“Now taking tariffs into account, we would expect about 50% of the second quarter net tariff -- enterprise tariff impact of $250 million to $350 million to be incurred in Construction Industries.”

In context

“ted margins to be lower than the prior year, primarily due to a net headwind from price realization and some unfavorable manufacturing costs and SG&A and R&D increases. In addition, as Joe mentioned, tariffs will represent a net headwind of about $250 million to $350 million for the quarter. I'll make a few comments regarding our segment margin expectations as well. In the second quarter, in Construction Industries, excluding any tariff impacts, we would have expected lower margins compared to the prior year where the strong prior year margins make for a challenging comparison. The main driver of lower margins year-over-year is unfavorable price. While lower than the comparative quarter last year, we would have expected margins to be higher when compared to the first quarter of this year. Now taking tariffs into account, we would expect about 50% of the second quarter net tariff -- enterprise tariff impact of $250 million to $350 million to be incurred in Construction Industries. In Resource Industries, similar to Construction Industries, a strong prior year margin sets a challenging comparison in the second quarter. Excluding any tariff impacts, we would have expected lower margins versus the prior year, primarily due to unfavorable price, which I commented on a moment ago, and higher SG&A and R&D costs. In addition, Resource Industries will be expected to incur an additional headwind of about 25% of the net tariff quarters -- tariff costs in the second quarter. In Energy & Transportation, excluding any tariff impacts, we would have expected slightly higher margins compared to the prior year with favorable volume and price realization, partially offset by manufacturing costs and SG&A and R&D increases. For Energy & Transportation, we would be expected to incur an”