Max Mitchell: Okay.
Richard Maue: Yes. So the major elements are going to be our price cost discipline, without question, is going to be a major factor there. Launching new products that have higher margin than predecessor products, in particular, in areas that are higher growing end markets for us. So a combination of just the pure margin profile of those products plus the associated mix in those areas that carries that margin profile. We also, you might recall, we executed on a repositioning initiative several years ago or a few years ago, and those benefits also reading through. So — and then just to reiterate, when you think about things moving forward, we should continue to see that margin expansion associated with the higher-end growth markets that we’re pursuing. Again, with that new product development and with continued disciplined pricing. But to answer your question, historically, those would have been the components.
Max Mitchell: As we think about moving forward, Nathan, it’s as opposed to just flat out margin improvement, it’s accelerating growth. And that’s where this team is focusing here and leveraging on that growth in that 35% range as we have historically, while we continue to deploy capital and grow inorganically as well. So that’s going to be our key strategic focus as we move forward. The team is energized like never before. I mean the teams across Crane are having so much fun right now, not without some of the supply chain challenges and so forth, we’ve mentioned before. But just the excitement that we have post separation, the new product development, where we’re positioned, we’re just having a lot of fun, and I’m so proud of our teams globally.
Nathan Jones: Thanks very much.
Max Mitchell: Thanks Nathan.
Operator: Our next question comes from the line of Jeffrey Sprague with Vertical Research Partners. Please proceed with your question.
Jeffrey Sprague: Hey good morning everyone.
Max Mitchell: Good morning.
Jeffrey Sprague: Just a quick one for me, and I apologize, I’m bouncing between a couple of calls this morning. I know you touched on the China demand, which is interesting. We’ve heard that to — people are thinking, reshoring is a U.S. thing. But for China, it seems to be happening in petrochemicals. We’ve heard that from others. But I’m just wondering if you could elaborate a little bit more on what you’re seeing in China. And then maybe just more broadly, and again, I apologize if you did cover it in detail. But if you just think about the other key verticals in PFT, kind of the visibility on CapEx and other trends as we progress through the year, anything starting to percolate there that you can shed a little more light on?
Max Mitchell: End markets…
Richard Maue: Yes. I’ll hit maybe Jeff, the broader market comments and maybe just touch on China a little bit as well. But where most of the slowing that we’re seeing clearly is in European chemical. I think that’s consistent with what we’ve said in the past, project delays and pushouts still are recurring in both North America and China, although they’ve held up better than expected. So that while there are pushouts, we are seeing some wins. Strength is — largely related to on our side right now, pharmaceuticals, some in Asia and China, in terms of chemical projects related to localization. China remains, as you know, a net importer of chemicals, but trying to accelerate localization and so forth. MRO in process, again, like I mentioned in my prepared remarks, remains pretty weak. It’s worsening modestly, and I would say, with Europe being the worst of that.
Max Mitchell: Well specifically on China, I wouldn’t call anything out. But for us, it’s not a major shift or trend. I would say that China generally is a little stronger. I would say that our localization efforts are playing out as we anticipated. No major shift to trend, just kind of general solid growth for us in China, but nothing to call out for us, from a Crane standpoint.
Jeffrey Sprague: [Indiscernible]
Richard Maue: Yes, thanks.
Operator: Thank you. We have reached the end of our question-and-answer session. I would now like to turn the floor back over to Max Mitchell for any closing remarks.
Max Mitchell: Super. Thank you. Wow, what a fantastic year in 2023, executing on our strategic separation and driving core execution on growth across Crane, while delivering on shareholder value. Another great quarter and an exciting outlook for 2024. As I complete my 20th year with Crane and year 10 as CEO, I am incredibly proud of the portfolio transformation. Our entire team has driven over decades, higher growth, higher returns and more predictable. And now that we are past the separation, we are energized in delivering continued acceleration of organic growth and further margin expansion, complemented by capital deployment on value-creating acquisitions. As the late, great Charlie Munger said, our experience tends to confirm a long-held notion that being prepared, on a few occasions in a lifetime, to act promptly in scale, in doing some simple and logical thing, will often dramatically improve the financial results of that lifetime.
We will continue to execute simply and logically as we move forward and as we continue to scale with our consistent focus on driving shareholder returns. Thank you all for your interest in Crane and your time and attention this morning. Have a great day.
Operator: Thank you. This does conclude today’s teleconference. You may disconnect your lines at this time. Thank you for your participation, and enjoy the rest of your day.
