Robert McMahon: Everything I would say for the quarter was pressured, although consumables performed better than the instrumentation. Our consumables business was down kind of low single digits and against a very tough comp of almost 9%, 10%. And if you looked at it ex-China, that was largely influenced by China, we grew low single digits in consumables.
Jack Meehan: Okay. And so does that imply instruments may be down over 20% in the quarter?
Robert McMahon: They were down, yes.
Jack Meehan: Okay. Yes. And I guess maybe just a follow up on Derik’s question. I think everybody is trying to think about the right way to interpret this book-to-bill commentary, but just is there any additional color you can share on the magnitude were orders down in the quarter? Or I guess, just trying to understand because there was an easy or a difficult comp on revenue like are orders kind of more — don’t have a similar level of volatility. It should have mathematically been over 1, right?
Robert McMahon: Yes. So the orders were down year-on-year, but obviously down not as much as revenue down year-on-year. And so when we look at it, I think that kind of shows though, the stabilization because we had some pretty significant revenue last year because of the recovery in the first thing Shanghai shutdown. So I don’t think that, that — we actually think that this is the best way to kind of look at it on a go-forward basis because we don’t have the play of the backlog happening much anymore. And so actually, as we look at it on a quarterly basis, we’ve seen a nice, steady progression up back to historical numbers.
Mike McMullen: And Jack, I think it’s fair to say, Bob, that one of the things we were conscious was a lot of commentary about how significantly things we’re getting in terms of being worse. And as you know, we’ve been out for some time, calling for no year-end budget flush, constrained capital environment. We came into the year actually guiding for a slower growth in the second half. So what we’re trying to intimate in the call today is what we’ve been saying for the last several quarters is exactly what we’re seeing right now. And I thought — we thought a proof point was the book-to-bill — listen, it’s not great out there in terms of robust growth, but the sky is also not falling either.
Operator: The next now to Puneet Souda at Leerink Partners.
Puneet Souda: First one on CrossLab. Bob, with 65% of your business being a service contracts, could you elaborate on what sort of growth contribution we should expect here for full year? And also, I don’t know if you provided the LSAG expectation contribution for 2024 as well?
Robert McMahon: Yes. For ACG, we’re expecting kind of mid-single-digit growth as we are — with the contracted services piece being double digit, but then being pressured by the instrumentation. So that will be moderated. And for the LSAG business, right now, we’re looking at kind of low single-digit decline. Again, with a greater decline in the first half of the year and the return to better performance in the second half of the year.
Puneet Souda: Got it. Okay. And then on — if I could ask a little bit on am I onshoring that’s point that you’re pointing — that’s not something we are focused on in prior calls. And I hear you that you’re growing on the PFAS side, but just wondered — could you elaborate a little bit on both some onshoring as well as the environmental gains that you’re having? And why shouldn’t that contribute more to your instrumentation growth in 2024.
Robert McMahon: Yes. It has the potential to do that. And as we talked about it, we’re at the beginning of the year, and so we want to be prudent there. But there’s nothing out there that doesn’t say that, that should continue given the macro economic environment and the incentives that governments are providing to continue to invest. And actually, what we’re seeing is nice business in Southeast Asia as well as India. And I would expect that to continue. That’s where we’re placing incremental investments to continue to drive and capture that demand. I would expect the same thing in the environmental area as well. But we’re not going to build all of that in right now at the beginning of the year.
Mike McMullen: But I think we saw some trends too that we’re starting to see, PFAS is also now driving some testing in the food marketplace as well as every country that we talk to is in the process of further enhancing their own reg. So we wanted to have some other areas of potential growth for the company beyond the story around pharma.
Operator: We’ll go next now to Josh Waldman at Cleveland Research.
Josh Waldman: Maybe one for Bob and then one for Mike. Bob, maybe circling back on Derik’s question, I wondered if you could provide more context on the forecasting process this round or the puts and takes that went into the organic guide. Could you take a step back, were there segments in the business that were like decelerating or slowing as you went into the guide or maybe areas where you’re still trying to find bottom? And if so, how did you expect that in the guide?
