Aaron Saak: Yes. No, I think that’s right, Max. I mean when you look at this business, Nathan, in the last few years, we haven’t really done a lot of M&A since 2019, effectively. And as we’re looking at what’s in our funnel, our pipeline where we can add value, we see a rich set of opportunities that are adjacencies to the core, help diversify the business. We think we can go in and add a lot of value, and that’s what we’re going to be talking about in the — at the Investor Day of how we diversify. So that really is strategy one, and we want to go after that invest in the core, but allocate to the M&A funnel, that’s rich and deep and diversified. Certainly, we’ll always take a look as that strategy evolves, but again, I think we have a high confidence we can give value to the shareholders and execute the strategy very well over the coming several years.
Nathan Jones: Thanks for the commentary. Max, you talked about 15% core or FX. Can you give us some more details on price versus cost in the makeup of that? And then what you’re looking at for price versus cost in 2023?
Max Mitchell: Yes. So, Nathan, so on the price cost in the quarter you’re referring to and the next year, right? Is that what you
Nathan Jones: In the quarter and in the order rate, yes.
Max Mitchell: Yes. So, I mean, in the quarter, we — what I would say was a little bit different in the quarter relative to the first three quarters is that we saw volume a little bit more materially flips in the other direction in terms of being a contributor across some of the groups, which is a positive thing. Our pricing was, I would say, fairly accretive as well. So not just covering cost, we saw quite a bit of read through on our price, that disciplined cadence that we started a couple of years ago. So just good momentum, price cost, I would say it was accretive to our margin profile overall. Now as we look at next year, I would tell you that our pricing discipline is going to be, of course, intact and similar in terms of our approach.
We’re properly balancing price with demand. And as we see things shake out, our assumptions for next year, though are that price will continue to offset the cost profile in the business, and that’s materials, labor freight and other types of costs that we experienced.
Nathan Jones: Should we say price carryover in — from 2022 into 2023 that’s actually make it accretive to earnings?
Max Mitchell: It depends on which business, but I would say on the margin, yes, but not as much as what we saw in 2022.
Nathan Jones: Okay. Thanks very much for taking my questions.
Max Mitchell: Thanks, Nathan.
Operator: Thanks. There are no further questions at this time. I would now like to hand the call back over to Max Mitchell for any closing comments.
Max Mitchell: Super, thank you. On track, exceeding expectations, strong close to 2022, well positioned for 2023 and beyond, another clear inflection point for value creation upon separation. As the late great Brazilian soccer star Pele said, “Success is no accident.” It is hard work, perseverance, learning, studying sacrifice and most of all, love of what you are doing or learning to do. We love what we do at Crane and our team’s success is no accident. I want to welcome Aaron Saak again, and we both look forward to presenting our new entities post-separation investor thesis to Investors March 9 in New York City. Thank you all, and have a great day.
Operator: Thank you. This does conclude today’s teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.
