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So the organic is actually down 4% and that included a mid-single digit of price. From a markets perspective, the industrial end markets showing a strong demand, I think the reshoring trend is providing strength in US manufacturing, oil and gas, steel and transportation, all being strong contributors to growth for us. The verticals that we focused on between data centers and renewables, we've been very successful growing there. And in the more commercial arena, we're seeing similar, as I described in the power systems where the D and the telecom customers were starting to adjust their order patterns. We've seen that in our Electrical segment on the -- more on the commercial side. And the customer anecdotes are suggesting that their days of inventory are getting in line with targets they have. And therefore, we may be we think nearer to the end of that adjustment period and our expectation is second half will be a little more balanced between book and bill
electrical solutions -- so,e strength but order patterns are moderating
Transcript
2023 Q2
24 Aug 23
I think you'll remember last quarter we showed you a chart that had a three year review of orders and shipments. And that chart essentially showed a relentless buildup of backlog over that time frame that was starting to peak at the end of that period. And as we discussed then the orders were reflecting, yes, strong demand but they are also reacting to the shortage of supply and the need of our customers to be ordering farther ahead in order to keep themselves stocked. That obviously was not sustainable and especially in light of improving supply chain and shortening of promised delivery dates. And as we've seen those lead times start to normalize, I would say, in two particular segments of the components area, we've really started to see customers adjust their order pattern to reflect the fact that they can work off of inventory and can moderate their order pattern until that inventory gets to the proper levels.
So that's both the distribution side of Power Systems as well as the telecom end market. Both of those have very attractive backlogs.
So we'll be navigating a period of using the backlog as those order patterns adjust. And as Gerben had mentioned, in raising our guidance we feel that we've got the momentum to clearly carry us through the second half of the year
orders adjusting -- not suatabale due to previuos ordering ahesd of extended lead times
Transcript
2023 Q2
24 Aug 23
So on the sales side, see 14% increase to $831 million. That's comprised of 1 point from acquisition, I mentioned Ripley Tools before and 13% organic. That organic is comprised of roughly double digit price and low single digit volume increase
utility -- price and volume
Transcript
2023 Q2
24 Aug 23
nd interestingly, both levers contributing to the margin expansion, I think you've seen our price story play out over the last couple of years or so. But also this quarter, we had material cost flipping to a tailwind, so actual deflation in both the raws and our component costs there, helping drive strong margins. We believe our pricing success has been driven by our differentiated service levels.
materoal cost now a tailwind
Transcript
2023 Q2
24 Aug 23
OP margin reaching the 22% level, a very attractive level, nearly 6 point improvement over last year, really result of the price cost being favorable as well as some productivity from the supply chain normalization of some of the efficiencies coming with that
margin coming through due to price/cost
Transcript
2023 Q2
24 Aug 23
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