MAAT INDEX

CLAIM #20653 · DHR (DHR) · 2023Q1 earnings call · Apr 25, 2023 · due Mar 31, 2024

And then maybe just to give you some sense of what’s that look like in – once we are done with that kind of in Q4 and as we head into ‘24, Scott, I think Cepheid in 2019 was a 20% to 25% OP business, during the peak of the pandemic here, it probably was north of 45%. And after we get through what we are going to do in the next couple of quarters, like I have said on the capacity reduction side, starting kind of in Q4 and heading into ‘24, they are going to be 35% to 40% margin, right.

Matt McGrew · CFO

PENDING
graded after results covering Mar 31, 2024 are reported

In context

r some of that. And I think what does that look like, it’s talking about closing and consolidating some of the plants that we have got. Some of those were frankly put up quickly in locations that were not ideal for the longer term because we are trying to meet the needs of a pandemic. So, we are going to get after a couple of those sites. We are going to reduce some of the headcount and then we are going to go after indirect and fixed overhead costs as well, reducing shifts, etcetera, etcetera. So, those are the types of things we are going to be going after here. That’s largely going to be in the second quarter and third quarter is when you are going to see the costs sort of roll through. So, you will see that in the margin in those two quarters and then to sort of pop back a little bit. And then maybe just to give you some sense of what’s that look like in – once we are done with that kind of in Q4 and as we head into ‘24, Scott, I think Cepheid in 2019 was a 20% to 25% OP business, during the peak of the pandemic here, it probably was north of 45%. And after we get through what we are going to do in the next couple of quarters, like I have said on the capacity reduction side, starting kind of in Q4 and heading into ‘24, they are going to be 35% to 40% margin, right. So, meaningfully up from where we were given the volumes that we have now, it’s a much bigger business, but not quite at the peak pandemic where I was getting a lot of volume leverage, but that gives you a sense of what we are going after, what we are trying to do and where we end up on the other side. Scott Davis: That’s super helpful, Matt. Can you guys just remind us what – where is your – the size of their installed base in Cepheid today versus pre-COVID, I know I have – I am sure having the note somewhere, but to just make a little easier on...? Matt McGrew: Yes. 2x, Scott, we are about 50,000 today. Started probably like 2019. Scott Davis: Alright. Perfect. I will pass it on. Thank you, guys. Good luck this year. Matt McGrew: Yes. Rainer Blair: Thanks Scott. Operator: We will take o

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SEC filings for DHR · Claim quote is verbatim from the 2023Q1 earnings call.