Andy Tometich: Yes. Thanks, Mike. So, first, I’d like to start with, we’re really encouraged by the performance that we’ve seen over the last couple of quarters and here in the first quarter, continuing to really deliver on the things and the priorities that we said we were going to. The macro uncertainties still remain there and we’re focused on controlling what we can control. But for the second quarter, we anticipate still continued margin recovery, as I’ve highlighted before. It doesn’t necessarily all mean it’ll be at the same pace, but we continue to balance that value and use pricing with our customers against the cost of the serve, and believe that we’ll continue to recover towards our historical margins over time. The adjusted EBITDA in the second quarter we anticipate to be similar.
And kind of unpacking that just a little bit for you, as price and raws continue to move, we manage the yield of that and anticipate that again, a little bit of expansion continues in gross margins. Volumes could slight – could show some slight improvement, and that’s really based upon expectations in China as we go forward. And we’re continuing with our focus on new business wins. As we look beyond Q2, we know we have a lot of earnings power embedded in our portfolio and the activities that we’ve done, but a lot of the uncertainties are still out there, and we’re focused on controlling what we can control. So, as we continue to implement the things we’ve been doing and anticipate continuing to do, we’ll see continued margin recovery as we move through 2023, and then that yields to earnings growth in 2023 over 2022.
Mike Harrison: All right, thanks very much.
Operator: Thank you. Our next question comes from the line of Laurence Alexander with Jefferies. Please proceed with your question.
Dan Rizzo: Hi, everyone. It’s Dan Rizzo on for Laurence. So, in Asia, some of the companies you were talking to are saying in verticals whether they saw a surge coming out of COVID, it ended quickly, so it was kind of like a start-stop. I was wondering if you guys saw something similar or just any color on how demand trends are within the region.
Andy Tometich: Yes. thanks, Dan. So, for sure, as we moved through Q1, our volumes did increase sequentially and we believe we’re below the underlying end markets. Really, the reason for that was related on a sequential basis with some of the lunar New year impact, and then an expectation that things might pick up a little bit quicker than they did. We also had some uneven customer order patterns that occurred. And then finally, we had some volume. China’s probably the most sensitive place with respect to pricing, and as we continue to use our value in pricing, we’re choosing where we continue to serve business that’s valuable for customers. And what we’re seeing is a little bit of a wrap effect from the decisions we made in 2022. We do have cautious optimism though going forward. Coming out of the lockdown scenarios that were in place, we are anticipating that volumes could improve, and we’re ready to serve them in Asia.
Dan Rizzo: The optimism that you’re alluding to, is that from just what you, I mean, think is going to happen to the region, or are there order trends or customer commentary that suggests that it is going to start to ramp up?
Andy Tometich: Yes, I think it’s based upon the expectation of what the new policy will allow and remove some of the stops and starts that had happened before. That should build some momentum. And of course, we’re seeing some stabilization as well. So, it’s a combination of what we’re seeing directly and hearing from customers and the general macro.
