Manitowoc(MTW) - 2023 Q1 - Quarterly Report

PART I. FINANCIAL INFORMATION This section provides an overview of financial statements, management's analysis, and market risk disclosures Item 1. Financial Statements This section presents unaudited condensed consolidated financial statements and detailed notes for Q1 2023 and 2022 Condensed Consolidated Statements of Operations Net income significantly increased to $16.5 million, and net sales grew to $508.3 million for Q1 2023 Condensed Consolidated Statements of Operations | Metric | 3 Months Ended March 31, 2023 | 3 Months Ended March 31, 2022 | | :-------------------------------- | :------------------------------ | :------------------------------ | | Net sales | $508.3 million | $459.0 million | | Cost of sales | $402.0 million | $374.0 million | | Gross profit | $106.3 million | $85.0 million | | Operating income | $30.2 million | $17.6 million | | Net income | $16.5 million | $3.1 million | | Basic net income per common share | $0.47 | $0.09 | | Diluted net income per common share | $0.46 | $0.09 | - Net income increased by 432.3% year-over-year, from $3.1 million in Q1 2022 to $16.5 million in Q1 2023[7] - Net sales grew by 10.7% to $508.3 million in Q1 2023 from $459.0 million in Q1 2022[7] Condensed Consolidated Statements of Comprehensive Income (Loss) Comprehensive income improved to $16.4 million for Q1 2023, driven by higher net income and positive foreign currency adjustments Condensed Consolidated Statements of Comprehensive Income (Loss) | Metric | 3 Months Ended March 31, 2023 | 3 Months Ended March 31, 2022 | | :------------------------------------ | :------------------------------ | :------------------------------ | | Net income | $16.5 million | $3.1 million | | Unrealized losses on derivatives, net | $(3.3) million | $(0.2) million | | Employee pension and postretirement benefit expense, net | $(1.0) million | $(0.6) million | | Foreign currency translation adjustments, net | $4.2 million | $(5.5) million | | Total other comprehensive loss, net | $(0.1) million | $(6.3) million | | Comprehensive income (loss) | $16.4 million | $(3.2) million | - Comprehensive income improved from a loss of $3.2 million in Q1 2022 to an income of $16.4 million in Q1 2023[10] - Foreign currency translation adjustments shifted from a loss of $5.5 million in Q1 2022 to a gain of $4.2 million in Q1 2023[10] Condensed Consolidated Balance Sheets Total assets increased to $1,691.1 million as of March 31, 2023, primarily due to higher inventories, with liabilities and equity also rising Condensed Consolidated Balance Sheets | Metric | March 31, 2023 | December 31, 2022 | | :------------------------------------ | :------------------------------ | :------------------------------ | | Total assets | $1,691.1 million | $1,615.5 million | | Cash and cash equivalents | $56.5 million | $64.4 million | | Accounts receivable, net | $250.6 million | $266.3 million | | Inventories | $720.6 million | $611.9 million | | Total current assets | $1,079.4 million | $998.5 million | | Total current liabilities | $617.6 million | $547.8 million | | Total liabilities and stockholders' equity | $1,691.1 million | $1,615.5 million | | Total stockholders' equity | $552.8 million | $537.8 million | - Inventories increased by 17.8% from $611.9 million at December 31, 2022, to $720.6 million at March 31, 2023[13] - Total assets increased by 4.7% from $1,615.5 million at December 31, 2022, to $1,691.1 million at March 31, 2023[13] Condensed Consolidated Statements of Cash Flows Net cash from operating activities significantly increased to $15.4 million for Q1 2023, while financing cash use decreased Condensed Consolidated Statements of Cash Flows | Metric | 3 Months Ended March 31, 2023 | 3 Months Ended March 31, 2022 | | :------------------------------------ | :------------------------------ | :------------------------------ | | Net cash provided by operating activities | $15.4 million | $5.6 million | | Net cash used for investing activities | $(8.6) million | $(8.7) million | | Net cash used for financing activities | $(15.1) million | $(20.7) million | | Net decrease in cash and cash equivalents | $(7.9) million | $(23.8) million | | Cash and cash equivalents at end of period | $56.5 million | $51.6 million | - Net cash provided by operating activities increased by 175% year-over-year, from $5.6 million in Q1 2022 to $15.4 million in Q1 2023[15] - Net cash used for financing activities decreased by 27% year-over-year, from $20.7 million in Q1 2022 to $15.1 