Mettler-Toledo International Inc (MTD) 2023 Q2 法說會逐字稿

Good afternoon, and welcome to the Mettler-Toledo Second Quarter 2023 Earnings Conference Call. My name is Briana, and I will be your conference operator today. Please note that this call is being recorded. (Operator Instructions) I will now turn the call over to Adam Uhlman, Head of Investor Relations. Please go ahead.

下午好，歡迎參加梅特勒-托利多 2023 年第二季度收益電話會議。我叫 Briana，今天我將擔任你們的會議操作員。請注意，此通話正在錄音。 （操作員指示）我現在將電話轉給投資者關係主管 Adam Uhlman。請繼續。

Thanks, Briana, and good evening, everyone. Thanks for joining us. On the call with me today is Patrick Kaltenbach, our Chief Executive Officer; and Shawn Vadala, our Chief Financial Officer. Let me cover some administrative matters. This call is being webcast and available for replay on our website at mt.com. A copy of the press release and the presentation that we will refer to today is available on our website.

謝謝，布萊恩娜，大家晚上好。感謝您加入我們。今天與我通話的是我們的首席執行官帕特里克·卡爾滕巴赫 (Patrick Kaltenbach)；以及我們的首席財務官肖恩·瓦達拉 (Shawn Vadala)。讓我談談一些行政事務。該電話會議正在進行網絡直播，並可在我們的網站 mt.com 上重播。我們今天將參考的新聞稿和演示文稿的副本可在我們的網站上找到。

This call will also include forward-looking statements within the meaning of the U.S. Securities Act of 1933 and the U.S. Securities Exchange Act of 1934. These statements involve risks, uncertainties and other factors that may cause our actual results, financial condition, performance and achievements to be materially different from those expressed or implied by any forward-looking statements. For a discussion of these risks and uncertainties, please see our recent annual report on Form 10-K and quarterly and current reports filed with the SEC. The company disclaims any obligation or undertaking to provide any updates or revisions to any forward-looking statements, except as required by law.

本次電話會議還將包括《1933 年美國證券法》和《1934 年美國證券交易法》含義內的前瞻性陳述。這些陳述涉及可能導致我們的實際結果、財務狀況、業績和成就的風險、不確定性和其他因素與任何前瞻性陳述中明示或暗示的內容存在重大差異。有關這些風險和不確定性的討論，請參閱我們最近的 10-K 表格年度報告以及向 SEC 提交的季度和當前報告。除法律要求外，該公司不承擔任何對任何前瞻性陳述進行更新或修訂的義務或承諾。

On today's call, we may use non-GAAP financial measures. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measure is provided in the 8-K and is available on our website. Let me now turn the call over to Patrick.

在今天的電話會議上，我們可能會使用非公認會計準則財務指標。 8-K 中提供了這些非 GAAP 財務指標與最直接可比的 GAAP 指標的調節表，並且可以在我們的網站上找到。現在讓我把電話轉給帕特里克。

Thanks, Adam, and good evening, everyone. We appreciate you joining our call today. Tonight, we reported our second quarter financial results, the details of which are outlined for you on Page 3 of our presentation. Our sales growth in the second quarter included strong growth in our service business as well as solid performance across our industrial product categories, which was offset in part by softer market conditions in laboratory in China.

謝謝亞當，大家晚上好。我們感謝您今天加入我們的電話會議。今晚，我們報告了第二季度的財務業績，我們的演示文稿第 3 頁為您概述了詳細信息。我們第二季度的銷售增長包括服務業務的強勁增長以及工業產品類別的穩健表現，這在一定程度上被中國實驗室市場狀況疲軟所抵消。

Focused execution of our margin expansion and cost control initiatives resulted in good growth in adjusted EPS despite currency being much greater-than-expected headwind this quarter. As we look to the remainder of 2023, there is increased uncertainty in the global economy and our end markets. In addition, market demand in China has deteriorated. While we have reduced our growth expectations for 2023 due to weaker market conditions, we remain confident in the factors we can control, including execution on our best-in-class sales and marketing programs and our margin expansion and cost saving initiatives.

儘管本季度貨幣阻力遠大於預期，但我們重點執行利潤擴張和成本控制舉措，導致調整後每股收益實現良好增長。展望 2023 年剩餘時間，全球經濟和終端市場的不確定性將增加。此外，中國市場需求也有所惡化。儘管由於市場狀況疲軟，我們降低了 2023 年的增長預期，但我們對我們可以控制的因素仍然充滿信心，包括執行我們一流的銷售和營銷計劃以及我們的利潤擴張和成本節約計劃。

Our team remains very agile in adapting to changing market conditions, and I'm confident that our efforts will deliver solid results this year. Let me now turn the call over to Shawn to cover the financial results and our guidance, and I will then come back with some additional commentary on the business and our outlook. Shawn?

我們的團隊在適應不斷變化的市場條件方面仍然非常敏捷，我相信我們的努力今年將取得紮實的成果。現在讓我將電話轉給肖恩，介紹財務業績和我們的指導，然後我將對業務和我們的前景發表一些補充評論。肖恩？

Thanks, Patrick, and good evening, everyone. Sales in the quarter were $982.1 million, which represented an increase in local currency of 2%. On a U.S. dollar basis, sales were flat as currency reduced sales growth by 2%. On Slide #4, we show sales growth by region.

謝謝帕特里克，大家晚上好。該季度銷售額為 9.821 億美元，按當地貨幣計算增長了 2%。以美元計算，銷售額持平，因為匯率使銷售額增長下降了 2%。在幻燈片 #4 上，我們顯示了按地區劃分的銷售增長情況。

Local currency sales increased 4% in Asia/rest of the world; 1% in the Americas and were flat in Europe. Local currency sales increased 3% in China in the quarter. On Slide #5, we show sales growth by region for the first half of the year. Local currency sales grew 4% for the first 6 months with 3% growth in both the Americas and Europe and 6% growth in Asia Rest of the world.

亞洲/世界其他地區以當地貨幣計算的銷售額增長了 4%；美洲為 1%，歐洲持平。本季度中國的按當地貨幣計算的銷售額增長了 3%。在幻燈片 #5 上，我們顯示了今年上半年按地區劃分的銷售增長情況。前 6 個月以當地貨幣計算的銷售額增長了 4%，其中美洲和歐洲增長了 3%，亞洲和世界其他地區增長了 6%。

Local currency sales increased 6% in China on a year-to-date basis. On Slide #6, we summarize local currency sales growth by product area. For the quarter, Laboratory sales decreased 3% and industrial increased 6% with core industrial up 6% and product inspection up 5%. Food retail grew 17% in the quarter as we benefited from significant project activity.

今年迄今，中國的當地貨幣銷售額增長了 6%。在幻燈片 #6 上，我們按產品領域總結了以當地貨幣計算的銷售額增長情況。本季度，實驗室銷售額下降 3%，工業銷售額增長 6%，其中核心工業銷售額增長 6%，產品檢驗銷售額增長 5%。由於我們受益於重大項目活動，食品零售在本季度增長了 17%。

The next slide shows local currency sales growth by product area for the first half. Laboratory sales increased 1% and Industrial increased 6%, including 6% growth across both core industrial and product inspection. Food retail increased 25%. Let me now move to the rest of the P&L, which is summarized on Slide #8. Gross margin was 59.4%, an increase of 100 basis points as pricing was partially offset by higher cost, business mix and currency. R&D amounted to $47.2 million in the quarter, which is a 6% increase in local currency over the prior period, reflecting increased project activity.

下一張幻燈片顯示了上半年按產品領域按當地貨幣計算的銷售額增長情況。實驗室銷售額增長 1%，工業銷售額增長 6%，其中核心工業銷售額和產品檢驗銷售額均增長 6%。食品零售增長25%。現在讓我談談損益表的其餘部分，幻燈片#8 對此進行了總結。毛利率為 59.4%，增長了 100 個基點，因為定價被較高的成本、業務組合和貨幣所部分抵消。本季度研發總額為 4720 萬美元，按當地貨幣計算較上一期增長 6%，反映出項目活動的增加。

SG&A amounted to $228.6 million, a 6% decrease in local currency over the prior year and includes lower variable compensation and benefits from our cost savings initiatives. Adjusted operating profit amounted to $307.7 million in the quarter, an 8% increase. Currency reduced operating profit growth by approximately 4%. Adjusted operating margin was 31.3%, which represents an increase of 210 basis points over the prior year. A couple of final comments on the P&L. Amortization amounted to $18 million in the quarter, interest expense was $19.3 million and other income amounted to $1 million. Our effective tax rate was 19% in the quarter, above our previously guided range of 18.5% for the full year.

SG&A 達 2.286 億美元，以當地貨幣計算比上一年減少 6%，其中包括較低的可變薪酬和我們的成本節約計劃帶來的好處。本季度調整後營業利潤達 3.077 億美元，增長 8%。貨幣導致營業利潤增長約 4%。調整後營業利潤率為31.3%，比上年增加210個基點。關於損益表的一些最終評論。本季度攤銷額為 1800 萬美元，利息支出為 1930 萬美元，其他收入為 100 萬美元。本季度我們的有效稅率為 19%，高於我們之前全年 18.5% 的指導範圍。

This rate is before discrete items and adjusting for the timing of stock option exercises in the quarter. We now expect our tax rate to be 19% for the full year. Fully diluted shares amounted to $22.1 million, which is approximately a 3% decline from the prior year. Adjusted EPS for the quarter was $10.19, a 9% increase over the prior year or a 13% increase excluding unfavorable foreign currency.

該比率未計入離散項目，並根據本季度股票期權行使的時間進行調整。我們現在預計全年稅率為 19%。完全稀釋後的股票總額為 2,210 萬美元，比上年下降約 3%。該季度調整後每股收益為 10.19 美元，比上年同期增長 9%，排除不利的外匯因素，增長 13%。

On a reported basis in the quarter, EPS was $9.69 as compared to $9.29 in the prior year. Reported EPS in the quarter includes $0.23 of purchased intangible amortization and $0.29 of restructuring costs. We also had a $0.02 benefit from tax items. The next slide illustrates our year-to-date results. Local currency sales grew 4% for the 6-month period, adjusted operating income increased 9% or 14% excluding unfavorable foreign currency and our operating margin expanded 190 basis points.

根據本季度報告，每股收益為 9.69 美元，而去年同期為 9.29 美元。本季度報告的每股收益包括 0.23 美元的無形資產攤銷和 0.29 美元的重組成本。我們還從稅收項目中獲得了 0.02 美元的福利。下一張幻燈片展示了我們今年迄今為止的業績。以本幣計算的銷售額在 6 個月內增長了 4%，調整後的營業收入增長了 9% 或 14%（排除不利的外幣因素），我們的營業利潤率擴大了 190 個基點。

Adjusted EPS grew 9% on a year-to-date basis or 15%, excluding unfavorable currency. That covers the P&L and let me comment on cash flow. In the quarter, adjusted free cash flow amounted to $260.5 million, up $52 million, helped by favorable working capital. Year-to-date cash flow per share grew 44%. DSO was 35 days, while ITO was 3.7x. Let me now turn to guidance. As we look to the remainder of the year, there's increased caution across our customer base such as pharma and biopharma, chemical companies and food manufacturing. And there's also greater uncertainty regarding the global economic conditions.

調整後每股收益較年初至今增長 9%，即 15%（不包括不利貨幣）。這涵蓋了損益表，讓我評論一下現金流。在有利的營運資本的幫助下，本季度調整後的自由現金流達到 2.605 億美元，增加了 5200 萬美元。年初至今每股現金流增長 44%。 DSO 為 35 天，而 ITO 為 3.7 倍。現在讓我談談指導。展望今年剩餘時間，製藥和生物製藥、化工公司和食品製造等客戶群變得更加謹慎。全球經濟狀況也存在更大的不確定性。

In particular, conditions in China have deteriorated sharply as there is growing uncertainty around the pace of economic growth and limited government stimulus. This is particularly true with our pharma and biopharma customers who are delaying investment decisions in China but also in the Americas and Europe. In Europe, the outlook remains uncertain in light of the ongoing war in Ukraine and soft general economic growth. Global manufacturing PMIs have also continued to trend lower and have been below the 50 growth, no growth index level for many months.

