Phil Lister : And as we said, cycle average margins, if you go back over the last 10 years, this is a mid-teens plus margin business.
Eric Zhang : Got it. Thank you.
Peter Huntsman : Thank you. Operator, I think we’ll take one more question. We’re nearing the top of the hour and assuming anybody else is with us.
Operator: Yes, we have a question from line of Laurence Alexander with Jefferies.
Laurence Alexander : Good morning.
Peter Huntsman : Good morning, Laurence.
Laurence Alexander : Good morning. Just want to revisit the portfolio optimization comments, what the scale of your business a limiting factor in what you do? Or is the focus really just on return on capital volatility kind of what is what value is reflected in your share price versus the fundamental value. Can you just help clarify how much scale constraints what you do?
Phil Lister : Yeah. So I mean you’re talking about the facts, Laurence, that we’ve sold down our TiO2 business, our spindle top business, so the intermediates business. Textile business, and we’ve got a $6 billion company today. Again, I think we would rather that we were adding on bolt-on acquisitions to grow the business and grow the business both organically and inorganically over time. And those inorganic investments would come around particularly around advanced materials. And as Peter said earlier, you may look at some small parts around the edge as well in terms of whether we’re the best owner or not. But to the point, we come in and we look every day. Are we the best owner? Can we generate an effective return from the portfolio in the long run? And you are correct, we’re absolutely looking at the return on invested capital versus our cost of capital.
Peter Huntsman : Yeah. I would just say, Laurence, and I hope I don’t get ahead of myself in saying this that we do run the risk. If we were to look at selling a big chunk of the business today without the acquisition of something else, we run the risk of getting too small here. And I think that’s not something that we want to entertain either. But that shouldn’t preclude us from doing something big if we can replace it with something big and continue to shift and change the portfolio. I think again, I publicly have said if you go back and look at the history of Huntsman, every five years, at least, there’s been a major addition, a major divestiture, something that is has fundamentally changed that I believe has made us a stronger company, whether it’s a sale going back 15 years ago of our base chemicals businesses 10 years ago of our TiO2 and some of our the basic pieces and so forth and more recently in the last five years of our intermediates and textile effects.
And I think that at the same time, being able to buy the right assets to replace those or if we can’t find the right assets, we’re going to return cash as we did this last year with the sale of the textile fax business. We’re going to return cash to shareholders.
Laurence Alexander : Thank you.
Operator: Thank you. At this time, we’ve reached the end of question-and-answer session. This will also conclude today’s teleconference. You may now disconnect your lines at this time. Have a wonderful day.
