Kevin Moug: No, it doesn’t, Brian. So that is baked into the longer-term view. And again, probably we won’t start to see any real benefits from it in that kind of ’24, ’25 time frame.
Brian Russo: Okay. Great. And then just lastly on BTD…
Kevin Moug: Just a reminder that, that range is from a 2024 forward time frame.
Brian Russo: Yeah. Right. And then just lastly on BTD. It seems like while you might be seeing a slowdown in some of your end markets just due to the macro environment. Are you still growing top line, and it’s just — or is top line like organic growth slowing which is eating — which is impacting your margins? Just trying to get a sense of what’s structural and what might just be. Is it your cost structure or is it just what we see the obvious headwinds in 2023?
Kevin Moug: Yeah. Brian, it’s — we’re not seeing top line growth in 2023, and it’s — a large part of that is the decline in steel prices from ’22 to where they’re currently at in ’23. We — as we mentioned, we’re seeing the ag market, the power generation market are favorable, but then as Chuck mentioned, rec vehicle, lawn and garden are expected to slow. And so overall, we’re seeing a drop in top — expecting to see a drop in top line revenue in 2023.And another key factor is the scrap revenue. Scrap prices in 2022 will probably average around $550 a tonne. And we’re seeing that now in the $400 tonne range in ’23. And so that’s having a pretty significant impact on our year-over-year earnings as well. And then we are continuing to see inflationary pressures on the cost side of the business in terms of — we do have inflationary costs or increases built into our guidance in terms of wage and benefit pressures.
We certainly are seeing increasing health care costs in the business and other types of inflationary pressures as well.
Brian Russo: Okay. Great. Thank you very much.
Operator: Thank you. I’m not showing any further questions in the queue. I’d like to turn the call back over to Chuck for any closing marks.
Chuck MacFarlane: Well, thank you for joining our call and your interest in Otter Tail Corporation. I would again like to thank our employees for their efforts in making 2022 an extraordinary year. Looking forward, we expect 2023 to be a transitional year as industry conditions within the PVC pipe industry normalize. In total, we expect to generate earnings per share in the range of $3.76 to $4.06. Over the long term, we are well positioned with our utility growth strategy and predictable earnings stream, complemented by our strategic Manufacturing and Plastics businesses to achieve our financial targets. We expect to produce compound growth in earnings per share of 5% to 7% off a base of 2024 earnings and to increase our dividend in the range of 5% to 7% annually. Again, thank you for joining our call, and we look forward to speaking with you next quarter.
Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect. Everyone, have a great day.
