W.W. Grainger (GWW) 27 Apr 232023 Q1 Earnings call transcript

Hello, and welcome to the W.W. Grainger First Quarter 2023 Earnings Conference Call and Webcast. [Operator Instructions] A question-and-answer session will follow the formal presentation.

As a reminder, this conference is being recorded.

It's now my pleasure to turn the call over to Kyle Bland, Vice President, Investor Relations. Kyle. ahead, go Please

to D.G. Quarter and Macpherson, President Senior Welcome With Dee Earnings me Vice CFO. are Chairman and Grainger's morning. XXXX First Call. Merriwether, Good and CEO;

today a may may As materially result including and a various as of our those some our detailed differ include statements. in Actual reminder, forward-looking results risks uncertainties, of comments SEC filings.

tables QX presentation financial measures which on measures release, in the GAAP and of with are this of our corresponding non-GAAP at their any are end of our earnings Reconciliations both IR in the found available website.

will our consistent presented. adjusted This focus morning's which reported for results, basis quarter are call both and a on first periods XXXX all on

and related MonotaRO. differs MonotaRO share which remember is also from US results will GAAP We arrears. in month to in Japanese one filed our and results gap public Please company reported that was a

statements. result, a MonotaRO's from As public numbers somewhat the differ will disclosed

over Now I'll it to turn D.G.

morning, thank it Today, Kyle. to Thanks, pass financials joining walk our an Deidra then overview in us. provide to I'll through and quarter and of the Good first performance detail. you for

achieve Grainger to products services favorite our my need started Providing exceptional matters visit several of customers what with embedded successfully costs, run through manufacturing closely We I help ways and to them opportunity service. in remain their cities. their one and manage reduce ESG customers, objectives ago, in they inventory, with the operations. Two customers finding XXXX with had weeks on Midwest space the our focused the most. their

this grow exceptionally my we have how giving We in been winning great them us we of well serve in the when are customers years, future. very a quarter day. interactions teams few clearly our with how the customers each served heard have I and our and customers these teams great example with well opportunity to win last our

products. for those end see the market space, their to industrial solid Many customers, continue in especially demand

see softer and customers some focus do and matter their our approach the operations exposure This focus into our fuels consumer-facing committed a uncertainties we our relentless customers helping facing, of customers their customer to overall are keep heading remain No consistent safe. cycle. economic people However, running and demand on we more rallies results. our with what our team

see, of As remains you delivered demand the to resilient as continue can strong and to we as again we well. a quarter year execute performance start

better equip and our customers sellers. The our continues for of at our new Enlist efforts, to make We a expand our progress in customers enterprise high-touch Zoro, healthy MonotaRO are as to capabilities further execute each add SKUs strategy growth to making our inventory build at as continue management and out clip with on expand investments, marketing assortment merchandising registered users strategic we tools business their engines quarter. they model at smart

anticipated Our distribution which at had further from improvement world-class product pre-pandemic of This near the metrics by benefited than resulted improved. momentum lead our supplier we service levels, is in supported an a to year. sharp network, our in supply the times faster availability chain start in and as uptick

much a challenges. able costs. handling orders and to products unusual did and distance higher and percentage we All costs activity is to subsequent while to improvement, a average reducing extraordinary of swift the of meaningfully day. reminder this by just With shipping get and frictional next availability were through network the minimizing improvement This customers we delivering within pandemic decrease complete how

quarter, drive finished constant and of for chain on news across performance is where supply customers XX.X% XX.X% the growth results great these with our chain daily we return great more for to supply first a our all and made team. helped or The normal The progress currency fronts sales basis. financial

in performance by segments, the solid segment, US. were the both XXX in MRO which approximately broader notably again market points Touch driven within outpaced basis most by Solutions the High Results

XX.X%, were XXX primarily efficiencies our over delivered gross chain margins of strong of just and the discussed. operating top per supply to company XX.X%. ROIC growth, improved Combined an performance basis of year increase Total we margin points due share period the on a strong with $X.XX prior line EPS

represents we During $X.XX Grainger consecutive a free returned we are million we million of announce shareholders of X% XXnd to pleased track marks record produced share flow were of increases, of. with through we $XXX which proud flow that This million, the quarter, dividends increase. record an combined quarterly to and yesterday, year $XXX And dividend, cash dividend our operating a and cash $XXX repurchases. a

