Josh Pokrzywinski: Ivo, I’d like to maybe just approach the cycle question slightly differently. What are you seeing on volume versus price trends? And I guess maybe the context of where are volumes today versus, say, pre-pandemic levels? Or like are we higher? Or are we fairly close? Like I know there’s a decent amount of price in there. So trying to level set on really just how far away from the last kind of fundamental slowdown we really are volumetrically.
Ivo Jurek: Yes. Look, I mean, just on Q2, our volume was modestly down for the quarter. And I would – it’s an interesting question that you asked. I haven’t really thought it completely thoroughly. But we are somewhat at lower volumes than prior peak. So fundamentally, I think that you certainly have automotive first-fit that is very dramatically lower globally as that industry is coming from the pandemic. I would say that’s probably the biggest most impact in industry out there. And the rest of it is – it’s kind of a mix, if you ask me, I mean ag has been performing quite well, and I think it’s slightly lower now than the rates that we have seen kind of prior year, prior year was very, very strong. So you see some of the rates moderating.
Look, on the construction equipment, that business continues to remain quite strong, and I think it’s quite supported on some of the infrastructure investments that certainly we’re making here in the United States as well as elsewhere, mining and oil and gas is significantly lower in units and activities than prior peak. So, I think it’s a mixed picture, Josh. I don’t – I wouldn’t say that there is a – that there is any specific industry that has – that is peaking at this point in time, I think that the underlying activities have moderated over the last 12 months. And I think that I’m cautiously optimistic that as you start seeing the trends reverse in with ISM and PMI that may be actually an indicator that things are bottoming out.
Josh Pokrzywinski: Yes. That makes sense. And I guess maybe more I’m going with that on the volume versus price side? Is that – it sounds like most of the revenue revision here is really related to channel, not necessarily a sell-out phenomenon or at least not a particularly pervasive one, and you’re not having to give back price, like is that a fair representation? Because, I guess, otherwise, like volumes not overheated, price seem sticky and we’ll work through the normalization, but otherwise, things seem pretty stable.
Ivo Jurek: I think that that’s fair. I mean, I think that you have the phenomena of reducing lead times, obviously, that basically is impacting kind of normalization of what’s happening in the channel. I mean I see very – still actually quite positive trends in sellout of our customers’ activities. So, I think that that’s a correct assertion Josh. I would say that China industrial activity is, I mean, weaker. And so you see weaker volumes there, particularly on the industrial side, but otherwise, again, remaining very buoyant and reasonably robust there. I would say that Europe industrial activity is kind of muted, so I would say there’s definitely some volume here. And of course, as we said, the channel activity in terms of kind of the personal mobility side of the business.
So again, I think it’s puts and takes. It’s not really a deceleration in pricing. It’s really more of a realignment to what we are seeing in terms of the underlying trends, again, China industrial, some of the personal mobility and then kind of puts and takes. I think the rest of it is more in line with what we’ve anticipated at the onset of the year.
Operator: Thank you. Your next question comes from the line of Jeff Hammond of KeyBanc. Please go ahead.
Jeff Hammond: Hey good morning everyone.
Brooks Mallard: Good morning.
Ivo Jurek: Good morning.
Jeff Hammond: Just a clarification on the destock. Is it fair to say you got – you saw destock in personal mobility in 2Q and then kind of the rest of it is more prospectively or was it more prevalent in 2Q? I’m just trying to understand how much happened in 2Q versus how much is to come?
