Scott Robinson: We had total — in terms of total impact for the quarter, we had 11% price, 8% volume and then a minus 8% in terms of FX. So our FX impact will be greatest. Presuming rates stay where they are, the FX impact will be the greatest this quarter. We bumped up the FX impact by 1% for the year, up to 5% now. So we kept the overall revenue guidance the same at 3% and even with an increase in the FX headwind from 4% to 5%.
Brian Drab: Okay. Those numbers you gave are for consolidated, right?
Scott Robinson: Correct.
Brian Drab: Okay. All right. I’ll follow up more later. Thank you.
Scott Robinson: Thank you.
Tod Carpenter: Thanks.
Operator: Your next question will come from the line of Laurence Alexander with Jefferies. Please go ahead.
Daniel Rizzo: Hi. This is actually Dan Rizzo on for Laurence. You mentioned the pricing flowing through as costs decreased, I was wondering if historically speaking price concessions or is it something you guys do or something that your clients look for — customers look for?
Scott Robinson: Yeah. So I mean it’s different across the various components of the business. The largest piece would always be the OE piece, right? And we’ve been working with those customers for a couple of years now as costs started increasing to make sure the relationship was reasonable. And I think we’ve made good progress there. There’s still a few actions left to complete to catch all the lay (ph) up on costs, you can see that in our gross margin improvement over the last several quarters sequentially. It’s slowly layering in. We were happy with the gross margin performance this quarter. And so we’re expecting cost to be hopefully flat when we’re all said and done with this year. And if costs suddenly went down, I’m sure our OE friends would be knocking on our door, and we would have those conversations with them just as they were willing to have a conversation with us as costs are going up.
And the other businesses, if it’s a business where we’re providing a bid, we adjust based on current costs to stay competitive in the market. And then the independent aftermarket, we certainly have more latitude for pricing there. And we just want to make sure we stay competitive in the markets that we operate in.
Daniel Rizzo: Thanks. And then I don’t know if I missed this or not, but the COVID lockdowns in China or just everything that’s going on there, is that having an effect on your — I guess, your growth or your just demand within the region?
Tod Carpenter: So clearly, it’s having an effect on the demand within the region. Also the uncertainty looking forward within the region However, it’s not having an effect on our ability to win new projects with Chinese based national companies. and we continue to do so. So we look forward to when China opens up, their economy gets back to normal, and we would expect that to be a tailwind. We’re just not sure when that is going to take place given the fits and starts relative to COVID within the country.
Daniel Rizzo: All right. And then finally, is there a target that I may have forgotten about for operating margin? I mean, is it like 15% or is it higher? I don’t know if you’ve said this before.
Scott Robinson: Well, we — we gave — I mean, a target for the guidance for this year or for the future?