Finally, we are to April, a in of Steve XXXX support year the at start will year strong the raising continued outline trends just which based on full bit. guidance, our and

that, us the quarter. turn more over With it I'll Dee to to take on detail through

return like more to DG's I'd excellent execution drive helped chain echo service DG. the improved to and quarter. our results supply Thanks, normal sentiment growth – on in a performance from strategy

on currency, double-digit daily strong by Starting X% growth X, see the constant driven of in you in high-level locally slide including XX. growth results, can segments. sales both

growth growth through tougher the quarter trend. moved as rates comps, decelerated on sales were strong in with remained daily line year-over-year Although historical reasonably and dollars we sequential

marketing delivered flat to margins points the XX% quarter in bottom first year-over-year we both SG&A margin gross in quarter operating basis total, investments technology the of growth. offset was in diluted Total up was company margin EPS $X.XX segments dropped versus XXXX. as by the In and of revenue headcount, as were up expanded XXX line.

into level details. Diving segment

sales to segment all results areas was generally revenue Customer growth demand despite first remain the quarter within in and the Hi-tech with to expectations in by of for line with see For continues a geographies. as quarter, we fueled whole strong daily softness. of XX.X%, resilient continued certain our

single seeing across customers warehousing most high seeing markets digits. with XX% up local the In manufacturing few. name government most, of and good currency. strength daily Canada, the remains but broad-based we with results In local up most are and across end a Canadian we Retail the are are sales still economy and US, contractors days to the and and slowing stable,

XXX finished driven margin quarter well at versus the freight GP This mix segment, prior this year. basis was as the as by efficiencies XX.X%, product up chain For and favorability. largely supply expansion points

short spike drove which reduce year's and basis Freight supplier resulted costs. product tailwind mentioned, availability partially variant. improved stocking drove last efficient adjustment, was DCs. safety lead times was improvement shipping DG positions product Omicron from sales of more of improvement availability our and further period. in helped in to availability Product fuel onetime lower improved As in and the routes, our lapping aided which a points handling a freight expense improved expense by partially from due also mix the XX and in This pandemic

were the revenue was points ad of typically passed was strong a leverage per trended investments offset gross basis quarter price/cost we very year-over-year. margin improvement in for and first headcount High-Tech fully SG&A see anticipated For growth. captured was marketing we quarter the XXX aided the structural neutral The the favorability we largely timing in XXXX saw the in as each as began segment. Overall, margin than and basis benefit XX it North quarter, by the points American more as strong line, Solutions offset cost as by of price and we operating to price quarter unwind At early year.

between and XXX we that indicating achieved we points market estimate Looking US X% the market Slide in on MRO X, X%, outgrowth of that the basis at outgrowth quarter. grew roughly

solve to them customers turn continue MRO their continue to help and we our to As growth build strong Grainger progress to make with partnerships engines, our challenges.

of confidence this Coupled in to cycle. our goal continue supply with a to delivering high in market against our service consistently the advantage, MRO outgrow by we XXX any chain to US basis points economic degree XXX have

Sales Japanese daily endless constant segment. assortment XX% basis, increased to the currency or adjusts a of for the hand. depreciated the X.X% Moving which impact on

and MonotaRO achieved was currency. growth So XX% local stains US while up in local XX.X%,

solid Zoro generated are off the year-over-year. noncore was growth, down to to due While in anticipated a mid-teens start slower than business, which predominantly BXC they

the customers were by work are Year the bit softening more following give BXB adverse nicely quarter market as majority a April holiday the a as MonotaRO, weather make sales in who economy. in first slower patterns but diversified with to small well New business of outside were mix For up At the up customer midweek. return impacted of industrial end world's Zoro

realization results Sales a From XXX versus for have we this be prior more ramped for expect and line continued basis to back for segment favorable to well businesses across in unit year. mix and the price with our expectations over gross as the strong efficiencies as several last margin freight the the weeks, both expanded of year profitability segment. business balance due perspective, the points

offsetting investments customer assortment marketing basis and to XX Operating primarily to X.X% headcount due gross favorability year-over-year points acquisition margins to margin by drive and and expansion. expanded in

we users are XX, see to the registered continue our key tracking Zoro combined with positive with and MonotaRO Total prior nicely endless On over up operating XX% year. results metrics. slide assortment

continued right, the which On SKUs in we the growth million by and QX of around stands at portfolio, in grew Zoro show XXX,XXX total. SKU $XX

on achieving of XXXX. goal to way million well X are our We annual SKU in an additions