million in Q1 2023[15] Condensed Consolidated Statements of Equity Total stockholders' equity increased to $552.8 million as of March 31, 2023, driven by net income and partially offset by repurchases Condensed Consolidated Statements of Equity | Metric | March 31, 2023 | March 31, 2022 | | :------------------------------------ | :------------------------------ | :------------------------------ | | Common Stock - Par Value | $0.4 million | $0.4 million | | Additional Paid-in Capital | $605.8 million | $601.7 million | | Accumulated Other Comprehensive Loss | $(108.0) million | $(108.7) million | | Retained Earnings | $120.8 million | $231.0 million | | Treasury Stock | $(66.2) million | $(62.9) million | | Total stockholders' equity | $552.8 million | $661.5 million | - Retained earnings increased to $120.8 million as of March 31, 2023, from $104.3 million at December 31, 2022, primarily due to net income of $16.5 million[18] - Treasury stock increased to $(66.2) million as of March 31, 2023, from $(65.7) million at December 31, 2022, reflecting common stock repurchases of $3.5 million[18] Notes to Unaudited Condensed Consolidated Financial Statements This section details disclosures for financial statements, covering operations, accounting policies, financial instruments, debt, equity, and segments Note 1. Company and Basis of Presentation Manitowoc is a leading provider of engineered lifting solutions, operating through Americas, EURAF, and MEAP segments - Manitowoc is one of the world's leading providers of engineered lifting solutions, offering mobile hydraulic, lattice-boom crawler, boom trucks, and tower cranes[21] - Key brands include Aspen Equipment, Grove, Manitowoc, MGX Equipment Services, National Crane, Potain, and Shuttlelift[21] - The company has three reportable segments: Americas, Europe and Africa ("EURAF"), and Middle East and Asia Pacific ("MEAP")[22] Note 2. Recent Accounting Changes and Pronouncements The company adopted ASU No. 2022-04 as of January 1, 2023, with no material impact on financial statements - Adopted Accounting Standards Update ("ASU") No. 2022-04, "Disclosure of Supplier Financing Program Obligations," as of January 1, 2023[25] - The adoption of this ASU did not have a material impact on the Company's consolidated financial statements[25] Note 3. Net Sales Revenue deferrals from customer advances increased to $34.4 million for Q1 2023, with $32.4 million recognized Note 3. Net Sales Summary | Metric | 3 Months Ended March 31, 2023 | 3 Months Ended March 31, 2022 | | :------------------------------------ | :------------------------------ | :------------------------------ | | Balance at beginning of period | $21.9 million | $28.7 million | | Cash received in advance of satisfying performance obligations | $34.4 million | $15.5 million | | Revenue recognized | $(32.4) million | $(17.9) million | | Currency translation | $0.1 million | $(0.8) million | | Balance at end of period | $24.0 million | $25.5 million | - Cash received in advance of satisfying performance obligations increased by 121.9% from $15.5 million in Q1 2022 to $34.4 million in Q1 2023[28] Note 4. Fair Value of Financial Instruments Financial instruments include FX Forward Contracts (Level 2) and senior secured second lien notes (Level 1) FX Forward Contracts Fair Value | Metric | March 31, 2023 | December 31, 2022 | | :------------------------------------ | :------------------------------ | :------------------------------ | | FX Forward Contracts (Current Assets) | $3.5 million | $5.7 million | | FX Forward Contracts (Current Liabilities) | $0.1 million | $0.3 million | - The fair value of the $300.0 million senior secured second lien notes due on April 1, 2026, was approximately $301.1 million as of March 31, 2023[30] - FX Forward Contracts are classified within Level 2 of the fair value hierarchy, while the 2026 Notes are classified as Level 1[31][32] Note 5. Derivative Financial Instruments The company uses FX Forward Contracts to manage currency exposure, with $84.4 million notional amount outstanding as of March 31, 2023 - Aggregate notional amounts of FX Forward Contracts were $84.4 million as of March 31, 2023, down from $87.7 million as of December 31, 2022[35] - Net unrealized gains, net of income tax, recorded in Accumulated Other Comprehensive Income (AOCI) were $2.1 million as of March 31, 2023, compared to $5.4 million as of December 31, 2022[35] Derivative Gains and Losses by Recognition Location | Recognized Location | 3 Months Ended March 31, 2023 | 3 Months