nVent Electric (NVT) 31 Jan 192018 Q4 Earnings call transcript

Good morning. My name is Amy, and I will be your conference operator today. At this time I would like to welcome everyone to the nVent, Q4 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers remarks there will be a question-and-answer session. Instructions]. [Operator like conference now to turn to would over the Mr. I J.C. Weigelt. ahead. go Please

you fourth earnings nVent's welcome and Thank to XXXX quarter and full year call.

our Vice as Financial Wozniak, on and our quarter you I'm year Executive provide Officer; first and glad details join McMahan, Chief well today’s me President our full XXXX call Stacy Weigelt, will Chief with Beth are quarter Relations, On full of year our are We today as fourth and performance, Investor Officer. could and J.C. outlook. us. we

nVent's me Before we are Exchange and you begin, future as press made statements filings about subject Commission. and outlined statements company's let risks results with remind financial the risks that uncertainties, such today's the any Securities anticipated and to the in forward-looking release

statements anticipated Today's Actual made here no events to and the of update the reflect which presentation and found reconciled could Beth. can are such results website. accompanied are I differ to or obligation after nVent’s References today Investors results. for presentation. subsequent prepared company statements webcast from to is undertakes publicly by a circumstances. included Forward-Looking of turn to have as section financials questions our remarks, the of will time the non-GAAP We'll call appendix in over in the now materially be

sales of above three organically, cash XXXX growth of and guidance. and the highlighted for grew year over was thank slide XXXX X% you quarter generation. on quarter us. was Segment This and top of joining thoughts Thank full we and by growth. morning walk organic C. million you income Good robust grew fourth fourth X% guidance. J. end will $XXX through sales outline the The our earnings presentation, morning which Beginning accelerating of on performance our

to basis adjusted $X.XX. return For XX the expanded sales XX.X% quarter, points and on was EPS

we introduction and continue enclosures on $XXX approximately free up on plan our million, X% year to managed income Reflecting of growth. point approximately sales of X% quarter to standing strong was which over highly some the in guidance expansion corporate XX Segment growth, last the execute generating drive back over was At tariffs met profile delivering million improving as Enclosures margin by driven headwinds grew of our year shares. we million. flow versus basis such a organic quarter above high free of up almost the environment. sales strong of margin. a on X% our in return we the Our cash of in the the of or $XX XXXX, nVent, inflationary and Sales $XXX to the through X% and of excluding organically, year as costs. unforeseen $X.X end million up cash billion full was $XXX half X% repurchased the organic We flow of objective time, same other during generated for and

of year, below sales margin of we Adjusted fourth XX and productivity. expansion, exited and was repurchases. and to expense all our interest were corporate in range within guidance million rate In guidance. through dividends line expenses, our shareholders updated tax as XXXX with approximately net returned $XXX the with on full-year While points XX.X% contributions return quarter price slightly basis prior of growth, reflecting from was $X.XX we EPS

first Thermal in eight Management nVent. City, to while a our provide location Turning as about detailed in slide at Institutional I great can our Analyst months Investor four update February during our titled I say nVent’s Redwood and Day intend more to strides California, strategy, we strategy XX made our

growth, global channel. approach having market customers and to around key products a is and verticals, strategy Our new back

quarter sequential are accelerated one growth during year. sales strategies working each point as Our the

increase place verticals key win, as connect dedicated In commercial product to on and Turning such our protect. opportunity growth entire these XXXX put sales. verticals with to portfolio digit XXXX. saw incentives across teams and the and mid-teens and mission with is portfolio our succeed networking verticals these we in they data we manage we a on teams transit sell delivered to to These teams to did in based and rail solutions, large, and as five, winning our growing have to and commercial sales focus slide are

in connected us in across sales such our the results products we to In this all the and offerings such With February more growth and In within are areas and single focus, rates. right through above seismic Initiatives in like we and of can win. Elexant confident fasteners, you that these addition, a built year our stages globally. we XX. Enterprise digits these, on forward including to I'm broader strategy, early we high that grow positioning grew our walking look total, as solutions, detail three industry we to organic where launching longer-term differentiated sustain I new segments, as controllers, focused are new are

