Lincoln Electric (LECO) 27 Apr 232023 Q1 Earnings call transcript

Greetings, and welcome to the Lincoln Electric 2023 First Quarter Financial Results Conference Call. [Operator Instructions] And the call is being recorded.

It is my pleasure to introduce your host, Amanda Butler, Vice President of Investor Relations and Communications. Thank you.

You may now begin.

Gerald. you, thank Well, everyone. morning, good And Welcome to conference quarter Electric's first XXXX call. Lincoln

presentation today, our attachment can slide the on Investor financial lincolnelectric.com released website and Lincoln to well Electric the results call's Relations an We in as earlier you at as release find this section. as our

Hedland, today Chris Gabe Financial Chief Bruno, Lincoln's on Chief Officer. President Chairman, Steve Operating me Joining is and the our Officer; call Mapes, Chief Officer; and Executive

of as discussion market highlights, financial XXXX Steve our will Gabe will cover trends, full Chris with will a and begin quarterly performance provide in well year end our quarterly more assumptions. detail as

Following take your our to we're prepared happy questions. remarks,

results to of some Before risk our that we Forms that press be release statements discussion note may filings start a XX-Q. factors. XX-K in our from A risks SEC made in the actual may certain are differ expectations on our number affect discussion, call results our materially during of and due our uncertainties and please this of and may and forward-looking, provided

Mapes. that in we which is the not I'll measure of section financial available lincolnelectric.com. with found the GAAP at the most And measures financial measures and do of that, release, turn addition, In GAAP, comparable conform to over to the in Investor Relations is our Chris? a reconciliation Chris earnings discuss tables U.S. non-GAAP in to again our website call

Good Amanda. Thank you, morning, everyone.

quarter sales a for milestone to Slide pleased billion, $X Turning at our over another I'm report of X. to organization. record

all System, market. automation our in and improvement the generated strategy record industry-leading are cash experts share solid momentum continuous a million operational Lincoln Standard in solutions, reinforces the $XXX it $X.XX application and of our achieved XXXX at in demonstrate winning leadership how our per and innovative leveraging Higher performance, And in earnings initiatives. adjusted Business also which We flow from operations, business, record performance

of the in Group most year, in quarter. contributed profit by to This which operating we consolidated adjusted sequential very margin pleased strong While in first reportable Products comparisons the our and we're all the this margin is half challenging profit XX.X% Harris segments, have our across segments. of Welding improvement International a notable profit

Our pursuing decile we shareholders focused results. continuing remain putting cash dividend which is with at top customers ROIC long-term We performance to repurchases. a payout our remained allocation capital return and XX% and strong continued our plan, balanced XX.X%, initiatives first, a and share yield to strategic implementing rate higher to on

slightly Fori which also in quarter of the margin results, first marked had our to Automation as inclusion The a dilutive expected. impact

track in expansion to to mid-teens XXXX. to We percent our target of we're of the the supporting the is forward on are operation, in Fori's System the to which will Business Lincoln pleased by the we growth integration support driving report deploy business and organization and end as that looking margins work margin our

to produce and ahead capacity XXX We also per in quarter production. on up charger EV platform investing our to targeted our operational start track These investments month. of fourth are initiative of are actively our with provide units

testament is golden the and high-performance culture values work to in true integrity our this of All and a rule. our rooted unique

strategy. our first well to well execute the by trusted of position on awarded truly and as proud I team time I'm start our companies for of apart, externally endorsements, for why These ethical that were at most us energized by the our year, team sets solid was This momentum, for our we most fifth of quarter, standard culture. Ethisphere higher the the quarter global the year as during recognized one companies. believe Newsweek our as world's And us on second America's the and as is time

Hedland, our Officer. Steve on details more share to Now Chief first here Operating is our performance, quarter

you, And morning, Chris. everyone. Thank good

Turning the through March quarter, to X.X% with results. ending Slide organic our strong demand in strengthening growth reflected sales X,

in additional the a our strong one percent demand which product increased strong shipping basis, and sales consolidated had three direct also led quarter. in We low channels. growth we On equipment, groups teens by day across across with achieved all both distribution organic

due including We we increase the industrial to energy the a reached this East, in industry led Russia to cease continue key activity in project in in of areas in high of Pacific also the in year, investments Asia levels equipment with and Middle record automation. and by end to and single-digit primarily from Americas, innovative levels highest Both operations first in achieved and solutions comparisons half our where applications the market. are Regionally, percent automation challenging seeing backlogs decision across performance capital Europe, XXXX. strong uneven heavy of win markets, our automotive,

