Chris Parkinson: Great, thank you so much. Just wanted to turn to the ICS side. You’ve seen a bit of a market share shift between Chinese OEs versus the Americans and the northeast Asians, and I know you have exposure everywhere and at the same time, you’ve also seen an increase in the sophistication of Chinese handsets. Can you just kind of parse through that in terms of where the market is, right here, right now, and how the street should be thinking about your relative content exposures and how we should think about that business recovering throughout ’24, and perhaps ’25? Thank you so much.
Edward Breen: Chris, maybe just high level, if you go back to the middle of last year, the PCB utilization rates were kind of all the way down in the mid-40s. In first quarter, they’re kind of in the mid-50s. We think we exit the year in the low 60s–second half of the year will kind of be in the low 60s. Normal, by the way, for PCB utilization rates is kind of low 70s – they never run in the 90s like the semis do, so you can kind of see the progression of that playing out here over the next year.
Lori Koch: And we continue to see wins within the [indiscernible] space, more on the circuitry side, so we’ve seen a nice volume lift in the first quarter and we expect that to be maintained for the rest of the year. We have had some share gains outside of that in the premium smartphone space on both the phone side and the other device side as well, with PCs and others.
Chris Parkinson: Got it. Lori, my favorite question as a follow-up is on W&P margins. Obviously over the last few quarters, there have been a bunch of puts and takes, inclusive of the destocking. But with that progressively improving throughout ‘24, can you help us–just give us the latest and greatest on how you’re thinking about the long term margin optionality in terms of op efficiencies, leverage, mix, so on and so forth. Thank you so much.
Lori Koch: Yes, we still see the entitlement for W&P margins in that 27% range, and so as you note, they’ve been challenged in the first quarter, really a function of the lower volume. There is a lot of heavy assets in that business that take a hit when the volumes are down. We’ve done a nice job controlling costs to minimize the decrementals to low levels, but that is impacting it, and then the larger impact comes from just the mix side, so the Tyvek business is down primarily because of the medical packaging destock that’s going on, that we expect to start to see resolution here at the end of this quarter and then improvement as we head into the back half. When you start to see those two items wane, we do see nice margin improvement first half-second half. The first half margins will probably stay at that 23% level, and then we see them picking up about 100 basis points as we get to the back half of the year.
Chris Parkinson: Thank you so much.
Edward Breen: Thanks Chris.
Operator: Your next question comes from the line of David Begleiter of Deutsche Bank. Your line is open.
David Begleiter: Thanks. Ed, you only raised the full year guidance by the amount of the Q1 beat. Is that because it’s still early in the year, or are you a little more cautious on the back half demand environment?
Edward Breen: Yes David, no change on our thinking on the back half. It’s just–as I said earlier, I feel good we’ve de-risked the ramp in the year, so no, I don’t feel any different about it. Hopefully it ends up being a little bit conservative.
David Begleiter: Very good. Can you just provide us another update on PFAS right now? Thank you.
Edward Breen: Yes, nothing significantly new there, David. The next thing coming up is the–that we’d want to settle is the state AG cases. I don’t think that will be a 2024 event. I think it’s more of a 2025 event, and then there’s probably a couple states that we will settle separately from the class action – that’s where we had locations set, so I think you might potentially see one or two of those get settled, maybe during this calendar year. That’s where it’s at. I think, David, the good news with the settlement–by the way, the other settlement is done now, the water districts is totally done, signed off by the judge, and I think the nice thing about that when it comes to al the firefighting foam is that it became very clear in that litigation, and in what was written about it, that the exposure of the consortium of Corteva, DuPont and Chemours is 3% to 7% of the total exposure, and then remember DuPont’s a third of the 3% to 7%, so I think that helps box in what these numbers are going to be as we settle the other cases.
David Begleiter: Very good, thank you.
Edward Breen: Thank you.
Operator: Your next question comes from the line of Mike Leithead of Barclays. Your line is open.
Mike Leithead: Great, thank you. Good morning guys.
Edward Breen: Good morning.
Mike Leithead: The first question I wanted to ask on W&P, I wanted to ask about price. It seems like it’s holding in, I’d say fairly well despite double-digit volume declines the past few quarters. What’s your expectation for price? Should we expect this to stay relatively flat as we move through the year?
Lori Koch: Yes, we delivered flat price overall in W&P in the quarter. We still have some expectation to give back 1% or 2% primarily in the shelter business as we go throughout the year, but we have done a really nice job, as you had mentioned, holding onto price.
Mike Leithead: Got it, that’s helpful. Then bigger picture, Ed, how is Spectrum performing relative to your initial expectations?
Edward Breen: Right on what we told our Board. It’s nice to see–they are basically not going through a destock, which is good, and they–I think we’ve told you this before, the business is growing nicely but there’s also a major ramp going on with one key medical device company, and that ramp is–by the way, it was a very significant ramp, so we were–that was the one area we’ve been watching really close, and they are ramping very nice with that customer. It’s more of a manufacturing ramp we had to go through, that was pretty significant, and that’s on track also, so feeling good about that. It’s clearly an area we like. Between Tyvek medical packaging, the Spectrum business and the Liveo business, it’s a really nice percentage of our portfolio now, as we’ve mentioned in our prepared remarks.
It’s 10% of the company and it’s just a nice end market, a stable end market to be in with very solid steady growth rate, so we’re really liking that business.
Mike Leithead: Great, thank you.
Operator: Your next question comes from the line of Josh Spector with UBS. Your line is open.
