Jennifer A. Parmentier: We like the, the eight core technologies. We think that that is where we do really well. We don’t have a specific aerospace mix number that we target. Right now we have a nice balance between the segments, but we’re going to continue to keep growing the industrial business, as well. So, we’re going to be looking at the markets that we know, customers that we know and technologies that we’re familiar with. So, that’s our current focus.
Mircea Dobre: Okay.
Todd M. Leombruno: Hi, Mic, I would just add, you’re right, we have expanded the aerospace exposure pretty significantly. But those are the same technologies that we have throughout the entire company. So, they just happen to be in aerospace end markets, the applications are part of those right technologies. So, that’s why we like to say technologies.
Mircea Dobre: Understood. And then I know a lot of people asked about margins. I guess I’ll ask one as well. The performance in industrial, really kind of stood out to me given everything that’s going on in those end markets. And I’m sort of curious as to what are you effectively doing there? Is this margin expansion that we’re seeing more of a cost mitigation in an environment in which the volumes are frankly not that great? Or is there something more structural in nature? If we see reacceleration, for instance, in fiscal ‘25, should we assume normal incremental margins at that point on this space or will some of these costs that you’ve taken out eventually come back with volume? Thank you.
Jennifer A. Parmentier: I think you can, we can say that you would see normal incremental margins with an acceleration. It’s a lot of what we’ve talked about this morning, the Win Strategy is very effective across all the businesses and our teams are doing an excellent job with some of our legacy tools around lean and supply chain, as well as some of those newer initiatives that are driving cost out. And, we’ll continue to see that in the industrial business. We’ve said a couple of times, Win Strategy 3.0 still has room in it and we’ll continue to expand margins.
Mircea Dobre: Appreciate it. Thank you.
Operator: Thank you. Our next question comes from Andrew Obin with Bank of America. Please state your question. Andrew Obin, your line is open. Please go ahead. We’ll move on to the next question. [Operator Instructions] The next question comes from Jeff Sprague with Vertical Research Partners. Please state your question.
Todd M. Leombruno: Yes, Diego, it’s a busy day out there. I know people might be stacked up on multiple calls.
Operator: Thank you. We’ll move to the next question.
Todd M. Leombruno: Yes.
Operator: We have Joe O’Dea with Wells Fargo. Please state your question.
Joe O’Dea: Hi, good morning. Thanks for taking my questions. Jenny, I wanted to circle back. You talked about sort of recent meetings with distributors and a broadly sort of positive tone. Can you just expand on that a little bit in terms of how maybe that tone has changed over the last several months? What they’re pointing to trying to understand bigger picture thematic elements versus a little bit more near-term kind of on the ground and what folks are talking about seeing out there.
Jennifer A. Parmentier: I would have to tell you that visiting distributors and talking with distributors over the last several quarters, I’ve never felt, a negative tone. They’ve all felt rather positive and bullish on the future. A slowdown in orders, but never and overall concern about what was in front of us. What I would say about the meeting in December is that, there was just a lot of talk about a return to acceleration. Not seeing it yet, but very positive that it would come. And commentary on, it’s been almost four quarters now, now it has been four quarters and we usually see that turn coming in front of us. So, just a very overall positive sentiment. Some of them are participating in some of these, what we would call Meggitt CapEx projects.
They’ve commented on how they’re working with some local and national contractors on new plants that are being built, site prep and some of the walls going up. So, some feel really positive about that. So, again, really good sentiment, good tone about the future.
Joe O’Dea: I appreciate the color. And then also wanted to ask on international margins. I think you commented about ongoing progress in terms of the distribution side of the margin profile improving on the international segment. But those international margins are pretty close to North America margins too. So, just if we think specifically about the distribution side, what does the margin gap look like sort of international versus North America? How much more upside should we think about in terms of navigating higher on international distribution margins?
Todd M. Leombruno: Yes. Joe, this is Todd. We’ve been very public that the sales that go through the distribution network are anywhere from 10 to 15 margin points better than our direct shipments and that’s just, it’s part of the structure of the channel, sort of the value they add. Jenny, I had a slide that kind of went through why that is supportive of that margin mix. What we’ve been trying to do for many years now is increase that mix in the international businesses, that was on the slide as well. We think we’re not done with that yet.
Jennifer A. Parmentier: Yes, we’re not done.
Todd M. Leombruno: I think that more room to grow on that. So, we feel like that still has room to grow and that will also be a margin driver out into the future.
Joe O’Dea: Got it. Thank you.
Operator: Our next question comes from Jeff Hammond with KeyBanc Capital Markets. Please state your question.
Jeff Hammond: Hi, good morning everyone.
Todd M. Leombruno: Good morning, Jeff.
Jennifer A. Parmentier: Good morning, Jeff.