and focus during growth sales offset organically. of $XXX and were income X% off the or Turning Segment other of excluding million corporate able quarter. X% $XX grew six, to paying our over to is inflation grew costs, about as million on slide productivity X% quarter as price fourth

organic on translate flow was Cash it quarter are not million flow the and progress during the are operating of did better $XXX free we in quarter. our are we into happy growth, disappointed XXXX. seasonally strong improve to fourth working about with cash leverage generated this we While in and

ahead and organic sales X%, as these slide excludes a costs, grew about other year to and spin. adjusted the for were segment allocated portion of of costs Turning the year grew corporate which income at X% full seven,

repurchases. shows and share $XXX and million $XXX As you to first flow eight million our months through shareholders We our XXXX. of flow, in returned look at which generated slide we approximately free cash sheet eight in dividends cash balance approximately

target some cash digital investment. expect cash for flow accounts usage expansion income, cash capacity remind quarter, with everyone the is XX% adjusted generation followed stronger as to first seasonality of year in important progresses. to cash our and we the XXXX of free of net a XXX% It conversion by which flow the about of free For to

Now and to performance. slides fourth the XX full year continued This a digit across nine organically please fourth grew for and X% our organically with XXXX. enclosures, of broad segment X% single for discussion full quarter and verticals be and year Starting turn with segment based about and to for high this geographies. in a sales quarter the row marks it organic growth fifth quarter

above up XX% in on enabled Segment fourth XXXX. was the pricing approach nVent One verticals quarter, key productivity. income in and Our focus industry by the growth, to driven us grow and

into and a on driver in and with margin, which during chain during of of supply drive growing sales covered continue sales expansion to Enclosures on investments year. Turning the expect quarter, improvements pricing. Heading quarter stabilized material off. to the inflation. half as $XXX encouraged supply X%. second began also by Productivity return we XXXX the We we Price sales to more to was fourth expansion expanded to were Thermal operations points chain year-over-year. growth pay than basis organic trend right return contributed Enclosures margin continued end-to-end direction XX the improvements Management million strong within margin to through sales, the

in continued business. modestly. perform to down quarter outlook and industrial longer business well. energy and digits optimistic for cycle MRO while cycle low the backlog during were longer commercial year-over-year, the was remain fourth remained up Orders We Our the energy double up

delivered businesses which on versus quarter $XXX commercial sales XXXX, XXX up points were points, XXX full ended our year the XXXX, within expecting on guidance year. return XX.X%, In our XX.X%, guidance. on basis at the higher sales our to flat return sales for during this year industrial of basis were million A of return which and range. business down were the margin was and year-over-year. drivers quarter relatively in during We expansion was main sales drop line with the positive mix updated For in a approximately MRO the fourth

growing an both sales and marking this $XXX Sales our basis, higher X% fastest X% by with to on organic throughout year the volume EFS; million sales year. price. fourth approximately Now trended quarter on or driven quarter increased of

a XX.X% XXXX sales were sales return above way approximately year; the basis approximately an however, was Full of basis is a on challenges. to marked contribution return start to an X% productivity from enough on continued contracted and our by fourth year expand guidance of labor of basis. guidance productivity original This we on highest opportunity price X% price XX We and quarter was year, relative we to In provided XXXX demand. not decline which on We approximately with X% than tight in the This as return view XXXX. offset sales points million our to to XX.X%, challenged it This for inflation. year organic points. $XXX full offsetting this flat growth year-over-year was For was grew the for lower sales. XX slow service of the inefficiencies margins market and a year.

