Celeste Mastin: Absolutely, David. So in HHC, we continue to see strong performance in the business. There is destocking still underway interestingly enough, especially by CPG companies. But we are finding that we were able to overcome that with pricing power associated with bringing value to the customer base. And I am seeing that established really two ways. One, through reliability, we performed well throughout the pandemic, and we are able to supply our customers even during challenging times, times when it was difficult to get material. But also, innovation is a big part of what our HHC team is delivering to that customer base. And we are seeing the wins start to pile up. I will give you an example, David. I love this example because it’s about our tissue and towel business.
So, that’s toilet paper, right, so really a fairly basic water-based product. However, our new market segment leader, Adam, who is running that business, and his team have taken steps to bring innovation to the market by introducing our full-vision technology which is proprietary software of our own that provides our customers with data analytics that help them run their lines more efficiently. And it allows the customers to reduce waste, apply less adhesive, saves them money. It’s very €“ it’s more sustainable in nature. And so we are seeing wins in even this, not very expletive business because of the innovation we are bringing. And it’s just like the momentum is wonderful. So, we are starting €“ that’s what we continue to see in Q2 and what the team has been consistently bringing over the last 12 months that I have been here.
You asked about EA as well. Now, we have to keep in mind here that EA does get impacted by the construction industry to some degree. There are some €“ some of our product €“ some of our market segments there like woodworking or insulated glass are influenced by market demand and that business is also heavily influenced by China. In fact, if you look at the EA business, excluding China over the last quarter, it would be up low-single digits, flat to up. So, China is having a big influence on the EA business and that will continue to be the case. Remember, we have guided first half, China would be sluggish. That’s going to be the case and is the case as we look at Q2. And there is some influence on as associated with the construction market, depending on how that evolves, there will be a little bit of a hangover in EA as well.
David Begleiter: Very good. And just on the restructuring, the non-construction savings, I guess in HHC and EA, Are there additional plant closures you are targeting in those two segments?
Celeste Mastin: Well, again, back to my response on the previous questions, we are evaluating our manufacturing network. We are looking at capacity plant-by-plant, technology-by-technology, line-by-line with not just now, but 5 years from now in mind. And as we complete that assessment, there is the possibility, certainly, that we will end up shutting other plants.
David Begleiter: So, just to be clear on the $30 million to $35 million, there are no other plants to be closed?
Celeste Mastin: Just the two dimensions, just the two I mentioned.
David Begleiter: Right. Okay. Thank you very much.
Celeste Mastin: Thanks David.
Operator: Your next question comes from the line of Jeff Zakauskas from JPMorgan. Your line is open.
