Aleksey Yefremov: Thanks. Good morning, everyone. I was going to ask you about destocking versus lower underlying demand. How do you know the difference? And how would you kind of characterize this difference in your volumes between these two categories? And also any sign of destocking at your customers abating or improving versus what you saw in early January?
Rusty Gordon: Sure. This is Rusty here. In terms of what we saw in the third quarter, there is really two pieces to it. There was the absorption hit from lower demand and our customers’ destocking. There is also RPM’s inventory normalization effort as we knock down our inventory balance by $48 million versus the end of the second quarter. So between those two pieces, like Frank said, there was about a $20 million hit, which is unusually high for us. It might be in the worst case in the $10 million, a little over that. So there is definitely an extraordinary impact on the P&L in Q3.
Aleksey Yefremov: And just a follow-up on this, I guess my question was more along the lines up the trends in destocking itself. Do you see anything that the signals your customers are closer to the end of their destocking efforts?
Frank Sullivan: Yes, I think you’re going to see from us and also supply chains in general work their way back to normal this late spring and summer. So I would anticipate a lot of these levels of destocking, the things that we’re doing and that we’re seeing at customers, both in our industrial businesses and consumer businesses to be kind of right-sized or normalized by this summer. Then the unit volume issue is separate. And where we’re seeing the greatest weakness is our €“ in our construction product and construction chemical space.
Aleksey Yefremov: Thank you very much.
Frank Sullivan: Thank you.
Operator: The next question comes from Josh Spector with UBS. Please go ahead.
Frank Sullivan: Good morning, Josh.
Josh Spector: Hey, good morning, thanks for taking my question. So just in your comments in your slide for your outlook, you had comments about tightening credit pressures and interest rates as well. Obviously, we know about the pressure in resi. I guess, can you comment on, if you’re actually seeing some impacts there, on the commercial side different now versus a month or so ago? And is that impacting your order book and visibility in any way?
Frank Sullivan: Sure. So I would highlight kind of separate coatings from construction. Our coatings businesses are housed principally in our Consumer Group and our Performance Coatings Group. And if you look at them, I think we’re performing quite well versus our more comparable coatings peers. We were up 7.5% on sales in consumer on top of a record quarter last year and really strong EBIT margins and margin recovery. Our Performance Coatings Group, and I would differentiate their markets are infrastructure and really driven by industrial capital spending. Their revenues were up 10.5% and their EBIT was up 16.4%. We see those businesses on the coatings space in those categories continuing to be pretty strong for a number of reasons.
In our Construction Products Group, we’ve been hit by a slowdown in what has grown to be almost $300 million in residential new construction in North America. And we’ve seen the commercial and light commercial piece of that start to go negative in January and it’s been trending down for each of the months here in calendar €˜23. I would expect that those trends in the construction markets, particularly residential new construction and commercial construction, to continue for the balance of calendar €˜23.