like topic of move on to which would tariff, the I Now, to we the calls. few past have discussed

include few it be of to the to thought moves lower it We expected $X keeps to in situation X repeat XXXX. tariff impact escalation be from evolving relates have there would direct past the the commentary the to toward while This As impact full October, $X the XX%, know Lift executing the the to developments we you as spoke range. delay been and million. does our the I XXXX in XX% million Lift X helpful in in impact since see end

the Stacy, our in prepared and the had remarks we call for I turn about concludes reference, quarter ahead. For and year full now fourth This prepared during our will talking our XXXX. over about outline tariff XXXX first please priorities our year direct full go to on quarter XXXX. will conclude then $X XXXX. expenses to I outlook. remarks Stacy million

Please Thank turn XXXX Beth everyone. nVent good Full to you Year morning slide XX Outlook. and titled

nVent organic following We strong growth to a sales year. to for full year expect X% X% be growth

we growth X%. segments, we organic to three year expect success expected verticals segment sales vertical. Key the sales now to a our to in solutions, quarter more continues as in with the X of each points full negative of growth towards on a in new half X will grow expect X% we and of headwind X sales. our drivers full currency launches centers of expect beginning this roughly first organic expect negative XXXX to we is year to grow We be and Enclosures. skewed industrial data to and sale. modeling continue product increased impact points through our Within currency the are networking This I are within walk year first to

XXXX. in X% anticipate to thermal we organic sales this by to management, growing Turning business X%

While uncertainty and commercial some MRO. there projects business Key cycle expect this and business, year. product new industrial low management introductions expect to energy to the growth larger the and timing growth be this of of in longer growth we accelerate is part key to the are contributors within verticals expected thermal the and in to mid-single

to contributions the we as For strategy well grow and One the verticals industrial expect our X% launches across EFS, to and as nVent organic from sales portfolio. with commercial X% within product new

Now review I guidance margin. our like overall for to segment would

more this first negative expect again We strong XX the in basis the account to XX points year. to leverage. a XX sales points, into currency of price return This year the of volume takes from realization weighted expand and XX through to range half productivity, which on is towards impact basis

half increased due due and weighted guidance of as from to this year expansion tariffs, is sales impacted toward items the higher Our return XXXX. an Again, to factors impact of also freight such in labor. how pressure first inflationary most for material the on inflation

Looking digital to enterprise at out million income the build capabilities. corporate than middle expect statement, the in we XXXX of be higher as the we $XX expenses our

than We expect above $XX current our that year be rate. million, of to expense were as which in approximately the run interest our XXXX is lower base million XXXX, allocations $XX net included

tax rate effective XX%. XXXX for assumption current is Our

on our are that following closely pressure rate. in cause regulations tax tax proposed could December issued We upward

proposed year. proposals impact These to deductibility the July during of expect tax this the regulations or to interest. of We be the that June finalized benefit would related

outcome offset strategies variety ultimate proposed potential and the known regulations. Given the this at reviewing to these are not simultaneously time these nature regulations, a specifically that are proposed impact the of still from we is

of compared expected approximately adjusted currency to is year diluted is $X.XX. growth $X.XX approximately million to basis, shares. headwind EPS represents a of On to when would a EPS X% to which $X.XX, of Our constant the guidance be to EPS forma the currency This adjusted in as XXXX. reflect growth for XXX shares X% X% pro guidance XX% $X.XX assumes

share company change on to versus opportunities this shares in allocation retiring on may own for own M&A continue our capital on bolt bolt will and and price. evaluate M&A We based our

XX Outlook. First to Turning titled slide Quarter nVent XXXX

at expect grow to X% Looking we quarter, the sales approximately organic to first X%.

continued EFS. and thermal in We management sales acceleration along expect Enclosures in solid growth with

guidance well adjusted comparative the per between from Our Recall the as is $X.XX had the headwind through for as quarter quarter also and EPS currency. our year-over-year over includes you prior share, a priorities. to to walk now first expense. net interest in inflation which impact will $X.XX year from higher Beth a turn allocated back I XXXX call $X.XX

slide I XX, begin will Stacey. XXXX you on Thank titled Priorities.