for quarter, approximately challenging Excluding European organic XX% exposure. single-digit low percent. fourth revenue markets end in the accounting to markets four of to end comparison, sales continue increased of Similar our five positively the trend

transportation due resilient levels continued capital strength platforms. on continued in expecting to are We spending production new and

a offshore We both expected heavy project as and applications, expect accelerate. and while to are as demand support accelerated to and gas activity in projects. agriculture, Energy defense in from to basis oil ongoing and construction well support expected LNG relative notably small is investments systems in equipment on- large wind pipe mining. on an industries, to Shipbuilding and continue,

solutions retail. We seeing continued sector. seeing construction at for automation around proprietary we orders the strong challenges consumer infrastructure, serving In and that our are are

some projects challenging the against the decline timing softening quarterly driver the primary nonresidential However, and prior in that of the is spending comparison year of in sector.

financials. to to cover call the Bruno pass will I quarter first now And Gabe

Thank you, Steve.

to $X.XXX X.X% volumes. X.X% by increased increase and price lira. a and the acquisitions, from to in Turkish billion. first benefit Moving These XX% X.X% translation, sales a primarily euro reflected consolidated increase partially were exchange higher X.X% unfavorable quarter offset X, foreign from The increases Slide our a

million offset Fori impact is from These or which dollars profit foreign higher translation. X% benefits the $XX currency were million $X year primarily Gross Automation. partially on approximately increased from versus approximate an and volumes unfavorable gains acquisitions, prior by

a million the was addition, charge $X In recorded quarter. LIFO in

the to gross of offset Our first price timing XXX actions profit and XX.X% basis points quarter margin to to decreased acquisitions inflation. due

XX% SG&A increased employee-related well acquisitions. percent Our as $XX or a approximately sales of million XX and basis million to SG&A higher as $XX as increased costs, million, to from of expense due incentive $X primarily compensation XX.X%. points approximately

X% Reported operating $XXX million. income increased to

and volumes million income profit Excluding approximately amortization execution acquisitions partially million. acquired the impact the inventories, operational dollar to of contributions helped from rationalization step-up material inflation. solid $XXX of increased drove $X adjusted offset to special unfavorable charges of and from higher items, Higher which and operating growth, of wage X% raw

translation $X impact. unfavorable Foreign million had an exchange

income to timing acquisitions and decreased of points basis margin operating primarily adjusted XXX actions. Our reflecting price XX.X% and the

higher increase The loan net expense quarter Interest than in million term doubled borrowings XXXX. to $XXX $XX.X entered the from more we into in the million. reflects November

due earnings was Our first XX.X% mix and year. This in the reported and discrete rate to quarter XX.X% our adjusted of adjusted approximately compares of prior effective items. to an and tax as tax rate

discrete to year the be of of XXXX subject continue our extent low mix and to rate to effective full in tax earnings We items. anticipated expect range, to tax mid-XX% the

$X.XX. diluted quarter share earnings was. First per

unfavorable was Excluding impact special $X.XX. a record $X.XX earnings diluted items, a incurred share translation. per foreign to exchange adjusted EPS from We

to quarter The reportable Welding Americas X. XX our XX% increase approximately adjusted basis capital higher a first all and increased sales. volumes their increased on margin from XX% productivity points the in segment on from The industrial adjusted across Welding led product investment. decreased generated organic by regional lines in XX.X% segments growth XX% quarter $XXX Americas EBIT segment's sales XX% of EBIT Slide acquisitions. Moving million. to to strong

sales in strengthened price primarily prior expect backlogs and to the This recover to quarter the growth exports for neutral year. quarter. levels to position in Acquisitions rising taken inflation, full in and price second mitigate contributed cost starting strength to increased both in the quarter. reflected contribution and additional the to record achieve U.S. our Additionally, automation. demand position equipment costs us X% we Price actions

million translation. incurred X, EBIT of The XX% XXX or decreased unfavorable The absorption to Moving $XX points and declined cost adjusted adjusted lower million impact $X pricing the EBIT actions. from margin million. due approximately Slide to Welding International to to exchange foreign XX.X% the $X segment's a basis segment timing

to relatively our target expect second of lower XX% remain XX% and in sequentially to then performance end EBIT range the the their to of improve We margin year. half steady the of

year lower were Organic X.X% sales volumes prior versus as by price. steady relatively were offset

