Josh Spector: Yes, hi. Thanks for taking my question. So I wanted to follow-up on TSS a bit and just, you know, when you’ve talk about your cut to guidance for the year, you framed it more in terms of TT expectations change. Now within TSS, I guess would you say your expectations change much for this year? And kind of related to that, when you think about the rollout for next year, you said you’re going to grow, but prior step down, we’re kind of coincident with a lot of the changes on the auto OEM side where there was more complete conversion? How does that take place over this next year where it’s more HVAC-related and OEMs don’t have to change their equipment until the year after next? And has any sell-through around their change? So really what’s changed around your expectations in next year?
Mark Newman: Yes, there’s an equipment transition happening through next year to be ready for 2025. So our expectation, you know, based on, you know, our interaction with the OEMs is that there will be growth next year on TSS. You know, Josh, we’ll cover 2024 guidance when we get there. As we think of our guide for this year, obviously the two — the main challenge that we’re having this year is TT volumes. And as I said in my opening remarks, we’re also seeing some weakness on the advanced materials franchise of our APM business. And in that business, we are focused on growth mainly in our PFA business that goes into semicon and in Nafion, which services the rapidly growing hydrogen market. Today, we’re sold out of both Nafion and PFA.
We’re actively working on expansion at our Washington Works Plan in West Virginia. We’re having some permitting delays, which in fact impacted our Q3 growth in performance solutions. But the team believes we’re close to having a permit there. And of course, that will be reflected as we ramp that plan up in early 2024 in our ‘24 results. So again, very excited about the secular growth in both TSS and APM. Growth is never linear, and in APM, I think it’s a lot to do with permitting on the, you know, PFA perspective. It’s also related to, you know, how quickly you can de-bottleneck, and obviously every quarter doesn’t yield the same results as we de-bottleneck our Nafion production. But again, long-term secular growth intact.
Josh Spector: Thanks, Mark. Appreciate that. And just, I guess, coming back to TSS, there’s been, I think, some changes within the equipment side about, you know, what’s going to be allowed heritage-wise or otherwise into next year. I honestly don’t really know if some of the changes have been positive or negative for adoption for you guys. Can you comment on any of that?
Mark Newman: Yes, I understand there is the industry still working through the recent regulation change with the EPA, you know, it could have some near-term impact favoring HFCs, but listen, I think the focus on the complete changeover by early 2025 and all that’s needed to meet that date is going to drive good Opteon traction in 2024. The other thing I would say is we’ve continued to see very strong auto bills. And I think as we look into next year, I think the current expectation is that we’ll continue, which is also good. We also remember as there’s more EV adoption that’s larger charge size. So listen, we we’ll talk more about ‘24 in February when we complete the year here. But again, very excited about the growth that we see coming in both TSS and APM.
Josh Spector: Okay, thank you.
Operator: Your next question comes from a line of Hassan Ahmed from Alembic Global Advisors. Your line is open.
