Unidentified Analyst: Good morning, guys. And thanks for taking my questions.
Eric Sills: Thanks, Scott.
Unidentified Analyst: I think you guys alluded to it a little bit, but maybe you could give a little more granular detail of the guidance of low singles for ’23 by the three new reporting segments. Engineered Solutions sounds like that will probably lead the way. Maybe just give a little me detail on that?
Eric Sills: Well, we are providing it as one single corporate growth number and not looking to break it out into the different segments, partly because it’s early in the year, and there’s a lot of moving pieces, as mentioned in my prepared remarks and as you’re alluding to, we believe that Engineered Solutions and long-term growth potential that can exceed that of the aftermarket simply because we’re dealing with a business that is much more diverse globally, so a lot more end markets to find growth in, and we’re starting with a relatively small base. So it’s really more about new business wins than just growing with the market. But that could take time, Scott. And it can be lumpy as wins come on as from things fall of. And so we’re not giving specific guidance by segment, but we’re comfortable that all combined, we’re going to be in that low single-digit range that we’re speaking to.
Unidentified Analyst: Got it. And then on Temperature Control, you guys called out some gains in winter-related products. First time, I guess, I’m really hearing some talk about that. Maybe just go into a little more detail there and how big of this segment is winter-related products?
Eric Sills: So it’s still a relatively small part of what Temperature Control is €“ Temp Control. It’s largely about air conditioning and therefore, in summer seasons. There are winter categories related to the heaters of course, being one of the larger blower motor. And so we are – I can’t get into details of the specific customer wins, but we’ve been having some nice growth in that area. Again, not enough to dramatically move the needle. It’s still largely a summer business.
Unidentified Analyst: Got it. And then last question before I jump back in the queue, talking about some of the price increases that have gone through to cover notably the factoring costs. I think you said an additional $45 million to $50 million this year coming up. Maybe talk about your expectations to fully cover these costs? And what can be covered? How much of that $45 million to $50 million will be offset by cost cuts or efficiency improvements?
Eric Sills: Well, Nathan can get in some details in a minute, but a lot of that is really run rate differences versus previous year. And so some of it has already been accommodated and discussions with customers are always ongoing. So now a lot really depends on the further movement from the Fed and the fact that has. But a lot of these increases have already taken place.
Nathan Iles: Right. And Scott, I would just point out the range of $45 million to $50 million wasn’t additional. That’s what we think the cost will be in 2023, given where the Fed is right now on interest rates.
Unidentified Analyst: Okay. And what was the number for ’22, so we could just get an incremental?
Nathan Iles: Yes. The number for 2022 was about $32 million.
Unidentified Analyst: That makes sense. That helps. All right. Thank you, guys.
