Robert Sales: Got it. Got it. Okay. And then on the misalignment of commodity prices with — did you say it was $1.8 million in the quarter?
Steven DiTommaso: Yes, that’s correct.
Robert Sales: Do you — again, can you be — if commodity prices stayed where they are now, can you offer any precision as to how much better they might look in Q4?
Steven DiTommaso: There are a few moving parts in there, but a rough cut would be about half of what we experienced in Q3 would recur in Q4 from continual decline in our surcharges.
Robert Sales: Fantastic. And do you expect to be able to make any more progress against inventory to bring it down given the, I guess, sort of inventory headwind of having more premium alloy in the mix?
Steven DiTommaso: So — yes. So we are focused on continuing to improve our volumetric terms because we will have a higher mix of premium alloys with inventory in the coming quarters. That comes with a higher dollar amount. So it will provide a little bit of a headwind there that you acknowledge. But as we look out into 2024, we want to manage against that and keep inventory as flat as possible. So we’re not planning on that driving a big increase in the inventory dollar line item.
Robert Sales: Yes. Got it. Got it. And then last question is, you talked about the product approvals starting to flow into the order book given that you’ve been working on them for a while. Are those approvals skewed towards commercial or defense, one way or the other?
Christopher M. Zimmer: There’s a healthy mix. I think the majority of it as that we’re able to identify go towards commercial applications. But as we sell into the engine manufacturers, for example, a number of the alloys that we’re qualified on now and supplying into, can go into applications that will show up on a commercial airplane and they go into defense applications, both on fighter jets and rotorcraft. Rough cut, when we look at where we believe our metal is going to, and again, the visibility can be challenging because 75% of our sales flow through service centers and forgers. But we believe that close to three quarters of our volume is going towards commercial applications and the balance going towards military applications.
Robert Sales: Got. Okay. Great performance. Congratulations.
Christopher M. Zimmer: Thank you.
Operator: Thank you. [Operator Instructions] And this does conclude the question-and-answer session of today’s program. I’d like to hand the program back to Mr. Oates for any further remarks.
Dennis Oates: Thanks, Jonathan. Once again, thank you for joining us this morning. We continue to execute on our strategy in the third quarter. We remain optimistic about the fourth quarter and 2024. We look forward to updating you on that progress on our next call in January. In the meantime, please enjoy your holidays, be well and stay safe. Have a good day.
Operator: Thank you, ladies and gentlemen, for your participation in today’s conference. This does conclude the program. You may now disconnect. Good day.
