As we exited the first quarter, we saw strength throughout the vast majority of our markets. We had a healthy backlog and solid order rates throughout the portfolio. Within a few weeks of delivering our guidance update in April, we saw certain markets deteriorate.
Order rates softened first in Europe and then in China, which combined to make up about one-third of our sales. Our second quarter guidance did not anticipate the magnitude of the deceleration.
In the quarter, we reduced backlog by $28 million. While we plan to burn down blanket orders and ship large scheduled projects, roughly half is attribute to macroeconomic headwinds.
The good news is that North America and most of the emerging markets remain strong. However, we fully expect this challenge -- the challenging macroeconomic conditions to continue through the remainder of the year, if these external factors that have caused us to take down our full year guidance accordingly.We’ll face these challenges head-on. Before I turn to the segment detail, I want to highlight what differentiates IDEX in times like these. I want to take a moment to talk about our core strengths that have consistently allowed us to deliver strong earnings and cash flow performance, regardless of the external environment.It’s our objective to deliver consistent, double-digit annual earnings growth through the cycle with strong cash flow, while returning capital to shareholders in a disciplined manner.To deliver on our objectives, we rely on three core strengths. First, we have outstanding defensible businesses. Our strategy is to be the leader in an attractive, highly engineered niche markets where we can differentiate.Within the IDEX, 80% of our businesses have underlying markets to grow well above global GDP. It’s our goal to consistently deliver 5% to 7% annual organic growth through the business cycle. It’s also here that our diversity across markets, products and geographies is a major strength.
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