PH
#Okay, <UNK>
You are going to get more than you asked for here
But I think first, just following up on <UNK>, I think what’s encouraging is the organic growth moved largely in the direction we thought from the last call
And many of our markets are showing positive momentum towards year-over-year growth as I go around the world, and I shared that with you
Just on North American distribution, I would say, in general, the mood of our major distributors is fairly positive and this is after a solid order entry during the quarter
And that trend has continued in January, which has led us to the guidance that is reflected here today
I think what’s also encouraging is I checked many of our largest distributors have reported increase in their backlog, so again, bodes well
If I talk about oil and gas on the industrial side, land-based oil and gas is showing increasing signs of growth, which is real positive
There has been obviously and you track this too, an increase in rig counts, which has led to an increase in MRO and some first bid activity
And we are seeing very small signs of recovery with offshore drilling contractors
We do expect the offshore to lag behind the land-based, but there is activity taking place there
I think the best way to sum it up, too, I was talking to one of our key partners in oil and gas, and he said, <UNK>, 60, 90 days ago, I would have said we see sparks, and today I am starting to see smoke
And so there is just things happening out there, which are positive
Just talking about energy markets overall, the market for large frame turbines, was flat in Q2. Our overall business was slightly up due to some market content wins
And we do continue to see positive year-over-year growth in alternative energy such as wind turbines and Parker is benefiting mostly from significant content and customers trying to take advantage of some of the federal tax credit programs that still exist
Residential air-conditioning and refrigeration, <UNK> talked about, we continue to see strong year-over-year growth in commercial and residential air-conditioning and we expect that to continue going forward
On the mobile markets in North America, most key customers are still showing year-over-year decline in Q2. This includes off-highway construction, farm and ag equipment material handling
But we are getting many positive inputs and preparedness requests from many of our key OEM partners
So I think that bodes well going forward
So I would call that segment
It appears that we have really formed the bottom with some upside
Just turning to EMEA and I will be brief here
On distribution, it’s still slightly negative year-over-year
However, the distribution order entry is beginning to show signs of strengthening
The order entry rates definitely improved during the quarter on a year-over-year comparison
Oil and gas is probably the biggest impact still in Europe, but it’s flattened out and we definitely see signs of strength in distribution that focuses on core industrial end markets
So, that’s positive
Just in general, industrial, I would just say positive markets like North America, we have seen a real uptick in mining and related equipment
This would be hard rock mining for iron ore, etcetera and then semiconductor and telecom are very – both very strong
Oil and gas, I talked about, still very low year-over-year, but we – it does appear the bottom has formed with the activity taking place in the North Sea
And then in the mobile markets, we do see an increased activity in forestry and off-highway construction equipment markets
In Asia Pacific, I would say it’s a very positive story and it’s really continued from the story we told last quarter
So in distribution, we are very encouraged by our focus and progress on distribution
The order entry was a positive and we continue to add new distribution outlets
In the industrial markets, almost all industrial markets are positive year-over-year and order entry continues to be strong
Strongest markets include machine tools, mining again, semiconductor is very strong, life sciences and medical equipment
And then in the mobile equipment markets, that’s probably perhaps the strongest sequential and year-over-year growth and order entry came from those markets
And those strong end markets include off-highway construction equipment engines, cars and light trucks
And then just lastly, I will touch on Latin America
We continue to be encouraged by Q2 order entry
As you know, Brazil still has its share of issues, but there are some positive things taking place in Ag, construction equipment and then distribution, all obviously from a very low base
So bottom line, organic growth continues to move in a direction we talked about
And I think we are all encouraged by what we see in many of our end markets and regions right now
<UNK>, it’s <UNK>
First, from a cost price standpoint, we are still slightly positive on price
So it’s something, if you followed us long enough, we try to really stay ahead of that
It’s not a pricing environment we have seen in the past, but we are still slightly positive
And I would say, on the organic growth guide, we are just trying to be as realistic as possible
I mean, it’s early days right now
So, we have kind of done this bottoms-up and with our regions and some of our key customers and that’s what we are trying reflect here
Where we have got heavy content, usually, we have contracts in place with our end customers where the pricing is adjusted because of the raw material increase and it’s not a big portion of our business
But I think we all feel pretty comfortable about what we do internally to manage that
Yes, <UNK>, you are going to have to remind me on the distribution question again
But on the preparedness question, so just dealing with some of our customers that have been suppressed for some time, we are starting to have conversations with us now looking forward
And it’s mostly towards 2018 to be candid with you, just about being prepared because they do have an anticipation, there is going to be some growth here
So it seems to be – you will walk away with the sense that things have kind of plateaued, hit a bottom, and let’s just talk about what’s going to be happening going forward
Fairly broad
No, I would not characterize the channel as inventory heavy at all
And you know some of them that were tied to oil and gas did get stuck with some inventory
I would say, by and large, that’s not 100% gone, but it’s burned off quite a bit
So I don’t consider the channel heavy at all
Thanks, <UNK>
