Robert Patterson: So look what I would say is that, I mean, first and foremost, you know, I would say our customers are very much focused on and we’re just talking about the color space. So they are very much focused on sustainable solutions being able to use more recycled content and making things easily recyclable that’s certainly the brand owner focused. but they’re also focused on costs. So you know, to the extent that they want to look at alternate materials that could result in some cost savings. I mean, we’ve always been agnostic candidly where the underlying base resin they want to use or the formulation, it’s really just ultimately up to them you know, with respect to what formula works for down to achieve the performance characteristics they’re looking for.
I don’t really see that as a meaningful, you know headwind at all really price I think that’s, that’s still fine as long as we’re delivering what they need as to specifically again you know, around those two areas of sustainability.
Laurence Alexander: Okay, all right. Helpful. Thank you. And then, this will be a little bit simpler. When I think about your cross-selling opportunities in Dyneema, you know, would you expect to focus really around expanding sales where you’ve already commercialized Dyneema into a specific application or would these be you know, potentially more novel and if so, just kind of curious what kind of prototyping capabilities you have or would consider investing in to drive adoption in the new applications.
Robert Patterson: I mean, look, fortunately, I do think there is a lot of opportunities there and maybe specifically if you’re just looking at pulling you know, Dyneema and a more consumer space, it really starts with customer introduction and increasing awareness of the material and its capabilities. You know, we have a great design team at event that just really looks at how to use different materials for you know, customer needs, and so that is getting increasingly to save more incorporated into that analysis. And then you know, from this idea of a prototyping a lot of times, our customers have that capability and like to do that just to see how material is perform themselves so oftentimes, I’d say that’s a partnership with our customers. But it really starts with awareness in terms of what the material can do and how it can benefit down, particularly as it relates to increasing strength or reducing waste all right.
Laurence Alexander: All right. Excellent. Thank you.
Operator: Thank you. One moment for our next question. And our last question comes from the line of Michael Sison from Wells Fargo. Your line is open.
Michael Sison: Hey, good morning. Bob, would you, I apologize, if I missed this, but what was volume down in the third and implied volume for the 4th.
Robert Patterson: Yes. So that’s down about 15% in Q3 implied is about 10% in Q4. Really kind of that sales reduction is principally demand is a little bit of an FX could go, I think they’re catching about 9% in Q4.
Michael Sison: Got it. And then for the fourth quarter. You know if I take your EBITDA outlook and annualize it. You’re running you know, fairly below you know, 2023 levels, But it did seem like you felt you can grow EBITDA in 2024 how we think about, you know improving on that run rate as we head into the first half of the year. And then, is there anything else that you have, you know, to generate growth into 2024?
Robert Patterson: Yeah, I mean it’s like, well look at the fourth quarter it’s obviously the first quarter this year, where we are showing year-over-year EBITDA growth. I just really can’t emphasize enough again like sort of how I’m feeling positive about Europe and what we’ve been able to do margins there. And so, I see that probably as the first thing just going into next year as a positive and so, we’ve got good momentum in that, in that regard. I might be redundant here but raw material is staying where they’re, that is also positive going into the first part of next year and then there is a little bit probably on the cost side, really if it just comes down to what we can control. But anecdotally you know, customers are giving us feedback, they do you think that you know, destocking is coming to an end, and I think that bodes well for you know the sales side picking up in the first quarter.
Michael Sison: Right, okay. And then do you have sort of deflation that sort of helps you in the first half of the year, that just sort of flows through?
Robert Patterson: Yeah, I mean that’s what I’m saying like raw materials sort of stay flat, where they are and we’re just looking at year-over-year comps. So I mean you can take the EBITDA bridge that we had for the quarter, and kind of look at that and know that second quarter was the first time we really had any deflation this year. Third quarter is obviously a bigger number saying kind of model out how that will flow into the first half of next year.
Michael Sison: Got it, okay. Thank you.
Operator: All right. Thank you. Now that [Multiple Speakers]
Robert Patterson: We appreciate everybody’s time and attention this morning, and we’ll look forward to updating all of you with our year-end results when we get there. We’ll be at a few conferences through this fall. So maybe get a chance to see some of you in person at that time. Thank you.
Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect. Everyone have a great day.
