Matt Sykes: Got it. Thanks guys.
Operator: Thank you. We’ll go next now to Jack Meehan at Nephron Research.
Jack Meehan: Thank you. Good afternoon.
Mike McMullen: Good afternoon, Jack.
Jack Meehan: Mike, I was hoping you could talk a little bit more about some of the more cyclical areas of the business in the CAM segment. Just what are you seeing from some of your chemicals customers. You’ve heard some conversation of budget cuts there. Are you starting to see that? Just how is your visibility into some of these cyclical areas?
Mike McMullen: Yes. So as we’ve talked earlier – thanks for the question and Jack and comments and then have Jacob jump in on this one as well. But we look across the CAM, I’d say the Advanced Materials segment of that market, which we’ve communicated is more driven by secular trends and cyclical trends continues to hold up quite well. And by the way, also, I just want to point out we had a really tough compare, I think we grew 22% last year in Q3 in CAM. If we look at the chemicals and energy side of it, the energy side actually popped up a bit, particularly driven by the U.S. where we are seeing some weakness is in the chemical side where customers are looking at the macroeconomic environment and are slowing their capital investment there.
So I’d say that kind of puts and takes. But I think in terms of the quarter, Bob, I think we came in right about where we thought we’d be in CAM and I’d say it’s a mixed story in terms of different segments growing at different rates.
Robert McMahon: Yes. Before Jacob, maybe you can jump in. I think the one thing that I think is important is you really have story in China, which is its own and then the rest of the business. And so if you think about where Americas and Europe is, it’s performed extremely well. And if you actually look – we mentioned this in the call, sequentially, the dollars actually were very stable. And so we are expecting a challenging Q4, mainly because we grew 70% in China.
Mike McMullen: 43% in Q3.
Robert McMahon: Yes. So it’s a compare situation. But this business continues to be very strong.
Mike McMullen: Do you want to make the comments on the Advanced Materials side of the house there, Jacob?
Jacob Thaysen: Yes, I can say that. And Mike, I think you also started with that saying that we continue to see a lot of activities in that space, especially in the battery space, where, of course, there are also compares we are against, but there’s still a lot of interest in that space, and we are doing very, very well. Semicon is also cycling down right now, but we are – we continue to see business in that space, but not as strong as we did last year.
Jack Meehan: Thanks Jacob. And my follow-up, I wanted to ask about margins. Just how you’re thinking about some of the puts and takes for 2024. I think some of the cost savings you’ve talked about should extend to next year, should get some leverage out of NASD. But at the same time, some of the performance comp comes back and would think some of these top line pressures extend as well. I don’t know, can you just talk about maybe relative to the LRP, how you’re thinking about margins for next year?
Mike McMullen: Bob, do you want to lead that one? Yes. By the way, one thing I’d add to that before Bob’s, the specifics, Jack, is our decision on the Resolution Bioscience business so as part of the story for us next year in terms of margin expansion. So Bob?