Ended March 31, 2022 | | :------------------ | :------------------------------ | :------------------------------ | | Designated (Cost of sales) | $3.4 million | $(0.1) million | | Non-Designated (Other income (expense) - net) | $(2.3) million | $0.7 million | Note 6. Inventories Total inventories increased to $720.6 million as of March 31, 2023, driven by higher work-in-process and finished goods Inventories by Component | Component | March 31, 2023 | December 31, 2022 | | :---------------- | :------------------------------ | :------------------------------ | | Raw materials | $163.0 million | $161.2 million | | Work-in-process | $175.9 million | $141.3 million | | Finished goods | $381.7 million | $309.4 million | | Total Inventories | $720.6 million | $611.9 million | - Total inventories increased by 17.8% from $611.9 million at December 31, 2022, to $720.6 million at March 31, 2023[37] - Work-in-process inventories increased by 24.5% from $141.3 million to $175.9 million[37] Note 7. Notes Receivable Current notes receivable decreased to $9.4 million; prior year included a $4.8 million recovery from a written-off note - Current notes receivable were $9.4 million as of March 31, 2023, down from $10.6 million as of December 31, 2022[38] - Long-term notes receivable were $2.1 million as of March 31, 2023, slightly up from $2.0 million as of December 31, 2022[38] - During Q1 2022, the Company recorded $4.8 million in income from the partial recovery of a previously written-off long-term note receivable from a 2014 divestiture[38] Note 8. Property, Plant, and Equipment Net property, plant, and equipment decreased slightly to $331.6 million, with $6.2 million classified as held for sale Note 8. Property, Plant, and Equipment Summary | Metric | March 31, 2023 | December 31, 2022 | | :------------------------------------ | :------------------------------ | :------------------------------ | | Total cost | $831.3 million | $822.6 million | | Less: accumulated depreciation | $(499.7) million | $(487.3) million | | Property, plant, and equipment - net | $331.6 million | $335.3 million | - Net property, plant, and equipment decreased by 1.1% from $335.3 million to $331.6 million[40] - As of March 31, 2023, $6.2 million of property, plant, and equipment was classified as assets held for sale[41] Note 9. Goodwill and Intangible Assets Goodwill decreased to $79.9 million due to foreign currency impact; no impairment events in Q1 2023 Goodwill and Intangible Assets Summary | Metric | March 31, 2023 | December 31, 2022 | | :------------------------------------ | :------------------------------ | :------------------------------ | | Consolidated Goodwill | $79.9 million | $80.1 million | | Total Intangible Assets (Net) | $126.6 million | $126.7 million | - Goodwill decreased by $0.2 million due to foreign currency impact[42] - Amortization expense for definite-lived intangible assets was $1.0 million for Q1 2023, up from $0.8 million in Q1 2022[44] Note 10. Accounts Payable and Accrued Expenses Total accounts payable and accrued expenses increased to $518.1 million, primarily due to higher trade accounts payable Accounts Payable and Accrued Expenses Components | Component | March 31, 2023 | December 31, 2022 | | :------------------------------------ | :------------------------------ | :------------------------------ | | Trade accounts payable | $338.1 million | $274.6 million | | Employee-related expenses | $44.9 million | $51.0 million | | Accrued vacation | $24.8 million | $22.4 million | | Miscellaneous accrued expenses | $110.3 million | $98.4 million | | Total accounts payable and accrued expenses | $518.1 million | $446.4 million | - Total accounts payable and accrued expenses increased by 16.1% from $446.4 million to $518.1 million[45] - Trade accounts payable increased by 23.1% from $274.6 million to $338.1 million[45] Note 11. Debt Total debt decreased to $377.4 million due to lower ABL borrowings, with the company in compliance with all debt covenants Debt Breakdown | Metric | March 31, 2023 | December 31, 2022 | | :------------------------------------ | :------------------------------ | :------------------------------ | | Borrowings under ABL revolving credit facility | $70.0 million | $80.0 million | | Senior secured second lien notes due 2026 | $300.0 million | $300.0 million | | Other debt | $9.6 million | $8.0 million | | Total debt | $377.4 million | $385.6 million | | Long-term debt | $369.5 million | $379.5 million | - Borrowings under the ABL Revolving Credit Facility decreased