Vincent Andrews: Great. Excellent. Thanks very much.
Ed Breen: Thanks.
Operator: Your next question comes from Frank Mitsch from Fermium Research.
Frank Mitsch: Hey. Good morning. Ed, I had the RiverHouse Benedict that Odette’s on Sunday. It was very nice. So, congrats on that.
Ed Breen: Thank you. I haven’t had it yet.
Frank Mitsch: You haven’t had it yet, I highly recommend it. Hey, following up on the M&A question, Auto Adhesives is still in your corporate line item. When might we expect that to be folded back into the — into one of the businesses? And/or is that a candidate for divestiture?
Ed Breen: No, it’s not a candidate for divestiture. It’s very core to us. We like the position we have, especially with the EV opportunity we have. And we’re obviously seeing a lot of wins there, and the growth rate has been phenomenal. So we like that business. And by the way, we – I don’t think we’re going to make any new short-term on pulling it out of there of where we’re reporting it at this point in time. We just — we’ve got everything run in the way we want. So you won’t see anything in the next couple of quarters.
Frank Mitsch: Okay. Thank you. And then, if I look geographically, I mean Europe has been up year-over-year based on price. What are your thoughts in terms of volume growth in that region?
Lori Koch: Yeah. So volume growth in general in Europe is about flat. I would expect a similar performance as we get into the half of the year. And it’s really different and it’s been the toughest for us has been Asia Pacific, which we’ve been highlighting this obvious dominance of it is China The price piece though it will start to wane as we get into the back half of the year. So we saw it kind of cut in half, as we went from Q1 to Q2, and then as we get into – Q3 and Q4 we really – it would be flat to slightly negative, given some of the price that we would have to give back primarily in the Shelter space that we have mentioned.
Frank Mitsch: Great. Thank you.
Ed Breen: Thanks, Frank.
Operator: Your next question comes from Steve Byrne from Bank of America.
Steve Byrne: Yeah. Thank you. The EPA has estimated several thousand water districts that would need to comply with the proposed MCLs. My question for you is Ed you mentioned you think you could get final approval on the settlement in six months or so. Do you need a certain fraction of those water districts to opt in? And can you comment on how that is going? And do you have a view on how they will comply. Do you expect they will mostly use carbon? Or do you think some of them might employee RO or iron exchange your technologies?
Ed Breen: Yeah. So look, we — there’s a percent that have, I’ll call it, opt in or we can walk away from the settlement. So by the way, that’s a very high percentage, and we think just to get up that, that will not be a problem. Remember, a lot of these water districts have been being talked to by the plaintiff side of this. This hasn’t been done in a vacuum. So, it’s – they’ve been talked to along the way here to get to this, what I’ll call it preliminary settlement. So I think shortly, as I said, we will get it approved by the judge on a preliminary basis and then you work all the opt-ins to make sure you get that done and then you have final approval once you hit that threshold. So it’s really up to each of the difficulty for water districts, how they’re going to handle that to clean up any PFAS that’s in there. So I don’t want to comment on that.
Steve Byrne: And then you mentioned that 70% of your water business is renewables. I was just curious, what fraction of that are you selling directly to the customer versus going through an intermediary service provider? And do you have an interest in changing that fraction by getting more aggressive in your own sales force?
Lori Koch: I don’t see any change in our go-to-market strategy for the province of its direct as we go to the customers the projects in place and we’re just replacing the filter, which is where the recurring revenue rate comes from. So this is a — as we had mentioned earlier on the call, kind of mid to high single-digit grower for us, a lot of opportunities as we go forward around the sustainability and the access to clean water.
Steve Byrne: Thank you.
Ed Breen: Thanks, Steve.
Operator: Your next question comes from Arun Viswanathan from RBC Capital Markets.
Arun Viswanathan: Great. Thanks for taking my question. I just wanted to ask about the electronics market here. Could you just elaborate on the destocking, the volume trajectory, I guess, from here. I think previously, you had expected this year to be the main volume negative hit. You’ll be facing easier comps next year. Do you think you should grow in kind of, say, the mid-single-digit level for next year? Or where do you expect electronics volumes to be next year? Thanks.
Lori Koch: Yeah. So we as we had mentioned, we believe within ICS that we’ll continue to see sequential improvement as we head into Q3. And then I mean a little bit of tentative improvement as we head into Q4. In the semi, we don’t see a material bump in sequential sales until we get into the fourth quarter. But definitely, the year-over-year volume headwind. We’ll start to ease and we see full year overall E&I organic growth of about 10%. And that’s primarily a volume reflecting within that segment. So it’s probably a little early to call what 2024 looks like. I think there’s a pretty good sense that it would be positive just given that you won’t have the destock going on, but even if the demand is flat, which would be hard to see.
