Mike Williams: We continue to manage that closely with discipline. The receivables and payables tend to offset with a lower level of production in Q2. We’re going to be buying a bit less. Similar level of shipments in Q2, but a little bit lesser mix, receivables could be down a little bit and then from an inventory standpoint you tend to see that trend down a little bit as you produce less as well. So some puts and takes there but not a significant move one way or the other. So it’s really profitability. The other things we have going on in Q2 is, we do have tax payments that have gone out in April. We talked about that in the 10-Q. It’s around $21 million and then about $6 million of pension contributions in the quarter as well.
Philip Gibbs: So did you not have any tax payments in the first quarter then? Is that, was that part of the, part of the timing there.
Mike Williams: Very minimal payments in Q1.
Philip Gibbs: Okay. And then lastly for me just on the cost side I know it’s difficult for us to model it based on mix. Different mix points that you have general. Generally speaking though, when you have less, less utilized melt as you’re talking about in the second quarter, does that lead to some absorption issues relative to Q1 or is that not something we’re going to see until Q3 because of inventory?
Kris Westbrooks: No, you’re going to see it in Q2 and potentially whatever’s left in inventory or on a balance sheet. You may see a little bit of that in Q3. But yes, costs will go up because our utilization rate is aligned with the market demands from our customers.
Philip Gibbs: Thank you guys. Appreciate it.
Kris Westbrooks: Hey, thanks Phil.
Mike Williams: Thank you.
Operator: Your next question comes from the line of Dave Storms with Stonegate Securities. Please go ahead.
Unidentified Analyst: Good morning, this is Justin sitting in for Dave.
Mike Williams: Hey Justin.
Unidentified Analyst: How are you guys. Morning.
Mike Williams: We’re hanging in there.
Unidentified Analyst: I just wanted to see what kind of melt utilization level should we expect for the rest of 2024 and then what’s kind of the reliance on third party melt utilization?
Mike Williams: Very little reliance on third melt utilization. Hard to predict the rest. The remaining part of 2024. On a melt utilization standpoint, with lead times so short, our visibility is short. So we stay in alignment with our customers. We’re doing the best to serve, providing the best service and the best quality and we’ll continue to do that. And if the market demands improve so our utilization rate.
Unidentified Analyst: Thanks for that. And then I guess kind of order book. Do you have any kind of visibility on your order book for the remainder of the year and or kind of price mix?
Mike Williams: From my perspective I think our prices are going to remain steady. You know, 65% of our order book is contractual, so those prices are set for the remainder of the year. The spot market has softened a little bit, but we’re not seeing a lot of spot business right now.
Unidentified Analyst: Thanks, guys. That’s it for me.
Mike Williams: All right. Thank you.
Operator: [Operator Instructions] There are no questions at this time. I will now turn the conference back over to Jennifer Beeman for closing remarks.
Jennifer Beeman: Thank you all for joining today. And that concludes our call. And thank you again for your support of Metallus.
Operator: Ladies and gentlemen, that concludes today’s call. Thank you all for joining. You may now disconnect.
