Oddone Incisa: And I’m sorry if I wasn’t clear. I was talking cost, so price over cost, in general. And cost includes raw material, but in general, cost, so all of our production cost.
David Raso: But so — so, price-cost expected to be positive for the year to margin?
Oddone Incisa: Yes.
David Raso: Neutral to margin?
Oddone Incisa: Yes.
David Raso: Positive margin?
Oddone Incisa: Positive —
David Raso: So, if volume is up a little bit and price costs should be net positive to margin. I assume we can infer from that gross margins are expected to expand?
Oddone Incisa: Yes.
David Raso: As well as SG&A grow slower than sales growth with — at least that was in the guide. That correct?
Scott Wine: That is exactly correct.
Oddone Incisa: What we’re looking at.
David Raso: All right, thank you so much. And I appreciate the detail on delisting. Thank you.
Operator: And our next question comes from Jamie Cook from Credit Suisse. Please go ahead.
Jamie Cook: Hi, good morning. Nice quarter. I guess just two questions. Scott, given the performance that you’ve put up — the positive financial performance you’ve put up, can you talk about how you’re thinking about the AG cycle, and the implications for your 2024 financial target, whether you think there’s upside there? And then, I guess, my second question, just an update on Raven and where we are relative to your synergy targets? Thank you.
Scott Wine: Okay. Well, first of all, if you go back a year, to Capital Markets Day, we’re obviously much — 2022 played out significantly better than we expected. And unfortunately some of that driven by soft commodity prices impacted by the war in Ukraine, which we couldn’t have anticipated. But overall, ’22, and then as we look at ’23, are both better than we had anticipated from that. But that’s really market related, not our — our performance is actually doing quite well. As we look at our 2024 targets, we obviously feel like we’re on a path to do better in some areas, but we’ve got work to do in some areas. So, we feel like, generally speaking, we set ambitious targets, and we’re on path to hit those. But we are — I don’t want to be a pessimist, but I just think ’24 could be a — we talked about, it could be a more difficult year.
The AG cycle though, as I talked about in my prepared remarks, soft commodity prices are still at relatively good levels. And it looks like that could hold. And farmer income is still at elevated levels. And their — their reluctance to pay taxes, and therefore their desire to by equipment still makes a good setup for the AG cycle. It won’t stay positive forever, but we feel like, right now, we’re not about to call that starting to turn negative in ’23. As far as Raven concern, I’m honestly not sure I could be more positive on how well that integration has gone. We committed to a reverse integration because we like the team and we like the culture. And our team has embraced that. We are learning from their agile customer-focused system, and we’re building on that, giving them the tools and resources.
