Mettler-Toledo International Inc. (NYSE:MTD) Q2 2023 Earnings Call Transcript

Timothy Daley: All right. Got it. And then just again, sorry to beat the dead horse here in China. But just now, given that is a pretty critical piece of the investment — long-term thesis for growth within Lab, the standardization of Western facilities. Just curious, is there a pullback from Western companies because of geopolitical potential risk there? Has there been any change in impetus that whole standardization of one global facility format, which utilize the Mettler productions within it? Or is that still — is just temporary stuff weighing on us?

Patrick Kaltenbach: Thank you. I hope you can hear me. I mean, we just got to disconnect — yeah. Okay. Well, I’ll take that question. Okay. With regard to multinational pulling out of China and what we’re seeing here, right, as for now, I think we don’t see a significant impact yet. But the way I want you to think about it is if multinationals pull out of China and do some reshoring, homeshoring, whether they go from China to India, they go back to Europe or the U.S., we also see this, of course, moving forward as potential opportunity for us to capture these investments as the investments are happening. Then, we have definitely the right market sensing tools market sensing solutions in place to capture these opportunities earlier then guide our sales team and our — to these companies as they are going — if they are going to reinvest either in the U.S., in Europe or somewhere else if they’re putting businesses out of China.

But as of now, I would say that this is not the major driver for the slowdown in China. That’s not what is driving it. For us, it’s really the overall sentiment, the lack of confidence in the market and the wait mode for stimulus until the companies they really decide on how much budget they have and how much they can invest moving forward.

Timothy Daley: Got it. Thank you. Appreciate it.

End of Q&A:

Operator: There are no further questions at this time. With that, we will end the conference call. Thank you for joining us today. You may now disconnect.