James Umpleby: Yes. So price realization was about in line with our expectations. And certainly, as we look at price, the price we realize is a function of a whole variety of things. You mentioned mix, but a lot of it has to do with, of course, the competitive situation that we and our dealers are facing in a particular market. So we saw significant increases in price in the second half of last year, and that will lap in the second half of 2023, but we still expect to benefit from positive price in the second half, but it will moderate and certainly understandable based on that — again, those strong price increases in the second half of last year. And as always, we’ll continue to monitor the global price environment, and we’ll determine if actions need to be taken.
Andrew Bonfield: And just, Kristen, just to add on. Just if you recall last year, price continues to improve from the third to the fourth quarter. So you probably should see the reverse of that this year, which will — price will be slightly stronger than the third versus the fourth.
Kristen Owen: Thank you.
Operator: And your next question comes from the line of Mig Dobre with Baird. Your line is open.
Mircea Dobre: Thank you. Good morning.
James Umpleby: Good morning, Mig.
Mircea Dobre: Good morning. Just a quick clarification based on the way you’re kind of thinking about the dealer inventory destock in the back half. In order to make that happen, do you have to adjust production sequentially in any way? Maybe you can comment on that? And then related to this, your manufacturing cost, the $283 million drag, should we think that this drag lessens in the back half? And could that actually be a positive benefit as we think about the fourth quarter on a year-over-year basis? Thanks.
Andrew Bonfield: Yes. So first of all on this, obviously, production level, as we’ve indicated from beginning of the year, last year, we did see, if you remember, production was rising throughout the whole year as we went through the year as the supply chain started to improve. That, particularly in construction, will be slightly different this year. And that obviously, we will see some headwind as we do see some dealer inventory reduction in the second half. We are already making production adjustments as we move on. That’s part of the business. We do that day in, day out. And those will continue, and there will be some impact in the second half of the year. But overall, we still expect positive revenues through that period of time for Caterpillar as a whole.
Talking about manufacturing costs. Yes, manufacturing costs will decrease, but obviously price benefit will reduce as well. So the net of the two will mean we won’t see quite that margin improvement that we did see as we went through the last four quarters. So yes, we still expect price to offset manufacturing costs in the second half of the year, but they won’t that will reduce so will price as well. So no real benefits to margins as we get through the remainder of the year.
James Umpleby: Just to expand upon the answer, we talked earlier about the fact that there is enough excavator dealer inventory out there. So we certainly would expect to produce less excavators, as an example, in the next six months. And we also mentioned the fact that we’re going to have some changeover regions in some of our BCP products where we’re switching to Cat engines, which is certainly the right thing to do for the long time and growing services. But that will have an impact on production as well during the last six months of the year. But keep in mind that we have said, we now expect to be close to the top of our targeted range for adjusted operating profit margin. So that all goes into the mix.
Mircea Dobre: Thank you.
Operator: And your next question comes from the line of Mike Shlisky with D.A. Davidson. Your line is open.
