RBC
#I would say the big change for us was the further step-down in oil and gas demand.
That was ---+ it dropped further than we had thought as we went into the quarter.
That was probably the single biggest change, power gen being right there with it.
So my first comment on that would be, from my experience in selling in this space, is that it's probably too soon to call the heating season.
Usually, I start thinking about it when we get to Memorial Day.
The cooling ---+ I'm sorry, the cooling season.
So ---+ but we're seeing ---+ in the climate space, we're seeing normal sequential build that we ---+ seasonal build we'd see at this time of the year.
That's doing what we would normally see it do, in terms of our sales.
So we'll see an improvement in our revenues, as a result of the seasonal build.
In the commercial and industrial, ex oil and gas and ex power gen, I'd say the order rates have stabilized.
So ---+ and we do expect to see, as we enter into the back half of the year, a slight improvement as a result of destocking.
<UNK> mentioned that there would ---+ from the programs that we're executing on right now, there was going to be a roughly $13 million benefit on an annual basis.
And we believe that will start to kick in the second half of the year.
So <UNK>, our business sells into natural gas water heaters.
We do not sell into the electric gas water heater space.
So if I'm not mistaken, I believe the natural gas water heater business in the first quarter was down in the mid-single-digits number.
So we were affected by the decline in the demand.
So we sell primarily into infrastructure and industrial type markets in China, and so that business was down for us.
And I'd say, again, it had been down in the past.
So when we sized our total industrial exposure between the US and China, I think we sized it at $40 million across the Company.
And certainly, China was a sizable chunk of that.
Yes, I would say it's the same scenario.
We have customers, with their revenues are down rather substantially, so they're adjusting their inventories, as well.
This is <UNK>.
Yes, it certainly had somewhat of an impact, as it usually does in the first quarter, with lower production.
But we have all of that baked into our guidance.
The slowing of production, as we work down inventory, is somewhat offset, too, by the benefits of our simplification projects and our cost savings projects.
But all of that is in our guidance for the year.
I'll give you all the data by segment here in a second.
But I would say that we did ---+ when you take into consideration everything we mentioned relative to oil and gas, and excluding the oil and gas, you can see that we offset a substantial amount of decremental through the existing simplification programs and if ---+ so there was certainly some positive news there, relative to our execution and our ability to offset those decrementals.
So if you think about the climate business, you ought to think about 25% to 30% decrementals.
If you think about the C&I business, you ought to think about 30% to 35% decrementals.
And if you think about PTS, you ought to think about 35% to 40% decrementals.