特別是，由於經濟增長速度的不確定性越來越大以及政府刺激措施有限，中國的情況急劇惡化。對於我們的製藥和生物製藥客戶來說尤其如此，他們推遲了在中國以及美洲和歐洲的投資決策。在歐洲，鑑於烏克蘭持續的戰爭和總體經濟增長疲軟，前景仍然不確定。全球製造業PMI也持續走低，已連續多月低於50增長、無增長指數水平。

Now turning to our guidance. We expect local currency sales to be down 3% to 4% in the third quarter with a mid-single-digit decline in laboratory. This reflects deteriorating conditions in China as mentioned earlier, with particularly soft demand from pharma and biopharma customers. We also expect modest sales declines across our industrial businesses in the third quarter. We are implementing actions to reduce our costs in response to the softer sales environment and manage productivity while maintaining various growth investments that are important for the future.

現在轉向我們的指導。我們預計第三季度以當地貨幣計算的銷售額將下降 3% 至 4%，實驗室下降幅度為中個位數。這反映了前面提到的中國形勢不斷惡化，製藥和生物製藥客戶的需求尤其疲軟。我們還預計第三季度我們工業業務的銷售額將小幅下降。我們正在採取行動降低成本，以應對疲軟的銷售環境，並管理生產力，同時維持對未來重要的各種增長投資。

We estimate our operating margin will increase in the 70 to 100 basis point range for 2023 based upon our disciplined approach to margin expansion, productivity and cost savings initiatives. We expect third quarter adjusted EPS to be in the range of $9.55 to $9.85, representing a decline of 3% to 6%. This includes foreign exchange headwind to EPS of approximately 3%.

基於我們在利潤擴張、生產力和成本節約舉措方面採取的嚴格方法，我們預計 2023 年我們的營業利潤率將增長 70 至 100 個基點。我們預計第三季度調整後每股收益將在 9.55 美元至 9.85 美元之間，下降 3% 至 6%。其中包括外匯對每股收益約 3% 的不利因素。

Now turning to the full year 2023. Our local currency sales growth guide is now 0% to 1%, reflecting the factors mentioned earlier. This is down from our previous guidance of approximately 5% local currency sales growth. We now expect full year adjusted EPS to be in the range of $40.30 to $41.20, representing a growth rate of about 2% to 4% or approximately 5% to 7%, excluding unfavorable foreign currency.

現在轉向 2023 年全年。我們的本幣銷售增長指導現在為 0% 至 1%，反映了前面提到的因素。這低於我們之前約 5% 的本幣銷售增長指引。我們目前預計全年調整後每股收益將在 40.30 美元至 41.20 美元之間，增長率約為 2% 至 4%，或約 5% 至 7%（不包括不利的外匯）。

This compares to our previous guidance of adjusted EPS in the range of $43.65 to $43.95. There are 3 factors to our revised adjusted earnings per share outlook. First, the reduced local currency sales growth forecast for the year compared to our previous guidance, partially offset by our cost reduction efforts. Our reduced outlook largely reflects a lower laboratory sales forecast of a decline of low single digits, down from our previous mid-single-digit outlook. Additionally, we now see pronounced weakness in our business in China, where we now expect our total business to decline mid-single digits for the year compared to our prior forecast of high single-digit growth.

相比之下，我們之前調整後每股收益的指導範圍為 43.65 美元至 43.95 美元。我們修訂後的調整後每股收益前景有 3 個因素。首先，與我們之前的指導相比，今年的本幣銷售增長預測有所降低，但部分被我們削減成本的努力所抵消。我們下調的預期主要反映了實驗室銷售預測的下降，即低個位數的下降，低於我們之前中個位數的預期。此外，我們現在看到我們在中國的業務明顯疲軟，與我們之前預測的高個位數增長相比，我們現在預計今年的總業務將下降中個位數。

Secondly, foreign exchange, as mentioned earlier, is now expected to be a 3% to 4% headwind to EPS growth this year compared to 2% the last time we spoke, largely due to the weakening of the Chinese renminbi and the strengthening of the Swiss franc versus the euro. Relative to the impact on sales, currency is expected to be a 1% headwind to sales growth for the full year and roughly neutral in the third quarter. And third, we would now expect a higher tax rate of 19% in 2023 compared to our prior guidance of 18.5%. Some final details on guidance as you update your models.

其次，正如前面提到的，目前預計外匯將對今年每股收益增長構成 3% 至 4% 的阻力，而我們上次講話時為 2%，這主要是由於人民幣貶值和美元走強。瑞士法郎兌歐元。相對於對銷售的影響，匯率預計將對全年銷售增長產生 1% 的阻力，而第三季度的銷售增長則大致呈中性。第三，我們現在預計 2023 年的稅率將高於我們之前指導的 18.5%，達到 19%。有關更新模型時的指導的一些最終詳細信息。

Total amortization, including purchase intangible amortization is forecast to be $72 million. Purchased intangible amortization is excluded from adjusted EPS and is estimated at $26 million on a pretax basis or $0.93 per share. Interest expense is forecast at $78 million for the year. We now expect free cash flow of approximately $850 million compared to our previous estimate of approximately $900 million, and we'll also reduce our share repurchase program by a similar amount. That's it from my side, and I'll now turn it back to Patrick.

包括購買無形攤銷在內的攤銷總額預計為 7200 萬美元。購買的無形攤銷不包括在調整後每股收益中，稅前估計為 2600 萬美元，即每股 0.93 美元。今年利息支出預計為 7800 萬美元。我們現在預計自由現金流約為 8.5 億美元，而之前的估計約為 9 億美元，並且我們還將減少類似金額的股票回購計劃。這就是我的觀點，現在我將其轉回給帕特里克。

Thanks, Shawn. Let me start with some comments on our operating businesses, starting with Lab, where sales were softer than we had expected for the quarter. While we continue to see robust demand on hot segments like lithium-ion batteries, our pharma and biopharma customers have become increasingly cautious with their spending and have delayed investment decisions, particularly in China. As expected, our pipette sales were again weak in the second quarter as customers reduced inventories of chips and instrument sales declined.

謝謝，肖恩。讓我首先對我們的運營業務進行一些評論，首先是實驗室，該季度的銷售額低於我們的預期。儘管我們繼續看到鋰離子電池等熱門領域的強勁需求，但我們的製藥和生物製藥客戶對其支出變得越來越謹慎，並推遲了投資決策，特別是在中國。正如預期的那樣，由於客戶減少芯片庫存以及儀器銷售下降，我們的移液器銷售在第二季度再次疲軟。

The impact of the lower pipette sales was in line with our previous expectations and we continue to expect this headwind to ease in the second half of the year as comparisons become easier. As mentioned, we also see customers, especially in our key market segments such as pharma and biopharma delaying purchases. However, our pipeline and customer quoting activity has remained strong, and we were pleased to see continued strong service growth across our lab business in the second quarter.

移液器銷量下降的影響符合我們之前的預期，我們繼續預計隨著比較變得更加容易，這種不利因素將在今年下半年緩解。如前所述，我們還看到客戶，特別是製藥和生物製藥等關鍵細分市場的客戶推遲購買。然而，我們的管道和客戶報價活動仍然強勁，我們很高興看到第二季度整個實驗室業務的服務持續強勁增長。

We are hopeful conditions normalize soon but we have not built this into our 2023 guidance. Turning now to our Industrial business. We again saw strong demand for our automation solutions from our core industrial portfolio this quarter. While we expect to continue to benefit from customer investments in automation and localization of supply chains globally, we are not immune to the increased uncertainty around the global economic outlook.

我們希望情況很快恢復正常，但我們尚未將其納入 2023 年指導中。現在轉向我們的工業業務。本季度我們再次看到我們的核心工業產品組合對自動化解決方案的強勁需求。雖然我們預計將繼續受益於客戶對全球供應鏈自動化和本地化的投資，但我們也無法免受全球經濟前景不確定性增加的影響。

Regarding product inspection, it also had good performance this quarter, but our packaged food customers have also become more cautious about making investments in new equipment due to inflation and uncertain economic conditions, and we would expect softer results for the remainder of the year. Finally, Food Retail delivered strong growth this quarter due to robust project activity in the Americas. Our food retail sales can be lumpy, and we would expect strong growth again in the third quarter.

在產品檢驗方面，本季度也有良好的表現，但由於通貨膨脹和不確定的經濟狀況，我們的包裝食品客戶對新設備的投資也變得更加謹慎，我們預計今年剩餘時間的業績將更加疲軟。最後，由於美洲項目活動強勁，食品零售本季度實現了強勁增長。我們的食品零售額可能不穩定，我們預計第三季度將再次強勁增長。

One final comment on the business. Service sales remained very strong overall and grew 13% in the quarter. We continue to be very pleased with the growth in this important and profitable part of our business. Now let me make some additional comments by geography. Sales in Europe were flat in the quarter with growth in core industrial and product inspection, offset by declines in laboratory products.

對這項業務的最後評論。服務銷售整體仍然非常強勁，本季度增長了 13%。我們對這一重要且盈利的業務部分的增長仍然感到非常滿意。現在讓我按地理位置補充一些評論。本季度歐洲銷售額持平，核心工業和產品檢驗增長，但被實驗室產品下降所抵消。

In the Americas, we saw good growth across our industrial and retail businesses offset by declines in our laboratory product offering, especially pipette. Finally, Asia and the Rest of the World had another quarter of good growth. China grew 3% with good growth in industrial, but sentiment, particularly in Laboratory has become much more cautious as activity has slowed following the COVID reopening, and there has been limited economic stimulus as mentioned before.

在美洲，我們的工業和零售業務取得了良好的增長，但被實驗室產品（尤其是移液器）的下降所抵消。最後，亞洲和世界其他地區又一個季度實現了良好增長。中國經濟增長了 3%，工業增長良好，但由於新冠疫情重新開放後經濟活動放緩，市場情緒（尤其是實驗室市場）變得更加謹慎，而且如前所述，經濟刺激措施有限。

As of today, we expect a significant decline in sales in China in the second half of the year, but our team in China will remain agile to capitalize on growth opportunities (inaudible) market conditions unfold. Now I would like to share with you some updated thoughts about our strategic priorities and how we are investing to drive growth over the long term. While market conditions have become increasingly challenged over the past year, we have remained at very high level of incremental investment to support the long-term growth of the organization and market share gains.

截至今天，我們預計下半年中國的銷售額將大幅下降，但我們在中國的團隊將保持敏捷，以利用市場狀況出現的增長機會（聽不清）。現在，我想與您分享一些關於我們的戰略重點以及我們如何投資以推動長期增長的最新想法。儘管過去一年市場狀況變得越來越困難，但我們仍保持非常高的增量投資水平，以支持組織的長期增長和市場份額的增長。

The hallmark of our culture is the agility and focused execution, and our team continues to respond very well to unexpected changes in the environment to gain market share, expand profitability and make additional important growth investments for the future. Starting with our sales and marketing programs, we have developed increasingly sophisticated digital approaches with our spinning up program that more efficiently feeds our pipeline with new leads, including high potential (inaudible) with a special focus on customers that we do not do business with today.

我們文化的標誌是敏捷性和專注的執行力，我們的團隊繼續對環境中的意外變化做出很好的反應，以獲得市場份額，擴大盈利能力，並為未來進行額外的重要增長投資。從我們的銷售和營銷計劃開始，我們通過旋轉計劃開發了越來越複雜的數字方法，該計劃更有效地為我們的管道提供新的潛在客戶，包括高潛力（聽不清）的潛在客戶，特別關注我們今天不與之開展業務的客戶。

(inaudible) have been an important area of investment in sort of new customer leads as we look to increase potential customer interactions in a very efficient format. We can directly show how our solutions address common customer pain points in very specific end-use applications. We have had strong participation in our webinars, which positions us (inaudible) subject meter experts in specific applications but also provides a good sales pipeline as customers seek unique solutions to challenging or new applications.

