Improving the innovation they can bring, but also how do you sit there and make sure how we’re making it more productive for the world.
Operator: Your next question is from the line of Colin Langan with Wells Fargo.
Colin Langan: To ask on the auto side, growth was 1%. I think the target is for — and I think the market is fairly flat in the quarter. The long-term target is 4% to 6% outperformance. Why the underperformance versus the target in the last couple of quarters?
Terrence Curtin: Twofold. We’re probably running about 3 points above production right now. I would say, Colin, in the second quarter, global auto production was negative. So there isn’t there. We always tell you, don’t look at an individual quarter. Next quarter, I think you’re going to see a very nice outperformance. And for the year, we expect to be in the 4% to 6% range. But on any quarter, you get into a lot of little things that some quarters will be above the range. Still feel good about the 4% to 6%.
Operator: Our next question is from the line of Christopher Glynn with Oppenheimer.
Christopher Glynn: Just wondering if you could talk about the kind of complexion and forward kind of drivers, touch on the mix of the commercial vehicle platform. I know you kind of said kind of similar levels for passenger vehicle would be appropriate way to think about next year. And we can see that, that makes sense. Commercial is a little more disparate and complex. So I wonder if you could elaborate a little bit on how you see that market unfolding as you work through some mixed markets this year.
Terrence Curtin: Yes. So to your point, I’m going to go down here a little bit on how we look about the commercial transportation because obviously, that market has 3 major drivers to it. Certainly, the on-road truck and bus, what’s happening in agriculture equipment and also construction equipment? They’re the 3 big levers. And when you think about that globally and production and our revenue, about half of our revenue is truck and bus, what we’re seeing on truck and bus right now is Americas and Europe weak, and actually, China and Asia is recovering. So they were weak last year. So what we’re actually seeing is very much a China positive market that we expect will continue certainly Western World down. And we even said in the call, we expect next quarter will be down a little bit sequentially due to some of these dynamics.
On the Agg and the construction side around the world, that is slow everywhere around the world. Certainly, you get into financing rates and things like that, that’s a little bit different. And we expect will run through this year. And we are thinking that early next year, we’ll get into a more constructive environment than we’re in right now. But right now, we think if you take all of them together, the global market is probably a minus 5% this year, plus or minus a little, and we would think that will get more constructive into $25 million.
Operator: Our next question is from the line of Matt Sheerin with Stifel.
Matt Sheerin: Thank you I had a question, Terence, on the energy markets within your industrial group. You’ve had strong growth there over the last few quarters, what it looks like it slowed in the March quarter, and you’re hearing of some pockets of weakness from other parts of the supply chain. What’s your outlook there, both near term and in terms of long-term position?
Terrence Curtin: Yes, sure. Thanks, Matt. And on energy, what I would say is we’re still very constructive on it. I think what you see in our results here is we continue to see the U.S. and Americas very strong. We also see global renewables where we play, and we do utility scale renewables. We do not do residential renewables. We see that strong. The one pocket where I say we see a little bit of softness is around the utilities in Europe. I do think that’s an element of the business that I talked about on my prepared comments that we’ve been a little bit of where I think utilities are bringing down inventory a little bit. But certainly, with the grid maintenance that everybody is investing in around the world, I think that will return to growth. So we’re still constructive on global energy and our business is very much Europe and the United States are the bigger elements of where we play.
Operator: Your next question is from the line of Shreyas Patil with Wolfe Research.
Shreyas Patil: As we look out past this year and you think about some of the growth drivers in electrification, AI renewables, you’ve also got typical recoveries in parts of communication and eventually industrial equipment. How do we think about the sustained organic growth for TE overall? In the past, you’ve talked about 4% to 6% organic growth over time. I’m just curious how to think about what the reasonable framework for the company should be at this point?
Terrence Curtin: I still think that’s the right way to think about it. Certainly, we’re going to have cycles you take a year like this year where we are more flattish than growing at the 4% to 6%, but there will be areas exactly around the point you made where you could have some destocking or type effects that may be a headwind on year that will come back and be above that in the future. But I do think the 4% to 6% is the right way to think about when we think about the portfolio that’s constructed.
