Rob Wertheimer: Okay, great, thank you. And then you touched on supplier, supplier component inflation or whatever to you earlier. There’s a lot of debate or speculation as to whether the logistics fall, logistics costs are falling or will fall materially. Do you have any sense the current trend for PACCAR and how that looks in the early €˜23? And I’ll stop there. Thank you.
Preston Feight: I think the logistics costs have been varied. And obviously over last year, they increased and now I think what we’re talking about is there’s high input costs there. But it’s moderating now, and I don’t think we’re especially concerned about it for 2023.
Operator: Our next question comes from Jamie Cook from Credit Suisse.
Jamie Cook: Hi, good morning. Nice quarter. I guess just two questions. One, I was impressed with the incremental margins you guys put up this quarter, I think 35.5%. I don’t think I’ve ever seen you put up incremental margins that high. So can you talk about how we should think about normalized incremental margins going forward just with some of the new product introductions that are seem more favorable to mix versus some things that might be more one time in nature. And then my second question is just a follow up on. I know, you said the order book is that for your backlog through the second quarter building through but starting to build for the third quarter. Is that across the board in North America or Europe? If you could just distinguish between the two? Thank you.
Preston Feight: Sure, I would, when we think about it, the entire part of team of PACCAR is doing a good job. So our margin performance is based upon providing great trucks that are providing value to our customers. They’re realizing those benefits at time with those trucks now. And so that is effective for them. And then consequently, effective for PACCAR on the truck side as Harrie did a really nice job of outlining the parts business growth has been strong and continues to be strong, and we predict it will continue to be strong. So that’s helpful to our margins. And I also say that to kind of tie in your second question is we’ve seen strength globally for PACCAR, right, Europe is doing very well for us, the new trucks there, XG, XF, XG product lines are the only trucks in the industry in Europe that are taking advantage of the masses and dimensions regulations which allow a different shape.
So that gives us a distinct advantage in Europe. So the European market for PACCAR is strong as is understood by our 17.3% record market share, we enjoyed there. And I would say that Brazil, Australia, North America, all are doing well. So there’s not a single market or a single sector right now we’ve just got a great team of people that have done a good job of giving our customers what they want. And those products are working really well.
Operator: Our next question comes from Nicole DeBlase from Deutsche Bank.
Nicole DeBlase: Yes. Thanks, guys. Maybe just starting with a question on parts. Margins there continued to surprise to the upside, looks really strong, I guess, how do you think about the ability for that business to continue expanding margins into 2023 and beyond?
Preston Feight: Well, Harrie offered some commentary on Q1 growth and said it’s very positive. One of the things that we should highlight, in addition to some of the ongoing initiatives is our continued integration of PACCAR Parts with our customers and our dealers. I think it’s a really important growing part of our business, as it adds to recurring revenue strength for the future. So for us, the future looks very bright for the parts team as they bring data and capabilities into the truck into the dealerships and into the customers. So there’s a higher degree of connectivity there. And that’ll all be helpful to us.
