Phil Gallagher: Yes, Matt, we’re not talking about the inventory levels. We’re talking about the market. We think – we track like you do all the inventory levels by EMS, us end markets, et cetera. And that’s our estimate based on current pull and demand at the inventory. The inventories burn off out there, end-customer inventory. To sum it up, we estimate that mid-2024. Could be sooner, like it could come quicker.
Matt Sheerin: Okay. Thank you. And just lastly, relative to the interest expense, which was down sequentially, but still up significantly from where it was a few quarters ago. And I would think that would be one area where you can drive profitability growth as you continue to generate more cash, inventory comes down, you bring down your short-term borrowings. So how should we think about that as a potential driver of profitability over the next few quarters?
Ken Jacobson: Yes. I think, Matt, definitely, as we get back to cash flow generation, paying down debt will be a part of that, especially as sales are down, trying to keep leverage in the same ballpark we’ve had it. But then we’ll try to be more opportunistic on buybacks as well. We think there’ll be enough cash to do both, but got to get back to that generation before we can start to work down the debt and/or increase the buybacks.
Matt Sheerin: Okay, well, sounds good. Thank you very much and best of luck to your baseball team tonight.
Phil Gallagher: Thanks, Matt.
Operator: Thank you. Our next question is from Joseph Cardoso with JPMorgan. Please proceed with your question.
Joseph Cardoso: Hey, thanks for the question guys. So first one here is just can you provide a bit more color on what you’re seeing out of Asia? Obviously, it was another quarter of softness. But just curious, it sounds like you’re expecting some improvement there. And just wanted to touch on, is that just more of a function of typical seasonality and the easier comps or if you’re actually seeing any green shoots in the region around improvement? And if so, where that is materializing, if you have any color on that?
Phil Gallagher: Yes. Sure, Joe, I’ll go first. And – so thanks for that. Overall, we’re competing well in Asia. We think we’re picking up some share as well. But the – if you look at it Q-on-Q, just looking at the numbers for – the industrial and Asia held up pretty well. It was down year-on-year as we talked about in the script in general, because we had such a record-breaking numbers a year ago. Transportation was up both Q-on-Q and year-on-year. So there’s some signs of positiveness in Asia, and Japan has been good. Japan has been positive for us. So it’s really – there’s no one thing. We just feel that – and Ken, I were just over there and talking to the team and our leader there that feeling that it is going to start to turn a bit.
Now, we’re not – it’s very important. We’re not overly exposed to any one vertical, right? And I think that’s really, really important. And we’re not overly exposed to China, right? We do our business in China, but we’re not overexposed. So it gives us maybe a little bit more of a balanced portfolio in the Asia Pac region.
Ken Jacobson: Yes. My only other comment would be our team over there is really competing well in the markets they serve. And so we’re seeing very good progress there in terms of trying to take share.
Joseph Cardoso: Got it. That sounds great. And then – and maybe this one is a little bit more random. But just within the automotive transportation business, some folks across the supply chain have just been highlighting headwinds, either in the form of UAW strikes or increased competition in China around some of the new applications being deployed there. Just curious, and it doesn’t sound like it, but are you guys seeing any of those headwinds at all materialize in your business? Or is that largely a noise for you guys? Thanks for the question.
