Craig Kesler: Yes. We didn’t see any sort of pre-buy activity those type of things. I think that is fundamental Wallboard consumption. We look at our orders post the quarter and been very happy with the environment and the order activity. So I don’t think it is pretty clean volume. Yes, in terms of the inflection point for interest rates, and therefore, the benefit to housing affordability and demand. As I mentioned earlier, there is a lag between a start to Wallboard consumption that was elongated post-COVID, because of some of the supply chain issues the homebuilders we’re dealing with. I think those issues have been have eased over the last 18 months, let’s call it. So you would expect to see going back to more of a normal timing in terms of call it three to four months from a start to Wallboard consumption is typically what — or historically what we’ve seen for how fast that flows back into the business.
Phil Ng: Okay. Super helpful. Really appreciate it.
Operator: And our next question today comes from Keith Hughes with Truist. Please go ahead.
Keith Hughes: Thank you. I had questions on the volume of the JV. It was down in the quarter. It was fairly easy comp in the prior year. I’m sure weather played some role here, but you just talk about the pace of business at the volume of the JV in the quarter.
Michael Haack: Yes. I’ll take that question Keith. Thank you. When we look at the JV, we had discussed earlier in the year that we had some older equipment at that JV that we if you remember about a couple of quarters ago, we had a mill that we were struggling with a little bit. And we did a repair to that mill that we thought would carry us through the lead time to get the parts that we need for that mill. That mill actually had some additional issues that it was still running fine, but from a safety perspective and standpoint, we wanted to make sure we took it down and address the issues that were happening, so we didn’t have a catastrophic failure. So we did take a little bit more of an outage this last quarter to address that.
We have the parts for that mill on order. It’s just the lead time on these heavy industrial parts and it’s a part that typically doesn’t wear out as much that we’re going to have to replace. So, it had an 18- to 24-month lead time with it. We’re going to change that those mill components out later on this year. The other thing, I also wanted to highlight with Texas Lehigh, as I’ve talked about in previous quarters is, but we have the secondary thing that caused us some issues throughout the year was a clinker cooler we have, which we are going to also address during this next year. So this next fiscal year, we will have a little bit more extended downtime to address those two issues. We’re very confident that the plant infrastructure other than these two components is very, very good.
We just are getting to the end of life of these components and they take a little bit of time to replace and to get the parts into dissatisfy them. So, we had a little bit more downtime in the quarter.
Keith Hughes: Okay. It sounds like this is going to continue through really the next fiscal year, is that you’re saying.
Michael Haack: Yes. We’re going to have an extended outage. We haven’t defined when that outage is going to be yet, because we want to ensure all the components are in, but it will happen sometime in this next fiscal year where we will have an extended outage probably, a couple of weeks longer than a typical outage to address these two issues.
Keith Hughes: And any — can you give us any kind of feel of how much capacity effectively is affected by the problems you’re discussing?
Craig Kesler: Yes. Keith, I don’t know that I would say it’s impacting the capacity. It’s just the ability to ramp up to full production. And as Michael said, post the installation of these — of the new equipment, we should be back to our ordinary level.
Keith Hughes: Okay. Thank you.
Operator: Thank you. And ladies and gentlemen, this concludes our question-and-answer session. I’d like to turn the conference back over to Michael Haack for any closing remarks.
Michael Haack: Thank you, Rocco. We entered the new calendar year committed to continuing to operate safely and responsibly and deliver excellent results for our customers, and you our shareholders. The outlook for Eagle is bright, and we look forward to capitalizing on opportunities ahead. We’re also excited to publish an updated and upgraded sustainability report and to discuss highlights when we meet again in May, on the report, and our full fiscal year 2024 results and progress on our strategic priorities. Thank you for joining us today.
Operator: Thank you, sir. This concludes today’s conference call. We thank you all for attending today’s presentation. You may now disconnect your lines and have a wonderful day.
