Sundaram Nagarajan: Yeah, let me start and then Joe can add a little bit more color to the business. As you think about ARAG, right, what we acquired is a European market leader, great technology, strong position in Europe, strong position in South America in an end market that is growing, right? So our models and our expectations are that we deliver on that promise around continuing to grow the European business and continue to grow the South American business. We certainly recognize that we have an opportunity in North America. But we also understand the market dynamics in North America. Any wins and any expansion here will be at least additional icing on the cake, if you so will, to our model. And so, we like the technology, we like the market position, and the market structure in Europe is uniquely different from North America, and maybe let Joe add color to the work that they’re doing in Europe and in our technology. So, Joe?
Joseph Kelley: Yeah, Walt. You think about just the level set on ARAG, their precision dispensing fluid components that are predominantly components sold to implement manufacturers, spray manufacturers. And when you look, it’s again, predominantly a European business, a very broad footprint throughout Europe through their distribution model and selling to implement manufacturers. And so that market again is, I would tell you, the main driver of our forecast when you think about the ARAG business and the growth that we’re forecasting for 2024. The US and other geographies outside of Europe and South America where ARAG has a strong footprint represents opportunity. And when you think about Nordson and our broad geographic footprint, our ability to, I would say, realize some of those opportunities, I think is enhanced as opposed to a standalone ARAG business.
And so when you think about that, we’re starting to see in the integration, some of these opportunities start to fill in in the pipeline. And so again, we’re optimistic that long term, we can make this a global division within Nordson with a broad geographic footprint.
Walt Liptak: Okay. All right. Yeah, thanks for that answer. And, if I could just try one more on the IPS segment for Joe. I wonder if you could just help us characterize how you’re looking at kind of the general industrial system spending for next year, what the funnel looks like, and maybe some of the bigger subsegments like around automotive or consumer good?
Joseph Kelley: Yes. So, just to level set, the IPS segment is coming off now, I would say, two very strong years. If you look back at ‘22, they delivered a 7% organic growth. In ‘23, it grew 3% organically. So as we head into ‘24, we’re looking to really maintain that from the level where we are. What drove it, if you go back to ‘22, was a lot of the large systems in the liquid coatings. And then in ‘23, it turned, there was heavy automotive, actually growth in automotive on the coating side. And then on the plastic processing side and the recycling. That was strong in the back half of ‘22 and continued to be strong in ‘23. And so those large systems businesses within IPS, they do carry a nice backlog into 2024.
That being said, the remaining portion of the IPS business backlog there has moderated. So, when you see the backlog come down to $800 million, I would tell you that’s the elevated backlog moderating back to historical terms for the remainder of that business. That being said, the order entry there remains steady and is supportive of our forecast. So, you’re familiar with the business, particularly on the packaging side. When systems come down due to investment, parts typically help offset that in terms of growth of parts. And so it’s really a nice mix. And I would tell you, we’ve benefited from automotive liquid coatings and then the polymer processing last couple years on the system side. But the remaining broad-based [industry] (ph) remains steady.
Walt Liptak: Okay, great. Okay, thank you.
Sundaram Nagarajan: Right, I mean one thing that I would add Walt is really, in general the company is a recession resilient company and a portfolio that helps us get through uncertain economic environments or downturns in specific end markets, right? That’s what you saw happen in ‘23. As we think about ‘24, really what were our expectation is [IPSA] (ph) study, ATS is flattish to slight growth, and MFS returns to pretty modest growth. And that’s kind of how I would think about it. And a pretty strong EBITDA margin in last year, and we’ll continue to expect to see the same next year.
Operator: Your next question is from the line of Andrew Buscaglia with BNP Paribas. Please go ahead.
Andrew Buscaglia: Hey, good morning, guys.
Sundaram Nagarajan: Good morning.
Joseph Kelley: Good morning.
Andrew Buscaglia: Just one last clarification on your guidance. So the low end, if you look at the organic sales growth, the low end of that guidance, if you model that out, it doesn’t really assume much of a recovery at all. Is that correct? And then how much of the recovery is really easy comps versus demand actually picking up?
Stephen Shamrock: Yeah. So what I would tell you, Andrew, is from a general guidance perspective, I mean, at the low end of our sales guidance, we’re talking about 4% basically from that perspective. So obviously, there — what would get us towards the lower end there is obviously, if there is the recovery on the ATS side, for example, is slower than what we would expect if FX rates go against us, those types of things. And I think we talked earlier, I think Naga mentioned it as well, just from a comp standpoint, with some of the businesses that we were talking about, right, whether it was fluid solutions or on the electronic side within ATS.
