So, off highway construction remains soft in Asia Pacific, transportation, truck. I would say that India does remain a bright spot in Asia Pacific. When we look forward, that full-year organic growth improved to 100 basis points really due to the strength we saw in Q2, and an improvement in orders in Asia Pacific. We do expect that Europe destocking will continue and that softness that I mentioned in Q2 off highway and industrial markets will continue. Again, China recovery is still slow, but the team is doing a great job controlling the cost and giving margin performance in the region. And I would say that, when you look at the rest of Asia, Japan and Korea still pretty soft in semicon, but again, Southeast Asia and India, look good right now.
Julian Mitchell: That’s helpful. Thank you. And then just my follow-up on aerospace systems, maybe help us understand sort of is it more volume or price perhaps in commercial that drove the revenue guide uplift for aero? And on the synergies point, it came in with a much stronger margin than I think people were expecting for the second quarter in aerospace. Maybe help us understand kind of any bucket of those synergies that’s coming in ahead of plan?
Todd M. Leombruno: Yes, Julian, this is Todd. I’ll start on the increase to the topline. Obviously, you could see demand across all verticals in the aerospace business is extremely strong. If you look at what we did in the quarter, 15% organic growth in the quarter, that gave us the confidence to raise the second half. That has been a big plus. If you look at within the business, the mix, it’s 47% aftermarket, that was higher than we were forecasting. So that was a part of driving that margin expansion. And we’ve talked about this now for a year on Meggitt and our base aerospace business. It really is the volume has certainly helped to that, but it’s really the team working through the efficiency. The supply chain is still a little noisy on the aerospace side of the business, but it’s really the team is starting to perform in a normalized environment when it comes to that. So, that’s what gave us comfort in aerospace.
Jennifer A. Parmentier: Yes, we’ve obviously with pulling the synergies ahead, we’ve had some great performance by the team. We’ve done a really nice job de-layering the organization and getting it into the Parker division structure. And now we’re really starting to see the benefits of implementing the Win Strategy. So, the team is really doing a nice job and as Todd said, we expect this to continue. Volume always helps.
Julian Mitchell: Great. Thank you.
Operator: Thank you. Our next question comes from Scott Davis with Melius Research. Please state your question.
Scott Davis: Hi, good morning, everybody. Good morning, Jenny and Todd.
Todd M. Leombruno: Good morning.
Scott Davis: Just kind of a nuanced question and excuse if I think it’s weird, but your gross margin is just has gone up a ton, right? Pre-COVID kind of 25% today 35% plus op margins have gone up, call it 500 basis points or so that same timeframe. But is the future margin improvement that you guys see, do you think it’ll come more from gross margin and kind of SG&A leverage or would we expect a balance there. I guess it’s a nuanced question but I’m kind of fascinated with it feels like there could be some upside to operating margins perhaps beyond even what you’ve shown today?
Todd M. Leombruno: Yes, Scott, it’s a great question. It’s something that we look at intensely across the organization. I think there’s upside on both areas to totally honest with you. But you’re right, if you look at what we’ve done, and it depends on if you’re looking at the as reported gross margin number, there is a lot of noise in there from the purchase accounting transactions over the last year, but this quarter was fairly clean. So, I expect it to stay at the high levels that it was at this quarter and obviously improve from there. We are constantly looking at SG&A and reinventing ourselves everywhere that we do business. So, I really do think that there is potential in both areas.
Jennifer A. Parmentier: Yes, I, just pile on a little bit there. The Win Strategy tools apply to the entire business, right. So, I agree with Todd, to be in both places. And I mentioned earlier some of the Win Strategy initiatives that came with 3.0 and, you look at Simple by Design just yielding benefits everywhere up and down. And then some of the initiatives that we have around, demand forecasting, allowing us to better analyze demand, better staff our factories, really be able to serve the customer better, really reduce our overall cost of service to the customer. So, that’s really a plus. And then, our zero defect initiative, a lot of, a lot of activity around producing a product 100% quality the first time and that’s a lot of cost reduction there.
So, just a lot of tools in our toolbox to continue to expand margins and a lot of nice work done across the Board by all the teams. The high performance team structure really lends itself to improvements throughout the whole organization. So, it’s not going to be in just one area, it’d be across the Board.
Scott Davis: Okay. That’s super helpful. I’m going to leave it at that. You guys are doing a great job and best of luck in 2024. Thank you.
Todd M. Leombruno: We appreciate it, Scott. Thank you.
Jennifer A. Parmentier: Thank you, Scott.
Operator: Our next question comes from Nicole DeBlase with Deutsche Bank. Please state your question.
Nicole DeBlase: Yes, thanks. Good morning, Jenny. Good morning, Todd.
Todd M. Leombruno: Good morning.
