The Chemours Company (CC) 28 Jul 232023 Q2 Earnings call transcript

Good morning. My name is Jeannie, and I will be your conference operator today. At this time, I would like to welcome everyone to The Chemours Company Second Quarter Earnings Call. All lines have been placed on mute to prevent any background noise. After the speaker’s remarks, there will be a question-and-answer session. Instructions] [Operator

Ontjes, FP&A Brandon Investor President Vice you. and of Relations. Thank

begin your may conference. You

Good to Chief joined Hi. second everybody. Senior Executive Thanks, morning, Jeannie. recently our Welcome Jonathan Newman, and earnings appointed Lock. conference Officer; and Mark President quarter Q&A The Officer, call. by I’m and today Vice President Chief Financial XXXX Company’s Chemours

are on you in Before we future our differ, undertakes our developments no not well on on as the of events based that forward-looking this are duty that and information made to may contain involve and Chemours presentation start, filings. I’d in update realized. future uncertainties, as future guarantees may of performance website, and forward-looking any that like a not statements result and results forward-looking or as call, comments statements expectations to certain assumptions Chemours’ in supplemental remind statements information. These and provided risks be as SEC new of described Actual

the to the in presentation. will measures adjustments are non-GAAP included of and believe to and company’s release we that certain our non-GAAP useful financial terms During call, evaluating A refer reconciliation this are performance. end of the of our at investors management course

along As website Q&A. been our our remarks, on earnings posted call a reminder, This focus section a have purely our our release. plus earnings to Relations deck prepared full transcript, of the will Investor morning’s

the turn I’ll to CEO, that, With over Newman. our Mark call Mark?

you morning. Brandon, and this thank Thank for all us joining you,

and will focused we last F.C. in X quarters launched membranes this Company, release, in on in productive momentum business, active we for as which record the saw had double-digit we reporting as our in to quarter. another Performance requirements had in In press really be of record X you the our quarter. all-time and Membranes results TSS, note, we THE economy. solid And growth quarter, an growth the had second another Mobility hydrogen quarter fuel you’ll business. cell addition APM, we’ve quarters In to Solutions In TSS, the speaks which had and Nafion the from

made we facility, difficult colleagues the members to in on closure skilled close moment of will want valuable I this take profound Yin our and our acknowledge just dedicated Kuan team to impact TT, been In to who the the decision our Taiwan. have have and

During support this to working culture, the with transition, consistent leaders to transition. in will Chemours’ our and remain offer committed local we assistance difficult fully this with

a U.S. water reached of defined claims systems. class drinking a we saw, settlement comprehensive you PFAS-related as of of Additionally, public water

and which reductions. also business, agreed to on repurchases our to which to quarter, expect organic We shareholders. On continue both to the progress return our emission report, greenhouse Glycolic dividend published and Xth capital stock allocation, gas fluoro this we capital and significant of close sustainability we Acid we shows sale compound our through

also It marked changes. a leadership of number was quarter by a

obviously, Technologies time. had at appointed April Brandon the the Relations CFO slot. Officer the Ontjes became our X, Matt Dignam we business. Chief Titanium of and, June, up In became Transformation Enterprise Lock Investor on So role; Jonathan same President the to our into stepping early Abbott Denise

Thermal this Martinko the announced week, as President Solutions our earlier then we And business. Joe of Specialized &

well and a which changes, Denise Familiar I changes, Chemours’ had this being number look leadership of the bench of and capable really diverse named strength Gerardo including developing the future. behind all how We’ve going into leaders talent the on to the speaks TT. of we’re when So earlier at the year

year, a strategic full deliver We of the changes lot the demonstration this our of beat we think not and I despite the Chemours’ done. and the leadership X I courageous chemistry. of of to think a second from to it’s As quarter continued did got real and value And energized brand total, energy to shareholders as we miss team priorities. drive in performance our face is half weaker great a a

Jeannie, with that, let’s to go Q&A. So

Your Viswanathan from Arun comes first question Markets. the from line Instructions] [Operator of RBC

Your line is open.

ask TiOX cost maybe that and just dynamics I that plant to led Could about to decision? speak that maybe Thanks. Is end upper the of the closure? regional at the Thanks. plant curve the

