That is not true today. And so given the choppiness in the markets and the MAP initiatives that are benefiting our conversion costs and our efficiency, we are focusing a lot of time and attention on driving organic growth where we can. It’s easier said than done in an economic environment that is, as Rusty likes to say, feels like a rolling recession, both geographically and across sectors.
Ghansham Panjabi: Understood. Thank you.
Frank Sullivan: Thank you.
Operator: The next question comes from John McNulty of BMO Capital Markets. Please go ahead.
Frank Sullivan: Good morning, John.
John McNulty: Good morning. Thanks for taking my question. So I guess the first one would just be on raw materials. Your previous destocking over the last few quarters that you guys were implementing and FIFO makes it a little bit complicated to kind of think about how raws are really trending for you. So, I guess, can you help us to think about – it looks like you got some improvement in the first quarter. How should we think about that continuing to flow through in terms of deflation throughout the rest of [technical difficulty]. And has the move in oil recently – has that had any impact upward on some of the raw material trends that you pay attention to? How should we be thinking about that?
Frank Sullivan: Sure. The – I’ll address your last portion of your question first. The only place where we’re seeing the move in oil prices impact us immediately is in acetone. That’s a – it impacts a number of our coatings businesses, but in particular, Rust-Oleum. So in general, as you followed RPM for many years, we in our industry follow the commodity cycle increases up with lagging price increases, and so you see some margin compression. And then as the commodity cycle cycles down, we typically pick up the lost margin. We are now experiencing that in Q1, in most of our businesses and segments, except Consumer. We would expect to begin to see that in Consumer in Q2. You know we’re rounding metal packaging increases that were pretty extreme and are paying attention to some tariff activity relative to tin plate, which is the, you know, primary raw material for metal packaging and spray cans, things like that.
TiO2 is up modestly year-over-year and acetone is the only raw material that we see reacting to current price increases. So, the commodity cycle benefited us, particularly in our Construction Products and Performance Coatings segment in Q1, and we would expect it to continue to be a benefit to margin expansion in Q2 as well. Again, that’s another one of those things that is volume-driven. You get the benefit when you sell something.
John McNulty: Got it. Okay. No, fair enough. And then maybe just on the Consumer segment. So you spoke to – it sounds like some of your customers are drawing down inventory kind of below normal levels. I guess, can you help us to think about if that’s largely played out at this point or if there’s still a disconnect in terms of the point of sales and what you’re seeing in terms of pull? And then I guess, maybe as an add-on to that, you mentioned some share gains. I guess, can you speak to those as well?
Frank Sullivan: Sure. So our Consumer segment is continuing to perform, I think, at a good level. I think most of the inventory adjustments are behind us. They were certainly significant in the last year. I will tell you in terms of consumer takeaway, while it is improved, meaning less negative, it still trends across different product categories in different channels and the kind of low- to mid-negative range, which is a slight improvement from what we experienced in the second half of last year, which was kind of solidly mid- to upper-single-digit negative consumer takeaway. Some of that’s hangover from the COVID bump. As we had communicated in the past, we had lost some share in a major big-box account. Some of that was related to our own supply challenges.