by $10.0 million to $70.0 million[46][133] - As of March 31, 2023, the Company was in compliance with all affirmative and negative covenants in its debt instruments[55] Note 12. Accounts Receivable Factoring Accounts receivable factoring programs generated $36.0 million in cash proceeds for Q1 2023, with a U.S. program maximum of $27.0 million - Cash proceeds from the factoring of accounts receivable qualifying as sales were $36.0 million for Q1 2023, up from $33.3 million for Q1 2022[57] - The U.S. accounts receivable financing program has a maximum availability of $27.0 million[56] - Financing charges associated with factoring were immaterial for both periods[58] Note 13. Income Taxes Provision for income taxes decreased to $4.2 million for Q1 2023 due to a change in the jurisdictional mix of income - Provision for income taxes decreased by 35.4% to $4.2 million for Q1 2023 from $6.5 million for Q1 2022[60] - The decrease is due to a change in the jurisdictional mix of income, reflecting a reduction of losses in jurisdictions where no tax benefit can be realized[60] - Unrecognized tax benefits, excluding interest and penalties, remained unchanged at $9.1 million as of March 31, 2023, and December 31, 2022[61] Note 14. Net Income Per Common Share Diluted net income per common share increased to $0.46 for Q1 2023, with more dilutive securities from equity awards Weighted Average Common Shares Outstanding | Metric | 3 Months Ended March 31, 2023 | 3 Months Ended March 31, 2022 | | :------------------------------------ | :------------------------------ | :------------------------------ | | Basic weighted average common shares outstanding | 35,121,473 | 35,131,889 | | Diluted weighted average common shares outstanding | 35,748,021 | 35,565,935 | | Anti-dilutive equity instruments excluded | 682,930 | 588,050 | - Diluted net income per common share increased by 411.1% from $0.09 in Q1 2022 to $0.46 in Q1 2023[7] - No cash dividends were declared or paid during the three months ended March 31, 2023 and 2022[63] Note 15. Equity The company repurchased 191,846 shares for $3.5 million in Q1 2023, with $4.1 million remaining under authorization - The company repurchased 191,846 shares of common stock for $3.5 million during Q1 2023[65][146] - As of March 31, 2023, $4.1 million remained under the Board of Directors' authorization to purchase common stock[65][145] - Accumulated other comprehensive loss was $(108.0) million as of March 31, 2023, compared to $(107.9) million as of December 31, 2022[66] Note 16. Stock-Based Compensation Stock-based compensation expense remained at $3.1 million, with more restricted and performance share units granted in Q1 2023 - Stock-based compensation expense was $3.1 million for both the three months ended March 31, 2023, and 2022[69] - Granted 478,411 restricted stock units in Q1 2023, up from 378,623 in Q1 2022[70] - Issued 233,409 performance share units in Q1 2023, up from 198,334 in Q1 2022, with 2023 goals weighted 60% on adjusted EBITDA percentage and 40% on cumulative non-new machine sales[71][72] Note 17. Segments Segments showed varied performance: Americas saw significant growth, while EURAF and MEAP operating income declined despite stable sales Segment Performance Summary | Segment | Net Sales (Q1 2023) | Net Sales (Q1 2022) | Segment Operating Income (Q1 2023) | Segment Operating Income (Q1 2022) | | :-------- | :------------------ | :------------------ | :--------------------------------- | :--------------------------------- | | Americas | $264.4 million | $215.9 million | $28.5 million | $5.8 million | | EURAF | $178.2 million | $179.2 million | $3.6 million | $11.4 million | | MEAP | $65.7 million | $63.9 million | $8.6 million | $13.1 million | - Americas segment operating income increased by 391.4% year-over-year[78] Sales Type Breakdown | Sales Type | 3 Months Ended March 31, 2023 | 3 Months Ended March 31, 2022 | | :----------- | :------------------------------ | :------------------------------ | | New machine sales | $357.3 million | $329.6 million | | Non-new machine sales | $151.0 million | $129.4 million | | Total net sales | $508.3 million | $459.0 million | Note 18. Commitments and Contingencies The company faces legal proceedings and an EPA inquiry; product liability and warranty reserves decreased, while EPA liability remains $14.9 million - Product liability reserves were $8.5 million as of March 31, 2023, down from $9.4 million as of December 31, 2022[82] - Reserves for warranty and other related claims were $56.4 million