Bill Sperry: Yes, so I think Telecom would be the first to see a market down. I think just puts a little pressure on that and so that’s really the most noteworthy one. I think other areas where things are overstocked, can put a little pressure sometimes, so we’ve had a very successful pricing tactic over the last really two years and so it’s something that we are; A, very focused on; B, are in very close conversations with our big customers. Gerben and I happen to be visiting with a few of our largest customers over the course of the last couple of weeks and just to your point, none of them are asking about price other than to make sure. We are coordinating with them, give them enough time to implement price increases, and let them manage that through their systems, but it’s a – I would describe price as of this moment, Tommy, is still quite constructive.
Gerben Bakker: And maybe to your point, there may be some headwinds, I’d also say that we built into the guidance to carry over, but we also announced price increases early this year, it’s early to tell at this stage, only a few weeks in on to stick rates, but again the conversations that we’re having are very positive to those taken hold. So, we have levers against potential headwinds by taking price too.
Tommy Moll: Thank you, both. I appreciate it and will turn it back.
Operator: Thank you. One moment for our next question. And our next question comes from Nigel Coe of Wolfe Research. Please go ahead.
Nigel Coe: Thanks. Good morning, everyone. So – hi, good morning. So Bill, just wanted to be a bit more specific, typical seasonality for 1Q, it looks like about 20% of full-year, is that about the right zone for your math?
Bill Sperry: Yes, little. I would have said 21% if you ask me, yes.
Nigel Coe: Okay. That’s great. Thanks for the clarification there. And then just the Electrical performance this quarter is obviously outstanding. The 6% organic growth, pretty flat Q-over-Q in both revenues and margin, so is that mainly a channel impact you’re seeing there? I know you called out strength in electrification and data centers, just – I’m just curious in terms of the end-market demand what you saw during the quarter being a bit more specific there.
Bill Sperry: Yes, I’m not sure – I’m not sure I’m getting the essence of what you’re asking. We did find that vertically data centers and renewables were both good that benefited our PCX business and our Burndy business. And I do think we saw from our big customers, if that’s – if that’s where you’re pushing, in areas where they had been managing their inventories we saw a return to growth in those as well. So, I’m not sure if you’re getting that customer behavior end-markets there, but we had a kind of a little bit of a mix of both.
Nigel Coe: Yes, I mean, it wasn’t a straightforward question I know, but do you think the channel impact was fairly neutral? So sell-in versus sell-out pretty similar, but I guess that’s sort of the essence of my question. But really, then when we think about the margin exit rate for 4Q into 2024, I know you’ve said flattish impact in ’24, restructuring is picking up, so that’s obviously a headwind in ’24, but just curious about the Lighting impact, because that’s coming out, so I think that that would probably drive more of a bias towards expansion in Electrical, so just curious if you agree with that.
Bill Sperry: I do agree. I do agree, they were sort of at double-digits versus what you see is a better margin at the segment, so I do agree.
Nigel Coe: And then sell-in versus sell-outs?
Bill Sperry: Yes, pretty consistent in the quarter, Nigel.
Nigel Coe: Okay, great, thank you.
Operator: Thank you. One moment for our next question. Our next question comes from Julian Mitchell of Barclays. Please go ahead.
Julian Mitchell: Hi, good morning. Maybe just trying to understand and fully comprehend that you don’t give sort of detailed quarterly guidance, but you’ve got the 4% organic growth guide for the year in revenue, and you have the color around weak start to the year in Telecom, a bit of extra Utility destock, and maybe the last drags of non-Resi Electrical destock, so all of that seems to suggest a stronger second half organic growth rates. Just wondered how much of an improvement year-on-year are you dialing in through the year as we go to get to that 4% for the year as a whole.
Bill Sperry: Yes, Julian, first of all, welcome to the call, nice to have you, and I would say, that the Utility destock we’ll see, but we could – if you – we couldn’t be at the point of kind of having be done with that as well and I would say on the Electrical side we feel more confident than we are. Your Telecom point is right. I think we do anticipate a weaker start. And as you think about, you’re sort of introducing sequential seasonality and how that’s going to look VPY compare. And I think what on the VPY basis, some of the second half compares because of the destocking could actually be a little bit easier, for example, first quarter last year was actually quite strong. And I think seasonality-wise, we upped our investments at the second half of last year, as those wrap around that creates a more consistent and easier second half.
So, I think as those things net against each other, that’s kind of how we’re getting to a more typical seasonal year even though, I hear you, there’s obviously puts and takes and forces at work here.
Gerben Bakker: And maybe, Julian, provide maybe a local context on that, and you’re right to point out there’s still some headwinds, but one way to look at it and I realize it’s an early data point, but as we look at how we’re starting off the year and we look at our order patterns and trends here in January, it’s actually a support to what Bill is somewhat hesitantly saying that we could be exiting our destocking, it’s constructive, so I’d say, early reads into the year is that is constructive to kind of this profile of seasonal guidance.
Julian Mitchell: Thanks very much. And then just a quick follow-up, that Slide 10, the non-residential vertical within electrical, the flat to plus low single guide for the year, you understand fully on the channel stocking largely having run its course, but maybe just the market outlook. You use that word uncertain, just any sort of color you could put around that, what you’re seeing in different verticals in that non-resi bucket?
Bill Sperry: Yes, just think maybe the pressure on office just feels like it puts a little bit less certainty, I mean it’s quite a constructive pie, so I guess by – I think less certainty puts you in still a growth position, but it just – I think the institutional side probably be stronger, but maybe some of that office could be weaker. So, I think there is some that mix effect just puts it in the low-growth rather than the rest of the pie, which is more medium growth.