X us, on for good we look given Chemours’ opening, said thanks colleagues. my our and what’s since that a more Yeah, where use of broad be But other cost ore in ores. the decision where difficult in traditional high day the of was really plants curve, has morning, on more at our question. this grade everyone, it a we can a spectrum and to are I impact North facilities, as designed Hi, as than been plant your for plant American

with circuit. that historically at metrics on So, in some we’ve seen cost yes, the plant, great and makes the more has a ore high grade it and performance facility recent plant historically – swing difficult, by safety design uptime of years which but within it escalation a productivity, been

we by circuit. a perspective to cost from We usage, really So saw as variable you low-grade and more out, benefits. our materials. move plant get two We this taking in ore the fully task

next fixed rate of reduction We expect about million a year. run cost $XX

second Or And follow-up, that? in Is on the elaborate then, part that, half. the maybe Materials you TiOX you APM? of out. Mark. weakness could as yeah, if a wash just weakness just I noted in some as then Advanced and well some Could – Thanks. that challenges that Thanks for volume

Yeah.

when very more and robust recovery, know early we recovery. expected several We a of thinking after very a a China of in strong in in others year, were post-COVID. really the year, So very gradual post-COVID robust this recovery especially, demand; we planned XXXX quarters

so, the have that a And going we’ve of to recovery. always mindset we gradual been were

early pushed into I think planning, maybe half, into XXXX. modest the is and getting versus view even our more we our second recovery that as we’re expect demand being

second to slightly seasonally the tend to flat quarters. half especially obviously, is here And, and volumes expectations QX up. sitting half, the our versus would QX So that weaker first in see be today we

up, to the the typically expect slightly would half see I that to is despite So seasonally weaker. say flat fact we second

line Your comes from next the Spector of Josh with question UBS.

Your is open. line

this Cannon James is on Josh. for guys, Hey,

Just the plant again. hitting on Taiwan

Just you’re you has as infrastructures mix of continue contracts, to business, any your and in on is wondering impact talk and if that changing quality place? that changing about you that of the think there improving anything the doing have to about

concluded our contracted from at going we our Yeah, decision can. The way forward looked we needs at we’ve no plants, American can all. on well impact our North customer is, this have business serve we and

there’s this just in is in change – manufacturing, is not not a – really a this change no So contracts.

led sequential As quarter, and as growth we pursued volumes you more in in to saw well. in opportunities flex channels, the which distribution our both

to ask the So, dynamic to respect marketplace the with more here see maybe I’ll here comment on Jonathan we in in how this of volumes. terms

obviously, quarter, Yeah, the in as volumes said, you Mark approximately the XX%. see could second in sequential of growth

quarter, While result not call coming we with out what line in first it’s good necessarily it’s a recovery. sequentially would a

we all-in-all, the as the kind us that to and question out causes so half, recovery down the to fourth no right the path our take of quarter, expecting. we second from the And third But to were approach the James, market. slightly glide change, look your into

globally. of we’re and inside the about both couple that past been But of terms that the a was talking a AP serve beat delayed through result as We’ve facilities of in ability customers we years, region our transition, our ability COVID. this COVID our over to to won’t obviously, confident in miss debottleneck of our

TiOX Got and just guidance the rest on any business, I raw had it. benefit? And wanted think that’s I follow-up say if Does just anticipate material to congratulations of year. being about stable volumes the you, to Jonathan. the relatively one other your through

seeing So, costs. clearly, material some moderation we’re raw in

also more than others. to are gives plants Some better us TT, as our utilization. an And, obviously, run we at in that sticky re-task remaining opportunity

in we ore the hard, on to year, said this And down Yin. have as continue we our clearly, has input our costs, been we’ve So decision have then respect view or earlier mix with costs is Kuan is by procurement advantaged come team work made moderating. energy to my very

Goldman comes next question Duffy Sachs. of Your the Fischer with from line

open. Your line is

Yeah. Good morning, guys.

