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: Deane Michael Dray - RBC Capital Markets, LLC, Research Division - Analyst
: Beth and Stacy, congratulations to you and the team for the smooth first-quarter earnings for nVent. So, we like seeing all that and also like seeing
the dividend and buyback announcement. First question is kind of big picture, is where are you today on the right size being of the organization?
One of the reasons we're particularly interested is you are not following the path of some spinouts that turn into these serial restructurers, and so
the quality of earnings perception is very high with the idea that you're going to be doing pay-as-you-go restructuring. But just want to know what
inning are you in in right-sizing the organization, how much of your focus is on this versus, let's say, the individual businesses. But, if we could start
there, that would be helpful.
Question: Deane Michael Dray - RBC Capital Markets, LLC, Research Division - Analyst
: That's really good to hear. And then, my follow-up is I appreciate the color on the tariffs, because you anticipated that question. The two points in
price was better than what we were looking for, so it looks like a lot of good work is happening there. But maybe, how does this translate into price
cost for the year? The tariff headwind of $5 million annualized, how does that net against the 2 points, I think you said $9 million in pricing for the
quarter? But how does that net out in expectations on price cost?
Question: Deane Michael Dray - RBC Capital Markets, LLC, Research Division - Analyst
: Does that include any of the potential indirect cost that is likely coming out of the tariff pressures today?
Question: Deane Michael Dray - RBC Capital Markets, LLC, Research Division - Analyst
: I got it.
Question: Robert Scott Graham - BMO Capital Markets Equity Research - Analyst
: Can you hear me?
Question: Robert Scott Graham - BMO Capital Markets Equity Research - Analyst
: Awesome, thank you. I had a little trouble this morning, technically. You were kind enough to say what price cost was in EFS. When you said the
price cost price exceeded inflation, you meant purely price, not price and productivity?
Question: Robert Scott Graham - BMO Capital Markets Equity Research - Analyst
: Could you kind of give us the same framework for the quarter for the other two segments? I'm assuming below, yes?
Question: Robert Scott Graham - BMO Capital Markets Equity Research - Analyst
: Yeah, Thermal I'm assuming you didn't get much price there at all because of the market conditions.
Question: Robert Scott Graham - BMO Capital Markets Equity Research - Analyst
: Now, sort of the same question, tiger with different stripes though. We heard this yesterday from your sister company, I guess no longer, but we've
heard this before as well, that there seems to be a movement afoot here to be very customer-friendly on pricing and not to do too much too fast,
make sure that we announce it, the whole thing. I'm just wondering, we are in a very unique inflation environment, something truthfully, I haven't
seen for a while; I don't want to tell you how long that is. But it seems to me that customers are almost kind of getting a little bit of a pass here, and
I'm just kind of wondering on your view there, the need to [GAAP] out the price because we have to notify, because 60 days and all this. Is there a
way to get around that? Because it just seems like, you know, we're kind of allowing customers a benefit that--you know, and putting that perk on
us. You're not the only company, and that's what I'm implying here. Is there a way to get around this?
Question: Robert Scott Graham - BMO Capital Markets Equity Research - Analyst
: That's really all I have. Thank you for you--and congratulations on your first independent earnings call.
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