Joe Hayek : Sure.
Operator: The next question is from Martin Englert with Seaport Research Partners. Your line is open
Martin Englert: Hello, good morning, everyone.
Joe Hayek : Good morning, Martin.
Martin Englert: I think I asked a similar question a year ago, but I’m going to revisit it. And it comes back to the underlying profitability in steel processing. And when we removed the holding gains, steel processing was strong at $75 per ton of EBITDA, I think for the quarter, $62 for the fiscal year. What do you believe is maybe normalized unit profitability through cycle for this business?
Andy Rose : We don’t look into the business that way. That’s a tough one.
Martin Englert: Okay. Maybe ask it a different way. I guess how do you look at it? Are you looking at it on a margin basis? Or when you think about like, through cycle ability for that business?
Andy Rose : Yes. I think the best way to think about that, is we look at really the gross on materials for each product. And think about it gross on material would be the average selling price minus the material costs. We think of it that way.
Martin Englert: Okay. And do you think that materially changing on a year has been and maybe will continue to on that spread on a go-forward basis?
Andy Rose : Certainly, what we try to do is, it’s part of our strategy to push price wherever we can, and to add more profitable products. So when you see Temple being added, their gross on materials much higher than, say hot rolled product. So yeah, the strategy continues to be let’s push price, and let’s push that spread as much as we can.
Joe Hayek : Yeah, but you do see the yield kind of improvement that last couple years? I think that’s the nature of your question, Martin. But it’s really a testament to the job that that team does. And honestly how unique that offering is, because when you do as much as we do, from a value-added perspective, and from a partnering with our customers perspective, it’s simply worth more and it’s less commoditized. And that’s something that we do pretty well. And we’re pretty proud of.
Martin Englert: Yeah, that’s exactly the point. That was the question what I was trying to highlight there. In prior years looking at pulling out holding gains and losses, maybe $40-$50 a ton. But, fiscal ’22 was 56, fiscal ’23 was at 62. And this would have capital baked in there. So it seems like it’s on, — it’s been stepping off some and maybe that long-term, normalized through cycle possibility is improving. So all right, thank you. That’s helpful there. You already touched on holding gains and then sustainable energy segment unit EBITDA, that’s also, generally improved this past year, despite a challenging market. I guess, you did call pricing was a function of this [indiscernible] in the 4Q. Unit profitability was an anomaly here, or is this going to be something that’s more reflective of improved run-rate, when we look out over the coming quarters?
Tim Adams : Yeah, I would say it wasn’t an anomaly. But it’s also not the beginning of a trend, Martin. So, the first quarter for that business is always going to have some headwinds, because of the August shutdowns in Europe and things like that. But, ultimately, that business is continuing to invest in the transition that we talked about, the global transition to low and zero emissions mobility, but in the meantime, they’re buffeted by what’s happening in Europe and some of the other things that are going to challenge them. So we expect them to, they’re certainly going to do their level best, right to do better every month and every quarter. And we hope to see them grow their profitability some in the next year, but it’s going to be in fits and starts and it’s going to be a little choppy.