as of March 31, 2023, down from $58.0 million as of December 31, 2022[83] - The total recorded estimated liability for the U.S. EPA inquiry is $14.9 million, with statutory maximum penalties under the Clean Air Act estimated at approximately $174.0 million[86] Note 19. Guarantees The company provides buyback commitments and product warranties; deferred revenue for buybacks was $26.4 million, and warranty accruals decreased to $56.4 million - Deferred revenue related to buyback obligations was $26.4 million as of March 31, 2023, down from $27.3 million as of December 31, 2022[87] - Total buyback commitments outstanding were $41.5 million as of March 31, 2023, down from $42.5 million as of December 31, 2022[87] Warranty Accruals Summary | Metric | 3 Months Ended March 31, 2023 | 3 Months Ended March 31, 2022 | | :------------------------------------ | :------------------------------ | :------------------------------ | | Warranty balance at beginning of period | $58.0 million | $60.2 million | | Adjustments to accruals for warranties | $6.6 million | $5.9 million | | Settlements made | $(8.5) million | $(6.1) million | | Warranty balance at end of period | $56.4 million | $59.4 million | Note 20. Employee Benefit Plans Net periodic benefit cost for Q1 2023 was $1.0 million for U.S. Pension, $1.0 million for Non-U.S. Pension, and $(0.2) million for Postretirement Health plans Net Periodic Benefit Cost Components | Component of Net Periodic Benefit Cost | U.S. Pension Plan (Q1 2023) | Non-U.S. Pension Plans (Q1 2023) | Postretirement Health and Other Plans (Q1 2023) | | :------------------------------------- | :-------------------------- | :------------------------------- | :---------------------------------------------- | | Service cost | $0.0 million | $0.3 million | $0.0 million | | Interest cost | $1.4 million | $0.7 million | $0.1 million | | Expected return on plan assets | $(1.0) million | $(0.4) million | $0.0 million | | Amortization of prior service cost | $0.0 million | $0.0 million | $(0.3) million | | Amortization of actuarial net (gain) loss | $0.6 million | $0.4 million | $0.0 million | | Net periodic benefit cost | $1.0 million | $1.0 million | $(0.2) million | - Net periodic benefit cost for the U.S. Pension Plan increased to $1.0 million in Q1 2023 from $0.0 million in Q1 2022[92] - Net periodic benefit cost for Postretirement Health and Other Plans improved from a cost of $(0.4) million in Q1 2022 to a benefit of $(0.2) million in Q1 2023[92] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses Q1 2023 financial performance, condition, and liquidity, noting increased net sales and operating income despite challenges Cautionary Statements Regarding Forward-Looking Information This section outlines risks and uncertainties that could impact forward-looking statements, including macroeconomic, geopolitical, and supply chain factors - Forward-looking statements are subject to known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially[97] - Key risks include macroeconomic conditions (inflation, rising interest rates, recessionary concerns), global supply chain constraints, labor availability and cost pressures, and changes in raw material costs[98][101] - Geopolitical events, such as the Russia-Ukraine conflict, can lead to market disruptions, volatility in commodity prices, and potential asset impairment[98] Current Events The company faces inflation, rising interest rates, and supply chain constraints; Russian operations are curtailed with expected future charges Inflation and Interest Rate Environment Inflation negatively impacted costs; price increases were implemented, but realization is delayed, and high interest rates may affect demand - The Company was negatively impacted by inflation in wages, logistics, energy, raw material, and component costs for Q1 2023[101] - Implemented price increases and provisional pricing strategies to mitigate cost inflation, but realization is delayed due to long lead times[101] - Elevated interest rates and global macroeconomic uncertainty could impact customer decisions to purchase cranes[101] Supply Chain, Labor and Logistics Constraints Global supply chain, labor, and logistics constraints continue to impact sourcing and shipping, requiring alternative strategies - Global supply chain, labor, and logistics constraints negatively impacted the Company's ability to timely source parts and complete/ship units in Q1 2023[102] - Supply chains for certain key components remain distressed despite some relief[102] - The Company