（聽不清）一直是新客戶線索投資的一個重要領域，因為我們希望以非常有效的形式增加潛在的客戶互動。我們可以直接展示我們的解決方案如何解決非常具體的最終用途應用中的常見客戶痛點。我們積極參與網絡研討會，這使我們（聽不清）主題儀表專家成為特定應用領域的專家，同時也為客戶尋求針對具有挑戰性或新應用的獨特解決方案提供了良好的銷售渠道。

This is particularly true in hot segments like lithium ion batteries, sustainable materials and the semiconductor industry. Our data-centric approach in nurturing and qualifying these leads allows field sales team to prioritize their efforts on hyper potential business opportunities and increase our win rates. We have also continued to invest very strongly in research and development over the past year to maintain and improve our technology leadership and support our growth potential.

在鋰離子電池、可持續材料和半導體行業等熱門領域尤其如此。我們以數據為中心的方法來培養和鑑定這些潛在客戶，使現場銷售團隊能夠優先考慮超級潛在的商機，並提高我們的獲勝率。過去一年，我們還繼續大力投資研發，以保持和提高我們的技術領先地位並支持我們的增長潛力。

I am very excited about our pipeline of new and recently released products that enhance our customers' productivity but also ensure compliance with regulatory requirements. This has been a topic of increasing importance for our customers as of late and our innovative solutions like LabX, enhanced productivity through workflow automation while ensuring full data integrity and traceability across customer entire workload. Earlier this year, we launched a new thermal analysis instrument that allows customers to increase sample analysis throughput through new automation and software features. This is especially important in hot segments like bonds materials and the battery segment.

我對我們的新產品和最近發布的產品線感到非常興奮，這些產品不僅提高了客戶的生產力，而且還確保符合法規要求。最近，這個話題對我們的客戶來說越來越重要，我們的創新解決方案（例如 LabX）通過工作流程自動化提高了生產力，同時確保客戶整個工作負載的完整數據完整性和可追溯性。今年早些時候，我們推出了一款新型熱分析儀器，使客戶能夠通過新的自動化和軟件功能提高樣品分析通量。這在粘合材料和電池等熱門領域尤其重要。

Additionally, our Process Analytics business recently released a new conductivity sensor that is unmatched in the industry for measuring ultrapure water in the microelectronics industry, helping increasing yields for our semiconductor customers while reducing the amount of very expensive ultra-pure water required for their operations. Lastly, our industrial business had great success with our new line of [hygienic scales] that help customers clean their scales up to 40% faster but also help eliminate contamination risk in regulated environments like food and pharma.

此外，我們的過程分析業務最近發布了一款新型電導率傳感器，該傳感器在測量微電子行業的超純水方面是業內無與倫比的，有助於提高半導體客戶的產量，同時減少其運營所需的非常昂貴的超純水的用量。最後，我們的工業業務憑藉新的[衛生秤]系列取得了巨大成功，可幫助客戶將秤的清潔速度提高 40%，同時還有助於消除食品和製藥等監管環境中的污染風險。

While individual new product launches are not material on their own, given the diversity of our portfolio, they provide a very important compounding element to our growth algorithm, expanding our technology leadership, enhancing our value propositions and helping drive market share gains. Going forward, we have a very exciting pipeline of innovative products that we plan to launch over the coming year that will further extend our leadership position.

雖然個別新產品的推出本身並不重要，但考慮到我們產品組合的多樣性，它們為我們的增長算法提供了非常重要的複合元素，擴大了我們的技術領先地位，增強了我們的價值主張並幫助推動市場份額的增長。展望未來，我們計劃在來年推出一系列非常令人興奮的創新產品，這將進一步擴大我們的領導地位。

Turning now to our margin initiatives. Our pricing and SternDrive drive initiatives have been very effective in supporting our margin expansion this year. As a reminder, SternDrive is focused on improving productivity and driving operational excellence across our manufacturing and back-office operations, with our team executing several hundred projects to reduce material costs and improve productivity. We have excellent opportunities ahead of us. We've enhanced -- with advanced data-driven approaches around value engineering, smart manufacturing and common platform architectures that we expect to launch in the new future -- in the near future.

現在轉向我們的保證金計劃。我們的定價和 SternDrive 驅動舉措非常有效地支持了我們今年的利潤擴張。謹此提醒，SternDrive 專注於提高生產力並推動製造和後台運營的卓越運營，我們的團隊執行了數百個項目，以降低材料成本並提高生產力。我們面前有絕佳的機會。我們已經通過圍繞價值工程、智能製造和通用平台架構的先進數據驅動方法進行了增強，我們預計將在不久的將來推出這些方法。

I hope this provides some context to our updated guidance for the year, but also shows the confidence we have in our ability to continue to execute on our long-term growth initiatives, expand our margins and deliver solid earnings growth this year and beyond. Now that concludes -- that is the conclusion to our prepared remarks. Operator, I'd like to open the line now for questions.

我希望這為我們今年更新的指引提供一些背景，同時也表明我們對繼續執行長期增長計劃、擴大利潤率並在今年及以後實現穩健的盈利增長的能力充滿信心。現在結束了——這就是我們準備好的發言的結論。接線員，我現在想接通電話詢問問題。

(Operator Instructions) Your first question comes from Dan Arias with Stifel.

（操作員說明）您的第一個問題來自 Stifel 的 Dan Arias。

Patrick or Shawn, maybe just to start on China. Growth there was actually a couple of points above the U.S. and Europe in the quarter. Is the deterioration that you're pointing to for the second half showing up in the order book here in early 3Q? Or is it more just sort of reading the writing on the wall when it comes to the big picture direction that things are headed in over there?

帕特里克或肖恩，也許只是從中國開始。該季度的增長實際上比美國和歐洲高出幾個百分點。您所指出的下半年的惡化情況是否在第三季度初的訂單簿中出現了？或者說，當涉及到事情發展的大局方向時，這更像是一種解讀牆上的文字？

Dan, this is Shawn. Maybe I'll start, and I'll let Patrick add some color. But basically, as we were kind of -- largely related to how we're exiting the quarter, but probably even more importantly, how we were starting the third quarter. And as you know, we don't typically carry a lot of backlog in our business.

丹，這是肖恩。也許我會開始，我會讓帕特里克添加一些顏色。但基本上，我們在很大程度上與我們如何結束本季度有關，但可能更重要的是，我們如何開始第三季度。如您所知，我們的業務通常不會有大量積壓。

But certainly, as we kind of started the third quarter, we started to really see a significant deterioration in conditions that we also started to see towards the end of Q2. And as kind of we mentioned before, it's largely in the area of lab. Our lab forecast for China is down very significantly in the third quarter. We're kind of like looking at like literally something that could be in excess of a 20% decrease.

但當然，隨著第三季度的開始，我們開始真正看到情況的顯著惡化，我們在第二季度末也開始看到這一情況。正如我們之前提到的，它主要是在實驗室領域。我們的實驗室對中國第三季度的預測大幅下降。我們有點像字面上看可能會出現超過 20% 的下降。

Now of course, as you know, we've had some extremely strong growth over the last couple of years. If you kind of look at, we grew 20% last year in lab in China and almost 40% in Q3 and the year before that. But we're also seeing a little bit of slowdown in industrial as well. And so overall, we're just kind of seeing a lot of hesitancy in terms of customers placing orders. Not sure how much of it's related to a lack of clarity in terms of like stimulus in the country. I mean there's some very recent talk of additional stimulus.

當然，正如您所知，我們在過去幾年中實現了極其強勁的增長。如果你看一下，去年我們在中國的實驗室增長了 20%，第三季度和前年增長了近 40%。但我們也看到工業也略有放緩。總的來說，我們看到客戶在下訂單方面有很多猶豫。不確定其中有多少與該國類似刺激措施缺乏明確性有關。我的意思是最近有一些關於額外刺激措施的討論。

But that's something that we have not built into our guidance for Q3 or for the rest of the year and kind of just sitting here looking at this very sudden decrease, and as we've said many times in the past, things in China can change very quickly. We feel like we're observing something that's a very negative quick pivot going in the wrong direction and with the fact that it's kind of just starting to happen so significantly, we don't feel like we're in a position to necessarily try to build anything in necessarily for the fourth quarter at this time. So we're kind of building in also a negative outlook for Q4.

但這是我們沒有納入第三季度或今年剩餘時間的指導中的內容，只是坐在這裡看著這種突然的下降，正如我們過去多次說過的那樣，中國的情況可能會發生變化非常快。我們覺得我們正在觀察到一些非常負面的快速轉向錯誤方向的事情，而且事實上它才剛剛開始如此顯著地發生，我們不覺得我們有必要嘗試這樣做此時，必須為第四季度做好任何準備。因此，我們對第四季度的前景也持負面看法。

Okay. Okay. Just to finish that thought. Did you give a forecast for the year for China, if you did, I missed it.

好的。好的。只是為了結束這個想法。你對中國今年的情況做了預測嗎？如果有的話，我錯過了。

So down mid-single digits for the full year. And then for Q3, down mid-teens. And then so if you kind of think -- step back and you look at that full year guidance of down mid-single digit, I mean that's a very significant difference than what we're looking at last quarter when we provided guidance. We're looking at high single digit for the full year. And if you just kind of like do the quick math on that, that's kind of, I think, more than half of our decrease in our guidance is related specifically to China.

因此全年下降了中個位數。然後第三季度，下降到十幾歲左右。然後，如果你想一想，退後一步，看看全年指導下降了中個位數，我的意思是，這與我們上季度提供指導時看到的情況有非常顯著的差異。我們預計全年將達到高個位數。如果你想快速計算一下這一點，我認為，我們指導值下降的一半以上與中國有關。

Yes. Okay. Okay. And then just maybe just moving to lab and the destocking activity that you have going on in the pipette business. How much of what you're looking at? Are you attributing to that? Does it feel like that's tracking relative to your expectations last quarter? I mean do you still think you can kind of normalize in the second half of the year? Or is there a better way to think about it just that it takes the remainder of the year to sort of wash that out of the system?

是的。好的。好的。然後也許只是轉移到實驗室，並進行移液器業務中正在進行的去庫存活動。你在看的內容有多少？你歸因於此嗎？感覺這與您上季度的預期相符嗎？我的意思是，您仍然認為下半年可以恢復正常嗎？或者是否有更好的方式來思考這個問題，只是需要在今年剩下的時間裡才能將其從系統中清除掉？

Yes. That one is playing out pretty similar to what we expected. It was about a 2.5% headwind in Q1. I think we were saying that we expected something to be about a 2% headwind in the second quarter. That's exactly what it was. So our 2% growth would have stayed -- in other words, our 2% growth would have been 4% if it wasn't for the decrease in pipette. And then our lab business would have been plus 1% growth instead of a minus 3% decline if it wasn't for the decrease in pipette. So that's playing out very similar to what we thought.

是的。這個結果與我們的預期非常相似。第一季度的逆風約為 2.5%。我認為我們是在說我們預計第二季度將出現約 2% 的逆風。事實就是如此。因此，我們 2% 的增長將保持不變——換句話說，如果沒有移液器的減少，我們 2% 的增長將是 4%。如果沒有移液器的減少，我們的實驗室業務將會增長 1%，而不是下降 3%。所以這與我們的想法非常相似。

For the second half of the year, we're not expecting much of a headwind, maybe very little in Q3. I mean pipettes could still be down low to mid-single digit, especially in China, it's going to be down significantly because of what they're lapping with testing. But I'd say, overall, it's playing out pretty similar to what we thought how we thought it would.

對於今年下半年，我們預計不會有太大的阻力，第三季度可能會很少。我的意思是，移液器的價格仍然可能會下降到中個位數，特別是在中國，由於他們的測試結果，它會大幅下降。但我想說，總的來說，它的表現與我們的想法非常相似。

Your next question comes from Jack Meehan with Nephron Research.

