Steven Fisher: And what would be the biggest factor in making the third quarter lower — more production.
Oddone Incisa: Regional mix. Third quarter typically we have European plants down. We sell less in Europe. So, it’s mainly a mix and a sales story.
Steven Fisher: Okay. Thank you very much.
Oddone Incisa: All right. Thank you.
Operator: Our next question comes from Kristen Owen of Oppenheimer.
Kristen Owen: Hi. Good morning. Thank you for the question. A lot of puts and takes on the production commentary, so I was wondering if you can sort of consolidate that for us help us understand what the production cadence looks like across say high horsepower, low horsepower, combine and construction for the remainder of the year. And then if you could put that in context of some of the retail execution that you mentioned, how we should think about sort of mix of retail versus wholesale going into the channel? Thank you.
Scott Wine: Yes. Well for North America, we had Grand Island and New Holland our combined plants. And they really ran full for the first half of the year and I suspect they will continue to do so. With racing coming back online and I just couldn’t be more proud of the work that they’re doing there to both improve production and improve quality at the same time that’s encouraging. They also supply our Fargo plant, so that’s given them an opportunity there. So we’ll continue to run basically our North American plants at capacity for the remainder of the year. Brazil, obviously, we’ve taken a little bit of a slowdown to match demand there. But across all of our regions, the Derek Neilson and his team have really got good strong retail execution plans in the second half of the year.
And with the products that we have introduced, we’re very confident in our share positions. So, we think we’ll be able to take advantage of both markets being still solid and better share performance. So we’re encouraged about where we stand heading into the second half.
Kristen Owen: Okay. And just to clarify the mix of retail versus wholesale. I mean you mentioned this focus on retail but just as we’re looking at the order book, has that trended back to normal? Just any color on that?
Scott Wine: The order book is actually — we just started taking orders in June. For cash crop, we’re kind of booked out and we’ll start taking orders for 2024 here shortly. But no, we’ve got six to nine months across the board. So we feel good about how we are standing from an order perspective. But even though there’s an order in place, it takes a retail for dealers really to have spot for a new one. So that’s where we’re putting a lot of our energy right now. I think the team is dialed in on that and we feel good about the performance we had in June, and the ability to continue that throughout the rest of the year.
Kristen Owen: Okay. Thank you very much.
Scott Wine: Thank you.
Operator: Our next question comes from David Raso of Evercore ISI.
David Raso: Thank you very much. First question is on margins. In the first half of the year your margins were up 170 bps. But in the first half your sales were up around 9.5% but your SG&A was up 16%, the back half of the year you’re assuming revenue growth the same around 9.5%, but SG&A down 4%. So just given that notable swing from SG&A, up 16% in the first half to now down 4% in the second half. Can you help us understand a little bit on the margins we’re talking operating margins here. Should we expect a similar margin improvement as we saw in the first half. I know the comps get a little harder but I’m just trying to understand a little more.
