“However, it's important to note this range still follows our long-term EPS growth algorithm with double digit percent growth from capital allocation and management actions partially offset by the current unfavorable economic impact, including currency translation.”

In context

“ng a fortress balance sheet is critical for not only maintaining stability, but also capitalizing on growth and share repurchase opportunities as they arise. I'll wrap up with a guidance update on Slide 6. For the second quarter the EPS guidance range is $3.95 to $4.05. This represents 3% to 5% growth or 5% to 7% when excluding a 2% currency headwind. This range assumes recessionary conditions at the midpoint, translating to roughly 2% EPS headwind from lower volumes. Therefore, while the assumed FX headwind improved by 2%, we offset that benefit with an equivalent volume contraction at the midpoint. Consistent with our normal approach, this is merely an economic placeholder based on current trends. If things are better, we will perform better and if worse, we'll take actions to mitigate. However, it's important to note this range still follows our long-term EPS growth algorithm with double digit percent growth from capital allocation and management actions partially offset by the current unfavorable economic impact, including currency translation. The full year guide follows the same approach as Q2, resulting in an updated range of $16.20 to $16.50. FX improved by 2% but was offset by an equally negative volume assumption at the midpoint. All-in, we're holding the original guidance midpoint but are narrowing the range by a nickel on each end due to less remaining quarters. Overall, we believe it's prudent to remain guarded in this environment, but do not mistake our prudence for complacency. We continue to manage the things within our control by taking proactive actions and adhering to our long-term proven capital allocation strategy. Additionally, we're leveraging our secure balance sheet, engineering capabilities and unrivaled supply network to capture opportunities that will position us for the future. And eventually the economy”