Second Half Outlook
Julian Mitchell – Credit Suisse: Yeah, so, I was just looking at the EBIT bridge and if you sort of look at the productivity net above with the inflation that was running at about 50 bps tailwinds and margins in Q2, that’s lower than the sort of 90 bps effect in Q1. What do you think the full year there, is that’s just something on the timing of projects quarter-to-quarter and the run rate is more like sort of a first half blended number or how you think about that for the second half?
Michael W. Lamach – Chairman and CEO: Yeah, I think so, Julian, we said right along that we expect to see about 50 bps coming from difference between – you’re talking about pricing versus direct material inflation I assume, right?
Julian Mitchell – Credit Suisse: Well, productivity.
Steven R. Shawley – SVP and CFO: Productivity in general?
Julian Mitchell – Credit Suisse: Yeah, the productivity, net of other inflation line.
Steven R. Shawley – SVP and CFO: Okay, we’ll address that.
Julian Mitchell – Credit Suisse: Just that, that was 50 bps contribution, I think in Q2 and it was more like 90 in Q1, just – is that just lumpiness in the full year is going to be somewhere in between the two, 70 or so?
Michael W. Lamach – Chairman and CEO: Actually, if you look at the second half, it’s more of a blended rate, the second half compared to the – if you look at the first two quarters, it’s a blended rate, that’s not what you have for the second half. You’d see a little increase in gross productivity in the back half of the year. You do have a little bit of – sort of that tame inflation environment. So, you do get a little bit better in that productivity, other inflation in that regard. Steve was kind of going down the path of answering the pricing question, which has been good to us halfway through the year and I think as we look at the back half of the year, just to kind of maybe ramp the question there, I think we’ll do something on the order of 40 to 60 basis points in Q3 and Q4, in that price to material inflation component as well. So, I do think it supports Q3 forecast. The Q4 forecast with operating leverage between 40% and 50%, kind of in the mid-40s and that supports, I think what we’ve done in the past. It also supports the forecast that we have for both productivity and pricing.
Steven R. Shawley – SVP and CFO: The other thing about the other inflation, that includes all salary increases and we’re on a pretty much of an April 1 salary merit increase schedule. So, the first quarter is always going to look a little better than the rest of the year because of that factor.
Julian Mitchell – Credit Suisse: Then just on the – mix was a big issue in Q1, that you highlighted in the three of the four segments. You said it would get better in Q2, clearly it’s got a little better. How you think about mix to the second half.
Michael W. Lamach – Chairman and CEO: I think mix for the second half is going to be generally better than what we have seen in the first. Couple of reasons one the residential mix down here seems to be leveling out. We are definitely seeing sort of a bottoming of the average (indiscernible) there which was a big, big factor in our mix issues up through the first quarter. We are also seeing a good mix of Thermo King business through the middle part of the year here which is going to help the mix certainly in the third quarter. I would say we still have a mix problem that’s probably somewhat in the industrial sector because in addition to just general volume issues in the industrial sector. Shifting away from tools to more complete air compressors, so we have a little bit of a negative mix there offsetting some positive developments in some of the other sectors.
Commercial HVAC Order
Andrew Casey – Wells Fargo Securities: First on EU commercial HVAC order commentary. That’s consistent with what some other companies have said kind of recently. But it’s still kind of surprising what’s going – that order commentary against what seems to be going on over there. What do you think is driving that and is there any regional concentration that you are seeing?
Michael W. Lamach – Chairman and CEO: We play across the entire region including the Middle East as well and so I think we have low expectations for Western Europe and they are better than what we have thought we are continuing to see good growth and solid bookings coming out of the Middle East as well. Which is in those numbers our unitary business in EMEA is really up nicely and that has to do in some regards with new products and plan now producing those products for us in Eastern Europe as well and I think we’re more competitive on that product, but yeah, I mean, so Western Europe is a little bit better than we would have thought coming off a real low. Middle East is a pretty strong and India, which is in that number as well is about where we expected.
Andrew Casey – Wells Fargo Securities: Then, on the Climate Solutions in general the segment margin performance specifically the strong 36% incremental contribution surprised me and it was very positive, is that we should expect from this segment with top line benefit or was there something special going on in this quarter?
Michael W. Lamach – Chairman and CEO: Well, if it was special for the last three or four years, is Trane Commercials has made new and new sort of leverage highs, in fact, if you go all the way back through the really the history of American standard, Trane back as far as we can really look back, we’ve probably added 10 to 12 points to the average operating leverage in that business, and I think that’s got to do with a lot of hard work around plant consolidations, the colocation of some manufacturing with their Industrial business, a lot of new product developments, product at higher margins coming out of the business, focus on the service business and what we’ve been able to do there. So, interestingly, when you look at the operating leverage between Trane and TK in the quarter, both business were over 30%. So, I would actually expect Trane to continue a good run. I think that we’re wanting obviously that to be the new normal at Trane and the last three years they’ve proven they can do that and then we would expect a little bit better operating leverage actually out of TK in the back half of the year, again supporting more of that fourth quarter structure that we have.
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