Brian Deck: Sure. And yes, so we, it was interesting quarter for sure. And I would say somewhat reversion to the mean. So we actually had, if you happen to recall, first quarter last year, we had really high aftermarket. It was at 56% of our revenue mix and relatively lower equipment. This quarter, we actually grew equipment by about 10% on the revenue line and declined about 8% on the aftermarket. But again, last year, if you recall, first quarter had a tremendous amount of aftermarket and specifically refurbishments as customers start to sweating the assets more than they otherwise would. So at 52% mix, we’re basically back to the mean and actually 52% is quite a strong number for us. But I do generally expect the growth rates for the rest of the year.
Actually, I expect equipment to slightly outpace aftermarket for the rest of the year, again as the recovery and delivery of the backlog. So but generally speaking, aftermarket remains probably our best kind of resource, if you will, as stability within our financial statements. So I feel super good about it. And if we hover in this 50% range. We’re really well set.
Operator: And we have Walter Liptak again on the queue.
Walter Liptak: Okay, great. Thanks guys. So maybe, Matt, one for you. What’s the cadence on the cost savings in the second quarter and for the second half, is it pretty evenly split? How should we think about that?
Matthew Meister: Well, we would — we will hit the run rate of $18 million in savings by the end of Q2. So I would expect there to be a little bit more that that filters into Q3. But for the majority of the savings that we expect to achieve from our restructuring program. That would pretty much play out by the end of Q2.
Walter Liptak: Okay. All right. Great color.
Brian Deck: And just to give a little more color on that. Sorry, Wal. I’ll just give you a little more color on it. If generally speaking, if you look at our margins, I would say, given the restructuring given the supply chain activity, we expect margins to increase sequentially every quarter in 2024 and every quarter will be better than 2023 from a margin perspective.
Walter Liptak: Okay, great. Okay. Thanks for that color, Brian. And if I could try one on the Marel synergies, thanks for all the info on the cost related synergies. Is there and I realize you’re not putting any numbers on the sales synergies, but could you provide any idea of like how you will or may provide us with future guidance? Is it going to be as a percentage of revenue growth or even to be able to put a dollar amount on sales synergies, is your plans for synergies come through to fruition?
Brian Deck: Yes, more likely we would not say we would give you a target dollar amount, but we may convert that to basis points. We’ll see. We’re working on it pretty intensely as we speak. But just in terms of the synergy potential itself, there’s three or four buckets, and I would say certainly the biggest opportunity is really this better value proposition of full line solutions to the customer and pull through of equipment that we can leverage one another’s portfolio. And just to give you a couple of examples, right, the JBT is really well known for waterjet portioning, right? And certainly, we believe we’re the leaders in the market. We feel that given real strength on the primary side and into the secondary side, there could certainly be some pull through that wouldn’t otherwise exist or the customers would have to figure out a solution on their own.
So from a from an engineering perspective, from a value perspective, pulling that full line solution makes it really helpful. Similarly on the kind of opposite on the FP side, the further processing side, Marel is particularly strong in forming where we have some exposure in some products, but they’re the leaders, right. So but we’re overall very strong in the FP side, but that’s just a hole in our portfolio. So we would expect to be able to pull through thing there. So those are just a couple of examples on the product side, also, I’d say on the service side. And this is what we hear from our customers. They really want to see improved service. And you think about the tremendous opportunity of bringing our very large service capabilities combined with there’s large service capabilities throughout the globe, right in every continent, bringing those two organizations together to help our customers with their uptime with their efficiency and just helping overall making them a better company.
We think that’s a tremendous opportunity. So those two are the largest. We’ll give more color on some of the other buckets as we get into the joint shareholder call here once we do the offer by, we feel very good about opportunities on the commercial side.
Operator: That concludes our Q&A session. I will turn the call over to Mr. Brian Deck for closing remarks.
Brian Deck: Thank you all for joining us this morning. As always, Patrick and Marley will be available, if you have any follow-up questions.
Operator: This concludes today’s conference call. You may now disconnect.
