The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Nathan Hardie Jones - Stifel, Nicolaus & Company, Incorporated, Research Division - Analyst
: I wanted to go back to price/cost productivity. Correct me if any of these numbers are wrong. You talked about 760 basis points of headwind from
cost, 370 of tailwind from price and 350 of tailwind from productivity. I think the business would typically be negative on price/cost, mostly out of
the MT segment that you typically make up with productivity, but it clearly wouldn't have had that bigger spread. Can you talk about that kind of
dynamic historically, how far behind you typically are on price/cost that you make up every year with productivity primarily out of the MT business?
Question: Nathan Hardie Jones - Stifel, Nicolaus & Company, Incorporated, Research Division - Analyst
: Yes, go ahead.
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MAY 03, 2022 / 12:30PM, ITT.N - Q1 2022 ITT Inc Earnings Call
Question: Nathan Hardie Jones - Stifel, Nicolaus & Company, Incorporated, Research Division - Analyst
: And -- but where -- I guess my question is where would you have been historically? Because I know you have price downs in the Motion Tech
business. I mean this is obviously where the price/cost spread is, historically negative. You have price downs in that business that you typically
make up for in productivity.
What -- if I look at cost minus or price plus productivity minus cost, you were fairly close to neutral overall in the business. Where is that historically
been? Have you historically been able to use price and productivity to overcome cost inflation? And you're back down to neutral here? Just trying
to get a sense of where that would be historically for the business.
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