Ron Delia: Okay. Thanks, George. Look, let me respond to the question and Michael will respond to the question in two parts. I think the cost savings activities that we’ve been undertaking through the first half in the face of softer volumes and then there’s, the offsets to the Russian, the divestment of the Russian earnings. So look, we got out front, I think, very proactively and fairly aggressively on cost in the first half. I mean, I think the way to think about it is we had really strong operating leverage with 2% organic sales growth, really flat to minus 1% on the volume line, and we had 8% EBIT growth. And if you think about the drivers of that EBIT growth, price and mix sort of offset and we recovered inflation. So — and really, the profit growth was driven by cost-outs.
And so where did the cost-outs come from? We did a really good job of flexing labor. We cut shifts. We reduced over time. Several hundred people are out of the business. There’s a reasonably meaningful headcount reduction across the business. We’ve also pulled the procurement lever pretty hard and cut back on discretionary spending. And we got out front early on those actions given the volatility that we saw and just reading the tea leaves from discussions with customers on the demand environment. Those initiatives, those actions will continue into the second half, and they underpin the outlook that we’ve reaffirmed today. I think Russia is almost a separate topic, if you will. And just to level set, Michael can talk about some of the specifics.
But we had a business in Russia with three plants that represented about 2% to 3% of our sales and roughly 4% to 5% of our EBIT in any given year. So essentially $80 million to $90 million of EBIT, which we’ve now divested, and we are resolute in trying to replace that EBIT as fast as we possibly can, and so with the proceeds exceeding our expectations, we generated a pretty healthy profit on the sale of the business as well. And then the proceeds of over $400 million, $430 million, as Michael alluded to, a bit ahead of our expectations, we think it’s a good use of cash to reinvest in the business and take cost out, structural cost-out, to help offset the $80 million to $90 million of EBIT that we’ve divested. And Michael, maybe you can talk a bit more about the financial profile of what we’re planning to do.
Michael Casamento: Sure. Thanks, Ryan. Yes, I mean just following on from that, so we announced today we’re going to use part of the proceeds to help divest — to help offset the divested earnings, and we announced today around $120 million of cash will be put to work in cost-saving initiatives, things like footprint and SG&A and the like, and that’s in addition to $50 million cash that we allocated back in August as well. So in total, about $170 million of cash is going to be invested in cost-out initiatives over the next kind of 12 to 18 months. And we’d expect to get kind of a 30% return on that at full run rate. But if you think about the timing of that, those initiatives are only starting. We’ll start to work on those this financial year.