您的下一個問題來自 Nephron Research 的 Jack Meehan。

I had one more follow-up on China. I was just curious like what feedback you've heard from the region about what might have driven this kind of rapid deterioration? Is it your sense this is just demand related? Or is there any sense maybe there's been an uptick in local competition at all?

我對中國還有一項後續行動。我只是很好奇，您從該地區聽到了哪些關於可能導致這種迅速惡化的反饋？您認為這只是與需求相關嗎？或者說本地競爭是否有所加劇？

Yes, Jack, this is Patrick speaking. Let me take this. And since Shawn already commented the first part of the question about China, look, the change is, I think, mainly driven really by the lack of stimulus when after COVID reopening, beginning of the year, there was really strong momentum in China, a lot of expectation on growth, and the government would drive it with additional stimulus. That really didn't happen.

是的，傑克，我是帕特里克。讓我拿著這個。由於肖恩已經評論了有關中國的問題的第一部分，我認為這種變化主要是由於缺乏刺激造成的，在今年年初新冠病毒重新開放之後，中國的勢頭確實強勁，人們對經濟增長抱有很大的期望，政府將通過額外的刺激措施來推動經濟增長。那真的沒有發生。

And I think it also now led to the fact that a lot of customers really become much more reluctant and waiting for the government to make a decision about the stimulus, so they are clear of how much they can spend and where they can spend the money. We have not seen any significant change in competition locally in China. That's one what we are hearing from the team. The team is really confident in our product portfolio. We have a very experienced sales team and a great product portfolio that helps us to compete efficiently in China.

我認為現在這也導致了這樣一個事實：很多客戶確實變得更加不願意，等待政府對刺激計劃做出決定，所以他們清楚自己可以花多少錢以及可以把錢花在哪裡。我們沒有看到中國本土的競爭發生任何重大變化。這是我們從團隊那裡聽到的。該團隊對我們的產品組合非常有信心。我們擁有經驗豐富的銷售團隊和出色的產品組合，幫助我們在中國有效競爭。

So it's really about the missing momentum and, I would say, the missing confidence in the economy that really leads to the fact that a lot of customers holding back investments and are waiting for the certainty about what's to come. And that's the major slowdown that we are facing now. And it's also the fast drop off that we have seen that we also didn't expect sales team definitely didn't expect as we're going into Q2, but towards the end of the Q, that really became a big momentum and now early in Q3, we don't see that changing, and that's why we're also careful with the outlook Shawn mentioned. We see China minus double-digit in the third quarter, and we don't really count on that improving in Q4 as well.

因此，這實際上是由於缺乏動力，我想說的是，對經濟信心的缺失，真正導致了許多客戶推遲投資並等待未來的確定性。這就是我們現在面臨的主要放緩。我們也看到了快速下降，我們也沒有預料到銷售團隊絕對沒有預料到，因為我們即將進入第二季度，但在第二季度末，這確實成為了一個巨大的動力，現在還早在第三季度，我們沒有看到這種情況發生變化，這就是為什麼我們對肖恩提到的前景也持謹慎態度。我們預計中國第三季度的經濟增長率將下降兩位數，而且我們並不真正指望第四季度的情況會有所改善。

Got it. And then just in terms of some of the actions that you're taking to mitigate this pressure. Is it possible to quantify just the magnitude of the cost savings that are going to hit in the second half of the year and just where that's going to show up kind of across the income statement.

知道了。然後就您為減輕這種壓力而採取的一些行動而言。是否有可能量化下半年將實現的成本節省的規模以及在損益表中體現的程度。

Yes, sure. So maybe the best way to look at it, Jack, is that we're kind of looking at our overall cost structure to be flattish for the full year. So if you kind of like think about that in terms of the second half of the year, probably down low single digit in the second half of the year. And if we -- if you try to think about that, how it looks on the P&L, SG&A will be lower than the other lines.

是的，當然。因此，傑克，也許最好的看待方式是，我們認為全年的整體成本結構將持平。因此，如果你想從今年下半年的角度考慮，下半年可能會下降低個位數。如果我們——如果你試著考慮一下，它在損益表、SG&A 上的表現將低於其他行。

Of course, part of our costs are also above gross profit, which you don't necessarily have broken out separately. But I think as we look at the -- at our program, we are focused on productivity and other discretionary spending. But I think it's also important to emphasize too. We're still continuing very much to grow and invest in -- I mean, invest in the business for growth. I mean if you look at our R&D, as an example, it's still up 7% year-to-date.

當然，我們的一部分成本也高於毛利潤，這個你不一定單獨列出來。但我認為，當我們審視我們的計劃時，我們關注的是生產力和其他可自由支配的支出。但我認為強調也很重要。我們仍在繼續大力發展和投資——我的意思是，投資業務以實現增長。我的意思是，以我們的研發為例，今年迄今仍增長了 7%。

We still expect to see growth in R&D for the second half of the year. But then kind of just stepping back from everything too. I think we feel pretty -- like it's the right balance where we can still provide really good operating margin expansion on a full year basis in the 70 to 100 basis point kind of a range. And that's despite some unfavorable currency.

我們仍然預計下半年研發將出現增長。但隨後也從一切事情中退一步。我認為我們感覺很好——就像這是一個正確的平衡，我們仍然可以在全年的基礎上在 70 到 100 個基點的範圍內提供非常好的營業利潤率擴張。儘管存在一些不利的貨幣，但情況仍然如此。

Your next question comes from Derik De Bruin with Bank of America.

您的下一個問題來自美國銀行的 Derik De Bruin。

So a couple of ones. So I was surprised to hear your pharma biotech comments on things being down so much. And the reason why I say that is, I mean, we certainly have heard that purchases over $100,000 are getting held up. So your items are often well below that. What's going on there? I mean, is it just a complete freeze? Or are you just getting a lot of pushback on pricing? I ask the pricing question, what are your expectations now for the price in your guide?

所以有幾個。因此，我很驚訝地聽到你們對製藥生物技術公司對事情下降如此之多的評論。我這麼說的原因是，我們當然聽說過 10 萬美元以上的購買被擱置。所以你的物品通常遠低於這個值。那裡發生了什麼事？我的意思是，這只是完全凍結嗎？或者您只是在定價方面遇到了很多阻力？我問定價問題，您現在對指南中的價格有何期望？

Yes, I'll start with it, Derik and then I'll let Shawn chime in as well. Look, we're not seeing a complete freeze. It's not like total pharma business is frozen for us. Of course, we see a decline. And as we said, we see delays in orders. It's not -- and you're right. I mean our products are in lower CapEx or low CapEx spending. But that said, we see a slowdown in orders in pharma and biopharma, and it's pretty broad based, but it's not a complete going off the cliff, so to speak. But it's a significant decline that we're seeing and slowdown that we are seeing.

是的，我會開始，德里克，然後我也會讓肖恩插話。看，我們並沒有看到完全凍結。我們的整個製藥業務並沒有被凍結。當然，我們看到了下降。正如我們所說，我們看到訂單出現延誤。事實並非如此——你是對的。我的意思是我們的產品資本支出較低或資本支出較低。但話雖如此，我們看到製藥和生物製藥領域的訂單放緩，而且範圍相當廣泛，但可以這麼說，這並不是完全脫離懸崖。但我們看到的是顯著的下降和放緩。

And for us, of course, the question is as (inaudible), how long will this take? And why is that happening? What we hear from our sales team is, well, we have a lot of quoting activity, actually, what we're seeing what I'm happy, really happy to see is that we have a strong sales team engagement. We have sales teams out there with customers, they're talking about their plans, we get good leads actually up year-to-date.

當然，對我們來說，問題是（聽不清）這需要多長時間？為什麼會發生這種情況？我們從銷售團隊那裡聽到的是，我們有很多報價活動，實際上，我們所看到的讓我很高興、非常高興的是我們有強大的銷售團隊參與度。我們有銷售團隊與客戶在一起，他們正在談論他們的計劃，我們實際上在今年迄今為止獲得了良好的線索。

So we see good momentum on the lease generation side, but they're not turning into orders as quickly as they used to do. Now how long this will continue. They'll definitely also depend on when more certainty is coming back to the economy. I mean that's what we're hearing from our sales team. I'm pleased with the quoting activity. I'm wondering that on a daily basis. I see how our sales team is interacting with customers and now often they are out there with customers, discussing projects and investments. But the time to turn these opportunities into orders have definitely increased, and that's part of the slowdown we're seeing in orders.

因此，我們看到租賃發電方面的良好勢頭，但它們轉化為訂單的速度不如以前那麼快。現在這種情況還要持續多久。他們肯定還取決於經濟何時恢復更多確定性。我的意思是，這就是我們從銷售團隊那裡聽到的。我對報價活動感到滿意。我每天都在想這個問題。我看到我們的銷售團隊如何與客戶互動，現在他們經常與客戶一起討論項目和投資。但將這些機會轉化為訂單的時間肯定增加了，這是我們看到的訂單放緩的一部分。

In terms of the other part of your question, Derik, pricing actually was very good in the quarter. For the total group, it was actually up 6%, which was a little bit better than what we had expected. And as we kind of like look at the second half of the year that's for the total company. And as we kind of look for the second half of the year, it's probably going to be a little bit better than what we were initially expecting as well to probably up by about 4%, which would kind of put us in the 5% kind of a range on a full year basis.

至於你問題的另一部分，德里克，本季度的定價實際上非常好。對於整個群體來說，實際上增長了 6%，這比我們的預期要好一些。正如我們所關注的那樣，下半年是整個公司的情況。當我們展望今年下半年時，它可能會比我們最初預期的要好一點，也可能會增長約 4%，這會讓我們處於 5% 的水平全年範圍內的。

And what we've kind of continue to observe is that we feel like our value proposition has really resonated and increased over the last few years. As the market like looks for opportunities in terms of productivity and digitalization, it really plays to the strength of our portfolio. And I think our teams do an excellent job in terms of articulating that value proposition to the customer base.

我們繼續觀察到的是，我們覺得我們的價值主張在過去幾年中確實引起了共鳴並有所增加。隨著市場在生產力和數字化方面尋找機會，它確實發揮了我們產品組合的優勢。我認為我們的團隊在向客戶群闡明價值主張方面做得非常出色。

And as you kind of mentioned or implied with your question, our price points also tend to be pretty low as you know too. And so that value proposition really resonates and it's easy to justify from a customer perspective. So we feel good about the pricing program and how we think about it for the second half of the year.

正如您在問題中提到或暗示的那樣，您也知道，我們的價格點也往往相當低。因此，這種價值主張確實能引起共鳴，並且很容易從客戶的角度證明其合理性。因此，我們對定價計劃以及我們對下半年的看法感到滿意。

Got it. Just as a follow-up. You're taking guidance down by about 4.5%. It looks like about 2.5% of that is China. So can you quantify what else is that? And just like what's pharma, what's industrial, what's you're just not having good feelings about that you just want to be conservative on.

知道了。只是作為後續。您將指導值下調了約 4.5%。看起來其中大約2.5%是中國。那麼你能量化那還是什麼嗎？就像什麼是製藥業、什麼是工業業、什麼是你只是沒有好感而只想保守的東西。

And when you say -- when you ask that question, are you asking to break down the China piece or the rest of it...

當你說——當你問這個問題時，你是要求分解中國部分還是其餘部分......

The rest of the piece. We know the China piece. It's the rest of the piece that I just want, what else is baked into that remainder that's not the China cut.

其餘部分。我們知道中國的部分。我只想要剩下的部分，除中國剪輯之外的其他內容。

Yes, yes. So hey, I think we do see moderation in the Americas as well as Europe. So for the Americas, we're now looking at more flattish growth. For the full year, our prior guide was like more like low to mid-single digit.

