Christopher Rossi: So in terms of General Engineering, as we’ve talked about coming out of this pandemic recovery, our distributors and our customers seems to me have been fairly disciplined about not getting out over their skis, in terms of adding inventory. So normally, when there’s a recovery in these type of markets, in particular in Gen Eng, there is a restocking that happens. And we really did not see a strong restocking, we saw a lot of caution. And where the restocking happened was in areas to support customers like Aerospace, where clearly the growth was there. So consequently, as things have softened around the globe in terms of general industrial production, we really haven’t seen any destocking because in my theory is that really they never really got over the ski.
So — that’s still our view is that we’re not seeing significant destocking other than what we talked about in oil and gas. And then I think you had a question on our particular inventory situation, which I’ll let Pat take.
Pat Watson: As you think about the inventory, I reflect back on the primary working capital outlook, we’ve got out there, it really implies that we’ll get some improvement in working capital as we get throughout the year, that’s really that improvement is going to be driven primarily at this point in time from our inventory position. As we talked about at Investor Day, this is going to be one of the areas of focus for us on an ongoing basis where we think we have opportunity to improve our working capital efficiency.
Operator: The next question comes from Chris Dankert from Loop.
Chris Dankert: Wondering if you could kind of help us triangulate what the impact of operational excellence was in the quarter. I know a lot of factors, but it seems like that was the majority of the metalworking operating income improvement. Is that correct? And if you could just kind of give us some signposts or what the impact was?
Pat Watson: I think as we think about Metal Cutting, there absolutely was an improvement, I’ll say, an overall efficiency in Metal Cutting. And we think about the drivers in terms of what’s going on from a margin perspective. Certainly, I would say, overall, they had a little bit of headwind from a — a tailwind from FX. Obviously, a little bit of a tailwind from the restructuring program as well. And we’re continuing to see some cost inflation, but we’ve been able to manage that from a pricing perspective as well. So overall, I’d say excellent operational performance from a construction perspective in Q1.
Christopher Rossi: I think, Chris, the other thing I would add is, as we talked about in our Investor Day, we still have opportunity to drive higher operational efficiency from our modernized factories. And I think you’re seeing that start to flow through in the Metal Cutting margins. It’s one thing to modernize and get all the equipment put in. But as we ramp that up and now are getting better at operating it and putting in smart factory applications to try to do data analytics to improve the factory processes, I think you’re starting to see the benefits of that flowing through.
Chris Dankert: And then forgive me if I’m a little bit slow on the uptake. But just the price cost impact for the full company, you were saying was neutral on a dollar basis. Can you just kind of remind us what the impact was by segment, then you said headwind in Infrastructure, and was it an equivalent tailwind in Metal Cutting, Is that the way to think about it?
Pat Watson: Yes, I think that’s right. One of the things as we think about the margin and the price dynamic relative to raw materials and Infrastructure, we do have these contracts that are indexed. We have seen the price of tungsten come down, there’s a natural repricing that occurs. And again, that’s going to continue as we move through in Q2 here, but that’s how that affected Infrastructure in the quarter.
Operator: The next question comes from Steve Barger from KeyBanc Capital Markets.
Steve Barger: Chris, you’ve talked about some of the factors around reacceleration in the back half. But if I look at consensus 3Q revenue, relative to the midpoint of your 2Q guide, it implies about a 9% increase, which is above seasonal, which is like 6% ex the pandemic. So when you think about timing of back half improvement, does that seem reasonable or should we assume more normal seasonality and then maybe you exit the year a little bit better? Just trying to get a sense for cadence.
Christopher Rossi: I think, generally, I would say it’s pretty even, but there are a couple of factors that — one of which I talked about with Tami was on the earthworks side that road milling was very low and construction was low for us last year. And even if it just get back to normal seasonality, we think that that’s going to drive a little bit higher fourth quarter. So I think it’s generally even but there is a little bit of a ramp-up in the fourth quarter.
Steve Barger: And you mentioned energy decline from both lower oil and gas and then delays in wind energy products. And I think we’ve all seen the stories around how the economics of some one projects are less favorable due to inflation and interest rates. Can you just remind us how big that business is for you?
Christopher Rossi: Yes, I don’t think we broke out a win separately. But I can tell you that if you look at our Energy business in Asia for Metal Cutting, the preponderance of that is wind. There is some power gen and stuff in there, but the preponderance is wind. And the other thing about the China wind, it seems to us that what’s happening is that a lot of these wind farms are to be located in Taiwan straights. And what we’ve seen is that given the dynamic between China and Taiwan, there’s been some uncertainty about continuing investing in those wind farm fields. And so we’ve seen a little bit of delay. But that — according to our customers, that’s what’s driving it, they don’t expect that to last forever, but that’s put a little damper on that wind business in China.
