Frank Sullivan: And as we sit here today, our inventory levels are being adjusted appropriately. We had more normal cash flow in the quarter and I think you will expect — should expect to see better cash generation out of us in the coming quarters relative to focus on inventory adjustments. It’s happening across the whole supply base and our customer base and not just, again, I want to make sure that people don’t equate destocking to Consumer big customers. This is basically the supply chain across almost every business or industry that we serve adjusting back to normal levels of inventory. So that is circumstantial and that’s playing out as we speak, because we are not the only company who’s got higher levels of inventory in relationship to trying to adjust to the supply chain challenges in the last two years.
Frank Mitsch: Understood. Thanks so much, Frank.
Frank Sullivan: Yeah.
Operator: And our next question will come from Josh Spector with UBS. Please go ahead.
Frank Sullivan: Good morning.
Josh Spector: Yeah. Hi. Thanks for — hey. Good morning. So just curious if you could comment on pricing, one, I apologize if I missed it, but can you comment on what pricing was in the quarter, and then specifically for construction, if you are having weaker demand, I mean, given how that business is more project based pricing. Is that having any impact on your ability to get further pricing or are you having to give some of that up given some of the destocking?
Frank Sullivan: Josh, we have not provided price detail by segment. But on a consolidated basis, price was in the 15% to 16% range on average across RPM in the second quarter and unit volume was up in some of our businesses down in the CPG and particularly in Europe. So on a total basis, unit volume in the quarter was down about 3%. We have held on to our pricing pretty much everywhere and as the supply chains adjust, typically in the past, there are very few areas where we would have to get back price. Some of it is in more commodity spaces. One example is in silicones in the Construction Products Group. There have been extraordinary spikes in silicone costs over the last year and a half, and that was a real problem for us in cost price/mix.
There are significant declines in silicone prices. So you are likely to see some price adjustments in commodity — more commodity areas like that. Other than that, historically, we have tended to hold on to our price across RPM and we intend to do that through this cycle as well.
Josh Spector: Okay. Thanks. And then I was just wondering if you could comment on Consumer in terms of what you are seeing. I mean, you have had strong volumes in the first quarter on some restocking and supply availability improvement. I think some of your competitors have noted some destocking in that chain. Are you now seeing more of that or I mean, my assumption is you are kind of assuming negative volumes in Consumer at least for next quarter. So just curious what the driver is among that?
Frank Sullivan: Sure. I think that’s correct. There has been some destocking. I think that’s stabilized. Consumer takeaway has still been very volatile from one week to the next. It could be down in units 10% or up 2% or 3% depending on the retailer. We have lost over the last year about $40 million in market share and I believe that that market share adjustment is over, and that’s been in some categories of spray paint and wood states and finishes in a big box account. Our Consumer Group is pretty excited about the spring and we are going to be initiating a advertising and promotional initiatives in the spring, much larger than we have over the last couple of years. It’s a combination of some new product introductions, some new market share opportunities.
And finally, a supply chain such that we can deliver at the high fill rate levels that historically we have been able to deliver at. So we have done a lot of work, both through MAP 2025 and then specifically on the operations side at Rust-Oleum around some supply challenges and manufacturing efficiencies. Those have been addressed and we will be in a really strong position to be able to meet demand and also to drive demand in the spring selling season. So that’s one area of strength for us as we look into the finish of fiscal 2023.
Josh Spector: Got it. Thank you.
Frank Sullivan: Thank you.
Operator: And our next question will come from John Roberts with Credit Suisse. Please go ahead.