是的是的。所以嘿，我認為我們確實在美洲和歐洲看到了溫和。因此，對於美洲，我們現在看到的增長更加平緩。對於全年而言，我們之前的指導更像是低至中個位數。

What we're kind of seeing there is just it's more concern with our core end markets. One of the things that is happening at the moment is we have our 3 largest core end markets are under pressure pharma, biopharma, food manufacturing and chemical. And in the U.S., food manufacturing and others. We talked a little bit about pharma, but food manufacturing is also an area, especially in our product inspection business, where we see -- we came off a good quarter, but we also see some pressure for the second half of the year as these customers are under a lot of pressure.

我們看到的是，人們更加關注我們的核心終端市場。目前發生的事情之一是我們的三大核心終端市場正面臨壓力，即製藥、生物製藥、食品製造和化學品。在美國，還有食品製造等。我們談了一些關於製藥的話題，但食品製造也是一個領域，特別是在我們的產品檢驗業務中，我們看到——我們的季度表現不錯，但我們也看到下半年面臨一些壓力，因為這些客戶承受著很大的壓力。

If you look at Europe, we're probably modestly a little bit lower than what we were before, at least at the lower end of what we were guiding. We're thinking more like low single digit for the full year. Previously, we were in the low to mid-single digit. The one thing -- we've actually been very impressed at how well the European numbers have held up this year, but we also acknowledge that PMIs have been down very low there.

如果你看看歐洲，我們可能會比以前稍微低一些，至少處於我們指導的低端。我們的想法更像是全年的低個位數。此前，我們的業績處於低至中個位數。有一件事——我們實際上對今年歐洲數據的表現印象深刻，但我們也承認那裡的 PMI 已經下降到非常低的水平。

They've decreased recently, and it's been a prolonged period, and of course, there's a lot of uncertainty in the region, and of course, our end markets there are also under pressure. And if we think about Europe, like a good example is in addition, again, to give you an example other than pharma, biopharmas, the chemical industries under a lot of pressure. I mean if you just look at the number of chemical companies that have reduced their forecast for the year, just recently, double digits, there's a lot of concern there in terms of that customer base, particularly when it comes to Europe.

最近下降了，而且是很長一段時間了，當然這個地區有很多不確定性，當然我們那裡的終端市場也有壓力。如果我們考慮歐洲，一個很好的例子就是另外一個例子，除了製藥、生物製藥和化學工業之外，它們都承受著很大的壓力。我的意思是，如果你看看最近將今年預測下調了兩位數的化工公司數量，就會發現客戶群方面存在很多擔憂，特別是在歐洲。

So that maybe gives you more of a geographic overview. If we kind of break it down by business area. Maybe I'll just kind of do the walk-throughs so everybody kind of has that too. And of course, there's some overlap here because China is influencing some of these numbers, but I'm just going to kind of go through it. So we have -- we're looking at lab down mid-single digit in the third quarter and down low single digit for the full year. We're looking at core industrial down, low-single digit and up low single digit for the full year. And similarly, products inspection down low-single digit for Q3, up low single digit for the full year. And then our retail business is actually doing quite well, very good project activity. We continue to see that -- expect that in the second half. We expect that to be up high teens in the quarter for Q3 and also for the full year.

這樣也許可以讓您對地理有更多的了解。如果我們按業務領域來細分。也許我會做一些演練，這樣每個人也都有這樣的經歷。當然，這裡有一些重疊，因為中國正在影響其中一些數字，但我只是簡單介紹一下。因此，我們預計第三季度實驗室將下降中個位數，全年將下降低個位數。我們預計全年核心工業將出現下降、低個位數和低個位數增長。同樣，第三季度的產品檢驗下降了低個位數，全年則上升了低個位數。我們的零售業務實際上做得很好，項目活動非常好。我們繼續看到這一點——預計下半年會出現這種情況。我們預計第三季度以及全年的這一數字將上升到兩位數。

Great. Thanks, Shawn. That was really detailed. Appreciate it.

偉大的。謝謝，肖恩。那真的很詳細。欣賞它。

Your next question comes from Patrick Donnelly with Citigroup.

您的下一個問題來自花旗集團的帕特里克唐納利。

Patrick, I guess when you kind of look at these various headwinds you've called out and you kind of assessed them, you talked a little bit, I think, in the prior question about trying to figure out what could linger into '24. I guess when you kind of step back, which do you see being more temporary or transitory versus issues where you look and you're kind of doing these cost controls that you look out and say, maybe this could linger into '24. If you can just kind of bracket it up for us and try to help frame that view would be helpful.

帕特里克，我想當你看到你所指出的這些不同的逆風並對其進行評估時，我想你在之前的問題中談到了一些關於試圖弄清楚什麼可能會持續到 24 年的問題。我想當你退後一步時，你認為哪些問題與你所看到的問題相比是更暫時的或短暫的，並且你正在做這些成本控制，你會觀察並說，也許這可能會持續到 24 年。如果您能為我們將其括起來並嘗試幫助構建該視圖，將會有所幫助。

Sure, absolutely. Look, I mean, of course, it's too early to make a forecast for 2024. Right now, we will do this in our next earnings call when we report our Q3 and look at Q4. But to say what is transitory right now. I mean we have -- I would say the easier thing to capture for us is what we have seen on the pipette side. The destocking of pipette. We anticipate that it is normalizing again, the consumption of pipette probably to pre-COVID levels in the second half. We see that uptick happening slowly but steadily.

當然，絕對。我的意思是，現在對 2024 年做出預測還為時過早。現在，我們將在下一次財報電話會議上報告第三季度並展望第四季度時進行此預測。但現在要說的是暫時的。我的意思是我們有——我想說對我們來說更容易捕獲的是我們在移液器一側看到的東西。移液器的去庫存。我們預計，移液器的消耗量將再次正常化，下半年可能恢復到新冠疫情前的水平。我們看到這種上升緩慢但穩定地發生。

That is normalizing. When it comes to the rest of the industry, it's, of course, very hard to predict to say how is the economy continuing to evolve from here? How long will pharma and biopharma be under pressure and also will the rest of the economy, the John also outlined, the chemical industry suffer from this economic downturn that we are seeing. (inaudible) PMIs are under pressure. It just leads us to right now, we look at the second half and say -- this is probably a good forecast for us, given the information we have.

這就是正常化。當談到該行業的其他部分時，當然很難預測經濟將如何繼續發展？約翰還概述道，製藥和生物製藥以及其他經濟領域將面臨多久的壓力，化學工業將遭受我們所看到的經濟衰退的影響。 （聽不清）PMI 面臨壓力。它只是引導我們現在，我們看看下半年並說 - 考慮到我們所掌握的信息，這對我們來說可能是一個很好的預測。

It's of course a significant downturn. But will it -- when it will turn, will it be early 2024, mid-2024, I think that's too early to call. You may call there, frankly. I mean we have pockets where we see really still very good momentum as we count on that. They continue to grow. If we take what we call the hot segments like the battery segment, for example, is performing extremely well, driving good growth almost across all of our businesses. We've emphasized on some of the lab businesses like analytical is performing well.

這當然是一次嚴重的衰退。但它會——什麼時候會發生轉變，會是2024年初、2024年中期嗎？我認為現在下結論還為時過早。坦白說，你可以打電話到那裡。我的意思是，當我們指望這一點時，我們仍然看到了非常好的勢頭。他們繼續成長。例如，我們所說的熱門細分市場，如電池細分市場，表現非常出色，幾乎推動了我們所有業務的良好增長。我們強調了一些實驗室業務（例如分析業務）的表現良好。

We still see pockets of good momentum in industrial automation. And we also see increasing interest, as I highlighted in the beginning of the earnings call. Also in the semiconductor business, we have been successful in some of our (inaudible) business when it comes to (inaudible) et cetera, sensors. So there are pockets of still good growth that we capture, and we're really going hard on for this. We have the right tools that we see these pockets of growth and drive our sales (inaudible) the direction. But how long the broader economy will under pressure, I think none of us here on the call can really tell you how long it will take. We're looking at the second half and forecast for the second half. And then once we get to Q4, we'll give you a guidance on 2024. But right now, it's too early to be honest.

我們仍然看到工業自動化領域的一些良好勢頭。正如我在財報電話會議開始時強調的那樣，我們也看到人們的興趣不斷增加。同樣在半導體業務中，我們在傳感器（聽不清）等方面的一些（聽不清）業務取得了成功。因此，我們抓住了一些仍然良好的增長機會，並且我們正在為此努力。我們擁有正確的工具，可以看到這些增長點並推動我們的銷售（聽不清）方向。但更廣泛的經濟將承受壓力多久，我認為我們在座的所有人都無法真正告訴你這需要多長時間。我們正在展望下半年並預測下半年。然後，一旦進入第四季度，我們將為您提供 2024 年的指導。但現在說實話還為時過早。

Yes. No, understood. And then, Shawn, I guess maybe a follow-up on that. Just around the margins, you touched on them a little bit. But I guess when you think about the pricing lever, that seems like it's still quite strong for you guys in terms of the boost for margins. again, some of these cost reduction activities. Can you just talk about the moving pieces as we work our way through the second half? And then I guess how nimble you want to be on the cost side going into next year and then pricing, I assume, is still going to be positive as we move forward. You guys always protect the margins pretty well. So just curious how you think about it the moving pieces there would be helpful.

是的。不，明白了。然後，肖恩，我想也許是後續行動。就在邊緣，你稍微觸及了它們。但我想當你考慮定價槓桿時，對於你們來說，就利潤率的提升而言，它似乎仍然相當強大。再次，其中一些降低成本的活動。您能談談我們下半場的活動嗎？然後我猜你希望明年在成本方面保持多麼靈活，然後我認為，隨著我們的前進，定價仍然會是積極的。你們總是很好地保護利潤。所以只是好奇你如何看待它，那裡的移動部分會有所幫助。

Yes, sure. So I mean, hey, I think we still have a really great margin story. I mean I think as I kind of mentioned before, for the full year, we're still expecting to deliver an operating margin expansion in the 70 to 100 basis point range. And frankly, I wouldn't be surprised if we end up closer to the higher end of that range, and that's despite some unfavorable currency.

是的，當然。所以我的意思是，嘿，我認為我們仍然有一個非常好的利潤故事。我的意思是，正如我之前提到的，我們仍預計全年營業利潤率將擴大 70 至 100 個基點。坦率地說，如果我們最終接近該範圍的高端，我不會感到驚訝，儘管存在一些不利的貨幣。

And that probably puts us the operating margin by quarter might be down a little bit in Q3. It might be up a little bit in Q4. But overall, we feel very good about the ability to continue to expand for the full year. And then I think as we kind of go into next year, like Patrick said, it's a little bit early look at that. Of course, we'll probably have some savings from some of the actions that we did this year. There will be some stuff that goes away as well. And as we think about pricing, we still feel great about our value propositions. But it will also depend a little bit on the inflationary environment. And we'll, as you know, we'll provide more thoughts and guidance and insights on all that on our next call in November.

這可能使我們第三季度的營業利潤率可能會略有下降。第四季度可能會略有上升。但總體而言，我們對全年繼續擴張的能力感到非常滿意。然後我認為，正如帕特里克所說，隨著我們進入明年，現在考慮這一點還為時過早。當然，我們可能會從今年採取的一些行動中節省一些費用。有些東西也會消失。當我們考慮定價時，我們仍然對我們的價值主張感到滿意。但這也將在一定程度上取決於通脹環境。如您所知，我們將在 11 月份的下一次電話會議上就所有這些問題提供更多想法、指導和見解。

Your next question comes from Vijay Kumar with Evercore.

您的下一個問題來自 Evercore 的 Vijay Kumar。

I guess my first one on the third quarter guidance, low single-digit declines. You just did 2% in Q2. That's a 500 basis point change. And I think about 300 basis points of the 500 is coming from China. Are you seeing China down in the teens in July? And if the assumption, it's down mid-teens for the rest of the quarter? And where is the remaining 200 basis points softness coming from, perhaps, from an end market perspective?

