We expect to be able to offset that somewhat with the operational productivity at the same time. With regard to the three phases of the cadence, I’ll let Julie go through the financial number summary for it. For those programs remain on track, we’ve been very satisfied through these first two phases that are coming to fruition. You’ve seen several products reach key milestones in the second quarter and continue to be on track and on time. We’ve been meeting their timeline in their cost savings objectives. Phase three we’ve got announced earlier in the year, is in the rolling out phase in implementation phase, but there’s several years left to go on that cadence for the phase three initiatives. But we do expect to hit the cost savings targets in the milestones for 2023 as previously committed on all the programs.
Julie?
Julie Streich: Yes, and picking up, picking up, Matt. So what we had previously stated and remains the same is that we expect run rate savings coming out of this year at around $22 million. That’s a slight uptick now that we’ve announced the Q [Ph] for the phase three. Excuse me, initiatives. Then we would be looking for about 43 million run rate out of 24 and peaking at the 53 million we previously stated in 2025.
Matt Summerville: Got it. Thanks guys.
Julie Streich: Yes, no worries.
Operator: And we will take our next question from Christopher Glynn with Oppenheimer. Your line is open.
Christopher Glynn: Thanks. Good morning, guys. So Tom was curious you mentioned taking over the leadership seat and Molding Solutions. Was that an unexpected development? Just, curious how that came about.
Thomas Hook: Yes, certainly, Chris, as you may remember, a lot of my background over the last several decades has been in Molding. So I have kind of unique insights into the market from previous work experience. So in stepping in once the transition, there was a interim leader in the Molding Solutions business that was somebody that was not operational. So as I’ve given the in my mind, the need to integrate, consolidate and rationalize our Molding Solutions, SBU, I elected to step into that role and manage that business directly, temporarily for a short period of time to help strategically get that progression into the right direction. And we’re actively recruiting for a leader that will end up running that business from an integrated standpoint going forward, we expect to have that completed here by the end of the year.
But given its importance to Barnes and given my multi decades of experience in Molding, I felt it was pivotal for us to get some significant traction there immediately.
Christopher Glynn: It makes a lot of sense. And then how would you describe the industrial portfolio now in terms of composition? Obviously, Molding Solutions is very core. I wouldn’t claim to be aware of all the slices and composition of your industrial components, but I know there’s been some rationalization episodes in the past and divestitures are always part of a strategy or often part of a strategy when a company’s retooling a segment to the extent you are. So curious if you could comment on that?
Thomas Hook: Certainly, Chris, as you know, that we are always actively assessing our strategy in the company on an active basis at the management level, as well as with the board of directors and partnership. That process has continued under my tenure over the last year as the Chief Executive Officer. Steve Muller’s departure as the leader of industrialists allowed me a kind of a unique set of insights into the underlying SPUs and understanding of the SPUs within the industrial business and very carefully assessing in particular their go-to-market strategies to drive commercial pipeline and top line growth and focusing on commercial execution primarily to drive top line, bottom line pipeline performance for those SPUs. As part of that, we’re also looking at end market strengths and where we should be investing.
