The lion share of it was initially focused on our larger plants in North America. We’re seeing those benefits now happen in Europe. We positioned Dave Dennsteadt, who’s our Performance Coatings Group President. We also had a big presence in Europe. He and his family moved this summer to Europe, and he has a senior leader oversight to help accelerate some of the opportunities to drive efficiencies more aggressively in Europe. The decision to divest a business in the U.K. and close some underperforming operations were part of that. And so all of that should bode favorably for growth and margin expansion in Europe quarter-by-quarter and over the next couple of years.
Unidentified Analyst: Great. Thanks. And then just a follow-up, you know, strong EBIT margin growth on CPG as well. Is there a limit to how much additional margin improvement we can see there? Obviously, you got 18.5%. Maybe talk about some of the specific to CPG, you know, benefits from MAP and pricing as well.
Frank Sullivan: Sure. You know, I don’t know that I would talk specifically about limits to EBIT margin growth in any of our businesses. We still have room to grow. But not surprising from my earlier comments, there is a trade-off in the near term between expanding margins and investing in organic growth. And back to the big picture thing, you know, if we simplify across RPM internally into our investors what we’re trying to do here, it’s significantly improve our cash conversion cycle and ramp up organic growth initiatives. And we think the economic circumstances that we’re in call for that, and we’re having really good progress in the cash conversion cycle improvement, and there’s more to come. And we’re having really good improvement on the organic growth piece in Construction Products, and we’re hopeful that we’ll see more benefits across more RPM companies in the coming year.
Operator: The next question comes from Frank Mitsch of Fermium Research. Please go ahead.
Frank Sullivan: Good morning, Frank.
Frank Mitsch: Good morning, Frank, to you as well. Nice start to the year. I want to come back to the MAP 2025. I believe you mentioned before that you’re expecting a benefit of $160 million in fiscal 2024. But I – my understanding is that’s the run rate, right, that you’re expecting to end this year? And you guys are actually expecting about $100 million to impact the 2024 P&L? Is my understanding correct?
Frank Sullivan: That is 100% correct, and I appreciate you’re clarifying that.
Frank Mitsch: All right. Great. And what was the actual benefit that you saw in the first quarter from MAP 2025 of the $309 million EBIT?
Rusty Gordon: We ran at about the run rate you’d expect. So it was about a quarter of that year’s benefit, maybe a touch ahead.
Frank Sullivan: So $25 million or $30 million. And, you know, we communicated in July. We had a $120 million goal in fiscal ’23, we exceeded that. And we have a $160 million run rate goal. And you’re right, we expect $100 million of it to flow through our P&L. Some of that is benefits that will begin to be realized in the second half of the year in terms of run rate. Some of that is the impact of FIFO accounting, both in terms of conversion costs and the commodity cycle benefit that shows up in our case, maybe 60 days or 90 days later than were we on LIFO. And so that’s what’s happening there. But we are on or slightly ahead of target for that $160 million run rate for the year. And as I said earlier, I would expect about half of that or slightly less than half of that to be associated with the commodity cycle benefits as well.
This should be the year unless we get surprised by oil prices or some other spikes. And as we look in the past, where the lion’s share of the commodity cycle benefits should show up.