as our with priorities As year we you meet I XXXX goals. well goals, our strategic want our share top as five to enter XXXX, to

on with a organic strategy. growth About a our Our growth. we first focus you ago remains shared year priority

of on with have sales have X% realized organic results the We strategy executed growing early in positive that approximately and XXXX. phases

to look we to key initiatives, we XXXX vertical some launch products. and our at drive continue As nVent expect One new exciting growth accelerate

this We solid another to outperforms growth organic year that year be GDP. of expect

In year this productivity in Productivity margin to and market freight. labor saw was XXXX. inflation drive priority to price XXXX We expansion. in materials is and significant challenge tight a plan inflation. offset second we a Our and

the logistics capacity, to margin increasing deliver and supply improving and of basis our and XX points headwind. an to expected are driving end expansion chain We to efficiencies distribution end XX currency offset

third capital allocation. Our priority is

add million regarding I to see shareholders XX% cash have of minimum. line specifics while earnings. our sales. at our in however, that flow assets we to these number and a $XXX being We in could between form to top into accretive the dividends of to free M&A not repurchases return assets of will share a to $XX pipeline; anywhere get attractive million On expect

let on slide give allocation. an to XX, me update Turning capital

$XX we fourth made We free X% shares XXXX. the are business to pleased progress a trade quality cash disclose are million this, the about by of repurchased underlying our that our encouraged flow of love approximately We in we we and the in shares yield. quarter. Despite

we use value. we was increase of to the and fourth attractive such, shareholders shares in retiring use cash quarter look an our continue felt significant will free shareholder flow our As to prudently capital to

ways balance we million as balance us strong capacity sheet, revolver, to along $XXX capital. deploy with Our gives optionality the and sheet look at

X%. expect are sales organic grow and about to excited to to grow We where X% we EPS X% XXXX, adjusted approximately X% to

Our effective create priorities margin that, and to deliver shareholders. now XXXX to for to are growth, will for start over to operator call the allocation the value expansion Q&A. turn capital With organic I

Goldman comes of [Operator first Your line Joe today Sachs. the question Ritchie from Instructions] of

Your line is open.

Good morning Thanks. all.

Good morning.

the in price quarter. formula it improve Beth, So nice was see cost to the productivity fourth

EFS on $XX specifically expect XXXX? the that in trend how and For what still number can saw and touch million, punches you year we that to down initiatives know in it's so you have and in place you you maybe should

Okay.

executed as time, how that lots only XXXX, I in our at just optimization a managing significant us. of the very a not for standpoint big were our we us, and Across things. we with board shipments and growth EFS, of labor freight year, supply Enclosures of how end-to-end from see opportunity of well. for logistics were in our at looked as a and would we couple chain focus a quarter we say as in go with the freight lots but It's we into we inefficient As of over

see some factory in opportunities optimization. we around place on that of projects of have we momentum get some also put our We to the

made in are that Enclosures bottlenecks. within had adding where we EFS and operate some think us structure I changes in our We are allowing more continuing effectively, to that capacity we

and a in So we've of driving significant of will number got our in follow we're through segments things that that momentum XXXX. some

guidance the called for helpful thinking be I as Enclosures if to about strong. you out could growth continuing data that's Okay, Beth. follow-on just there, in centers the year, And

it X% and growth seeing because highlighted X% lower a of number, are end Eaton expected trends what the markets. just single-digit in given that little think XXXX. drive to I some to to seemed we are high than offsets What we the bit in

etcetera. we will as good be growth indicated slower year. and another see perhaps than think The have going looked XXXX, I to has you be macro indicators Yes, and global at we there and as it's it uncertainty XXXX trade tariffs, know in been with growth

X% things the confidence, view decided raise X% guidance gain momentum certainly calling it if So to year as we did the of of we to would progress and a in take as course we over XXXX and well. we

we exited to growth really being orders different good in as think that Enclosures I are as we you more continued and we know verticals broader expect think just in see but to I continue, focus we industrial, XXXX and we cautious.