我想我對第三季度指導的第一個預測是低個位數下降。你在第二季度只做了 2%。這是 500 個基點的變化。我認為 500 個基點中約有 300 個基點來自中國。您認為七月份中國經濟會下滑嗎？如果假設的話，本季度剩下的時間裡它會下降十多歲左右？從終端市場的角度來看，剩下的 200 個基點的疲軟可能來自哪裡？

Yes. Maybe I'll take that one, Vijay. So I mean, we don't typically -- as you know, we typically don't go into too much detail on individual months, but absolutely, we -- I kind of alluded to it before. What we experienced and as we've seen July kind of start certainly heavily influenced how we're looking at the quarter and the rest of the year for China.

是的。也許我會選擇那個，維杰。所以我的意思是，我們通常不會——如你所知，我們通常不會對個別月份進行太多細節，但絕對，我們——我之前曾提到過。我們所經歷的以及我們所看到的 7 月份的開始無疑極大地影響了我們對本季度和今年剩餘時間中國的看法。

And so yes, very much we're looking at down mid-teens and then especially weighted in our laboratory business. If you look at our laboratory business, as I mentioned before, we're lapping some pretty big comparisons there, but we're expecting the lab business to be down even more significantly there. If we kind of like look at the rest of the portfolio, it's kind of similar to how I answered Derik, I'd say, on the full year results. I mean we're looking at low single-digit growth in the Americas. There, it's very much the same topic about core end markets.

所以，是的，我們非常關註十幾歲以下的人，然後在我們的實驗室業務中特別重視。如果你看看我們的實驗室業務，正如我之前提到的，我們在那裡進行了一些相當大的比較，但我們預計那裡的實驗室業務會出現更顯著的下降。如果我們想看看投資組合的其餘部分，這有點類似於我回答德里克的全年業績。我的意思是，我們正在關注美洲的低個位數增長。在那裡，關於核心終端市場的話題非常相似。

It's this delay in pharma that Patrick talked about. Of course, we also, within that, we talked about pipettes, but of course, we also have a smaller exposure within single-use bioprocessing that we talked about last quarter, like with PendoTECH as well? And then similar to the prior answer, I mean, we're also looking at a decline in product inspection in the Americas in the third quarter as well with the pressure that we're seeing from food manufacturing companies. And then Europe, we're still expecting Europe to be more low single digit in the third quarter, but acknowledging that we have different uncertainties that we talked about before.

帕特里克談到的正是製藥業的延遲。當然，我們也在其中討論了移液器，但當然，我們在上個季度討論過的一次性生物加工領域也有較小的接觸，就像 PendoTECH 一樣？與之前的答案類似，我的意思是，我們還看到第三季度美洲產品檢驗量的下降，以及我們看到的來自食品製造公司的壓力。然後是歐洲，我們仍然預計歐洲第三季度的經濟增長率將更低個位數，但我們承認我們面臨著之前討論過的不同不確定性。

If we kind of like look at the business in terms of overall by business, for the third quarter, we're looking -- well, actually, I already mentioned it, so I don't need to mention it again. But in terms of the different areas, I mean, lab being down more so than the other areas in terms of the guidance for Q3.

如果我們想從整體上按業務來看待第三季度的業務，那麼我們正在尋找 - 嗯，實際上，我已經提到過這一點，所以我不需要再次提及。但就不同領域而言，我的意思是，在第三季度的指導方面，實驗室比其他領域下降得更多。

Understood. And then one maybe on the stimulus that you mentioned. What specifically have you heard about from (inaudible) stimulus? And if there is a stimulus, how long does it take for it to flow through to customers placing orders in purchasing? And on the cost actions here, what is the pacing of cost actions? Is -- what kind of benefits are you expecting? It looks like, I mean, EPS is down more than revenue, maybe perhaps not much benefit in 3Q, but what's the magnitude of the cost actions -- the benefit from cost actions you've taken in Q4?

明白了。然後可能是你提到的刺激措施。您從（聽不清）刺激中具體聽到了什麼？如果有刺激，需要多長時間才能流向下單採購的客戶？關於這裡的成本行動，成本行動的節奏是怎樣的？您期望得到什麼樣的好處？我的意思是，每股收益的下降幅度超過了收入的下降幅度，也許第三季度的收益並沒有多大，但是成本行動的規模有多大——您在第四季度採取的成本行動的收益是多少？

Yes. So a lot there. So the first thing you were talking about was the stimulus. So in terms of the stimulus, like we don't have any -- probably more insights than anybody else. I mean there were some comments coming out of the government, I think, in the last week with an intention to stimulate. I don't think any specific details have been provided. So it's hard to kind of comment on that at this point in time.

是的。那裡有很多。所以你談到的第一件事就是刺激。因此，就刺激措施而言，我們沒有任何——可能比其他人有更多的見解。我的意思是，我認為上周政府發表了一些旨在刺激經濟的評論。我認為沒有提供任何具體細節。因此，目前很難對此發表評論。

And so I think we'll have to see how that plays out and how long that takes to really how directly that affects our end markets and how long it takes to get into the economy. But like I said, right now, we haven't built anything in for our forecast for the second half of the year. So we'll kind of see how it plays out. In terms of EPS, I mean, we do have unfavorable EPS in -- I mean, I'm sorry, foreign currency. We do have unfavorable foreign currency that's been hurting us throughout this year.

因此，我認為我們必須看看這將如何發揮作用，以及這需要多長時間才能真正影響我們的終端市場，以及需要多長時間才能進入經濟。但正如我所說，目前我們還沒有對下半年的預測做出任何預測。所以我們會看看結果如何。就每股收益而言，我的意思是，我們確實有不利的每股收益——我的意思是，對不起，外幣。今年以來，不利的外幣確實一直在傷害我們。

And as we kind of mentioned in the opening remarks, it's also kind of impacted us much more significantly than our last time we provided guidance. So I think we were initially looking at a 2% headwind last quarter. And now we're looking at something more in the 3% to 4% range. And I think if we go back to our original guidance for the year, I don't think we were expecting very much headwind at all from foreign currency. So that's certainly something that's affecting us.

正如我們在開場白中提到的那樣，它對我們的影響也比我們上次提供指導時要大得多。所以我認為上個季度我們最初預計會出現 2% 的逆風。現在我們正在研究 3% 到 4% 範圍內的更多內容。我認為，如果我們回到今年最初的指導，我認為我們根本不會預期外匯會帶來太大的阻力。所以這肯定會影響我們。

So I think it's important to kind of also consider that as you kind of look at the EPS growth for the second half of the year. So if you kind of like look at Q3, if you exclude foreign currency will be anywhere from at the high end of our guidance flattish and to the lower end of our guidance, minus 3%. And then for the full year, we would be growing 5% to 7% in a year where sales are much more modest than the 0% to 1%.

因此，我認為在查看下半年的每股收益增長時，考慮這一點也很重要。因此，如果你想看看第三季度，如果排除外幣，我們的指導值的高端將持平，而我們的指導值的下端將下降-3%。然後，對於全年而言，我們將在銷售額比 0% 到 1% 溫和得多的一年中實現 5% 到 7% 的增長。

So we feel like we still feel good about that in terms of the ability to still expand margins during the course of this year and then at the same time being able to continue to invest in the business, which we've talked about, which is important to us to protect the medium and longer term as well, too. But otherwise, no other specific comments, I would say, in terms of details.

因此，我們覺得我們仍然對此感到滿意，因為我們有能力在今年繼續擴大利潤率，同時能夠繼續投資於我們已經討論過的業務。保護中長期利益對我們也很重要。但除此之外，我想說，就細節而言，沒有其他具體評論。

Your next question comes from Matt Sykes with Goldman Sachs.

您的下一個問題來自高盛的馬特賽克斯。

Maybe for my first one, Patrick, you spent a lot of time and focus on the services portion of the business and you called out some pretty strong growth this quarter for that segment. Could you maybe talk about what your assumptions are for the full year for services growth? And just maybe help us understand a little bit better about the customer dynamic and caution as it relates to services, assuming it's a little more defensive. I would just maybe talk about how you expect that business to perform in this type of environment.

也許對於我的第一個，帕特里克，您花了很多時間並專注於業務的服務部分，並且您指出本季度該細分市場出現了相當強勁的增長。您能否談談您對全年服務業增長的假設是什麼？也許可以幫助我們更好地了解與服務相關的客戶動態和謹慎性，假設它更具防禦性。我可能只是想談談您期望該業務在這種環境中表現如何。

Yes, very good question. And hey, I couldn't be more pleased with the performance of our service business. As you probably recall, we grew 14% in the first quarter. It grew 13% now in the second quarter. So outstanding performance of the service team. And actually, that's also a business just to reminder to everybody on the call is where we still over hiring people. So we're adding more service technicians to our team because we see good business momentum there. We see good demand for our customers.

是的，非常好的問題。嘿，我對我們服務業務的表現感到非常滿意。您可能還記得，我們​​第一季度增長了 14%。第二季度增長了 13%。服務團隊表現如此出色。實際上，這也是一項業務，只是為了提醒每個參加電話會議的人，我們仍然過度僱用人員。因此，我們正在向我們的團隊添加更多的服務技術人員，因為我們看到那裡的業務勢頭良好。我們看到客戶的需求良好。

We use the opportunity over the last year or 2 (inaudible) service offering in our portfolio. We increased the emphasis on service sales at the point of sales, making sure that we sell more service contracts. We restructured the quoting process that services are obviously included in the quoting. We trained the service team more efficiently and the sales team more on selling services. So I think that all really now pays out in the growth we're seeing in services. And we're looking at the full year also more strong outlook here. I think for the full year, we're forecasting high-single digits, at least in terms of service growth. Shawn, I may correct on this one?

我們利用了我們投資組合中過去一年或 2 個（聽不清）服務產品的機會。我們在銷售點更加重視服務銷售，確保銷售更多的服務合同。我們重組了報價流程，服務顯然包含在報價中。我們對服務團隊進行了更高效的培訓，對銷售團隊進行了更多關於銷售服務的培訓。所以我認為現在所有的努力都真正從我們看到的服務業增長中得到回報。我們期待全年的前景更加強勁。我認為，對於全年而言，我們預計將實現高個位數增長，至少在服務增長方面如此。肖恩，我可以糾正一下這個嗎？

Yes, even high single digit for Q3 and yes, it might even probably might even be high-single digit, might even be low double digit, maybe close to 10%, but yes, high single to 10%, yes.

是的，即使是第三季度的高個位數，是的，它甚至可能是高個位數，甚至可能是低兩位數，可能接近 10%，但是是的，高個位數到 10%，是的。

Good. And again, that's driven by the ongoing momentum. And we see -- at the moment, we see really stronger demand than in the product category, and we don't see a lot of pushback on pricing. And so I would really see continue to see that momentum continuing. Of course, we're also having tougher comparisons as we move between the next couple of quarters as Q3 and Q4 last year also had been already quite strong on service growth. .

好的。再說一遍，這是由持續的勢頭推動的。我們看到，目前，我們看到比產品類別的需求確實更強勁，而且我們沒有看到定價方面出現太多阻力。因此，我真的希望看到這種勢頭繼續下去。當然，隨著我們在接下來的幾個季度之間進行比較，我們也會進行更嚴格的比較，因為去年第三季度和第四季度的服務增長也已經相當強勁。 。

But the underlying momentum is strong. We have an extremely strong service team, and we continue to invest in services that we will continue to build out that team and make sure that we can serve our customers in the best possible way and deliver an outstanding customer experience. That is really what is differentiating us as (inaudible) leader for many of our competitors that compete directly with us in the field is the strength of our service organization.

