Jeff Sprague: Okay, right. And then again, if we could just talk a little bit more detail, maybe it’s for Nick. I think you’re pretty explicit on sort of the margins for Q2. Maybe just give us a little bit of color though on kind of the mix and what’s driving that. I mean it does sound like you’re expecting some sequential revenue lift in Q2. So, why would margins be roughly similar to Q1?
Nick Gangestad: Yes, we’re expecting dollar revenue to be very similar in Q2 to what it was in Q1 and a very similar margin. The mix of what we’re selling in Q1 to Q2, in Q1, we had more of it coming out of our backlog and less from current quarter book-and-bill. In Q2, that will be shifting — that mix will be shifting to more coming out of current quarter orders as we continue to bring that backlog down. On the margin front, many of the things that we saw in the first quarter, we’re going to be keeping investment spend very similar to what — in Q2 very similar to what it was in Q1. The year-on-year change of that will come down, but the sequential will be almost identical. And then mix will probably not be as — was a drain — was a negative to us in Q1.
And we expect mix to continue as a negative into Q2, both from a segment mix where we expect higher growth in — our highest growth in Lifecycle Services, but also within segments where we’re seeing more of our sales in Intelligent Devices coming from our configure-to-order business.
Jeff Sprague: Great. Thank you
Operator: Our next question comes from Andrew Obin from Bank of America. Please go ahead, your line is open.
Andrew Obin: Yes, good morning.
Blake Moret: Morning Andrew.
Andrew Obin: Just to follow-up, I guess, on Jeff’s question. If we go back to your Analyst Day, I think the message is that this is a transition year, and then revenue growth mean-reverts to plan next year, which means it’s going to accelerate very nicely. Can you just expand, how do you make sure that, over the next 18 months, Rockwell can actually deliver the volumes? Are there any structural changes that you’re making to your internal processes and supply chains to sort of ensure a smooth ramp-up?
Blake Moret: Yes, Andrew, there is. As I mentioned before, the first is to make sure that we have the fixed assets in place. We’ve been working on that for over a year, which allowed us to get to the $9 billion worth of shipments last year, which was a fairly healthy step-up from prior. And we’ve kept going to where, today, we feel like we have over $10.5 billion worth of capacity in terms of the assets. As you’ll recall, we’re a fairly asset-light manufacturing process. It’s assembly, it’s test fixtures, it’s surface mount machines and so on. And we’re making sure, not only in our organic business, but also with the acquisitions where we’re seeing such strong growth, that we’re making the investments to be able to fuel that growth.
Labor is the other area. We have adequate product labor in place currently. We are continuing to ramp up based on the growth in our engineered-to-order business and the share gains that we’re seeing there, the labor through the year in that. And in some cases, we’re holding labor in place to make sure that it’s there as we see that order ramp continue through the year. From a structural standpoint, we are working through ways to drive efficiency, to get scale throughout the organization. Some of this is standard lean concepts. But it’s also adding the things that we’ve learned about needing resilience in terms of redundancy across multiple plants, in some cases, redundant sources of supply to be able to reduce the dependence on single suppliers in single parts of the world.
So, we’re working all of those plays in operations as well as with the engineers. Andrew, going back to your first comment, we do expect to be exiting fiscal year 2024, as we go through this transition, with margins that are very encouraging, as Nick talked about, as well as volume that supports continued growth in 2025 and beyond.
Andrew Obin: Thank you. And just a follow-up question. We’ve been getting some incoming calls, just folks concerned about slowdown in packaging CapEx. I think there were specific headlines. Also mining, another area of concern, I know sort of discrete and process. But can you just comment about these two specific markets, maybe a little bit more granularity what you are seeing around the world? Thanks so much.
Blake Moret: Sure. So, for us, packaging is typically being incorporated as part of our vertical industries of food and beverage, consumer packaged goods. And we are seeing the machinery builders in those areas, in Life Sciences as well, I should mention, there’s packaging of medicine in Life Sciences, of course. And we are seeing those machine builders, similar to our distributors work, through inventory in their system. It’s in a similar kind of profile to what we’re seeing with our distributors, in that we expect over the coming few months, that works off and exposes what we continue to see from direct conversations with those customers, with those machine builders strong underlying demand. With respect to mining, we actually are seeing relative strength in mining in the areas that we focus on. Some of that is driven by materials for batteries. But in general, we do expect to see low single-digit growth in mining in the year.
Andrew Obin: Thanks so much.
Blake Moret: Thanks Andrew.
Operator: Our next question comes from Nigel Coe from Wolfe Research. Please go ahead, your line is open.
