and ask that see a to had ahead would we the through wrong have been I today,

you to. on margins have 'XX. the So gone give I you've we'll update I think where a mean full seen

that headwind You have of we're top to on an FX year probably, next $XXX going know the line it, million. call

there. you can But perspective. start guidance can on So would probably probably to mix that fall-through our that have the what perspective, fall a in revenue where 'XX. bit from going to that get little that the comes But say full rates to the we pretty the give XX% probably little in XX% better through. And is depending or know I I typical from be actually on could be a best we I'll closer margin wait a that's to bit you a now, and until are. what worse

our take Company. from and next Brennan Dan question Cowen with We'll

already now? wondering side, the roll But updated the thinking any business, was all-in you out information. the of look are those for and factor on in mid-single the just kind you you the and more lot off bioprocess other just the know you right but call, think digits, parts know a mixed that? of about addressed playing I call, low you single how already you've it last COVID like addressed in I on would how Last see on the if signals organic If some obviously, when macro. I Rainer, may, of of Bioprocessing had suggested broadly,

Dan. Thanks,

without if are without think we base in ZIP here, I testing. our business still business think about that we COVID our specifically, testing, so code So,

a to momentum in does Europe For XXXX, business course, we of still that we're emerging as There's headlines markets, our and but here. indicate slowdown not dramatic of plus. see Western watching. mid-single-digit lot any date, And

plus speak mentioned tests think business step And we've the looking experts with, step that Matt and still that we today's million customers down, then there we think then we mid-single-digit from COVID close 'XX revenue. will it. about of the roughly situation We've down to so anticipate forward relates update to it our been the right point points to And the of the data but mid-single-digit do is perspective, this, daily tests been of all 'XX, COVID or way Matt plus base that. you for January, to I And well. go COVID at $X.X of we're view, beginning is here as the as here, here. base in course, today's still from of business. we is endemic the lastly, for that testing, again, we'll And the say, as talking And end that covered I'll by FX very XX about then million from think that XX where billion dynamic. about And think and

which the suggests talked one know right, down to customers far I inventories of comment, continue better kind it just addressed just avoiding and then ordering. business. yesterday them order questions. you've and about managing apologize, just as on the to business impact look your see side the one broadly base speak you've base of to base more of how we job is power 'XX? done But in peer significantly. as because times at double more about of follow-up. you of lead months that got and don't you And XX kind And production The kind conversations does forward for I advance, months believe But some you outlook Great. what I versus I in your want can a in Bioprocessing, going six prior aren't about inventory maybe dramatically, the that talked just to one wondering, of need from on kind to readdress kind but to bringing just prior maybe I'm you for do inventories business?

as expense of not customers production are XX, product. others months. it, the they and of result here last, need of a for with who traditionally our overstocking working closer that the what to the their We have the even understand than at pandemic, time would ensure to plans been XX call a constraint And was

to that, positioned a don't where those is based for a think result inventories feel of said do words, general that orders So COVID. other our the are plans, overstocking there regular with high. are as result as in And we that, the well market. canceling understand And on of We are there Having as in do are customers. believe ultimately that, we a we we inventory specifically surveys situation. changing pockets their production though customers

they're whether important of likely will players inventories COVID large have note months those be for and to programs redeploy burn not the solutions and or other other have to exceed cases, at able it's inventory. be so in production, for the modalities and programs, they In be whether or redirected specific production are those for same But these -- six the large that that larger modality. inventory. players using vaccine And can molecule that many any therapeutics think for that down I use and tailor-made most

usable variants the COVID and because to add market then see or starting of that cancellation vaccine supply for currently been times I just same the or of disruptions itself hasn't from, with pandemic as chain rendered long and red-hot them So constraint times uptake the have some application. do not normalize are that lead mentioned, resetting era a plans is that the to we one therapeutic the lead where to

on market So, underpenetrated the a the that confident launching the this strength we in we've pipeline of strong. and remain that about talked reset market, the fundamentals, we products we'll drive getting very, going the Biologics, it and of this the in continue the the supply modalities chain. penetration that growth new are very up in all despite are very is the market that of its in to matter see