但潛在的動力是強勁的。我們擁有一支極其強大的服務團隊，我們將繼續投資於服務，我們將繼續建設該團隊，確保我們能夠以盡可能最好的方式為客戶服務，並提供出色的客戶體驗。對於許多在該領域與我們直接競爭的競爭對手來說，這確實是我們作為（聽不清）領導者的區別所在，這就是我們服務組織的實力。

Great. And then just thinking of some other potential offsets just given some of the challenges in the lab business. You talked about sustainable materials, batteries and semis. Can you maybe help us understand sort of the sizing of that business and what kind of you're seeing in terms of growth sort of globally, but maybe also by region. Just so we can kind of better understand what some of the offsets could be over the course of the year?

偉大的。然後考慮到實驗室業務中的一些挑戰，考慮其他一些潛在的抵消措施。您談到了可持續材料、電池和半成品。您能否幫助我們了解該業務的規模以及您在全球（但也可能按地區）方面看到的增長情況。只是為了讓我們更好地了解這一年中可能出現的一些抵消情況？

Yes. Let Shawn break it down in terms of the size. But I mean, this is what we call the hot segments, right? And it's really -- at the moment, strongly driven by lithium battery segments, we see strong -- really good momentum building up in the semiconductor business with the reshoring and (inaudible) of some of the semiconductor plants that is gaining momentum and sustainable materials that are gaining importance.

是的。讓肖恩按大小來分解一下。但我的意思是，這就是我們所說的熱門細分市場，對吧？目前，在鋰電池領域的強勁推動下，我們看到半導體業務正在形成強勁的良好勢頭，隨著一些半導體工廠的回流和（聽不清）正在獲得動力和可持續材料這些正在變得越來越重要。

And that is, again, we call these pockets of growth in itself, they have, of course, not super significant in terms of size, but the growth momentum is important for us to compensate and offset some of the weaknesses that we see in other areas.

也就是說，我們再次將這些增長點本身稱為增長點，當然，它們在規模上並不是非常重要，但增長勢頭對於我們彌補和抵消我們在其他領域看到的一些弱點非常重要。地區。

Yes. In terms of the size, Matt, I don't have a specific number for you, but I mean these are still relatively smaller end markets for us in the kind of low single-digit kind of a range. But from a growth perspective, they certainly help a lot in terms of growth given the higher growth relative to the rest of the portfolio and the longer-term opportunities here.

是的。就規模而言，馬特，我沒有具體的數字，但我的意思是，對於我們來說，這些終端市場仍然相對較小，處於低個位數的範圍內。但從增長的角度來看，鑑於相對於投資組合的其他部分而言更高的增長以及這裡的長期機會，它們肯定對增長有很大幫助。

And what's kind of neat about these hot segments is that we can provide solutions very end to end. A lot of them, it starts in R&D. It goes all the way through development and to manufacturing. And so we benefit in some cases, more so in our analytical instrument business, but we also see benefits through a large portion of our portfolio.

這些熱門領域的巧妙之處在於我們可以提供端到端的解決方案。其中很多都是從研發開始的。它貫穿開發和製造的整個過程。因此，我們在某些​​情況下受益，尤其是在我們的分析儀器業務中，但我們也從我們的產品組合的很大一部分中看到了好處。

Your next question comes from Catherine Schulte with Baird.

您的下一個問題來自貝爾德的凱瑟琳·舒爾特。

I guess, first in China, is the weakness concentrated in any product categories within your lab business? Or is it more broad-based? And are you seeing the consumables and services side of the business holding up better there?

我想，首先在中國，弱點是否集中在你們實驗室業務中的任何產品類別上？或者它的基礎更廣泛？您是否認為該業務的消耗品和服務方面表現更好？

Look, Catherine. I take this, it's really broad-based in the market segment. I can't point to any specific product category. It's pretty broad based and focused on pharma and biopharma. But for the single product category, I would point you that (inaudible).

看，凱瑟琳。我認為，它在細分市場中的基礎非常廣泛。我無法指出任何特定的產品類別。它的基礎相當廣泛，專注於製藥和生物製藥。但對於單一產品類別，我會向您指出（聽不清）。

And specific to consumables, Catherine, consumables are actually down more so because of all the testing that was still going on in China with COVID last year.

具體到消耗品，凱瑟琳，消耗品實際上下降得更多，因為去年中國仍在進行新冠病毒檢測。

Yes. Okay. Got it. And maybe on the packaged food side, you've been talking about caution in that category for several quarters now. At what point do you start lapping some easier comps there? And is there anything to point to in prior inflationary environment as to when you might start seeing improvements there?

是的。好的。知道了。也許在包裝食品方面，幾個季度以來您一直在談論該類別的謹慎態度。你什麼時候開始在那裡進行一些更簡單的比賽？在之前的通脹環境中，有什麼可以指出什麼時候您可能會開始看到改善嗎？

I think we will not face any easier comparison because we have performed pretty well last year in this business, and we are almost confident, but we are confident that we have taken market share as well.

我認為我們不會面臨任何更容易的比較，因為去年我們在這個業務上表現得很好，我們幾乎有信心，但我們也有信心佔據市場份額。

In the Americas, especially, we have been quite strong. And this is also why we see probably in the second half this year tougher compares with a bit of a slowdown in growth. We had pointed more reluctance of investment in Europe in the beginning of the year or end of last year. And we continue to see that going on. And Europe is just not the same investment environment right now in the packaged food industry. A lot of the customers are actually under pressure when it comes to their margins, so they're trying to push out their investments as well. .

尤其是在美洲，我們相當強大。這也是為什麼我們可能會看到今年下半年形勢更加嚴峻，增長略有放緩。我們在年初或去年底曾指出，歐洲投資更加不願意。我們繼續看到這種情況正在發生。目前歐洲包裝食品行業的投資環境並不相同。許多客戶實際上在利潤方面面臨壓力，因此他們也試圖推出投資。 。

(inaudible) recently had a big trade show in (inaudible), and we have seen great interest in our product portfolio. We also launched a set of new products, also midrange products in the x-ray category and others. And that helps us, of course, to also really effectively compete in that segment and drive our future growth. We are actually quite sure that we're taking market share in the segment right now although the growth is not outstanding. I think we are outcompeting our competitors. And it's a business that we, again, invested in over the last 2 years in expanding the portfolio, especially pushing more into the midrange to be there more effectively, but also now launching pretty soon some new higher-end solutions.

（聽不清）最近在（聽不清）舉辦了一場大型貿易展，我們發現人們對我們的產品組合表現出極大的興趣。我們還推出了一系列新產品，還有 X 射線類別的中端產品和其他產品。當然，這有助於我們在該領域真正有效地競爭並推動我們未來的增長。事實上，我們非常確定我們現在正在該領域佔據市場份額，儘管增長並不突出。我認為我們正在超越我們的競爭對手。我們在過去兩年中再次投資了這項業務，以擴大產品組合，特別是向中端市場投入更多資金，以更有效地實現這一目標，但現在也很快推出了一些新的高端解決方案。

Your next question comes from Josh Waldman with Cleveland Research. .

您的下一個問題來自克利夫蘭研究中心的喬什·沃爾德曼。 。

Maybe, Patrick, just to follow up on product inspection. I mean it sounded like it held in the quarter, but seeing signs of softening from CPG, food and pharma seems like it's pulling back. Just curious what level of orders you've seen kind of entering the third quarter and maybe how the guide reflects those maybe softer end markets. It seems like the guide, I mean, only moved down modestly, if I'm correct.

也許，帕特里克，只是為了跟進產品檢驗。我的意思是，聽起來像是本季度的表現，但看到消費品、食品和製藥行業疲軟的跡象，似乎正在回落。只是好奇您看到進入第三季度的訂單水平是什麼，也許該指南如何反映那些可能較疲軟的終端市場。我的意思是，如果我是對的，指南似乎只是適度地向下移動了。

Yes. That's right. The guidance is down modestly. Again, it's mainly in the U.S. where we see also tougher compares, but also the environment (inaudible) are becoming a bit more difficult. And it looks like they are slowing down their investments. Shawn, anything else if we could say in terms of the guidance for PI.

是的。這是正確的。指引小幅下調。同樣，主要是在美國，我們也看到了更艱難的比較，但環境（聽不清）也變得更加困難。看起來他們正在放慢投資速度。 Shawn，關於 PI 的指導，我們還有什麼要說的嗎？

I mean I think also, if we look at Q2, we actually did better than we expected. So maybe Q2 was better, but the second half is a little bit worse. And it's kind of like what Patrick says. If you just kind of like look at -- if we kind of just look at how -- what we're hearing from customers and from the organization, especially in the U.S. but also in Europe going into the quarter, we're just seeing a more negative situation than what we experienced in the second quarter.

我的意思是，我也認為，如果我們看看第二季度，我們實際上做得比我們預期的要好。所以也許第二季度更好，但下半場有點糟糕。這有點像帕特里克所說的。如果你想看看——如果我們只是看看如何——我們從客戶和組織那裡聽到了什麼，特別是在美國，而且在歐洲，進入本季度，我們只是看到比我們在第二季度經歷的情況更加消極。

Got it. And then I guess a follow-up or a question on process analytics. I wonder what you saw in Q2 from a demand perspective or growth perspective and then your assumptions on the second half. I mean we've seen some of the (inaudible) chemical accounts talk on incremental softness. Is this something you're seeing show up in the business? Or do you think that business will hold in more resiliently?

知道了。然後我想是關於流程分析的後續行動或問題。我想知道您從需求角度或增長角度看到了第二季度的情況，以及您對下半年的假設。我的意思是我們已經看到一些（聽不清）化學賬戶談論增量柔軟性。這是您在業務中看到的情況嗎？或者您認為業務會更有彈性嗎？

Yes. I'll start and I'll let Patrick add some color -- additional color if he'd like. But in terms of process analytics, we had very, very modest growth in the quarter, but there were definitely different storylines kind of under the covers. On one hand, we did have a very significant headwind in terms of bioprocessing specific more so to the single-use technologies and downstream bioprocessing. We also see softness in pharma and biopharma or more biopharma, I should say, coming off some very strong comparisons in previous years.

是的。我會開始，我會讓帕特里克添加一些顏色——如果他願意的話，可以添加其他顏色。但就流程分析而言，我們在本季度的增長非常非常溫和，但背後肯定有不同的故事情節。一方面，我們在生物加工方面確實面臨著非常重大的阻力，尤其是一次性技術和下游生物加工。我應該說，我們還看到製藥和生物製藥或更多生物製藥領域的疲軟，與前幾年的一些非常強烈的比較相比。

But then kind of offsetting some of that is also -- have been good growth in some of these hot segments like semiconductors is an important segment for the process analytics business. But nonetheless, we have a more modest expectation here for the second half as well, too, just given more pressure that we talked about in general with pharma and biopharma.

但在某種程度上抵消了其中的一些——半導體等一些熱門領域的良好增長是流程分析業務的重要領域。但儘管如此，我們對下半年的預期也更加溫和，只是考慮到我們在製藥和生物製藥方面普遍談論的更大壓力。

Yes. Shawn, if I might add to yours. Of course, we're seeing some headwinds there in biopharma mainly. And you mentioned also the single-use (inaudible) we have with PendoTECH for the end market segment. But on the other hand, on Ingold reusable sensors, we are not having the same stocking dynamics that we have seen with PendoTECH, but that actually is still a good ongoing (inaudible) business. And I also want to add here and I know we talk a lot about innovation, but we also launched last year a new unbreakable sensor that is now really a great success story for us in the [dairy] business, and we continue to launch it into new market segments. It really is differentiating us from our competitors. So I am very positive about the product portfolio and how it will help us to also gain market share there even in difficult market environments.

是的。肖恩，請讓我補充一下。當然，我們主要在生物製藥領域看到了一些阻力。您還提到了我們與 PendoTECH 合作開發的針對終端市場的一次性產品（聽不清）。但另一方面，在 Ingold 可重複使用傳感器上，我們沒有像 PendoTECH 那樣的庫存動態，但這實際上仍然是一項良好的持續（聽不清）業務。我還想在這裡補充一點，我知道我們談論了很多創新，但我們去年還推出了一種新的牢不可破的傳感器，它現在對我們[乳製品]業務來說確實是一個偉大的成功故事，我們將繼續推出它進入新的細分市場。這確實使我們與競爭對手區分開來。因此，我對產品組合以及它將如何幫助我們即使在困難的市場環境下也獲得市場份額非常樂觀。

Your next question comes from Rachel Vatnsdal with JPMorgan.

