Andrew Buscaglia: Okay. And then what about the easy comps versus demand picking up? Is that — to get to the midpoint, do we need demand to come back?
Sundaram Nagarajan: Sorry, go ahead, Steve.
Stephen Shamrock: No, what I was going to say is, I mean, just from a midpoint perspective, again, I mean, that assumes 1% organic growth overall. So, again, there would be some volume embedded in there. So we would expect it to pick up, right? I mean, just kind of given the, by segment, like we talked earlier, from that perspective, ATS, again, we’d expect some second half pick up there in the end of Q2 or Q3 and Q4. We talked about the fluid components earlier and even fluid solutions. I know Naga referenced that as well, electronic assembly picking up in the back half of the year as well.
Andrew Buscaglia: Okay.
Sundaram Nagarajan: Andrew, I would just add, if I could, the way I think about it is full year, our guidance says we’re going to grow 6% at the midpoint, roughly speaking and Q1 is growth of 3%. So basically, it implies that the growth rate picks up past Q1. And part of that, as you mentioned, is the comps get easier in Q2 and Q3, particularly because that’s when the ATS and the biopharma pullback really occurred. And so the growth rate is, let’s just say, 3% in Q1 and then picks up to 7% in the remaining three quarters, with it being the heaviest in Q2 and Q3 because the comps are easier.
Andrew Buscaglia: Yeah, okay. And in ATS, margins kind of move around quite a bit historically, so it’s hard to gauge a pattern. But is the main driver here for ATS long-term volumes just picking back up, or are there cost-saving potential in that segment to get those up closer to a corporate average margin?
Sundaram Nagarajan: Let me just maybe give you a broad view of how we’re thinking about ATS, and then maybe Joe or Steve, you guys could add more color to it. What I would say is, ATS at 24% EBITDA, and you compare them to their competitors in the markets that they play in is pretty strong. And one of the reasons is that, look, the R&D load here is much higher than some of our other businesses. So, expectation shouldn’t be that ATS gets to the total company average numbers. It’ll — you’re always going to find that you have 14% SG&A cost here in the — in our business in ATS when compared to IPS, which is a much smaller number. So that’s — the only level setting I want to do is make sure that you’re not — your expectations for ATS should be in line with ATS, not in line with the total company average.
Joseph Kelley: And the comment, down the full year, we’re quite pleased with what we’ve done to improve the profitability of that business. And here we are at the low point in the cycle and we’re delivering this [24%, 23%] (ph) EBITDA margins and so we’re well positioned to participate in the recovery but that doesn’t mean you should expect it to get to Nordson’s the other segments levels of profitability.
Andrew Buscaglia: Okay, thank you guys.
Stephen Shamrock: The only, I was going to say, maybe the only other point I would add there too is we’ve done a nice job in that segment as well, Andrew, just in terms of our decremental margins being very favorable to our targets, right? So we’re really managing the costs appropriately based on volume, so.
Andrew Buscaglia: Okay, thank you.
Operator: And at this time, there appear to be no further questions. I will turn the call back over to Naga for any closing remarks.
Sundaram Nagarajan: Thank you for your time and attention on today’s call. We’re making great progress on the Ascend strategy. We’re well positioned for profitable growth in fiscal 2024. We remain focused on achieving our long-term objective of delivering top-tier revenue growth with leading margins and returns. I wish all of you a happy holiday season. Thank you.
Operator: This does conclude the Nordson Corporation fourth quarter and fiscal year 2023 conference call. We thank you for your participation. You may now disconnect.