And to you Stacy, it. the got then Okay, ask target. one XX point margin if I expansion basis put could out XX

segments you target If whether talk by you segment, or expect and just to the above range about that that below why? be maybe can

Yes, I right. can, you're

XX focusing note to our most pronounced most segment covers global I expansion largest margin room and guidance margin XXXX Enclosures. segment the that all in leaves inflation extends the this points currency as end segments, on our just XX of our productivity specifically We for expansion see and little that factors Thermal and will it's by So segments of probably price there. a now year of the across the some in basis negative impacts, and all of

see in a productivity couple with the price be overall another inflation of maybe half XXXX point heavier we and points lapping of in first there. the or in for two we in Enclosures challenged The some first lower saw inflation half and Enclosures, will

on this there place we but in When would there get or of margin to a heavier mix we versus project to we the Management. guidance XXXX, due expectation summary to expansion is will EFS anticipated the for again put our a moderate related we the a still margin expansion to bit and expansion due that’s little So Enclosures Thermal like inflation. expect that some move bit moderate and there. Again, would margins

will as price and year has through cover recover. this expect cost will productivity largely We it

So and margin some expansion get we recovery there. will

it. Thanks got guys. Okay,

comes next Vertical from Sprague line today Partners. Research question of of Your Jeffrey the

Your line is open.

you. morning. Good Thank

Good morning.

Good morning.

place If margin other topic. how and chain the kind maybe traction in a Just QX XXXX. that is of bit about common kind will that think that of a and versus of firmly things, following in the on of around visible some you little productivity supply be similar on up with I here know much happening in you implemented anticipate improvement needs kind still

I this the half we've look margins back guess our improving throughout year. I the you at When way: would been it of characterize Enclosures business,

think and I had that's continues the that implemented closure. So a center new factory momentum as and recovery distribution we so

on think other In momentum So Enclosure expansion. I there. commented, and for we'll think some area at And very that's had entire I that EFS to I logistics. that the fourth and and across mentioned looking inefficiencies is recoverable well was as freight and some we continue I that previously organization see the so distribution margin trajectory think quarter I

We'll to management over start of implement with we warehouse a the Over make course to system. a multi-years progress system. XXXX management intend transportation

So 'XX. to really continue through effort 'XX into that is is and that going

get are that's know area we but there. where say traction, going we I'd early we're So to days an

get price. I trying you – are on are with that pricing push to inflation the cost you with And the deal totally side,

the up? don't any perhaps You're kind response moving substitution or of to a of know seeing demand I as price level, indication pricing any any the of up you result moving know, negative next to resistance

exited this increase business We increase moderation this EFS that. we another we have business. year price as and with of any a seen in with price XXXX a Enclosures in our not At not. started We point our have result

the think can finally, think. of tax is thing I XXX this for just bps us? maybe then neighborhood in And you ballpark Pentair I

be do nothing, headwind that we'd as as you about sort thinking If comes through of tax the is of this kind expected?

out for only Jeff, is even point comment. this proposes, At still this

but as well understanding, best before as So currently to any as proposed headwind. to could XXX it offsets, our said, we up tax point I be and finalized basis expect be it mid-year, as a

are to want strategies are to we early stress process. this However, that that working on and I in impact offset

if expect would and just offering finalized final the those we we written, it now. that offsets can't in So to is as have quantify to

you. thank Okay,

question line Markets. the Dray Capital next Deane of Your RBC from comes of

Your open. line is

Thank you. Good morning everyone.

Good morning.

you on free incremental the year, for some guidance investments. the XXX%, cash Hey, called flow the out to XX%

digital spending size it you would on, you be you'll Thanks. and what expansion. of helpful. what put context there returns. just equipment I actually kind Any in of think those, said for just Can metrics be

investment more I of of we digital at think all and ago, significantly Yeah, XX% end we so a $X year there have in million core got we with the couple started the on of about the side digital and products, really information attributes all such invested that a our key digitized. years product the

as forward invest year, data, capability to efficiencies, enterprise entire right. well have we're go continuing rich this the more we to more have to across us As as allow product to

that's us. a for key focus So

In between total CapEx. that's million $XX addition, In got million. $XX we've some to probably

