“I think price cost, which was positive in the first quarter, continues through the year. Cost reductions, which was positive in the first quarter continues through the year.”

In context

“benefit going forward? Thank you. Mike Baughman: Well, yes, there will be a certainly compared to the first quarter; there will be a tempering of some of that cost reduction, but the cost reduction benefits will continue throughout the year. I think the other thing that we touched on that's important to think about is gross margin in the first quarter was particularly high due to mix and that will temper a bit as the year goes on as well. So, I touched on the other drivers as you think about moving forward in comparing the first quarter to the rest of the year, particularly around FX, which was the one point in the quarter. But we will continue to drive cost reductions throughout the year and that will be an uplift to the margin as we move forward. Lal Karsanbhai: Yes, you said it, Mike. I think price cost, which was positive in the first quarter, continues through the year. Cost reductions, which was positive in the first quarter continues through the year. What will change is fundamentally the mix dynamic, which was hugely positive and Q1 and drove the 28% EBITDA margin at the segment level will change. We've modeled that into the year as well as dynamics around discretionary spend, which was throttled in the first quarter. Some of that, as Mike referenced will come back. So that's how I would think about modeling margins for the rest of the year. Saree Boroditsky: Great. And just a quick one on the discretionary commentary you talked about factory automation and auto as markets you're watching. Just maybe comment on what you're seeing from both of those and how you expect those to potentially accelerate in the second half? Lal Karsanbhai: Yes, I mean both those markets have remained pretty depressed auto very depressed, particularly on the”