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

you said I Rainer, single high could in diagnostic. total, different elaborate in across you China digits some weakness think OpCos? hoping I question, growth your flagged first my was but on So in was trends

So just could wondering, color OpCo? if by more you offer

Sure.

strength that's So And as here high both a said, you set, in we anticipate to a QX. you and similar for just in really see level QX level broad-based China, there. single-digit growth just

with me shutdowns. rolling volumes see impacted Diagnostics these patient Let start did we by where

that policy in COVID zero you're this reading So shutdown about China. likely

very, they what XX% of being through see And those that strong in really continue patient to volumes China we're were to XXXX. of a as So working think affected those very as market. and XX% and

rest the our very, lastly, continues very Now business be to of strong.

continue science continues robust you As here And we about be the life there. other diagnostics, about to the the which patient growth to expect lever China normalize, for confident as that next we're instruments, happen we to strong really you volumes you think companies, diagnostics future. year, demand EAS, as in about as think think a see the sometime

quarter. And I while you were single it life did a both some patient just Dan, mean, the in digits. and EAS give still And it I context, on up Diagnostics, the sciences to volumes, up little struggle high digits mean, was mid-single

about impact And follow-up. that talk how you're that allocation higher or of just business? interest capital managing quick the color. all at change Can Did balance you your Appreciate the on Matt, priorities? a rates the sheet

trying really we has I are to don't it mean we've we component swaps there sheet a really mean, sort and -- like been I think capital from pretty interest that a allocation perspective, think income. a so. impact I'm debt, no of those different think return have minor. done we've sort way. always have think of that us. I we mean, balance from perspective doesn't I the of currency or mean, still interest things spots I don't -- an might From go same through I here But think that. and perspective don't I so M&A processes and in a got of variable

balance what think all us So sort our we're we're something on where is really thinking of don't that impacts it it fixed business really than largely. changes given A, I think debt on I the fixed doing thinking mostly don't about on different about: M&A here, which we at and the towards how capital allocate sheet, running much do,

Luke We'll from question take with next our Barclays. Sergott

just another us these guys demand -- want do Or from? about the about comp new how instrument growth. quarter perspective, about from this from Can upgrades? for a build-out? And I a big next sense and for of looks coming is to So a how you are of year? SCIEX This it give does you It half then Is like thinking is are facility strong how this a the first the talk like following LMS. year. all where very think

set, SCIEX, as really I strong Sciences level Life this low Life results. a And areas. of our that very you by business Leica Just with out, in instrument is pointed led Microsystems, very, QX. Beckman grew Science double And strength digits Coulter the some from think comes two

end is be to the very first The strong. markets continue

companies especially continued XXXX CROs the second Life in newest Quad you some with generation we've well. here instruments. to science that the the the towards funded, here At and is our of really in and that and all talked really which launching Ingenious research. pillar I'll imaging behavior edge widefield of buying talked pharma, we're the academic there, about Beckman And leading me LMS, And doing at strong the performance Triple the that seen examples especially So SCIEX, of and system, well is give the then XXXX. to THUNDER strength operating And and brings we And further really ZenoTOF really instruments. about provide leaning you Mika have innovation instruments just necessary pushing the there, there, extraordinarily continues launch the Sciences. which seeing launch, be answers we that's research at

and of the of that, So, believe we're seeing top that shown a of really a from funding that because here, number solutions. great launching perspective, strength outperforming we've strength we're we on innovation

do strength is we think perspective, market a the from comp really in Now the sustained. that

have but be And to reason this in will quarter. be in that about expect that more like the XXXX, we I case don't in significantly said, We to here believe we'll fourth the different. that January, talk

called chain, starting things you're not better? you're or All and you in get where the your out talk you then when markets are supply about right. That's still better. And where things helpful. businesses right, you're when relief biggest about to getting thinking and constrained seeing Can and -- the end seeing

