Danaher Corporation (NYSE:DHR) Q4 2022 Earnings Call Transcript

Rainer Blair: And then Vijay, just coming back to your question regarding the base business without Biotechnology growth here for 2023. We talked about Life Sciences instruments going from the low double digits or to the mid-single-digit plus here as we expect that to moderate during the course of the year. But in our Life Science businesses, we also have our genomics businesses, which are growing at double digits. So when you look at our under the new definition, Life Sciences business, so that would be the instrument businesses and genomics businesses, we expect high single-digit growth for the year. As it relates to our Diagnostics business, without COVID testing, we also expect high single-digit growth there, if you think about the growth in Leica Biosystems, Radiometer and as patient volumes normalize, supported also by solid growth at Beckman diagnostics, once again without COVID testing high single digits.

And then as it relates to EAS, we would expect that now to normalize after having had just banner growth here in the last couple of years to be more the low to mid-single-digit growth, probably skewed more to mid-single digits for the year.

Vijay Kumar: That’s extremely helpful, Rainer. Thank you, guys.

Operator: Our next question comes from Scott Davis with Melius Research.

Scott Davis: Hey, good morning, guys. Lots of detail already discussed here, so I’ll try to go back to a little bigger picture. What assumptions are you guys using for kind of labor and material inflation for 2023? I assume this is mitigated a little bit from the high labor inflation you’ve had the last couple of years, but curious on your view there?

Matthew McGrew: Yes, Scott. I think when I think about price cost, kind of back to that 200 to 300 basis points of price, we have been positive on price/cost the last, I guess, year here and probably a little bit more. So I think we — that guide of 200 to 300 basis points would keep us at positive price cost. We are seeing — I would say that we’re seeing some things from a supply chain pressure come down. Freight lanes is probably the one the biggest one that I can think of from a cost perspective. I would tell you that other parts of the supply chain, we probably are seeing availability be better but not necessarily seeing costs come down yet. So I think we’re sort of still in that 200 to 300 basis points of price to help offset what is still out there, but there are early signs of things may be turning.

Scott Davis: Is that price, Matt, is that pretty much already out in the system? Or is that still to be…

Matthew McGrew: No. No, it’s out. Yes, it’s already out there. If we need to if we need to — we can go for more as we’ve done here, Scott, and you saw that as we built through the year this year.

Scott Davis: And can you guys remind us what are the remaining steps you need for the EAS separation? Is there any kind of upside to getting that done on the earlier than planned?