In large part because we’ve already built up such a sizable business that’s not in welding, right? That’s what gives us the confidence to go into these other operations and applications within a factory is that we’re not welding guys trying to figure it out. We’ve got a very sizable set of people that know how to do those things.
Operator: [Operator Instructions]. Your next question comes from the line of Angel Castillo with Morgan Stanley.
Angel Castillo: I think last quarter, you talked about price starting to pick up and flow through really more so in 2Q, so that was another reason why maybe 1Q was a little bit softer. Could you talk about — as you think about the second quarter and the sales outlook that you kind of outlined of kind of flat-to-up, what the price volume kind of make up of that guidance and then also kind of for the full year, as we think about an unchanged guidance, I think last time you talked about 50-50 price volume. Is that still the right way to think about the full year guide? Or is there kind of a shift in the makeup for the organic growth?
Gabriel Bruno: Yes. Angel. So first, you’re right. We did take pricing actions in this first quarter that will mature in the second quarter. So I would expect a price contribution in the second quarter to be in that 50 to 100 basis points of a contribution to organic growth. It is a little bit more modest than we had discussed in February. In February, we talked about a 50-50 mix between volume and price, you assume the middle of the range. I would look to maybe 1/3 more price, 2/3 volume in our current profile organic growth.
Angel Castillo: And that last comment is about the full year?
Gabriel Bruno: Full year, yes.
Angel Castillo: I guess just to kind of clarify that. One, what’s pulling back on the price? Is it just a difficult environment, customers, negotiations? And two, that would suggest, I guess, that more bullish outlook than you had kind of laid out from a volume standpoint. Is that the right way to think about it? And I guess I didn’t necessarily get the sense that there was something incrementally stronger about volumes for the full year, but if you could kind of parse that out a bit more, that would be helpful.
Gabriel Bruno: Yes. So, Angel, keep in mind that our full year assumptions are low- to- mid-single-digit organic growth. So that’s a range. So we do expect progression, particularly on the consumable side, where you’ve got contract negotiations. You saw a little bit of that in the international markets in the first quarter, where pricing was down although our margins are holding up. So it is a dynamic of the mix of pricing between consumables and equipment. So that’s where we get a little bit less tempered on the full year outlook on pricing. But our posture, as you know, is to be price cost neutral. You’ve got a very disciplined processes and managing price, and we feel very good on our progression so far this year. You saw that we’re at record levels in gross profit percent, 37.5%. And so we’re just in a very good positioning in the profit profile of our business. And so we’ll just be very disciplined as we continue to manage price.
Angel Castillo: That’s very helpful. And then maybe just on backing the automation side a bit better or a bit more. You talked about continued growth there. 1, could you clarify what organic growth you kind of anticipate for automation for the full year? And 2, could you just give us a sense, maybe a little bit more color on the kind of quoting activity you mentioned has been strong, but just what are those customer conversations like given kind of the macro environment that we are in?
Gabriel Bruno: Very strong activity on the automation side. They’ll be pointed to orders, backlog quoting. And we just expect that to continue to progress throughout the year and that’s just a long-term opportunities from our customers to improve productivity within their businesses. And that’s what gives us confidence and we point to growth. So I just — I will refresh in 2023, organic growth in automation was 8%. And what we pointed to is within that framework of operating assumptions that the automation business will drive that growth in terms of volumes. So — and more tempered on core welding type of organic activity. But what gives us confidence is the strength of orders and backlog within the automation business.
Operator: Our final question comes of Walt Liptak with Seaport Research.
Walt Liptak: Just wanted to ask one on the international profits looked pretty good. And given the comments from the last question about contract negotiations and pricing and things like that. Is the international profit, should those continue to move up through the year as you start to get volume and pricing? Or I guess, pricing become [indiscernible] I guess volumes is a little bit of a question. But I wouldn’t [indiscernible] if you can comment that on the international profits?
Gabriel Bruno: Yes. So, great question. I did comment in my prepared remarks that we expect the International segment EBIT profile to continue to improve into the lower end of the range, which is 12% to 14%. So first quarter 11.4%, we expect improvement from there.
Walt Liptak: Okay. Great. I got a few minutes late. But okay. And maybe a follow-on from that improvement. What are you attributing that to? Is it from the cost-cutting or efficiencies? Or is that related to volumes or price?
Gabriel Bruno: Yes. I would just emphasize the mix of business. I mean, we saw strength in the Middle East, Turkey in this first quarter. We expect that to continue. We also expect improvements in our Asia business and the mix there. So it’s mostly mix of business, driving it. We do — we will continue to drive opportunities to shape our business. You saw some of that already in this first quarter. But that’s what gives us confidence in that margin profile.