Sure.

place area. in logistics is the the I of pressure dissipates to starting So see the some you're think where first

So, At logistic capacities in rates have ramped. come of think We're freight down starting have if to particular, you see come greater availability. We're specifically helpful do have. also container freight of starting Those, down, a the to we see quite of more continued same that, global limited course, set electronic see we on the time, significantly. And that components. is businesses pressure with

we've electronic it, the smaller of So is with on I the there's System, to component because the lastly, with as of case, then really some take I the countermeasure say down tightness but still to get been Danaher in able And And day, that, XX% say, knock issues That everywhere every think Business able availability with number there. side, solutions. here. labor continues still continues of operate. still practically mode. I we're And would call we XX%, tight. just to that our is same And the to what continue would to the share be

that's expect area better see to currently here And so for. over next the still as an but XX that to that see out watch a to that get constraint XX would we months,

Dolly We'll take our Citi. last question from with Patrick

Maybe just one.

Can that couple terms there China, You you there? you're the with feeling as concerns some customer in seeing, last elevated rationing macro even you're work exposure, Europe, that kind things over kind power kind different of lot in are away there, 'XX touched into conversations, across just change popped just what any any or happening your expectations but and OpCos of region? quarters. Any on of the a heads again, of the how we your of the about maybe concerns of talk maybe their up on

QX we set. into and to level growth the Western quarter. here Starting We in just going with comparable expect would Europe, high had here that single-digit

a continue see funnels we're that to starting bit. be would And to Our strong. I deal velocity slow little say

QX seeing starting clear and and news we that robust read in demand January. see that to that least Having are funding. that, view sustains is in closely watch they're to going going we into to where at in of their invest to still for and to continue of going robust it talk about So to 'XX. again cash think as that people said about to forward QX, whether And everything the you, we're very course, you we're

also that Europe. relates become event continue from oil energy energy, do we or energy area perspective. consumption, And should have It's Europe. so energy-intensive that we it fact, whether to to supply as to you gas exposure, take backup very a many in able not lot have becomes now own manufacturing, close will, but for relates specifically to mission-critical our if light to supply sustainability focus our we assembly, continuity a the to through also look of reduce at demand, manufacturing, we're of, in heavy And it measures of our manufacturing Now so particularly fuel as otherwise, case. and mostly we the for an But a have plans this the appropriate ensure contingency the taken in still including systems. that's ensure then there rationing, capabilities, reasons

and provide closely So then the to And we've that also Two, focused the yes, situation supply lastly, that it's something we in supply order we have on. should continuity. contingency have deteriorate. we're taken plans can measures ensure

kind winter mean over year. not manageable higher number. in It's we a see factoring is a Matt. of the bottoms-up is costs We did number. this company I here very into analysis that a the this big Patrick, plant even next company, by by plant, might just very,

for a the I particularly kind of while maybe forward? Okay. like that how not? of just That's just some of durable the has you just bit really just currently on instrument guess this terms Maybe now. a is backlog wondering been and good a visibility question. There's about, in of strength kind follow-up know been -- looks has pull the have, strong, talk Is And instrument SCIEX. a what Order visibility hear. to the elevated. is it's you little there again, been have. elevated there backlog I then Luke's guys on growth

the comfort there? So level a handle just strength the of trying on get to

due academic, you over and But broad-based, XX also strong The pharma, two as has backlog forth. So really earlier, last that's suggest, I there some so to been, around is the electronic that components. is That months, elevated. supply constraints factors. demand the because referenced

our that order research that, we we of backlog QX the in across for and referenced. into just see applications also board position, all result I 'XX. And strong see but here as remaining not So going rates also a demand that for these

questions this additional any for over our further that turn appears time. at remarks. program the no It back I we closing will have to or presenters

and questions for the day a of all around Have We're good follow-ups. rest Shelby. Thanks, day.

everyone. Thanks

This does Thank participation. program. your conclude today's for you

any may at time. You disconnect