Atmus Filtration Technologies Inc. (NYSE:ATMU) Q3 2023 Earnings Call Transcript

Jack Kienzler: Yes. So CapEx, it’s really driven by timing of projects, frankly. Most of those are IT programs that we’re continuing to decouple from Cummins, which all coincide with different locations coming online. And so we have seen a little bit of a delay in some of that all for good reasons, but just a little bit of pushing those projects out into 2024. The overall amounts are still in line with what we’ve commented on. It’s just a shift as we think about 2023 versus 2024.

David Ridley-Lane: Got it. And should we expect any unusual inventory build as you stand up these distribution centers? I’m just thinking on kind of do you need to fill them up before you start winding the others down?

Steph Disher: Yes. No, thank you, David, for the question. Actually, we are the majority of the way through in terms of our large inventory site in our distribution separation. So our distribution center in Kentucky is about 50% of our holdings. And so we already moved that beginning of this year. Mexico and Brazil, we’ve already moved across. So the sites we have left are really lower inventory impact sites, I would say, overall. I’m not expecting a material impact to comment on. We certainly will manage the transition effectively that our customers are not impacted. But I don’t expect it — I expect it to be managed inside a quarter, and I really don’t expect it to make these calls.

Operator: We have no further questions in our queue at this time. I will turn the call back over to Todd for closing remarks.

Todd Chirillo: Thank you. That concludes our teleconference for today. Thank you all for participating and for your continued interest. As always, the Investor Relations team will be available for your questions after the call. Have a great day.

Operator: This concludes today’s conference call. Thank you for your participation, and you may now disconnect.