the unexpected continued improvement XXXX. the in guidance forward total our resilient looking to sharp and profitability rest are environment, year, company updating Now the of demand given for we

a This the QX in daily the top to revised performance expected for continue solid with at slower start balance slightly year our the for offsetting to be high XX% are holding up In of we line sales across expected with to expectations assortment company. inlets touch outlook, X% total Zoro. reflects softness

continued digits, gains. X% higher is sales a And is expected translated lower, total however, double currency. originally to similar slightly Touch points constant to to which trending segment X% this than slightly this low on daily share which expect we market High is strong assortment of US basis couple up when be for MRO higher hundred trending outlook, a

come in firm and Note The total nearly in up availability year-over-year changes to guide More sales sales that daily side. currency. profitability with constant or the for XX% improved is month-to-date holding on April larger the With product driving improved gross our company XX% growth to XX.X% XXX service margin to handling costs points up dynamics, basis our the and range this, are we XX.X%, year-over-year. XX mix. better is freight levels in raising lower to resulting step change product

anticipated nearly While revised and through as year now prior much chain which at faster expect outlook. of next and $XX.XX The negative expect and gross between margin is resulting few and predominance the in fueling be the P&L $XX.XX price/cost The we we our than year-over-year through unwind the be to our improvement quarters falls op flowing is largely the improvement margin still increase EPS, favorability. over midpoint. XX% we supply to increase

in can We and share the and and guidance, repurchases margins our appendix the expectations improved operating cash have segment flow which updated for revised be year. supplemental outlook found includes for increased

path. great a Our execution on has put us

customers the we're to on serving exit and our are to to very continue positioned commitment -- are remaining share. well that We to our on quarter confident shareholders. to focused in take continue matter I things the deliver ability

it With back that, to DG I'll closing for turn remarks. some

Thank you, Deid.

it Best Companies Granger XXX Before named make for in would just I year to the Work row. list open questions, I was for to second a recently few for a Fortune comments. the up --

As this people. and an that you the exclusive workplaces honors one recognition, companies know, is with best cultures,

we an to also recognition output list, view this best companies, drive among welcoming as culture and to world's the most profitable the with to highly and long remain to Along flawless for places haul. Grainger's the team. others. over named work do tangible motivated the been deliver value, We a a admired ability of women have I create growth we create in experience confident work this and

we'll open questions. that, for with the floor And

you. Thank

now Chris from coming from today are conducting UBS. Snyder Our We question a Instructions] [Operator session. first is question-and-answer

in despite XXX high-touch competitors. Thank broad despite you you. why just among some I wanted It firm maybe about basis recovering? pretty just that hold improving between your outgrowth product I business. talk XXX would smaller continues that America are of on points the indications you think availability, North to supply compressing to ask isn't imagine, Can and chains

Sure. Thanks, Chris. Yes.

has customers we've that's I years stickiness lot expanded customer I work right of it. any chains a to a that go supporting there was in they every we've right build last have with and think into, done pandemic of supply of the We're improve. the through seeing certainly place. think our -- do doing filling in if make the bins, size. inventory that helped are the I the KeepStock our customers. been I big sure some operation three And part we're more We

helping from We to merchandising, those us continue advantage results and good supply chain share. continue gain see to us from and from from marketing, really for performance. our be KeepStock an things All

just cost, you price on cost few on just give-back kind you from that. quarters of were the any some think level or February. on ahead. maybe in increases Can in guidance And appreciate pushed in the a that of talk producer guys pricing? I response general, on any through Thanks. pushback about price the bit the I of assumes you then after price running customers mentioned Thank next that negative And then you.

last time. yeah, would believe, How I question, and Chris. producer the the That about your -- part was less which So I you first, a over talk doing? you become about of course, has, period of less of price push. asked

modest have of seen late. basically what we it's So as

However, of them are first those costs some as to we the implemented you quarter in know, when system. our is pulled through

price noted, our a we cost through the quarters. watermark from it's to QX, for traditionally next XXXX result as some a couple for as high positivity unwind cost. for us of so expect you price And of And

response, terms share all has customer in volume last that our Chris, the and -- say, price. years And our what three I of all is would in of been not of gain effectively on

So we priced are competitively.

