John McNulty: Yes, thanks for taking my question. So, I guess first one, we heard from the EPA kind of a new PFAS kind of level going forward. And some of the solutions, at least early on look like from a water table perspective is going to be tied into activated carbon or carbon in general. I guess, can you speak to the conversations that you’re having there and if it’s resulting in any early demand flows, that’s something more on the come as we kind of look through whatever the end of this year into next year?
Ed Woodcock: Yes, John, this is Ed. Obviously, as you mentioned, it’s a big deal around the country at this point with PFOS and PFAS. Each carbon that’s used for these have unique chains and molecules. And so you really have to test the product first to see whether it’s got efficacy for the particular PFAS or PFOS or PFED that you’ve got in the system. And so we see that opportunity is something for us to do with our powdered-activated carbon products. But we’re really trying to make sure that we maximize the sales rate as well as the profitability as we go into those markets.
John McNulty: Got it. Okay, makes sense. And then just a question on the PM business, can you speak to the pricing environment that you’re seeing and how much that contributed to the margins? Just first running without downtime, because again, we’ve seen periods when you haven’t had much downtime and we haven’t seen margins quite like this. So, just wondering how much pricing might have contributed to that?
John Fortson: Yes, John, for us it’s — we look at it for year-over-year, year-over-year opportunities for us. And so we continue to add price mid-single-digits as we move forward throughout the year. Sometimes it will be lower or higher, but we try to make sure that we’re continuing to capture the value that our products do for the products that we have.
Ed Woodcock: And when you think about it, most of that price increase really sits on the activated carbon itself and not so much on the honeycomb. So, if you’re building your models, John, you can think about that.
Mary Hall: I think prior quarters — I’ll chime in here, prior quarters we were talking about process purification when auto production was a bit depressed. Now, auto production is on the rise, so you’re getting that mix benefit as well from process purification applications into the activated carbon for autos. And a good piece of that margin upgrade is related to that mix upgrade.
Ed Woodcock: John, I would actually encourage you, so as I was driving in this morning, I was listening to CNBC and they were talking about Ford’s, I guess either monthly or quarterly sales numbers, right? And the headline numbers like, well, ICE is down, traditional ICE is down and EVs are up, right? But ICE was down some percentage. EV — All electric EVs were up some percentage, but hybrids were up 59%, right? And a hybrid is for us, basically another internal combustion engine. And those are sales, right? And then they came and actually talked about, because you could argue that a lot of Ford’s EVs, so all electric sales were then trying to clear inventories by cutting price on the lots to get the Mustangs and all that stuff moving, right?
So, we look at obviously what drives us is production, right? But you can look through and I would encourage you as you guys think about this, to understand that dynamic because I thought that was a very telling set of statistics, right? You’ve got EV sales up, but they’re clearing high price stock cutting price, trying to clear their inventory. Where they’re building are in hybrids. And that is very, very encouraging for us and we expect that trend to continue and not be just at Ford.
John McNulty: Got it. No, that’s very helpful color. Thanks very much.
Operator: The next question comes from Ian Zaffino from Oppenheimer. Ian, your line is open, please go ahead.
Ian Zaffino: Hi, great. Thank you very much. Wanted to ask you, I guess on the previous question on the hybrid side is, what you’re seeing in the market pretty much accurately reflects what you guys are saying about hybrids doing much better. But when you talk about it being, let’s just say similar to an ICE vehicle, I think those are yours or something similar, do we — is that because the OEs are using common parts for both ICE and hybrid or basically why is that happening? Because I thought the understanding was that hybrid vehicles would have smaller tanks and therefore lower need for activated carbon. Is that not the case? And if that’s not the case, kind of give us a little detail on what’s going on there? Thanks.
Ed Woodcock: Yes, Ian, it’s Ed. With hybrids, you’ve got relatively small vehicle with small gas tanks. As it comes around to fill up those gas tanks, you have to kind of depressurize the system and so you need that same amount of activated carbon on that fuel tank as they depressurize the fuel tank, it rapidly goes into a canister system where the activated carbon captures it. So, it’s almost from my perspective, we also have some honeycombs and carbon on those systems depending on the mechanism that each individual OEM is trying to do for those vehicles. So, I still like the hybrid vehicle. It’s really gaining share. It’s up if you look at cross Q1 plug-in hybrids and hybrids we’re up 320 basis points. And so you see kind of just the auto — as people are looking for what they’re going to buy next, they’re really excited about the hybrids and the plug-in hybrids.
John Fortson: When you think about it, Ian, hybrid represents a very good solution for most consumers, right? I mean, I use myself as an example. I live about 10 miles from the office, right? So, I can go back and forth from work running the electric, right? But when I need to take the long trip to take my kids somewhere or whatever, right, then that you have that flexibility and it removes that range anxiety. So, — but 95% of the time it’s running electric, right? And so I think consumers, when you look at that versus relative price point of these things, right, consumers are saying, well, this makes the most sense, right? And we’re just benefiting from that.
Ian Zaffino: Understood. Okay. And then on the AFA push, I know there’s a lot of testing certification. Maybe can you give us an idea of how that’s going, maybe versus expectations or success rate or anything along those lines as far as just color on how that’s going?
