Adam Samuelson: Yes. Thank you. Good morning, everyone. There’s been a lot of ground covered, but maybe coming back to Brazil and the demand environment there, obviously, you’re getting into their peak season. Does seem like a more favorable consumer backdrop there than in the last couple of years going into their summer. Any kind of additional kind of color on what you’re seeing from your customer base and order patterns there would be helpful?
Timothy Donahue: Yes. So, what I would say, it’s interesting, last year third quarter and fourth quarter, the market was actually fairly strong. I looked at volumes, last year in the third quarter, I think we were up 6% or 7%. I think the fourth quarter, maybe we were up 8% or 9% or more. So we are — as opposed to an easy comp that we had in North America, we have firmer comp in Brazil, but the market seems to be settling. The one major customer is — I don’t know if all the T’s and the I’s have been dotted in their reorganization process, but they are pretty close to completing their reorganization and they are going to operate as a going concern, and we are well positioned with them, not only in can supply, but in terms of coverage on our receivable balance and the assets they have in place.
So we feel pretty good about that. So I think the market should be firm. And as I said earlier, markets — and as you just said, the market is slowly recovering economically from the pandemic. And probably takes a couple of years, two years, three years for the market to eat up the excess capacity that’s in the market, but I think it’s going to get continually healthier for the beverage can companies as we look forward.
Adam Samuelson: Okay. That’s helpful. And then just quickly for the fourth quarter, there’s the allusion to some kind of production downtime in aerosol can in Asia and in Transit. Any way to just quantify kind of the volume impact and/or any specific kind of unallocated overhead that will flow through the P&L as a result of that?
Timothy Donahue: Yes. So you’ve heard us talk briefly about our desire or allude to our desire to reduce working capital, generate more free cash flow, reduce leverage, reduce absolute levels of debt. Interest is — it’s not 2% anymore, right, it’s 7% or whatever we’re paying. So really critical that we get debt levels as low as possible, and that’s why we made such an effort in Q3, and we’re going to continue to do as much as we can in Q4. So we start the new year with a much better positioned balance sheet. But aerosol cans, shipments were down 15% in Q3, and that’s after a pretty crappy Q3 last year. And it’s been a fairly soft performance all year for the market, aerosol market. Transit, I would say volumes equipment and all up, but consumables down in the order of mid to high single-digits.
They don’t — we can adjust that without as much margin impact as you might otherwise think. But again, we don’t need to carry more inventory than we need to carry. And in Asia, as I said, Vietnam, very weak. I don’t know if I gave a — I don’t know if I gave a number, but I’ll bet you Vietnam was down on the order of 15% or 17% in volume in the quarter. And it is our largest market in Southeast Asia. So Cambodia, China, a little firmer. But just trying to get the inventory where it belongs. And there will be — I’ll be a little careful how I talk about absorption. There may have been some absorption in the third quarter from this. And I think we’re prepared to absorb or withstand any further absorption loss in Q4 to get the debt down as low as possible as we go forward.
So I don’t know, you want to throw a number out there. It’s just a number, $10 million, $12 million. But similar to the $15 million I threw out there earlier for the Asia and aerosol, call down from perhaps where we were in July when we last talked to you.
