Carolina Dybeck Happe: Julian, let me take the first part of that question on seasonality and on how we see that happening through the year in 2023. Maybe let me just start with the first quarter. We are expecting an EPS of $0.10 to $0.15 in the first quarter. So actually better linearity than we’ve seen before in 2022. On cash, we still expect cash to be negative also in the first quarter. The new jumping off point is a negative 1.2. So we expect it to be significantly better than that, but still negative as is typical for our seasonality. And seasonality, in general, I would say we don’t expect material changes to our seasonality. We are still sort of heavy second half loaded both on revenue and profit and on cash, actually even more back-end loaded now that we are excluding healthcare.
So expect lower volume in the first half and ramping in the second half. sort of renewables sequentially growing through the year €“ sorry, aerospace sequentially growing through the year, renewables significant for the first half to second half ramp and power more the typical outage seasonality where you’d see sort of large 2Q and even larger 4Q and we also have equipment deliveries in the second half. But I would finish by saying that improving operational linearity is a key priority for us and clearly more to do.
Larry Culp: Julian, I would say with respect to capital allocation, you’re right. The boardroom conversations are fundamentally different than they were just a few years ago, right? We’ve now reduced our debt loans by $100 billion. Really pleased with the way healthcare is and has traded here. You can look at that effectively is a $30 billion dividend to shareholders. So we have a lot of options. And I would say all options are on the table. However, job one remains the completion of what we announced, the transformation back in November of €˜21, right. We want to make sure more than anything that we are setting up both aerospace and Vernova in the way that we described them. So, as we work through a number of, if you will, more tactical considerations, that overarching strategic objective will continue to be foremost in mind, but no doubt about it.
It’s a different conversation and it’s a much more enjoyable conversation to have than where we were back in €˜18 and €˜19.
Operator: Our next question comes from Andrew Obin with Bank of America.
Andrew Obin: Hi guys. Good morning.
Larry Culp: Good morning Andrew.
Carolina Dybeck Happe: Good morning Andrew.
Andrew Obin: Just a couple of questions, I think on Vernova, First, I think there is a lot of sort of talk in the industry about €“ on wind to structurally change the contract, right, because overall industry is just not in particularly good shape. So, question one, where are we in conversations with large customers who seem to want more capacity, yet sort of the contract terms are not really helping the industry make any money? Where are we in structurally renegotiating the contract structure? And I hand the second question just on power overall, more traditional power, but focus is on profit growth, not revenue growth. What are the key levers you are focused in €˜23, guidance seems to suggest modest margin expansion? Are there any headwinds in gas and services that you are facing in €˜23? Thank you.
