Julian Mitchell: Hi, good morning and thanks for squeezing me in. Maybe, Rich, you’d mentioned mix once or twice as a factor, and we can obviously see that impact in DPPS as well documented. I just wanted to circle back to the DII segment. There was a mixed tailwind, I think, in fourth quarter possible headwind in the year ahead guided and that’s weighing on the margins there. Maybe expand a little bit on that. And DEP had an exceptional margin expansion, albeit off an easy base. Is there anything much moving around on mix in DEP?
Richard Tobin: In DEP, no, I think rightly, I would look at DEP sequentially as opposed to comp, right? We all know what happened in Q4 of 2022. So that’s why we had been saying all year that not to worry because as price cost rolls forward, you’re going to get what you get. But I would look at DEP on a sequential basis as a precursor of what you can expect into 2023. And the other question you had was on marking and coding, right?
Julian Mitchell: Yes.
Richard Tobin: That is just a function of the amount of consumables we shipped in any given period, meaning the more that you ship in printers, that is negative to margins. The more that you ship in consumables, it’s positive. It’s going to bounce around. I think that our comment that we made on that particular business is that the margins are quite robust, and it’s all about what kind of revenue growth we can get from here. We’re not calling it down for 2023.
Julian Mitchell: That’s helpful. Thank you. And then just a follow-up on kind of firm-wide Dover operating margin. So I think the operating margin overall was flattish in 2022. It’s guided maybe to grow a little bit in 2023. I just wondered with that backdrop, is there the appetite maybe to accelerate restructuring spend. I saw in your guide, you’ve got kind of $0.10, I think, for 2023 after $0.20 last year. But I wondered just sort of thinking ahead, is there maybe the appetite to drive — make sure that 2024, let’s say, has stronger margin expansion and that might require more restructuring this year.
Richard Tobin: Well, Julian, I mean, I think to the extent that we have flat margins despite the fact that our biopharma business, which is clearly our most profitable portion of the portfolio being down, one could argue that once we get to the strong — we get through this destocking period, which we expect to be an H1 2023 event is that inflect back to the positive that the incremental margins that we’re going to see there. And all things being equal, we hold and continuing to improve the balance of the portfolio that, that by itself is margin accretion. But I think I would call your attention to what we’ve done in Climate & Sustainability. We think that that’s got room to run. We think that we’ve gotten DPPS we’ve just talked about.
I think we’ve got some growth there. and we’ve got the return of biopharma in the second half of the year, which by I’ll repeat myself, I don’t think we’ve been overly ambitious with that. We think we’re going to keep that in our back pocket and see how the market develops. And the roll forward on the Engineered Products, if we look at what our exit rate is and we roll that forward, I think that’s quite healthy from a margin point of view. So back to the restructuring. Look, we’re always scouring our fixed costs around here. Our management is incentivized to deliver fixed cost reduction and incremental margins. So I would expect we’ll continue to do so, but I don’t see any need to accelerate it to protect our performance going forward.
Julian Mitchell: Great. Thank you.
Richard Tobin: You’re welcome.
Operator: Thank you. That concludes our question-and-answer period and Dover’s fourth quarter and full year 2022 earnings conference call. You may now disconnect your line at this time, and have a wonderful day.
