Kevin Kwilinski: Sure. I think, with the caveat that I’m 50 days in and I’m still in the process of learning all the ins and outs of this business and understanding the pieces in totality. My initial impression is the strategy is sound and the overall direction is the right place we should be heading. But when you think about moving from A to B, it’s not just direction, but it’s how big of an engine do you put behind your vehicle. How big you’re moving down toward that point? And where I see opportunity here is to create a more powerful engine around growth, I think the way we organize and think about organic growth, how we link product development that’s really driven by sustainability through commercialization execution and shorten that cycle, increase the size of pipeline of opportunities and rigorously manage that process with a strong commercial excellence approach, and take a good strategy and through strategic execution focus really deliver more from it.
And if I think about where is the value to be unlocked, I think, first and foremost, is we have the opportunity to unlock value by delivering consistent organic growth. And we have markets that we are participating in, that have long-term demonstrated low single-digit growth, and by us, differentiating our products through material science and engineering and by differentiating our service model, which we have a lot of opportunity to do. We can gain wallet share and add to that market growth trajectory with some share gain. So I’m highly confident we can take the strategy and move it forward at a faster pace.
Phil Ng: Super. That’s great color. And then, the 2% to 3% productivity goal you’re targeting going forward, maybe, Mark, provide a little history perspective, how does that stack up historically? Will that require a big step-up in CapEx going forward? And then within your guidance for 2024, you called out $55 million of price-cost carryover gained. Is that just a carryover stuff? Is there anything else, I guess, that could be on tap in 2024, that could be incremental and could be a source of upside? Thanks for all the great color, guys.
Mark Miles: Yeah. Sure. Thanks, Phil. With respect to — hopefully, I’ll address all parts of your question there. We have — as Kevin mentioned earlier, we have a number of different productivity measures that the company has used over the years. We’re going to work with Kevin to make sure we’re delivering on the 2% to 3% goal that he’s mentioned. And so, we’ll be working on the various metrics to ensure that, that’s delivering the value that we want. We’re not at this point prepared to communicate an exact target on that, but are confident that it will be additive to our results and give us more confidence in our ability to achieve mid-single-digit growth on earnings. The goals that Kevin has established around productivity are outside of our CapEx program.
So this would be additive to our capital initiatives. And the $55 million that you referenced is the carryover benefit from our $140 million cost reduction plan that we announced early in fiscal ’23. I would say, most of those actions, 90% plus have been executed. And so, it’s just a matter of getting the, carryover benefit in ’24. There will be a small amount of benefit around $10 million that trickles into ’25. And at that point, again, we would expect some of the benefits from the program that Kevin is leading, starting in ’25 as well.
Phil Ng: Okay. Thanks, Mark. Appreciate it.
Operator: Thank you. One moment for the next question. Our next question will be coming from Gabe Hajde of Wells Fargo. Your line is open.
Gabe Hajde: Good morning. Kevin, welcome. I’ll echo what everyone else has said. I recognize it’s tough to comment sort of in a public format like this. But I was curious, you guys raising the dividend, but yet contemplating a fairly sizable strategic move or portfolio action. And I’m assuming my assumption is incorrect. But, you talked about also sustainably growing the — you have talked about sustainably growing the dividend. So maybe one of the conclusions that I might draw is, the value indications that you’re getting for that business are maybe a little bit better such that you can kind of really accelerate the deleveraging. That’s kind of, maybe the first question.
Kevin Kwilinski: We’re really not in any position to give guidance on the strategic alternative process. We’ll be happy to do that when we have something meaningful to say. But what I will say is that we intend to hit that 3.5 leverage target or lower by the end of our fiscal year.
Gabe Hajde: Okay. I guess, the other one, Mark, maybe a little simpler would be — if I do the build down, I guess, from EBITDA to the midpoint of the free cash flow guidance, there’s a little bit of a disconnect. I think working capital was a pretty big source of cash this year. I recognize, I think there’s maybe $50 million of some restructuring spend in fiscal ’24. But are you embedding in any sort of working capital use of cash in ’24? And if so, what is it?
Mark Miles: Yeah. Similar to prior years, Gabe, we assume a flat polymer environment. So working capital is pretty muted for the year. And we do have some carryover restructuring costs that are going to, reduce our cash flow in ’24, and that’s baked into the guidance. So just over, $50 million or so.
Gabe Hajde: Okay. Thank you. Good luck.
Operator: Thank you. One moment for the next question. Anthony of Citi. Your line is open.
Anthony Pettinari: Hi. Can you hear me?
Kevin Kwilinski: Yeah.
