“In addition, we also do not expect a significant decrease in machine dealer inventory as we saw in the fourth quarter of 2024 and still expect dealers to hold inventories about flat for the full year.”

In context

“of what tariff rates could be and the timing of any additional mitigation actions that we may take once the situation becomes clearer, it is not possible to derive an accurate estimate of the net full year impact of tariffs. However, in our alternative scenario, assuming the tariffs in place today remain for the duration of 2025, and without any additional mitigation actions, which is unlikely to happen, we would still expect to remain within the margin target range at the expected levels of sales and revenues. Also, I want to remind you about two important points impacting our year-over-year comparatives. As we said in January, we expect the impact of negative price realization to be greater in the first and second quarters of the year. This will moderate as we move into the second half. In addition, we also do not expect a significant decrease in machine dealer inventory as we saw in the fourth quarter of 2024 and still expect dealers to hold inventories about flat for the full year. These factors help to underpin our confidence about the second half of the year. Moving on, we continue to expect restructuring costs of approximately $150 million to $200 million in 2025, and our anticipated annual effect of global tax rate remains at 23% for 2025 excluding discrete items. Turning to Slide 17. To assist you with your modeling, I'll provide our second quarter assumptions. Based on what we see today, we anticipate second quarter sales will be similar to the prior year as sales growth in Energy & Transportation is offset by lower sales in Construction Industries and Resource Industries. By segment, we anticipate lower sales in Construction Industries in the second quarter versus the prior year, mainly due to lower price, the impact of which is expected to be similar to the”