Joe Ritchie: I guess my one follow-up question. Residential volumes are continuing to stay positive, I know that you’re expecting a decline in the year, and I know that you don’t give quarterly guidance. But I guess just based on what you see with inventory levels today, I mean, are you expecting things to turn negative at the start of the year? Is that something that maybe happens later on in the year? I’m just — any color that you can give on like the seasonality as we progress through 2023 would be helpful.
Alok Maskara: First of all, there’s significant uncertainty remains and at some stage, your guess is going to be as good as ours. January met expectations. Because majority of our business is dealer direct, the impact of channel destocking would be minimal. But for the industry, I do saw it happening more in the first half versus the second half. So I think the industry will see some decline in sales to distributors that distributors pull back orders, just to get the inventory rightsized. I think the seasonality, as we typically expect as in the summer seasonality, still remains. So I would say, yes, there’s going to be some channel destocking impact in the industry in the first half. It’s going to impact us less. But beyond that, it’s going to be watching all the numbers that you would watch, consumer confidence, interest rates, new home starts and see where we come up.
Because the new home starts that fell in second half of 2022 will have an impact in 2023 at those come up for completion, because our new home business did well in Q4 that’s lower margin, as you know. But going into ’23, we expect that to slow down for sure.
Operator: We’ll take our next question from Tusa Steve with JPMorgan.
Steve Tusa: So just on the Allied side, what was the growth rate, the difference between Allied and your — the Lennox brands in the fourth quarter?
Alok Maskara: I don’t have it in front of me, and I think it was pretty consistent
Joe Reitmeier: I’ll be honest with you, Steve, I don’t think it was radically different than what we saw in the direct to dealer business because we had a and we had a record year in our Allied business, they did a tremendous job. They gained more than 100 basis points of share, along with our Lennox business. So it was a pretty good quarter for both businesses.
Steve Tusa: So when you kind of roll forward into the first half, and you talk about some destocking, what kind of split would you expect here in the — how is it trending in January? And then what kind of split would you expect as this destock cycle move into the first half?
Alok Maskara: Yes, in the Allied business, we would expect a slower start because, as Joe said, I mean, they had a good year. I mean in Q4, they grew very well, Lennox grew well as well. Allied grew faster than Lennox in Q4. And as we take this forward, I would expect 20% of our business, which is on through two step distribution to have a slower start to the year versus the rest of our business, which is dealer direct.
Steve Tusa: Can you just provide a little bit of color on that? So is it like — is it a 10% difference, at 20%? I mean there’s there’s just a lot of moving parts here, so it’d be helpful to figure out just roughly what kind of split you would expect there between — effectively between sell through and sell in we’re asking for the industry, if you even want to put it that way.