actively monitors and manages constraints through alternative sourcing and adapting production[102] Curtailment of Operations in Russia Russian operations are curtailed, with expected future non-cash charges of $5.0 million to $10.0 million from foreign currency adjustments - The Company's operations in Russia have been substantially curtailed as of March 31, 2023[103] - Expects future charges of $5.0 million to $10.0 million related to the non-cash write-off of foreign currency adjustments in accumulated other comprehensive loss[103] Segment Operating Performance Americas segment showed strong growth in sales and operating income, while EURAF and MEAP operating income declined due to various factors Segment Operating Performance Summary | Segment | Net Sales (Q1 2023) | Net Sales (Q1 2022) | Net Sales Change (YoY) | Operating Income (Q1 2023) | Operating Income (Q1 2022) | Operating Income Change (YoY) | | :-------- | :------------------ | :------------------ | :--------------------- | :------------------------- | :------------------------- | :---------------------------- | | Americas | $264.4 million | $215.9 million | +22.5% | $28.5 million | $5.8 million | +391.4% | | EURAF | $178.2 million | $179.2 million | -0.6% | $3.6 million | $11.4 million | -68.4% | | MEAP | $65.7 million | $63.9 million | +2.8% | $8.6 million | $13.1 million | -34.4% | Americas Segment Americas segment net sales increased by 22.5% to $264.4 million, with operating income surging to $28.5 million due to sales and pricing - Americas segment net sales increased 22.5% to $264.4 million for Q1 2023[107] - Americas segment operating income increased by $22.7 million to $28.5 million for Q1 2023[108] - The increase was primarily attributable to higher new machine sales, non-new machine sales, pricing actions, and favorable product mix[107][108] EURAF Segment EURAF segment net sales slightly decreased to $178.2 million, and operating income significantly declined to $3.6 million due to costs and mix - EURAF segment net sales decreased 0.6% to $178.2 million for Q1 2023, unfavorably impacted by $8.0 million from foreign currency exchange rates[109] - EURAF segment operating income decreased 68.4% to $3.6 million for Q1 2023[110] - The decrease in operating income was primarily due to unfavorable new machine product mix and higher material, transportation, and labor costs[110] MEAP Segment MEAP segment net sales increased to $65.7 million, but operating income decreased to $8.6 million due to higher costs and prior-year recovery absence - MEAP segment net sales increased 2.8% to $65.7 million for Q1 2023, despite an unfavorable impact of $3.2 million from foreign currency exchange rates[111] - MEAP segment operating income decreased 34.4% to $8.6 million for Q1 2023[112] - The decrease in operating income was primarily due to higher labor and administrative costs and a $4.8 million income recorded in the prior year from a note receivable recovery[112] Results of Operations for the three months ended March 31, 2023 and 2022 The company reported strong Q1 2023 growth in orders, backlog, net sales, and gross profit, with increased net income and decreased tax provision Key Financial Metrics Summary | Metric | Q1 2023 | Q1 2022 | Percentage Change | | :------------------------------------ | :------------------------------ | :------------------------------ | :---------------- | | Orders | $524.8 million | $481.5 million | +9.0% | | Backlog | $1,075.7 million | $1,033.4 million | +4.1% | | Net sales | $508.3 million | $459.0 million | +10.7% | | Gross profit | $106.3 million | $85.0 million | +25.1% | | Gross profit % | 20.9% | 18.5% | +2.4 percentage points | | Engineering, selling, and administrative expenses | $75.1 million | $66.5 million | +12.9% | | Interest expense | $8.1 million | $7.4 million | +9.5% | | Provision for income taxes | $4.2 million | $6.5 million | -35.4% | Orders and Backlog Orders increased by 9.0% to $524.8 million for Q1 2023, driven by Americas demand, and total backlog grew by 4.1% - Orders for Q1 2023 increased 9.0% to $524.8 million from $481.5 million in Q1 2022[115] - The increase in orders was primarily attributable to higher demand in the Americas segment, partially offset by softening demand in the EURAF segment[115] - Total backlog as of March 31, 2023, was $1,075.7 million, a 4.1% increase from $1,033.4 million as of March 31, 2022[116] Net Sales Consolidated net sales increased by 10.7% to $508.3 million for Q1 2023, driven by Americas sales and pricing, despite currency impact