are in prices. our not reactions unusual we that we've because so maintained from seeing competitiveness customers And

you. Thank

question is Moll from Stephens. coming Your next Tommy from

is now live. Your line

my Good questions. thanks for morning, taking and

morning. Good

wanted stick price the of theme cost here. start on to I to

first it we of several the performance, articulated go the I'm in year full we above what as talking safe gross assume long-term here for high-touch You through year. quarter is to price/cost progresses? toward the though the even Is the the the XX% drivers as you about that dynamic if could clarified have it land and for trend margin target year, that specifically still

this really a high had GP like year. we're friction So costs favorability costs. relates experience touch, a availability Obviously, we've upon the question. in to with we that thanks quarter lot feel the we're some of to And for watermark the specifically start strong price experienced unwind going based that improving the a really at I from to and high our A the we as noted, of rest that, the right upon you at as would of coming than bit driving would we expect the year. at for in of We that and little bps pretty look say, freight level a feel a out probably outlook what based this non-comparable about faster then have pronounced XX staying now. the we a, But is confident results other up. I see more we did our impact

outlook, I you follow-up, some identified to a weakness some as but It sounds as there weakness Zoro. everything you just helpful. full you're do original potentially Thank unpack up the saw ask And you. seeing about have Thank non-core may your but for at outlook, would like wanted also of rolled were least areas there, you be where been the versus you what factors to could to year there other anything you. unfavorable there

Yeah.

first XX% businesses business in and roughly pretty quarter. are So is perform Zoro's they continue to to well midsized of the small businesses business those, business customers that while

of sort down smaller large certainly businesses and to relative industrial-type across seeing slow everything consumer-facing businesses. We are businesses and

mix going the might came that on. of as then that's That XX% first here in fairly substantially has you that business thing some not down is to there's been a imagine. business, the the through And quarter. So pandemic,

expect segment that's a to we been year, low but the the our year. the endless the at be we below Net-net, So still expected do of during to drag. we and well be perform we the double-digit expect what growth, to expect begin assortment --

Thank you.

Our today Merkel William coming question Ryan is next from from Blair.

now is live. line Your

quarter. everyone. Nice Hey,

Thanks, Ryan.

of And have improve you time just everyone to Did supply chain how December quarter? talk take And I normalizing? start maybe the of chain sort and on sort times wanted about got supply freight from lead talk just in happened? what surprised today? start us the dynamic. by one you to to the about it Can November, at

Yeah.

our lead own come and better, Ryan. domestically happen, last distributions really own went expected. our I and freight than are quarter times times think fairly there's that Inbound than of We've starting faster expected our of lead freight at outbound and getting was performance back to and cushion at if several freight we we both the that better but you we seen solid to supplier point. mean terms recover elongated. fourth faster supply in things in still and get year, I were

back-ordered bunch a it's we mean about system. I you therefore, And of So went lot probably products have when there received items. the whole back you year a think But a if into of obvious were ago, it.

the D.C. product to came our it And was network we once so get say, if Greenville of or let's it ship and compressors into point customers. when over a all something. trailer, in we country that received Everywhere at to the to

having that shipping And benefit that's a to into time and that that ago, coming the every work shorter our Now this big into we in benefit other costs. of because where not at point. year terms we're part distances too, handling in over of that's product we're have so us centers same goes distribution DC we part margin, gross is and for and of were a

So benefits this of much, are lot -- time. from fewer they at closer, supplier lead a but expected the outliers and than still are that are slightly we much the times there before we're are -- And getting pandemic, seeing. those it extended

Got it.

that be to then, AI. I opinion Grainger? And to what might How wanted help your ask clear. the That's you the could DG, Okay. on And think do industry? impact

go Obviously, too been won't I has AI detail. topic. rating mean much I Yeah. into a

favorite about talked learning is intelligence deep of song. is artificial learning, a can learning AI, subset been intelligence, lot deep intelligence, is your think generative what's which which of lately or you write artificial about a machine If there's up their you

figure areas to we for And about helping have think right be think to interactions we get through improvements AI for challenge it time all been effectively, us things I the problem. in to drive back right customer using of where search the thing other and like from operations and think you from for efforts the have I like as to here We going it's can probably us is going long office, technology and to out a and those more. machine point most any learn important that's learning

Melius Jacob question is from Research. from next Levinson coming Your

Your line live. is now

everyone. morning, Good

Good morning.

morning. Good

on to things a you that in maybe inning the you a in just how all way. what track. going Canada. But long us if know can journey put innings, in has of border maybe of that, I And on sense north been are DG, give are get that back business the

