John Franzreb: Okay. So a year ago’s fourth quarter, was there still benefits from Asian COVID demand that we should not expect in this year’s fourth quarter?
Andy Cheung: No, there was really a one quarter mostly Q3 impact. You probably remember China was the last country to have the COVID lockdown opened up, there was really at the end of Q2 and then when that opened up, it brings some additional backlog opportunities a year ago. So that will gradually level out. We don’t see that being a significant factor in the future.
John Franzreb: Got it. And on the third quarter, the Industrial Automation business had a bang out quarter, compared to the prior two or three. Was there something pulled forward? Can you just talk to why it was so much stronger than the previous three quarters?
Andy Cheung: You’re right. So, we actually mentioned that in our earnings release, the industrial automation business this quarter benefited from some sales of inventory that we have previously accumulated. You probably remember back about a year ago, we had a very significant warehouse business that is actually going through a fairly significant decline in that market. And we did roll off some inventory at that time, team worked really hard trying to find way to liquidate and get some value out of those inventory, and we were able to pull that together in Q3. So it’s helped that business in the quarter.
John Franzreb: Got it. And just one last question. I’ll get back in the queue. It’s November, so I assume that you have some visibility into at least how the first quarter of the year is going to kind of play out. And you referenced, Bob you referenced that ACT is talking about 18% drop in the Class 8 truck market. What is your booking profile kind of look like? Does it really kind of drop off in the fourth quarter? Or is it maybe something that’s the second half of the year, kind of a thing – we should be thinking about you versus ACT? Just any color will be helpful?
Andy Cheung: Yes, so I’ll say this, John. Whatever you see in the ACT quarterly look of next year’s volume, we are kind of seeing the similar demand level right now. So Q1 is still holding pretty well. If you look at ACT, Q1 is still a pretty strong bill and then gradually over the rest of 2024, the number is coming down. So that’s the ACT forecast right now. Frankly, maybe there’s some impact, because of the strike. We also are not seeing full visibility at this point. We believe that, the customer is going to give us more clarity once the strike is over resolved. I think we’ll be in a better position on next earnings call to talk about 2024.
John Franzreb: Okay. Andy, thank you very much. I’ll get back in the queue.
Andy Cheung: Thank you.
Operator: [Operator Instructions]. Your next question comes from Gary Prestopino from Barrington Research. Please go ahead.
Gary Prestopino: Hi. Good morning, everyone.
Andy Cheung: Good morning, Gary.
Gary Prestopino: A couple of questions here. Cost reduction programs, are you still on track to deliver $30 million this year? That’s what the number was in Q2. So I just want to get an idea if that’s still on track?
Andy Cheung: Yes. We are still on track to get cost reduction program targets. As you can see, the margin improvement year-over-year. That’s part of that cost reduction program. You can also see that, as we mentioned in the past, we were able to use the cost reduction to offset quite a bit of the inflation is still happening, particularly in the emerging market wage rate. So, we are still on track, and we’re happy with what we are doing. Overall, we are executing around 400 projects across all our facilities. Most of them have impact in ’23. Some of them will have a benefit in ’24. So still ongoing, still part of our culture, continue to executing on that.
Gary Prestopino: Okay. And just going over my notes from last quarter, you said you’re going to add $150 million in new business wins, which you probably should get to since you’ve done $140 million year-to-date. Are you still confident in the target of $100 million in new wins per year next year and in 2025?
Andy Cheung: Well, as you can see, every year, the business outlook is a little bit lumpy. So, the team definitely did a great job this year coming out from the beginning of the year, and we are on track to that $150 million target. We’re pretty happy with the performance. Next year, it’s a little early to tell is the customer sourcing schedules and other factors that may affect it. I think we talked about that in the past the near-term annual target, we expect about $100 million. So that should still be our pretty good estimates for next few years.
Gary Prestopino: Okay. And then just with this Class 8 truck build, it looks like there’s a delta from the projection from Q2 of anywhere from down 3,000 to down 12,000 versus the numbers that are now being projected. Is most of that expected to fall in Q4? Or – did most of that really fall in Q3?
Andy Cheung: I think we would say both. We already see Q3 actually came down, compared to Q2 when you look about the sequential performance of the market. Q3 was down about 3%, and the ACT numbers suggesting that about 6% down sequentially is Q4. So that’s what we are seeing. I think that’s what the market is adjusting as well.
Gary Prestopino: And then I think, just there was a mention that – does ACT have anything out there? Or – did you give some thoughts on what you think it will be in 2024?
