On the gross profit percent, we did as you pointed out, we’re averaging about 41% year-to-date. Q3 typically is a lower volume quarter for us. We don’t have as much operational pull-through as we would on a higher volume quarter, specifically in Europe. So it’s really the only delta I would point to. We do expect as we said in our prepared remarks, a higher or improved deflation capture. But again, the lower volumes are going to affect our manufacturing efficiency.
Operator: Your next question comes from the line of David Begleiter. Your line is now open.
David Begleiter: Thank you. Good morning. Tim and Vince, you mentioned the weakness — potential weakness in Pro. Where are the backlogs today and are you actually seeing that weakness yet come to fruition?
Tim Knavish: Hey, David, thanks for the question. I would describe the weakness in Pro to be sequentially down a bit, but not a tremendous amount. A lot of that Pro work is commercial and maintenance, that still remains pretty resilient. But we have seen some reduction in backlog. But honestly, the painters are still in some cases having difficulty getting labor. So there are cases where they’re passing on jobs because of that. So while we’ve seen DIY down fairly significantly, I would just say we’re seeing just a bit of softness in the PRO backlogs.
Operator: Your next question comes from the line of Jeffrey Zekauskas. Your line is now open.
Jeffrey Zekauskas: Thanks very much. Two-part question. Can you talk about the state of Chinese TiO2 industry and that there’s enormous [Technical Difficulty]. Can you use that product in China and in other regions or China chloride-based material. And is it the case that tariffs are just too high to use it in the United States? And secondly, in your script, you say that 80% of your inventories are on FIFO. I thought most of your inventories in the United States were on LIFO. So does that mean that the inventory adjustments that you really need to make are in the offshore markets and your inventory control is pretty good in the US and it’s tougher abroad?
Vince Morales: Yeah, Jeff, this is Vince. We had a little break-up on your question, but I think you asked about TiO2 oversupply in China. And we do — we are able to take Chinese TiO2 and are — and have been for quite some time, utilizing that certainly in Europe, certainly in Latin America, South America, obviously in Asia. And there are tariffs that make it less cost effective today to do so in the US. But we are fully utilizing our capabilities to move that TiO2 to other markets or other regions of the world outside of Asia and capitalizing on those lower prices.
John Bruno: Jeff, this is John. I’ll take the FIFO question. So, first start with the sales we have, our profile in the US. We’re now about 35% sales in the US. And in the past five, six years as we’ve made acquisitions in the US, the companies we’ve acquired have been on FIFO. So we have not moved them to the LIFO accounting. So over time, the percentage of inventory that we have on the FIFO method has just incrementally increased due to those factors.
Vince Morales: To just add on there…
Operator: Sorry.
Vince Morales: Sorry, Carla. Just — I apologize. Just to add on, my apologies. Just to add on, as John mentioned, we do excess inventory, specifically in raw materials. If you look at our inventory historically, we’ve trimmed about 50% of the excess raw material inventory that we came into the year with in the first six months So we’ll be working the balance of the year to trim the other portion to get back to our historical level.