There's of think a continue I would nice of getting we we're I growth signs, go. or I to probably good in inning, right we're now, where the lot to improvements, see seeing say, business, and fifth Canada to in the in profitability want think, sixth we

We on in profitability we the are this to expected exactly be terms growth on of path point. and at

improving of there a team the and the the and working American We feel job we really So make sure to growth. good team has pretty business about with that profitable business done that entire nice supporting it. North driving are

gears positive markets put in maybe second. a buyers just commentary being from and the long for in of about for Look, And we've Great. M&A few Okay. on sheet companies better a coming the balance shifting quite time. other valuations one a

see and Day I -- is over factoring maybe in even the Investor You've for is talking that months underlevered in or M&A obviously balance you a the mean, first next the time, recall fall. the back quite is you M&A at something got that while so. a an about sheet

cash table. question. be M&A I that something with always good and say, strong is can on So the would generation

horizon space looks the but us the here mostly group capability We in have small a of for that potentially, as yet. for on nothing opportunities

roll-up view focus that know a service is is don't distributors and customers. you on matches go-to-market If have selling our history, looking a smaller value that which for not ours, to of our

see the that but find, So significant to I stand horizon. look but in anything to those are stood opportunities, a say, do we little harder would we a have at up don't team

from Our Baird. Instructions] [Operator coming you. is David Thank question Manthey next today from

now is line Your live.

gain. as you're industrial you looking you, you the production, by good talked at to much all Grainger's Could and you're estimated signal low and the the those pricing market factors about past, and continuing industry? further sort nonfarm of digits things pretty moderating real Thank like business underlying everyone. them volume at talk about us, for remind payrolls. how investment today, of And I GDP, XXXX, ISM Could In about thinking single MRO about triangulating morning, is you look and you real just market? know thinking trends moderation. how share growth

Sure.

what volume and our of focus IP roll it the we outlook predictor we you MRO little as showing as a guide, and -- X%. where our really X% price a in Just or market. estimates to put is to And to on up which between said PPI bit, together the and about flat X% US stood down

and So the the that's about there. look where as updates year the at were there we latest of end at PPI IP we of

And to so MRO volume X% the underlying a about lot market of our of and assumptions price including X%. growth, is

Great.

So no for change. Thank you that.

translating after today seeing Second, Grainger at soft know, the you're to that's places cultural work D.G, Grainger you I you've results it lately? been been assess there's or the how years. don't a Could with to and the accolades here. with great working of And since been something Congratulations question culture side shift for, CEO. on seems you've XX a

ago, Yeah. Grainger company. to where for culture, we and people and about through really right a we I principles day always customers basically wanted needed process -- the We has say went meeting at a we what to that every are set talk thing in, those every, change. question. at About really mean And a principles. it's say six in do of outlined wonderful we every had highly years a one to ethical interesting very

working we're things the we're moved sure meaning making and we're customer, making with been intent, probably acting think starting most with really have I matter. competing making that have the that sure urgency the sure the on with things

great. a on them and for to few I them as focus things big needed mean think might don't most the historically I always working as on a focused think the shift. overnight, focused The have it. so change matter culture slow, constantly have that's been our be And think that past. I I leadership fair, And on to stay cultures from been as really probably us been shift a bit on we're a make think we've that little a and team. as not is business that's I long been different

you. Thank

Next Steve question from is from Jefferies. coming Volkmann

line Your now live. is

then you're Yeah. like And manage down, you But it Thanks curious of come for forward of to some taking of as go those in as is if opportunity on bit feels freight one I managing the things there's going better. but much continue This how in little it terms a it logistics question. cost just also and the lucy area. sort gains guess Obviously, two see well. I'm that the to costs things on. that has we more there's

Yes. probably we're I so mean -- I -- it better relative. is think managing wouldn't I

through the amazing pandemic in job was through an managing what chain. the we quite did difficult a of supply think I really time

actually it was product I extraordinary the the we actually think I manage right I But now it's think to place. in because think. looking easier have back,

able And our it's the to work. to way system so we're let intended work

always are opportunities, of there further further opportunities. terms there are In

we'll things have every that are get can productivity, do to and customers that. The year to service our We basis. expectation we work and continue single productivity identifying always that from the and an on teams will service better improve to that our

targets targets getting kind Day. think like my anyway. EPS the then already your just much over revisiting close It seems you you're How time? do there of follow-up those about Analyst And Great. from is or pretty long-term

can if been With better out. target, it's doing, all our the So environment, last full this incredibly course, at of least And the and we quarter towards in better But incredible had being in said, as looking year. at are we very macro fluid. than still the is that you extrapolate progress then we targets, difficult performing year you see performance more than than those usual. our environment forecast, are to as difficult our

with like the and data revisit a have the of would right my couple moving we more will However, belt I more, predictions bit underneath a at continued to and a time. estimates slowdown, and macro points especially recession little unfold those have

