Roger Spitz: Absolutely, absolutely. That’s exactly what I was looking for. And then while covering up — maybe you talked about this a little bit in the prior remarks about [indiscernible] covering up 31% and then metalized products down 41%. I guess both were a little surprising. Is there any additional color you can provide on that?
Thomas Fahnemann: Sure. Again, [indiscernible] we were really hit pretty hard with the Russia-Ukraine war because a lot of this material went into Russia and Ukraine. And we were always telling you guys that we are trying to find alternative because this material is coming from trade on one side, OK, very — so we were able, and this is really — was very positive to regain some business in the Ukraine and then also in Europe, the rest of Europe where other people were there and we were able to really capture additional volume in Europe. So that’s how you can explain the volume. Is this something where we say this is now continuing for the future because, I mean, on one side, this is really good news. But I’m not sure how sustainable that is, to be quite honest.
We’re still starting this. And so — but yes, it looks promising. Let me put it like that. And we were — that the team was really able to find alternative customers in Europe and where we were able to increase the volume. But it’s not something where we said that’s now an established business and we — so we have to work hard on that one. But again, very positive news, at least in Q3, yes. And sorry…
Ramesh Shettigar: Metalized…
Thomas Fahnemann: Metalized business, this is a problem. And it’s not really that we are losing market share. The overall market is down, and people are also looking for alternatives, cheaper alternatives, and all this. So that’s really an issue right now and the volume is off. In talking to our customers, they think the market will recover early next year. But this was something which we also didn’t expect to this, I mean this extreme because certain segments, they are really fall off. Label, in general, is down big time.
Roger Spitz: Okay. What are the typical alternatives to metalized products? I guess…
Thomas Fahnemann: Now you can have plastics. And what you can also do is you can direct print…
Ramesh Shettigar: On to the glass.
Thomas Fahnemann: On to the glass. So there’s a couple of different ways how you can do that. And we are seeing that especially the metalized higher-end labels due to the cost pressure that they’re also seeing mainly in Europe that they’re trying to find alternatives, cheap alternatives.
Roger Spitz: Got it. Thank you very much for your time.
Thomas Fahnemann: No, thanks for the question.
Operator: [Operator instructions] And our next question comes from Mike Ginnings with Angelo Gordon. Please go ahead, sir. Your line is open.
Mike Ginnings: Morning, Thomas and Ramesh. Appreciate all the disclosure so far. Just have one question I wanted to double-click into. Can we talk about energy for a moment and sort of how you’re thinking about kind of both the upside and downside risks associated with that through the balance of this year and into ’24?
Ramesh Shettigar: Yeah, great, great question, Mike. Energy is certainly top of mind for us given the volatility that we’ve seen here pick up in the last few weeks, I would say, partly related to the Middle East conflict, partly related to, again, supply conditions in Europe, even though storage levels are at very, very high and healthy levels in countries like Germany with these pipeline issues that we’re hearing about. I think we’ll continue to probably see spikes in the spot market related to gas and the derivative impact of electricity. But from our standpoint, we’re continuing to hedge opportunistically where we can for the markets that we operate in, which is France, U.K., Germany. But this is something we’re watching as well.
But going into the fourth quarter, we were relatively well-hedged. And we’ve already layered in some hedges for the first quarter of 2024, but it’s something that we will continue to watch and make sure we’re taking exposure off the table. So no different than what we’re doing right now, but certainly a volatile situation from an input cost perspective for us.
Mike Ginnings: Much appreciated.
Operator: And there are no further questions in queue. I’ll hand it back to Thomas for any additional or closing remarks.
Thomas Fahnemann: Thank you. Yeah. Thank you for your time and we really appreciate your ongoing support for Glatfelter, and then we’ll talk to you again when we report our fourth quarter and the full year of 2023. Thank you very much.
Ramesh Shettigar: Thank you.
Operator: And this concludes today’s Glatfelter Q3 2023 earnings release conference call. Thank you for your participation.
