DCI
#Happy Thanksgiving to you too, Rick.
This is <UNK>.
The reason that we make that comment is because we only saw that slowdown in the US.
And specifically, it was not across the balance of the comprehensive model geographically.
We don't see it in Europe, and as we continue to execute here in the US, we're pretty pleased right now with the pace that we're seeing that business continue.
<UNK>, this is <UNK>.
Actually, I'll just give you the split here because the gas turbine portion of the charges right now are in our corporate and allocated and have not been allocated to the businesses.
So that's not within the business, but then of the remaining $7.5 million, about $5 million is engine and about $2.5 million is industrial.
As far as the first fit wins.
Is that what you mean, <UNK>.
It is.
Our liquid growth has outpaced our air growth.
Our liquid growth ---+ coming into this fiscal year for example, we were roughly ahead by one year in our strategic plan based upon the liquid wins that we've had across the Company.
When we win something, <UNK>, especially on the first fit proprietary, typically what happens is it will be two years to three years before that product on that new customer platform starts to hit that end market.
Then, of course, we're building that presence and therefore the aftermarket opportunity, and it grows over time.
It's the reason why ---+ one of the reasons why we continue to talk about PowerCore because it shows the power of the model of what we're representing by having those first fit proprietary wins.
That PowerCore model is essentially what the balance of our proprietary first fit wins follows.
The softening that we see in construction is really, we're talking about from a global perspective.
We saw additional softening in some geographies like China.
We clearly see it hard in Brazil right now.
When we roll it up comprehensively, it's not necessarily driven for us by an end market in our comments to you on why we've reduced that outlook.
It's more a geographic rolling up to a consolidated number at the Company level.
Maybe the one thing I will add to that is our business is heavily weighted toward the non-res versus res, just given the type of equipment we're on.
You, too.
What we have, <UNK>, what we've baked into our guidance is we have, in the US, more of a positive tone in the first half of our year.
And then as we get into the calendar year 2016 or the second half of our fiscal year, we have a more muted outlook.
We know that in the US first rate truck builds, there is a decline in the future and we've tried to take a more cautious approach in the second half of our fiscal year and bake that in for the US market.
The obsolescence portion, I will take that first, on a particular end market is of course very different from ag to construction to mining on how that works and even different into the on-road, of course.
So we look at that as it will ---+ the reason why we put a 10-year benchmark is because we say the product life is about 10 years and we just take that line in the sand across all those markets.
We look to continue to populate that external aftermarket across that time frame and that's how we measure it.
As far as the growth rate and a ramp up, we don't talk about specifically how that calculates out just simply because, especially in these difficult times, production rates really are a bit more difficult to predict.
So the models that we have ---+ we haven't taken and broken that down and then put that directly into the guidance over the next 10 years.
We do have comfort though that we have enough backlog and enough products, new wins in the hopper, as well as what we're working on to support our expectations for growth in the Company.
With regards to that plant in particular, we factor that into the roughly $12 million that I mentioned.
That savings is already assumed in there.
In terms of euro exposure overall, about 20% of our business is euro-denominated.
So it's not just a euro; a lot of the basket of currencies really has an impact overall, but the euro being the biggest one is why we call that out.
But with regards to the Poland facility in particular, that's already factored into the remarks I made.
Happy Thanksgiving to you too, <UNK>.
That concludes today's call.
I want to thank everyone for their time and interest in Donaldson.
I also want to thank our employees for what they do every day to support our customers.
I sincerely appreciate the tremendous amount of work and resilience they have shown during these uncertain times.
Goodbye.