Thank you.

is question JPMorgan. next Pat from Your coming Baumann from

Your is live. line now

growth how questions. seeing been or morning. do a you normally seasonality from Good seen trends? on then for consistent Is segments? with across constant it relative April And you -- taking currency. kind March stable been, Hi. Thanks perspective, progression rate how Is Quickly at April? that has my any feel the the things that have you're to first about have the slowing quarter to from of

Yes.

as harder we the plan comparison we got our knew that we better. in the every along the we for this month year, went So built of get as pandemic out would year, year because came effectively last

to improve is year. the expect we be slightly we So only normal. because through right where I'd rate growth XX% say last year now. continue we're right to The is is seasonality-wise, relative down And the

So this on at we're to we see expected basically point. what

there quarter. any the going you in with status new of of in way And business look terms a forward, quo kind shifts Zoro, of in there the be there the it. during kind run change as Curious if the place? was is there's is leader Got leadership or to

Yes.

for and is supporting that expect leads her the Masaya and don't to also Officer and XX business left take So we're grow. Mattison him to for CEO Masaya just of the CEO and on push knows great we make well, we're job, still to the I big person sure business initiatives to to shifts continuing core years him. that moved Suzuki, and her business who been reporting MonotaRO in, the improve supporting Sandy has Sandy see can Kevin which continue was to And with is a the he's us who

Deane Thank RBC you from Markets. Next Dray from question is Capital coming

Your live. line is now

Dray. is Tyler Boyd on for This Deane

noted Slide you little looking broad-based in strong? Just consumer it that Is is across waning was markets. like end Maybe maybe looks retail particularly out slowing of where at anything there end a fairly markets. call XX, else demand bit you'd

I on it. No, hitting you're think

right. that's think I

pattern the than than more generally, are think doing then slowing is much and companies better, more is are. generally I more doing is businesses I'd bigger better, I say, industrial. companies industrial less are that But say consumer-facing would slowing industrial smaller

me. Great. for That's you. it Thank

Thank you.

Markets. Your Katie Fleischer from next from question coming Capital KeyBanc is

Your live. line is now

of going can seen Kind accounts? the medium-sized between about versus Hi. national off any prior small- of divergence you've the talk customers you question, if and your just

-- national midsized of than model, for the are say had couple would good pretty customers with midsized customers see ago. We significantly with we've growth the with seen growing I accounts seen and faster a national sure. high-touch accounts, years

too, that businesses So we see touch customers. we're do national as in maybe grow businesses. both we as model seeing Zoro and not the where and fast high good accounts with advertised growth through we're general, But across feel the like, still larger seeing

Okay. my And just follow-up. then for

one you've recently slowing March. month talked competitors dynamic a So about your issues that through activity the about? was or any of similar manufacturing wondering demand of sort seen if just I cadence of you're concerned any of

we saw manufacturing. -- the in in I quarter, mean, with first in fourth low quarter, the well, saw we manufacturing growth certainly, we mid-teens XXs growth

-- on compares I before. I to this the shrink one in two we the and happened huge huge but now I'd bit coming growth talked we're a lot recovered of And sort all growing is with some was this moderating. still year, them and the what back say, going to that was of of little customers with opening. the of rates about pandemic, looking still years So of strong, at as saw sort But a was we probably see, we

as strong. activity like and it's just it's to are not not growing -- the grow. So It's two is going other much not less

this manufacturing So point. activity I at in still I think think we're general

floor to our D.G. the We back over further closing like I'd any to you. Thank question-and-answer of the turn reach comments. session. for end

a for world the in Thanks us. you it's earnings right. appreciate day All joining know busy I today.

that, for thank our I by to to taking we continue So it work well thanks that for just joining serve would for the And right the time. sure customers gain finish to wanting continue Thanks us. way. do the team say right and doing with to I'll make goodbye. share they're our

today's teleconference webcast. does Thank conclude That and you.

your thank We for time, disconnect may have today. at You line your wonderful this a and you day. participation