As operations Chris in to decline the comparisons prior was volume mentioned, largely to year due decision Europe, our Russia. in challenging including cease

single-digit declined a at factors, these low modest rate. more prior Excluding percent would volumes have year

Price X%, primarily increased pricing prior reflecting actions. approximately

Group X. Slide to on Harris Moving the Products

and increased First EBIT decreased XX quarter from adjusted adjusted integration to management operational The approximately reflecting basis $XX effective million. activities. X% margin points to improvements XX.X%, EBIT cost

HVAC Gas which expect in X% lower approximately strength Harris' approximately continued higher offset was organic performance. weakness half by Specialty we continue and declined on first and Volume channel, retail in price X% the of sales XXXX. volumes through slightly Solutions will the

to flows Moving a chain XX% Inventory improved acquisitions. challenging in in on mitigate conversion. reflects cash Average sales record equipment decreased the $XXX operations to million We our working cash the inventory that conditions X. operating an impact from in remained XX.X% to persist supply generated Slide quarter, support resulting and in levels. elevated portfolio capital of to

solid approximately of to dividend We invested on return $XX share We invested returned capital million XX.X%. higher CapEx maintained million our and to repurchases. million in spending a Moving $XX through Slide XX. and shareholders of payout $XX

Slide XX to full assumptions. and Turning our year

second demand growth raised automation, to backlogs in that levels. low the in new better-than-expected percent record automation a pricing and to trends quarter, raised to are have Americas rate equipment mid-teens year We full well and has as as actions in our given which assumption sales effective rate

Our split compares single-digit is rate. range, the organic sales a an price. This in initial to sales percent assumption still mid- between growth updated fifty-fifty to of assumption high now approximately mid-single-digit volume and percent organic

March lowered to range interest in $XX our entered swaps have for expense reduction year in $XX assumption short-term million interest the reflect in the million We million our into rate and to debt. $XXX to

billion is now interest X%. average Our $X.X rate of weighted debt on

We other are all maintaining assumptions.

remain in and putting visibility continue stakeholders. generate managing the our the to business the for limited all in market first, year, half cycle customers of Given to the we through on back winning of the focused our value

to questions. turn the now for like over And call I'd

from Oppenheimer. at and Bringing conducting Ladies we stage will question-and-answer Bryan the a gentlemen Blair you. [Operator time session. Instructions] Thank to be this

now line open. Your is

Thank everyone. you. Good morning

morning, Good Bryan.

QX, you whether international the Steve's up any could hoping seeing profile, in prepared early in was you to on of QX kind Americas or the notable offer what demand the are little there remarks more relative guess a environment. I I markets? are following changes whether on color

have And XXXX and that our fact thinking model the of the so But and changes. provide It's the were of weeks continued for the markets demand stronger we're of progression be were XXXX. the as and related couple that's QX you the no really Obviously, reasons to moving to demand in, and were with with exiting about to updated early really too backlog we backlog the we're pleased we in it the as we it felt one of expectation excited multitude first exiting very as it. only year. Yes, strength growth of significant April. was why positive way our strong necessary very as full on we was were favorably, also We on profile. like the an we strong our the

Excellent great automation. hear a the to be in hear. continued bit momentum And more to about it would

what's or to year differently, So, million year? rate all-in this your into that growth contemplating what's had the I coming guess, $XXX reasonable you relative framed team for the a automation run

we're closer the Well, just us it's really got started million for where run easy than solid a see year. of maybe we've to we have backlog, that rate automation to to some growth solutions in seen marketplace. some that $XXX the significance the you with know at We very momentum the now the and providing

that We're us, trend we be and of still confronted are inflation Our set systems goes capital strong. for very of people we it where had potentially the the been employees, still And marketplace, some last think reshoring. have environment, low with cost we've in with in I potentially discussions business couple a it seeing back wage the longer-term within today. automation a inflation, are scarcity advanced that several in an the we really the for some and and really is the and that that to could engineered secular quarters opportunity

million. we rate, we at a So, $XXX are faster to know running closer

what found in very passionate they're we interested Fori doing. very businesses Lincoln there in still excited am we us. acquire that group of very about are Fori’s are well and with fits the a We continuing I about few first team integration that that to months very We Electric. space. employees think into The found

forward going as AGV within to the brought into those that have the advanced we currently think with catalyst of solutions, business profile, how a core we automation for solutions this in it Electric, I move couple fit didn't be a that is So cells. basket especially Lincoln and because they

