“Q1 looks to us a lot like Q4.”

In context

“ill now take your questions. Operator: [Operator Instructions] And our first question comes from the line of Andrew Kaplowitz with Citi. Andrew Kaplowitz: Good morning, everyone. Mike and Monish, could you give us a little more color into the consumer and industrial channels that you deal with? I know you said you're seeing signs of consumer electronics improvement, but also mentioned the destock in China, for instance, at the end of Q4. Maybe you could elaborate on what you're seeing across the consumer and industrial channels. And then you are modeling Q1 sales, I think, to be sequentially flat, excluding the $100 million of sales headwind you called out, which seems conservative if your early cycle business starting to turn. So what are you seeing? Mike Roman: Yes, Andy, I'd start with Q1 looks to us a lot like Q4. So some of the dynamics that you're asking about are part of that. We talked about electronics stabilizing in Q4. So starting year-over-year comparison and stabilizing against that. As we look forward, consumer retail, similar as well. We saw still softness in discretionary product categories, discretionary purchases. Consumer spending has been strong, but it's been shifting all through the year, as you know, to experiences, services and even food as inflation has impacted that. So we see that dynamic continuing to play out as we look forward. If you look at the channel, I'd say broadly, the channels are stabilizing. Consumer, there was -- as we went through the first part of last year, there was aggressive reduction in inventory in the channel. That played out and it's more balanced as w”