First potential either where doesn’t? with the think something there would it or AGs that can similar to settlement. around the against it? for be stood kill XM you expect alter XM have yours kind your settlement, And of question all up of We’ve number a people not, that you if try settlement. if state Would seen would that the PFAS do is just prominent forward, the go judge,

on how be. certainly AG they to that similar objections And, that that not. would believe that the think in into, have have right, plaintiffs Yeah. not complex the today, when or asked, and our think is saw something I we the they confidence we against think – Hey, is think settlement the have the this whether news on a would opposition I dealing settlement outcome this predict we do reaching, by we is But, far good I should to XM that based Listen, think Duffy. Sitting opinion good raised what folks of right, this court, with the that Obviously, settlement. be reinforced or entered opinion, we very an settlement. expect a settlement. you’re the what here what they the can’t has that been

work asked what’s through by the the process, to first, approval, going then through certainly, continue we’re of end. and the final So ultimately court, and do preliminary us approval at through to

step-down, into supporting year? turn that What then to rest on moving grow the HFO? And with pricing as the your to America what for still refrigerants, forward year we update particularly latest volumes you HFC? step-down think we we can just with are then seeing And you this could in into North the next that we’re on volumes step-down? thinking Thanks. does us with And of HFC Great. pull those do if can

that this remember weaker, into as look So, further, half, Clearly, our comment but especially believe second business going the seasonally is second QX. step-down at has Duffy, to Jonathan the I’ll half. we generally to that speaking, we beneficial ask

had So with moderating half? question robust And, does that’s is, rates. first that impact. bear that bill also The a on obviously, the half in well. And mind construction, second we’ve continue very as OEM in a weaker

more their think we terms net-net, to with in in an end weaker demand I that folks with make offsetting economy our TSS beneficial have being the to step-down into that half it’s could listen, modest in somewhat utilized factored impact. clearly, of So guide. sure second the a they’ve quota, But, wanting

I’ll Duffy. Yeah. just XX% that Europe in remind Hey, is comment coming XX%. build is and coming just the step-down on step-down AIM and the folks F-Gas that the call on the

customers’ equipment we’re ready his product entire to a that all that refill the and well the know their Joe face sure they hardware obviously taken our that that’s need that our are to on XXXX OEM going care market that team of that are next through serve So distribution get dynamic I And to make sure coming into. deliver to and of of fleets that to to out generation the HFO build and make transition. partners side

think we And, the give pull revised the today the do confidence to things the to channel? really going is see Obviously, ahead it? much of the we of overall to either of guidance are going baked amount third I’m a the going fourth through volume here right, the XXXX?” we Just not that, into to drive material about a pull the forward How hot quarter. inventory the to a year, Does amount are what into down is right? strength haven’t get or pull some the “Hey, we’re sure, in the that that for economy? course, an So in be. sitting of folks be where forward, you How fall and material depletion as say, summer full envisioning scenario, of

with very obviously that So, business know, coming you step-downs, as need the all XXXX to the listen, serve refrigerant we’ll be mean, the perform I this continues to well, markets ready product. and

And of in the HFO drives further one step-down quota adoption technology. last just Obviously, comment, Duffy. maybe

we which Corpus by at work drive year. at have to expect XX% expansion the hard site our completed to We’re the next end of there, Christi

Thank you. Great.

from comes McNulty John question line the next Your from BMO. of

Your line is open.

Yeah, taking for good my morning. questions. Thanks

demand little is. that they’re customers? So pull business, term that peek behind with these customers, reasonable curtain up. from you I coming in real your the terms contracts what you a you’ve to Is have better the of maybe longer got so confidence TiOX seem in bit the have some Like, know thinking picks demand

destock. not I So is that confidence that a inventory realistically from much can’t that characterize more it? just look, your run it is to guess, coming it this at low we just, There’s level you long? or how for of would on

Yeah.

demand soften So, had before last John, very in things quarters and in to more QX QX. of robust much as year so earlier, really started several we I said

is and Our view cycle is TiOX typically XX between a somewhere typical XX months.

this one previously. recently more think some than as the of by it’s feels towards of coating the So, XX. obviously, a some it XX And U.S. favorable been it’s you’ve been lot like more I has companies, by commentary than seen

view additional to have book we longer.” the of continue here U.S. any I’ve customers our “Hey, the earlier a folks dialogue you a very active in little Yes, again, if is, key So and robust is this mentioned contracted the around have business really with world, including color? taking Jonathan,

here that of in we to early I half. in No, the that And speak find is second hasn’t coming been that order I’d first had book second the that, bottom and thought year, half in the into here a Yeah. would I the thing kind to experience the turn we would the the that the think, mean, we’ve quarter. add only