anything we've capacity we but got also want in we're to So China we little higher demand, where high in that's expand. equipment and to running some that we've know seen we been, that's our that very have increase some of because some looking we have a plants in than

or us XX% So gets to the that's it to what how XXX%

was I know encouraging had Got see the it. at any to about wanting then what focus there discussion grow M&A. on you And outset, to deferred was the own. M&A allocation, capital to you it

timeframe, find they for the to two to are – apt more and are names, in the in the for But multi-industry of in the was pull companies three slide, you levers is years want it that not hit like wider ROIC, target more your acquisitions. you can greater the funnel. actual M&A and that interesting than talk update be and to end that and bolt-on a the Now we years about WACC little names sizes on one markets

higher higher in would why and today? that the you returns at of what hurdle you're a potential have reflect funnel does also looking the here So

Thanks that I move in activity year say threshold would and year room we were when that that. mark first two Deane. for question restrictive during on place our there of operations is the deliberately we put to M&A

So, you with that? where would go

model, fit We we really talking cost time would creation about value in are We critical, within operating high save in for those expand is those it creation solutions our to would and and go of that in can money still. which places installation costs. and and that is mission where returns look capability where our screens accretion XX value really months look failure for

Got was it. any lastly, shutdown you for anything there And just government then on of guys. significance

really there wasn't. No,

weather? How the about cold

segment like we a cold called management. have weather We thermal because do

So we we degree say cold are and wind needed Minneapolis the the a to XX in as I coldest stay place even chill that and had so. in we think I longer just country,

and I saying… what a was did to see that making reference I and so that's

you. Thank

Capital the from BMO of Graham Markets. question line Scott next comes of Your

open. Your line is

Hi, to good morning you.

Good morning.

six mind, I hoping maybe is you else wanted I the us a price do-able? sub here. the couple inflation seven, materials and know of just of kind I have versus Slide for essentially you within aggregate wouldn't parts for to would question was you both a everything and for quarter that if cost year,

Materials that. $XX million you for $XX million $XX some So million. inflation full or roughly was and QX on let year, it for color give was me

landed and in to we the quarter were where price of that that sense year. full versus the a get you give on can we that able So

as and actually – progression a of that that makes well. sense ton Right,

So quarter. in fourth said increased that you you the prices

I little thermal side? the do think visibility you the recently and you then Enclosures. quarter first and see in gas coming in bit need or in oil one to said in in a EFS Is more

we did a as price increase QX well. in Thermal Well, in

what whether seen business kind be that, little The I a to would there, is a Okay, is we from on what just and very said. in I I and us I'd is missed some side of a – from have response more I U.S. is the we bit may exposure bit of OEs. of that tell it remaining digression good. capital guess gas you guess flattish maybe of more that Could saw little little in kind it's oil a higher say. stubbornly in on I your And this have thought upstream, bit particular. 'XX I would sales spending that upstream Thermal

and global is when look you that very business, growth, seeing thermal Well where in we play energy high Okay. one, we at our business are most MRO right.

we are in MRO that spend forecast project heat The guidance for XXXX latter projects. those of there trace coming So of looked the we've phases in seeing is and that our capital are and pipeline projects at some often XXXX. and these thermal the how our given growth. Recall that's back the are multiyear at components and

projects cycle projects starting spend hence 'XX. or we we've So into longer seen the early in and in MRO expect that flow to longer

you. Got

this that thermal is about a thing the third represents one XX% of add would of just business, I about nVent. Scott, which

I something if I Jeff would asked a now. you I at be if more did to? on know if then I'm basis you what of, nothing, don't know Stacy, you Do No, sure of be my Actually points. idea but what tax do XXX thought hammer any did that a down I vigorous I against I that question mind. you see if that. get we wouldn't rates you would work thing. question can you question to of something. that right. have guess you would have hard we by a little seen start just very bit thought the Right, that just move final

that opportunities now this that. say know that give ideas couldn't do You as at motion it, I you do about how But to to looking we color point because we right develops. will have at situation we in are more multiple and

Is in it's too any little are just guys without that Is thinking any think being reason going why just that bit that across maybe thoughts? happen? are more street there definitive to and the the you they a conservative visibility,

into Scott, on what as any have I insight doing they are don't that. comment just I won't

a lot. That's fine. Thanks

Barclays. from Your next line comes Julian of question Mitchell the of

open. is line Your

talk you in sales and just between your about Can XXXX growth volume guide? price organic the breakdown

of What have to is XXXX we see we organic that this X% in would out Sure. X% growth.

