Giordano Albertazzi: We are talking about an environment going forward where the price cost is up. And we believe in an environment in which price remains positive, as I explained. That necessarily translates in the same equation being true for orders. Otherwise, that would be a short-lived statement.
Steve Tusa : But I guess, is there any time this year that you’d expect price declines in orders year-over-year?
Giordano Albertazzi: We do not expect that.
Steve Tusa : Great. Thank you very much.
Giordano Albertazzi: Steve, thank you.
Operator: Thank you. We have the next question from Nigel Coe, a follow-up, of Wolfe Research. You may proceed.
Nigel Coe: Oh, thanks for the second part of the cherry here. So yeah, my question is actually partially addressed by Jeff about the 45x increase in capacity on the CoolTera CDUs. But any kind of conservative read of your current capabilities would suggest you’re planning for a billion-dollar-plus kind of revenue line here in 2025. Just wondering if that’s completely off base. But just more broadly on capacity, it seems to me that adding second shifts would be a big meaningful increase in your capacity capability. So just curious what we’re seeing and what you’re doing along the second shifts across your footprint?
Giordano Albertazzi: Sure, let me start. I’m not sure I fully heard you very well on the first part of the question. But when it comes to capacity, it’s never adding a second shift or not. When I say adding more shifts in general, adding more capacity, utilization of the asset, so think about our capacity increase as exactly a combination of more, net-net more square feet, square meters, more utilization, investment going up. And you have seen our CapEx projections go up year-on-year. And there is a utilize — at VOS, Vertical Operating System productivity, certainly plays a big role. And there is an ability to utilize more the capacity that at any given instant we have available. And this is not different from what we shared already in October and indeed at Investor Day. So there is flexibility in that respect and flexibility we are using. But the first part I couldn’t capture very well. So real quick, as we are at time.
Giordano Albertazzi: Can you ask again?
Nigel Coe: Yeah, look, Slide 12, the 45x increase. It seems like a billion dollars plus of capacity is what you’re pointing to here, but just wondering if there’s any more details on that?
Giordano Albertazzi: So I think we are reading too much into that. Read it like the industry has a growth rate in direct-to-chip. We want to make sure that we provide capacity over and above that growth rate. So that whatever the industry needs, we’ll be able to cover that.
Nigel Coe: Okay, thank you.
Operator: Thank you. This does conclude our question-and-answer session. I would like to turn the conference back over to Giordano Albertazzi for any closing remarks.
Giordano Albertazzi: Well, thank you. Thank you very much. And thanks everyone for your questions and looking forward to more interaction in the next few days. I want to thank the Vertiv team globally, hard work in 2023, and we have executed well. As we mentioned a few times in the recent past and continue to do, we are shifting our culture towards a high-performance culture. It doesn’t happen overnight, but it’s certainly happening at Vertiv. Gradually, a lot more to do but we’re heading in the right direction. We’ve started to develop the right sense of urgency across the organization, and you can see that. As I like to say, I’m pleased, but absolutely never satisfied. Good year 2023 and looking forward for a stronger year yet in 2024, a lot of potential, very excited. Thanks everyone for joining us, and we’ll speak soon.
Operator: Thank you. The conference has now concluded. Thank you all again for attending today’s presentation. You may now disconnect. .