So about can of objectives. meet excited lots imagine Electric talking that higher confidence and our a business that at target our still billion of of positive continuing threads the we'll and that build-out automation and XXXX when standard as $X billion take you we're Lincoln should exceed $X lot about

All Very encouraging. Thank understood. you.

next Our R.W. from from comes Instructions] question Baird. Dobre [Operator Mig

Your line is now open.

morning, Thank everyone. Good you.

Good Mig. morning,

through the it on terms quarter. I to the here of follow the remarks, the I demand. demand of want in accelerated way heard I question in guess up guess I asked previous was prepared that kind

what So three And your I months to sort differently, own we were up in expectations? picked any essentially you relative growing what little – curious then guess markets end ago? you? of of excess So of internal what verticals bit maybe or I'm your surprised kind where of seeing are a

also. of business. a into as well, time chime Mig, and us to I'll Gabe March was thing you think moving in the couple know our accelerating first be then I comments, very for April the our But Well, guess business I uncommon and frame in we're not let

we what January with a a I thought, in than lot very and you quarter in our March just of busy through So or – July our of us. the out would business, saw acceleration share we softer window a very, gate the for that little our was

felt you particular it tell slower point had the couple of we can't business, rest quarter. I we to And through segment expected. can just out the So acceleration that that weeks I the when experienced a any first then area or started than of of and the little

at that the books lot some there's to have want a of of of I'll our the products end targeting that also tell the you their capital I automation in business you year and that around because to year, the individuals out think move which tends end get that. some at

well, that business business backlogs the the automation from maybe of But year business. mean, our record the as first of business performing automation as the start in doesn't categories, that accretion couple of weeks out other probably had we that some saw our again and Our backlog product automation. aggressively without very I we Fori in for even

can't the So any any of segment would specifically But acceleration question, the the throughout depth to of the backlog or broad. one quarter. I have we start, minimized and that depth the the saw point towards momentum was your region very really answer but one

Yes, Mig.

PMI strength just organic The a the So you were of end follow pointed last time progress thing spend strength XX% we some saw activity that just I the in is flash right? Americas, mix that we would the of monitoring seeing PMI I going it lot the the towards with volumes broad-based. as we saw week, quarter. to highlight production and up the of sales, the of on the in I industrial when what's saw kind and one

it may automation a we strengthening, just Americas, highlight So in pointed but that including strength correlation, the be and strength. the results did perfect not see the continued to I

construction what maybe understand but slide and a comp, comparisons are us your Obviously, can helpful. exposure, your as market? are is this that selling are and you what understand exactly happening reporting there? That's the the comp seeing perspective your non-residential year-over-year softness, better area sense And into little infrastructure. in to it's to a the weaker you right? you you where What in more highlighted sort you market? that what's give the Okay. and of of one I So maybe on

Yes.

is the of non-residential our shipped building that the engaged of we and that to about work have business for completed So Mig, for and lumpy recognize structural both in ago. that very revenue, decade project very set acquired, construction Burlington us sell automation. we of in for And just equipment, are and tends And automation and wide and acquired out we that customers the in we when steel consumables how system like. a very the the be and products business Zeman compelling some solutions, construction we solutions terms a

a interest so us. of to We residential very cool portion solutions a the but very weaker our just products for Fed choppy with of our the just a it's choppy and still And economy. us. business the lot market, see what The segment automation is and clearly the in doing try it's for side non-res for other is

not would And is whether there'll share around I haven't We business. be Mig, driven their we've lot this I forward add change particular on I Chris. of – that a Yes. seen you expect because of or demand in the And people they come waiting to around this their our seen say of and where need in we've some United any patterns can of by had the situations issues. the conversations patterns banking don't that have States demand that, look financing. is challenges they're softness with we

we in that's risk, So not automation seeing or a our that our business in recognize business. our but we business core potential today, are

understand see out, And commercializing over you that anything Right. that how in product perspective maybe on; you're terms are going in early we the It you of you demand to be nonetheless. you. for this charging capacity evolving how final question, this about time? here build to point? are need where back in of bit a that, your see working Thank quick at terms I that would Maybe you but a appreciate product to going update my