We and a price points have know a you point volume. of know roughly couple you of

And Got then QX? digits, in they Thermal, orders you. at it, high in how thank QX did trend growing single

They digit low double were Thermal. in also high orders single,

then And expansion relates so the back what margin XX for company, or through step Okay. XX is total taking operating XXXX to the the full it that of year? just cadence bips to as for a

we've inflation half higher and to Most year. going half of we to the that are first that see the the second in reason the we of through are is got manage margin that because having expansion for

leave Thanks there. I'll Okay, a lot. it

you. Thank

question comes KeyBanc Markets. of from line Your Jeff Capital the Hammond next of

Your open. is line

good Hey, morning.

morning. Good

want kind the bit maybe you bucket kind you of mix are in they know XX doing Enclosure and speak of a any that to or segments come been little any of lower but like are based lot and It side, to a on do of Joe's see that? a all Thermal there's be maybe just would sounds outliers. on margins I outside about back lot range color, expansion but margin of Just the gave good to qualitative to segment question XX

it. then bit some you and from mix and come see that as projects that EFS, that they as to come little plays got in We comes expect some running a expansion you'd Enclosures to there I'd the really we into have of say that back, most of see recovery still we've margin back Thermal know room

me know just of on most you first you So think and comp? that half was but the we're margins, but you bit Enclosures, Just a say confidence end? give the you I easy as cautioned an I the had higher think were that year-on-year noise so, there Enclosures, up, is mean way at just kind I light. any little are then there you get and about any margins

Yeah, momentum I Enclosures we've lot it as think seeing with some a the improvements, seeing are we're we and of there. really about operational discussed the

freight some we're going in to what the and it's see are I you longer think fully that's realize to challenges year that's taking and I with XXXX. why, of building think through and higher materials it just the

housekeeping of Okay, just and couple then a items.

to was And don't year expense that? any? think if that have is in in there. you do just number the Thanks. us then if look guide said full corporate sense what you of like? just you buyback missed it given going is what give a just can higher I know First, I your I this better

you if always that, we that reflected we right, excess what's in the as returning look the count. value. M&A, assuming we're best we're million $XXX shareholders for our at said going cash in opportunities to for return are shareholder Having so share to Yeah, guide and see that's that

I'll and is change, but talk may let about that guide currently corporate is So the Stacy that expense. what in

expense digital in Yeah, by $X in that the roughly call. corporate that million Beth driven is investment the mentioned earlier

So corporate be up $X to going million. expense is

there. Yes, around

Okay. set, I’m thanks. all

thank you. Alright,

turn in at presenters. back time. questions further I this no queue are there And the the to call

organic growth morning and you while company, joining Alright, during big XXXX end of of guidance year this your nVent. We independent us the an to initiatives range. public for interest us. a stand thank nVent driving above our the number in as year for executed was top a up on

As saw driving growth while We are last right that win. and on put price. executing last we is year strategy evidence place showing XXXX, and believe forward in margin focus, on the we areas where embark year focused working we we we to initiatives plenty in expansion of through our can look productivity and

XXXX. work Our XXXX plan done in builds upon

expect team grow drive our GDP a for execute sales margin expansion. to on our and above of initiatives to number to We

strong and again deploy Institutional you for may cash of and you at February many also your forward year the cash to a you capacity. our with time to We look conclude more Operator, XX support. potential Analyst Day. balance on spending now Thank share by generation expect call. strategically to Investor and repurchases enabled this sheet, M&A We

today's conference concludes This call.

disconnect. now may You