SPXC
#Sure.
Let me take a crack at that.
I would say first of all, with the transformer team, I think the work that has been done there has been very, very impressive.
I think that team beat all of our expectations in terms of the pace of the implementation of the improvement initiatives.
So, where we sit today, transformers ---+ we are in a very strong competitive position, we're a leader in a medium-size power transformers with a very strong competitive position.
As we have improved that business to where this business is generating very nice returns in a very competitive environment, so we're talking 12% to 13% EBITDA returns where there is overcapacity in the market, we are now shifting gears towards growth.
And we do think there is some interesting opportunity there, and I think you have talked of a couple of them.
While we have a very strong market position in our medium-voltage power, we are a smaller and a newer player in the high-voltage power, and that's an area that we see some opportunities for growth.
I would say that one area we have to keep an eye on there is a lot of the competitors in that market are overseas, and the very strong dollar has been a little bit of a headwind there and has impacted some pricing pressure in that portion of the market.
As a reminder, that is a very small portion of our business.
That is maybe 10% to 12% of our overall revenue in that business.
But we actually do think it is a very nice opportunity for growth.
And then I think some of the other areas that you highlighted, we do have a very nice load tap changer which we think could help us on our OEM business, on our service business, and can even be an opportunity on component sales.
That is something that we are working with the business on.
We are also looking at service.
So, actually at this very moment, we have a growth strategy underway with the transformer business to really lay out the growth plan because really the first two years of the team has been focused on improvement.
Now the business is healthy, generating a lot of shareholder value.
We are shifting towards a lot more growth there.
So we think there is some nice opportunity there.
We do see a little bit of headwinds on foreign exchange rates on the EHB side, but we actually think that is a really good business, with a really strong market position, and we think there is some interesting growth opportunities.
I think that is something ---+ as we shift gears as a Company towards more reshaping the portfolio, towards growth, this is something we are going to talk about in more detail in a week in our investor day.
We will try to put a little more information in there as well.
Thank you.
Well, we don't get into the individual business growth rates.
As I said a little bit earlier, if you look at the run rate side of the business, put it more around a global GDP type of a growth rate, we are seeing good strong growth out of transportation and the remaining part of the communication technology that is more project oriented, that is where we are seeing the project delays, so flattish.
And, as a reminder, more of the run-rate business of that segment is about two-thirds of the overall segment.
We're seeing very steady growth there.
On the project side, which is always a little bit lumpier, we'll see some growth there driven more by transportation.
I think the way we were looking at where we are now we feel good about the Company and the composition of the Company.
As I said in my prepared remarks, we're going to focus all of our businesses on getting returns above our cost of capital.
And so as long as everyone is contributing above the cost of capital ---+ or in line of sight to being able to achieve that, then we will be stable.
And if not, we will look at other alternatives.
Thanks.
Thanks, Michelle, and thanks to all of you for joining us.
We hopefully look forward to seeing many of you at our investor day on March 6 in New York.
Thank you.