Yes.

into production of Steve. manufacturing the readying investments with and is fronts lot the launch of on lots this quarter very the prospective industrializing capacity schedule this of discussions for There's and production, activity year. the with our several terms We fourth in remain positive having going on Mig, a to customers. in of track So making design and

production. track still our say I'd fourth of targeted So for we're quarter start on

believe unmet at robust the that's is media, and sort a reliable reinforces of able media and social that the pulling social charging press up about that. and help market If much off-line There's we of lot to look some people's commentary charger our frustration business going articles solution. a in address you on of more and it to an a just there belief posts to general the for be we're of need

very remain feedback we So customers prospective getting is confident our we're proposition. The in value very from encouraging.

we So need just keep and it. our to plan to stick driving

Thank you. it. Appreciate

Our Instructions] Walt of [Operator next comes you. Liptak Thank question Research. from Seaport

Your line open. now is

Hi. comps? volume the Thanks. those When and difficult then to the the my about you onto and positive tough margins they're the think maybe Good to half through second volumes think understanding do I prepared morning, comps And remarks, that you'll for range. XX% some wanted international of sort everyone. talked I question. you international in in taking XX% being comparisons. Thanks ask about that be

are I minuses what getting pluses that to the And wonder in so range? end and the high of

Yes.

take that last think and in in on we of bit of terms the but had higher of seeing strength thing. in margin stable noise our little we half the Europe; volume pricing conversion had to sort we level drive We're the you more profile, a Asia, through some pressures with When about relatively is in timing that overall, of to costs. side back address stability think of Russia to So some and projects of Walt, that year continued actions activity. we the environment a context that just actual believe knew pressure in about some an all of

continue that improve believe the would progress the back that of year. half into we we as So to

the saw into the range we the drivers. first in that we and the quarter, You expect Those in back are second and to improvement quarter target this then EBIT to into our half. continue progress that

Great. Okay.

already of has So volumes XX% do with to to are? XX% that more the the pricing in end – is do it's more high to got whatever place, the

the has of said, volume. that the job perspective And consistent repositioning from very done we've European about business When needs as more very the Yes, there's a especially with thought noise good I the was the say, the a about little in That success team sequential I the I but And a made, said, that's markets really that that as improvements we take way structure broad team noise, for stabilize. markets. business than now we think cost and business. excited some that certainly out numbers. in Gabe would

as in be drive should little a So be higher the we migrate a we year, of from rest confidently able that of I through for we them that, range able And think bit more targets quite that frankly that to business to volume. standard this perspective. with see that have our

maybe one volumes we're to to on higher look side, But levels. We more yet at of is XXXX Walt, volumes. the at when do will we continue mind, that Walt, drive XXXX expect we at range. our at you business, that just in not our be as the international that keep comment are end consolidated the on

Got little it. doing? how just then follow-on, if could is wonder you bit strengthening. China color as market a Asia the a I more you just mentioned provide And Okay.

would offshore piece the share and think markets Lincoln Electric, reopening of aware, of Walt, is with I portfolio though business Asia strength. a we in our some really Asia, significant nice you're some and Southeast and that the in strength not certainly at that as China. overall portions China Well, broad about when of you, in well saw so Asia, also we

of coming but favorable trending off So very favorably. comparisons

Thank you. sounds Alright. It Okay. great.

question you. Our Instructions] from next [Operator from comes Steve KeyBanc. Thank Barger

Your line is now open.

And centric. only a ahead you know of much quarter last but I business terms adoption. think quarter been Europe your in automation Chris, already said that, it's traditionally since automation America was noted Thanks. general Hi. I you of was

you about approach how big that, you can talk So and untapped market the how being? you'll see non-U.S.

and lot been at portfolio, to we build different – an organizations and but question, that people longer the to the were And towards opportunity profit out successful term. we solutions Steve. were those for and diligent would pretty you and could driven those over And approach. that stayed markets great industries strategy, automation Look, as thought in accretive to of solutions we've we assets we've a pools stayed be and solutions focused a look that us Yes. our we identifying that very that I and also that's had had tell

So focused. not regionally to we've tried be

As you're this well you could you're aware, run for within say some and regions. strategy balance looking

stayed in solution disciplined We've at steel few that taking marketplace, a that structural a those and solutions looking value found and where in approach our globally. then and years solution in providing very example great our it the accretive be where we was have of opportunities, a we would then ago,

