David Tarantino: Okay. Great. And then could you maybe give some more color on what you’re seeing in terms of underlying demand in Europe, kind of with cracks becoming a little bit more evident? And maybe the line of sight you guys have on the destocking trends maybe on that. Could you give some color on the forward view, just given the extra days dynamic in the first quarter?
Bob Pagano: I think there’s just a lot of uncertainty in Europe right now with the wars going on right now. So I think new construction is halting a little bit or slowing significantly. We’re seeing that down double digits. Repair and replacement other than, let’s call it, the retrofit related to some of the heat pump initiatives there is where we’re seeing destocking in the channels. They were ordering a lot last year. And if you recall, Q1 and Q2 were very strong quarters for Europe, exceeding our expectations. And now we have some really tough comparison, in particular in Europe in Q1 and Q2. So destocking, we think is going to take at least through Q2. And then let’s see at that point in time. But in general, I would say inventories have some — need to go down, especially in that heat pump area. So we’re cautious on Europe as we always are and are taking appropriately cost actions as we analyze where that business is going.
Operator: [Operator Instructions] And your next question comes from the line of Joe Giordano with TD Cowen.
Michael Anastasiou: This is Michael on for Joe. You had mentioned in the slide that price realization was a bit higher than expected in the quarter. What was the price component specifically? And also just for the remaining part of the year, I believe the logic before was about low single-digit increase of inflation on the commodity front and also the same on the wage front. Is the calculus for the remainder of the year still the same?
Shashank Patel: So on the price front, we had assumed about a 1% price realization. We actually achieved about 1.5%, so about 50 basis points better than we thought, obviously on the back of lower inflation. And on the inflation side, on the people inflation, compensation inflation running at 3.5% to 4%, on the commodity inflation all up, all in, including the — I talked about commodities — commodity, especially copper price escalating. But overall commodity inflation is in the 2% to 3% range.
Michael Anastasiou: Great. That’s helpful. And just a follow-up, if I may. But so last quarter you mentioned like OEM destocking in Europe was about 1/3 of the business there. Can you just run through perhaps like the channel and inventory at OEMs from the different regions and just kind of expectations for the remainder of the year?
Bob Pagano: Yes. I would think, let’s start with the Americas. I think the channel inventory is in line with expectations. So I don’t — I think destocking is done pretty much for North America. So inventory levels are reasonable levels. Europe, as I said on the previous question that we just had, I think there’s continued destocking in the OEM channels, which exactly what you said is about 1/3 of our business there. ATMEA, I think it’s reasonable, very similar to the Americas. So really the issue is in Europe.
Operator: [Operator Instructions] And your next question comes from the line of Walt Liptak with Seaport Research.
Walter Liptak: I’ll try 1 on the M&A, with the revenue maybe a little bit better than expected in the first quarter. Can you help us with second quarter revenue so we can get that number closer to right? I mean, there should be some seasonal uptick, I would think. Do you have a view on where revenue could be for M&A in the second quarter?
Shashank Patel: Yes. So well, for the full year, between Radley and Josam, we’re talking about $210 million. And you’re right, in the second quarter it tends to be a little higher. So in that approximately $55 million, $57 million range approximately.
Walter Liptak: Okay. And then also wanted to ask about just the Americas region. And you sell lot through distribution, but can you differentiate as products go out to single-family versus multifamily? Or do you have a view on what the percentages are? And if there are any differences that you’re seeing in the trends for those markets?
Bob Pagano: Look, when you look at our business, 35% of our business is residential. Half of that single family, half of that is multifamily, we’ve seen basically flatness in the first quarter. We’re expecting flatness in the second quarter, and then we’re expecting multifamily to go down in the second half of the year, low single digits, maybe to mid-single digits. That’s kind of how we’re looking at it. And single family holding up flat for the rest of the year.
Shashank Patel: Hey, Walt, just a correction on the acquired sales second quarter, $64 million.
Walter Liptak: $64 million. Okay.
Shashank Patel: Yes.
Walter Liptak: Okay. And do you think that the — that your distribution channels already adjusted in the Americas for the multifamily outlook? I think it’s been kind of pretty well pronounced.
Bob Pagano: Yes, yes, I do believe they’ve adjusted.
Operator: [Operator Instructions] And with no further questions at this time, I would now like to turn the conference back to Mr. Bob Pagano for any additional or closing remarks.
Bob Pagano: Well, thank you for taking the time to join us today. We appreciate your continued interest in Watts, and we look forward to speaking with you again during our second quarter earnings call in early August. Have a good day, and stay safe.
Operator: And ladies and gentlemen, this concludes today’s call, and we thank you for your participation. You may now disconnect.
