Vince Morales: And Europe side, we talked about a destock earlier in the call here. And we think in Q2, there was some destocking with certain refinish customers. We think that’s concluded by the end of Q2. So again, as we get to the back half of the year, we would expect the demand and the volumes to be more in sync.
Operator: Your next question comes from the line of Michael Sison. Your line is now open.
Michael Sison: Hey, guys. Nice quarter. In terms of the half of your portfolio that’s in decline or weak, do you think those markets are bottoming or potentially bottom here in the third quarter? And then, when I take a look at your volume outlook, third quarter seems to be down year-over-year again. And, I just wanted to get your thoughts on the fourth and how you see that sort of unfolding.
Tim Knavish: Yeah. So I’ll take a few of the markets that were lower volume than what we expected for Q2 and how we’re thinking about them going forward. First one, architectural Europe, was — that was clearly down more than we expected, but some of that isolated to France as I mentioned earlier. I do expect that to start comping pretty close, maybe even a little upside from where we were at Q3 of last year. So I’ve used the term bouncing off the bottom. I do believe that Europe architectural is bouncing off the bottom and maybe a little bit of upside there. The China recovery, slower than we expected in Q2, no doubt, but the way we’re thinking about that is, that just stretches out the recovery positive — any stimulus that the government does in the industrial space will be a real positive for PPG and we do expect China to sequentially improve.
So those would be the two main ones I would point out as far as what we saw in Q2 and potentially improving in Q3 and beyond.
Vince Morales: Yeah, Mike. And I think there is a comparable — year-over-year comparable issue as you look at volume. So we do have improving volumes as Tim mentioned in China sequentially in Q3. But that was compared to a recovery from COVID shutdown last year Q3. So again, when you look at — you mentioned year-over-year volume challenges. That’s — again, China is improving as we look Q2 to Q3, but it’s against a tough comp.
Operator: Your next question comes from the line of Kevin McCarthy. Your line is now open.
Kevin McCarthy: Yes. Good. Thank you. Good morning. Tim, a two-part question for you on auto OEM volumes. First, could you speak to the outlook for the back half of the year of some of the consultants are to be believed. It looks like there’s quite divergent trends in Asia versus Europe for example. So curious to understand what you’re baking in there. And then longer term, you referenced the supply deficit of 40 million units. Is the implication that that is the amount that needs to be recovered over some period of time? How do you view the medium to longer term outlook for global production?
Vince Morales: Hey, Kevin, this is Vince. I’ll start and I’ll let Tim add here. But just a reminder, again, just the same question we had — the last question. China had a recovery in Q3 last year in auto production. So again, the numbers when you look on a year-over-year basis are a bit skewed.
Tim Knavish: Yeah. So, Kevin, we’re bullish on auto despite some of the kind of affordability and interest rate questions. And here’s why. We continue to be positively surprised by performance in Europe for example, where macros are worse than anywhere and yet the builds and sales remain resilient. The USR, when everybody was predicting that would drop was — came in at a nice number of [15.8] (ph), which was a positive surprise, but still well below historical levels. We’re starting to see — we’re seeing really good numbers out of China. Double digit builds in China, growth Q2. As Vince mentioned, we have a little weird comp situation here in Q3, but we do expect that to recover. So we’re bullish on auto. We are bullish on auto for both the short term and medium term.
