Ross Davisson: Okay. Thanks. And are you able or willing to quantify how much was that? It sounds like a one-time adjustment.
Nicholas Vlahos: We cannot quantify that right now.
Ross Davisson: Okay. And just stepping back more generally, obviously, raw materials have been volatile, I guess, is an understatement. Reflecting on the year and maybe year-to-date, do you feel like Eastern, across its different businesses, has been able to and successful in recovering those changes, albeit with a lag?
Mark Hernandez: Yes, that’s, (ph) in the commercial vehicle industry, something we deal with in a cyclical business, especially when indices change. In some cases, we were very aggressive in getting our cost recoveries. But in other cases, we probably weren’t as strong as we needed to be. Going forward, though, we will be looking at what is reasonable based on indices as well as freight indices going forward to make sure that we’re covering our costs and we’re not seeing increases in cost of goods sold or other aspects of our businesses.
Ross Davisson: Great. Thanks. That’s helpful. And just looking ahead, where do you feel — I mean, if you just kind of think about — I guess I’m just reacting to how much lower gross margin was this quarter and just trying to wrap my arms around sort of is there a change in the business, or are those historical gross margin rates still where you would expect to be over time?
Nicholas Vlahos: Yes, we do expect to get back to our historical gross margin rates. It was more of timing issues than anything in the past year.
Ross Davisson: Okay. And then just last question, just switching gears. Obviously, there’s a lot of activity around new platforms with the OEMs, with the EVs. I was hoping you could comment sort of what are you seeing? And do you feel like you’re getting your sort of fair share there as that business sort of — as the OEMs business evolves towards new platforms?
Mark Hernandez: So, we’re participating with the OEMs and their development of their transport electrification. As the heavy-duty over-the-road trucks become more and more relevant to the electrical vehicle space, air drag is going to be very significant. So, we participate very favorably in those bid processes with the OEMs to help them with the transition. I feel we’re well positioned to be a strategic partner with the OEMs as they develop their over-the-road vehicles.
Ross Davisson: Okay, great. Well, thanks, Mark. Thanks, Nick. I appreciate it.
Operator: Thank you. We have a question from (ph), who is an investor. Please go ahead.
Unidentified Analyst: Good morning, Mark, and I wish you as a large shareholder the best of luck. But I have two questions. Number one, with freight costs getting back to somewhat normalcy, even though you just stated that they weren’t completely, and supply chain restraints as well getting back, you were handed the baton on January 10 of this year, and it looked to me as a stakeholder that the previous management team was a train wreck in regard to the third and fourth quarter of this year. I’d like to know how you’re going to approach getting Eastern back to where it should be.
Mark Hernandez: Hello, Roger. One thing is, look, we have to focus on our operating performance. And that means looking at our SG&A and our cost of goods sold and make sure they’re in line with our expected ratios for sales — return on sales as well as return on invested capital. Freight costs haven’t — they’ve only recovered by about — off the top of my head, about 30%, I believe, but we still look going forward. We have — we’re looking at both pieces, Roger, what are the margin piece — what is the pricing piece? And what is the cost piece? And we’re going to focus on both. We can’t wait to do either or. So, things like cutting all spending right now while we do this recovery is going to be consistent or it’s going to be necessary as we dig out of this transition period going forward in 2023.
Now I do know that the commercial vehicle market still is strong in demand. So, with those activities that we’re starting already, we look to position both the pricing and the cost side of the business so that we can get the margins back to where they need to be.