So always part providing we solutions particular be in automation market, that might of not but the in those we the local solution market. be local manufacturing could

U.S. our elements finding when challenge secular of to and see been talking about the Steve, opportunities. over the inflation and not just as phenomenon. Those that, a It's and which that upside business feel the years, are last a Latin of drive couple still been has And with think Europe our then I labor are the drivers we I global phenomenon. America customers strongly the demand. labor in about is reason globally, so

to be us to globally. think business able favorable creates And identify opportunity continue a that automation so for at, to our and expand I set look very

of as portfolio. that is to you towards? have companies it here? Or channel regional kind or same that the those Yes. And structure you markets obviously, kind Europe integration Latin U.S. spread help the in and different some America bought the adapt evolved the to channel distribution of found have do to a is business that in integration great is Have some you've local and

have seeing that been we leverage. been think don't I Actually, adoption. huge some No. get we've we've to able a

our it big we this $XXX and the were just catalyst about talking been in and think few scale. Remember, has we I now have was more lumpy $XXX when for a a million, or the years were lot business that we million Electric discussions. Lincoln fact ago,

rate and this as out towards a build scale, a now earlier, I more $XXX more trending year run As we said on million business basis.

us allowed these assist That of to the and in scale has we're way businesses. managing of globally and these some and us at systems processes some looking take

markets, So in that of have upon the something very we but I don't tells upside and world, positive globally we're we types run a there the necessarily business certain to and automation me depending in are area different what on for the business differently certainly solution that this accomplishing need the next of see but over those company in that few the business we the years. have the opportunities

kind in and And equipment, and collecting portfolio external much. as you've where technology great your floor analytics built it. of internal obviously strategy, a terms don't data of strategy information progression? robotics Got the you for IoT-enabled of own as better we've technology you I decision-making? internal think shop talked about Or Are are in your

to approach we've very Steve, taken customer-first that. Yes. a

necessarily to a do it relates marketplace what would requirement out we there the with approach. data. to the versus customer-first taken some pushing So us as We've

can grabbing that help become that So Electric they that more and they with if and comes to so providing data back a customer data; we need Lincoln productive? that to are them data

for, journey. in is we Absolutely. their depend as customer or what does IoT that customer and looking that really where on But is it data learned analytics

see small And we our with frankly have do and sometimes as that's more business frankly, customers productive. products become a teams some portion to our or it today. we quite those additional do we some quite of need our make some of advanced. for they're running, way offerings And where as we those that out capabilities, more a sell customers to allow them that work us of we see subscriptions also but are services to walking for particular to before sure But are

Yes. Steve, operations, makes we're sense. in our where it IoT solutions add And in own investing I'd

and drawings systems we're assembly. manufacturing engineering our So investing for up-to-date that in assembly instructions provide equipment

changes design floor equipment, off to minor most instructions prints the to work shop that make work we people on as operating of. So the have and information and recent

other process add interrogate being so the and can our monitor in of production sensors on the then part PLCs quality. productivity consumable able business, drive higher to and equipment higher the to we And that the

those X.X So we're but drive wouldn't predefined of we're technologies. Industry say in us. strategy a approach. as kind investing blanket we're for some We're I it trying it sense makes where to doing investing

Understood. Thanks.

question from Instructions] [Operator Stifel. you. from Thank Farley comes Our Adam last

Your line is now open.

for This bill having date spending months? demand meaningful over to you. as expect you Nathan Farley with impact your spending is on Jones. up if infrastructure a XX it, do to Adam XX associated is picks tailwind for IIJA products? the What And any call the Thank the on next

to or hard the point is expectation as to orders it Act. the uplift specifically orders of the a point and that specific in provide a future, will There in to in to business. tailwind sales, we Infrastructure that as I material but demand it it's our wouldn't terms yet of to Adam, in attribute Yes, sales would things

Okay. Thank you for taking my question.

question-and-answer This for I the our like to remarks. Gabe turn to Thank closing Adam. concludes call would Bruno back session. you,

our look Gerald. Thank in discussing call Thanks, you the I We interest initiatives Lincoln to thank today to would very and your joining in Electric. like strategic everyone progression much. forward on us for of for future. the continued the

This conference. for in you the conclude participation today's program. Thank does your

disconnect. You may now