您的下一個問題來自摩根大通的 Rachel Vatnsdal。

So I want to follow up on some of those comments around pharma and biopharma customers. Can you just walk us through, are you seeing any difference in buying trends between your large pharma customers and some of those smaller biotechs. And then can you detail us how are those conversations about decision-making on spending difference between the 2? And then as a follow-up, just can you remind us how small is your emerging biotech exposure?

因此，我想跟進一些有關製藥和生物製藥客戶的評論。您能否給我們介紹一下，您是否發現大型製藥客戶和一些小型生物技術公司之間的購買趨勢有什麼不同？那麼您能否詳細介紹一下兩者之間有關支出決策的對話有何差異？作為後續行動，您能否提醒我們您的新興生物技術風險敞口有多大？

So overall, our small biotech exposure is really small. I mean that's not the majority of our customer base. The major customer base for us in pharma and biopharma are larger customers. And to your second part of the question about the decision slowdown? I guess there's not a specific particular reason we could point to. We're just saying what we're seeing is that delay in decision making. What the real root causes of that might be different for different businesses. But I think overall, pharma just has become more cautious with spending. And that affects us across the board of our product portfolio.

因此，總體而言，我們在生物技術方面的投資規模很小。我的意思是這不是我們的大多數客戶群。我們在製藥和生物製藥領域的主要客戶群是大型客戶。關於決策放緩問題的第二部分？我想我們沒有可以指出的具體原因。我們只是說我們看到的是決策的延遲。對於不同的企業來說，真正的根本原因可能有所不同。但我認為總體而言，製藥公司對支出變得更加謹慎。這對我們的產品組合產生了全面的影響。

Great. And then maybe just a follow-up here on pricing. You said that you'll take roughly around 5% pricing this year. You also had above the average pricing contribution last year as well. So how should we think about that pricing translating into 2024? Will you guys go back to your normalized range? Could it go below? What are really the expectations there?

偉大的。然後也許只是定價方面的後續行動。您說過今年您將採取大約 5% 左右的定價。去年您的定價貢獻也高於平均水平。那麼我們應該如何看待 2024 年的定價呢？你們會回到正常範圍嗎？可以往下走嗎？那裡真正的期望是什麼？

Yes. Rachel, I mean, of course, it's early still to provide too many insights in terms of how we're thinking about 2024. But maybe what I would say is that we still feel very good about our value propositions. We still feel very good about our program. We continue to invest heavily in R&D to continue to enhance those value propositions. And depending on the inflationary environment, I would expect us to be probably more in a normalized situation kind of going into next year, but I think we'll kind of have to see how the inflationary environment plays out.

是的。 Rachel，我的意思是，當然，就我們如何看待 2024 年提供太多見解還為時過早。但也許我想說的是，我們仍然對我們的價值主張感覺非常好。我們仍然對我們的計劃感覺非常好。我們繼續大力投資研發，以繼續增強這些價值主張。根據通脹環境，我預計明年我們可能會更多地處於正常化的情況，但我認為我們必須看看通脹環境如何發揮作用。

Your next question comes from Liza Garcia with UBS.

您的下一個問題來自瑞銀集團的麗莎·加西亞。

So I'll try to keep it brief. Just circling back since we're talking about China. I think you called out growth actually on the industrial side of the China business. And I know the focus has been on the biopharma and pharma piece, obviously, you detailed quite a bit there. Can we just talk about your expectations on the other businesses in China for the balance of the year and kind of what you're seeing there and how to think about that? And then I'll have a follow-up really quickly.

所以我會盡量保持簡短。既然我們談論的是中國，那麼我們就回過頭來說一下。我認為您實際上提到了中國業務工業方面的增長。我知道重點是生物製藥和製藥領域，顯然，您在那裡詳細說明了很多內容。我們能否談談您對今年剩餘時間內中國其他業務的期望以及您在那裡看到的情況以及如何看待這一點？然後我會很快跟進。

Yes. Okay. Thanks, Liza. Yes, so I'll take that one. So the growth in the second quarter, I mean, was more mid-single digit for industrial. So we're pleased on that. As you know, we've been kind of lapping some big comparisons in that part of the business as well. As we kind of like look to the second half of the year, though, we're looking at the industrial business to be down probably mid-single digit. We are seeing some decline in that part of the business as well.

是的。好的。謝謝，麗莎。是的，所以我就拿那個。因此，我的意思是，工業第二季度的增長更多是中個位數。所以我們對此感到高興。如您所知，我們也在這部分業務中進行了一些重大比較。不過，正如我們展望今年下半年的那樣，我們預計工業業務可能會下降中個位數。我們也看到這部分業務有所下降。

And I think it's important to remember, like some of these customers are also exposed to a lot of the same end market exposures that we're exposed to in laboratory as well, too. So when we say pharma and biopharma is down, it's also affecting our industrial business also. And so maybe not down as much as what we're seeing pronounced in the lab business, but still down in the second half of the year and probably more flattish on a full year basis.

我認為重要的是要記住，其中一些客戶也面臨著許多與我們在實驗室中面臨的相同的終端市場風險。因此，當我們說製藥和生物製藥業務下滑時，它也影響了我們的工業業務。因此，可能不會像我們在實驗室業務中看到的那樣明顯下降，但下半年仍會下降，而且全年可能會更加平穩。

Great. And yes, I mean you guys were talking about -- obviously, you mentioned SternDrive and that initiative. But I believe there's another wave of (inaudible) supposed to be underway or kind of coming under that should be launched, I believe, in right now. I guess kind of how to think about that and kind of the levers that you have. (inaudible) obviously been great in terms of market share and how to think about what Mettler can deliver over the next couple of quarters with the next wave.

偉大的。是的，我的意思是你們正在談論——顯然，你們提到了 SternDrive 和該倡議。但我相信，另一波（聽不清）應該正在進行中，或者應該在現在就發起。我想是如何思考這個問題以及你擁有的槓桿。 （聽不清）在市場份額以及如何思考梅特勒在接下來的幾個季度中可以通過下一波浪潮提供什麼方面顯然表現出色。

Yes. So in terms of Spinnaker, we continue to innovate in Spinnaker -- Patrick, can you hear?

是的。所以就 Spinnaker 而言，我們繼續在 Spinnaker 中進行創新——Patrick，你聽到了嗎？

Repeat the question, something is wrong.

重複問題，有問題。

Okay. You are live though. Yes. So in terms of -- Liza, can you still hear me?

好的。不過你還活著。是的。那麼，麗莎，你還能聽到我說話嗎？

I hear you great.

我聽說你很棒。

I think Patrick just lost the ability to hear the question. So I'll just kind of answer it. So in terms of Spinnaker, we continue to innovate in terms of Spinnaker. And we are in the process of launching a new wave. We're going to share some of the details on that until we kind of roll it out a little bit further, but something that we're just at the very beginning of doing and kind of very excited about and I think there's some really interesting opportunities for us. Kind of going forward to continue the journey that we have in Spinnaker.

我認為帕特里克只是失去了聽到這個問題的能力。所以我就簡單回答一下吧。所以就 Spinnaker 而言，我們在 Spinnaker 方面不斷創新。我們正在掀起新浪潮。我們將分享一些相關細節，直到我們進一步推出它，但我們才剛剛開始做，並且對此感到非常興奮，我認為有一些非常有趣的事情我們的機會。有點像繼續我們在 Spinnaker 的旅程。

Your next question is from Tim Daley with Wells Fargo.

您的下一個問題來自富國銀行的蒂姆戴利。

So Shawn or Patrick, whoever can answer here. But it's pretty clear the guide discounts, any year-end budget flush in pharma biotech. But again, Patrick, given your experience, (inaudible) Mettler from your prior lives across the life science industry. Or Shawn, yourself, given the historical experience you have at Mettler. Can you guys (inaudible) for us, if you will, potential (inaudible) or factors that would influence the outcome for a potential year-end budget flush if macro conditions stabilize or don't considerably fall off by the end of the year, and that's a potential outcome.

肖恩或帕特里克，誰能在這裡回答。但指導折扣非常明顯，製藥生物技術領域的任何年終預算都會增加。但帕特里克，鑑於您的經驗，（聽不清）梅特勒來自您以前在生命科學行業的生活。或者肖恩本人，考慮到您在梅特勒的歷史經驗。如果你們願意的話，你們（聽不清）能否為我們介紹一下，如果宏觀狀況穩定或到年底不會大幅下降，那麼潛在的（聽不清）或影響年底預算衝刺結果的因素，這是一個潛在的結果。

Tim, this is Shawn. I'll take that one. So hey, of course, we didn't -- it's always difficult to be able to judge exactly what his budget flush and quantify it from year-to-year, especially in our business. We did not build in anything specific for budget flush. And I think just like you said, just kind of implicitly, looking at our guidance, we have a much more cautious view in terms of pharma and biopharma as we kind of exit the year? And if you can just kind of like look at how we're thinking about Q4 in general. It's not quite the same, but it's pretty similar to how we're thinking about the third quarter. So certainly, if pharma and biopharma had a more robust end of year spend, that certainly could be an upside to how we're looking at things.

蒂姆，這是肖恩。我會接受那個。所以，嘿，當然，我們沒有——總是很難準確判斷他的預算並逐年量化，尤其是在我們的業務中。我們沒有建立任何專門用於預算充裕的東西。我認為就像您所說的那樣，從我們的指導來看，我們對製藥和生物製藥的看法更加謹慎，因為我們今年即將退出？如果您可以看看我們對第四季度的總體看法。雖然不太一樣，但與我們對第三季度的看法非常相似。因此，當然，如果製藥和生物製藥的年終支出更加強勁，這肯定會對我們看待事物的方式產生積極影響。

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 -- the 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 paying on us?

好的。知道了。再說一遍，很遺憾在中國這裡已經死了。但就目前而言，鑑於這是投資中相當關鍵的一部分——實驗室內部增長的長期主題，即西方設施的標準化。只是好奇，西方公司是否會因為地緣政治潛在風險而退出？使用梅特勒產品的全球設施格式的整體標準化推動力是否發生了任何變化？或者這仍然只是暫時的東西在為我們帶來回報嗎？

Thank you. I hope you can hear me. I mean we just got to disconnect -- Jeff, Okay. Well, I'll take that question. Look, 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, home shoring, whether they go from China to India, whether they go back to Europe or to 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.

謝謝。我希望你能聽到我的聲音。我的意思是我們必須斷開連接——傑夫，好吧。好吧，我來回答這個問題。看，關於跨國公司撤出中國以及我們在這裡看到的情況，就目前而言，我認為我們還沒有看到重大影響。但我希望大家思考的是，如果跨國公司撤出中國並進行一些回流、本土回流，無論它們從中國到印度，無論它們回到歐洲還是美國，我們也看到了這一點當然，隨著投資的發生，向前邁進是我們捕捉這些投資的潛在機會。

Then we have definitely the right market sensing tools, market sensing solutions in place to capture these opportunities earlier and 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 (inaudible) for stimulus until the companies they really decide on how much budget they have and how much they can invest moving forward.

然後，我們絕對擁有正確的市場感知工具、市場感知解決方案，可以更早地抓住這些機會，並指導我們的銷售團隊和我們的——這些公司正在走向——如果他們打算在美國、在歐洲或其他地方，如果他們將業務撤出中國。但到目前為止，我想說這並不是中國經濟放緩的主要驅動因素。這不是推動它的原因。對我們來說，這實際上是整體情緒，對市場（聽不清）刺激缺乏信心，直到公司真正決定他們有多少預算以及他們可以投資多少。

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.

目前沒有其他問題。至此，我們將結束電話會議。感謝您今天加入我們。您現在可以斷開連接。