I is turning. not look think we continue at at and out feel we’re like order the the book but bottom, the inflection to

inflection the not at point, turning as We’re but hard. it’s

and about here all cost think the our But, with the XXXX. overall right? seen XXXX, hemisphere what for well in destock, happen how playing the has what demand we’re season by in near-term, do terms trying just we’re northern not give we’re is to for we’re in our ultimate to we’ve line circuit, difficult a manufacturing circuit end to sit So the reduce restock now what XXXX American here for so declined utilization, as in to think year and North set next that in It’s we up what XXXX of guide. coating we happens. with when us today, very really doing evidenced right As that improve market think is could certainly, we’re

it. Got

guess I Okay. TSS helpful. that’s business. And No, the then, just on

kind do light trends the of say, that day conditioning gets commodity, it and a despite it’s something was because kind aggressively. plays start that – the Do out recues press And, hotter? all hesitate But a really thing, guess, XQ you you implies all cooling Is actually of if throughout pull? that type ramped that up we we’d feel the degree rest of look I kind it pull how I feel of So almost like it of that air say to at season. spot, in hottest to it’s the this to the a think when but continue and that current data actually like the that it should world about looks stuff, about how year? the

Yeah.

recent equipment of a you in their So, need Europe. refrigerants and had patterns relatively obviously, service especially the John, summer, seeing, the to we current as here to, we’re deal see season. the the delayed cool part of more which higher folks U.S. with higher consumption first alluded rates start the of to the warm or weather we will And, utilization as with weather,

Is to that that service about our of refrigerant ahead replacement so, would pull what’s or a on how quota lot later the is portion the A our business? it, view folks step-down any And had has year the – TSS the great used been a of in year. always throughout really much product come business. a significant related dependent

there’s are a inventory. terms terms where consumption in lot so, of in And not of of transparency of distributors

a have of quota. by the inventory there’s as it to quite inventory yes, need held to system But demand their also level and of days more is distributors, that in folks recently. seeing where and hot lot creates we’re typically whether line sight bit consume a use you And like so, not of there’s to when will up

So, And they’ve just to of on pull kind make will half, relates second be want as this to some it there sure watch quota, reflected we season we a through depends as especially we’ll we the utilization the year, will the Folks summer. go. as but of on the cooling ahead their through lot to believe step-down. the end have used it

Appreciate the it. color. Got

of comes of line next America. from Your Matthew question the Bank of DeYoe

open. Your is line

morning. Garafelo] good is on This Yes, [ph] Matt. for [Alberto

being I far about from to actually bit decent are there’s this business companies The how little question press you a term, What your lot and a for submerging been cooling is ask want data but benefit first of centers how size there and longer could a like Chemours. for seeing we company? this are

is Yeah, question. so it great a

we’re and on investor and this in centers, Thermal explosion future to at continue very in high remain the an Solutions. developing about for Specialized our as in one technology very will presents And excited that for We’ll announcement, several another We we ago this on our to Specialized & data talked offer. So speed months immersion say immersion had I we the commercializing significant our business. need cooling. franchise Thermal Solutions diligently work AI updates about data and look what official the more cooling have confident but growth terms of & in of

And tie and in the of very the to way the U.S. in especially direct a world. growth around will AI

that come here to we in can will look decade. we confident is commercialize, technology of of future, probably that, out be middle part we this a the certainly the more planning not on but that remain that immediate and between our but certainly So as something the

illegal for is the Coalition some something second issue the an second believe been ask amount you’re concerned the I of your U.S. high but come imports. to also want half that was results, of refrigerant in the year? it bit from and China, about HFC don’t it quarter I by and have some to R-XXXB American And a a refrigerant Perfect. about about mentions There Okay. little articles

Hey, Jonathan. It’s Yeah. there.

As learned the were of and specifically, Europe learned imports, southern the we Europe quota as lot So market. we’ve think a changed lessons illegal on came illegal that Europe, stationary Europe the across out launching lessons eastern about dynamic HFO a from and of side, we in from of we technology imports right? that in lot

those make So and lot management, working we the our layered and authorities Security Homeland of a took that getting a and up. EPA and in around was as order learnings agencies with to U.S. to stood that checks market with lot into worked border other control sure approach inventory number a of AIM

some in we enforcement the some created around had mechanisms place awareness, of right We right, and the issue.

need something we not vigilant obviously, on eyes to So, imports. to take our It’s of. remain illegal ever we’re off going

your of question, kind more around To as to the specifically importation issue import to – XXXB, skirt illegal wouldn’t XXXA. of about a necessarily product regulations other of import the an that we that composition being of skirt but issue, used view and of

state So our team, the they here this, teams local his and problem are all and entire work authorities ensure hand-in-hand federal, that there isn’t over forward. with in U.S. To a Joe going

we’ll it, an can the be now, here that well eye confident So remain but law the keep on we U.S. enforced in for

line comes Your Laurence the with Jefferies. of next Alexander from question

is open. Your line

This Dan Rizwan is Hi. for Laurence.

Given facilities might what that be look you’ve might shutdown? at TiOX costs done a taking other that with are be there plant, that higher you’re

all. remaining ores competitiveness, a expectation this wide And, cost would our improves No, spectrum and not low-grade of so of which obviously, at time. not all at ores, our facilities utilize be their

TiOX is so utilization And rate closing what stated the now the then, this of you for facility? have

capacity nameplate Kuan quite over facilities our expect our capacity. year. debottlenecking in nameplate once about you But continue will the to this disclosures capacity be of to nameplate impact we on that obviously work the in the We is XX-K of we modest. update The reduce our such change time, enclosure typically a our would I I remaining haven’t. Yin think way immediate No, think our

of So utilization the both obviously, and cost fixed a immediate reduction our impact, circuit. is a better

looking that we that work But, of demand the customers ahead our in again, well. debottleneck in tough was confident our to three of and customer part America, analysis underway our making with North being facilities could here decision this some serve to

than stronger surge? to And could meet season is last any I strong or demand flex up year question guess, if anticipated the expected, you next coatings easily

said, the can advantage sort robust a profitability as our wanted in footprint, of to more right, XXXX, anticipation demand And, that, XX% into Obviously, range. sir. so well. would weak A, EBITDA the TiOX Yes, Jonathan take serve to we our a we of get obviously, our really business of to continued customers perspective, from XX% back get we manufacturing

So, that again, XXXX we’re thinking market to and how we ahead serve well.

Thank you very much.

from the comes from Leithead line next Your Michael of question Barclays.

is Your line open.

guys. morning, Good Thanks. Great.

the and And First us question seeing in you maybe developed drill into could seeing on currently? specifically your on you you’re just down update then, APM, separately, second for PFA you’re the weakness demand what semicon half? could areas Nafion how demand

What we question. our transition great a that’s XXXX clean our to do our electronics up described by serve Solutions to advanced energy really in ramping both that? market. Mike, always for a ability Yeah, Remember, We’re capacity we’ve Performance mean as year APM. space and

some And of weakness, Materials in land specific industrial our it’s in cables, either seeing like of where tied so that construction. are or as in segments business. Advanced to which terms Think broad we’re

We’re as seeing there weakness some well.

I’d say, the speaking, seeing business. is Advanced weakness we’re our Materials in generally So

business, sold our Performance On we out. Solutions remain

you’re how we witnessing this liberate. is really And is capped what by can much growth rate year capacity our here so,

weaker projects, much takes to can or second obviously, get the perspective. we in relieve as Materials you second only expect a implement Advanced there’s And the in just be facilities. expand at capital we to And, that’s half, do to look to capacity. half from timing to at some So volume cases, it permits some so the

second the the portion additional if seeing the throughput Solutions we is a at the that possible team revenue in which any our Materials, in today of weakening have I don’t to hard really work you doing in area, larger practical is in can Performance just what of maximize total So, achieve color? the half, but limits Jonathan, there’s know while Advanced we’re of business. everything

to as our the is high, it’s XX% exposure right, add if a is overall XX%, I’d look at business that, thing other of business. Asia-Pacific APM only the like No, obviously, pretty Yeah. regionally, you

of so, rest kind China has impacting that the that kind think certainly strong whatever of and about that’s spread as a lack Asia, And recovery business. and of of we the in to the

only right, I’d be that going of for to is tough folks the QX other of of The QX XXXX. a on call thing remind is XXXX comp,

a basis, a So to off on in and something of year-over-year there expect in as we addition that’s look to drop ahead, top-line we happen going line. sequentially both bottom do terms

Great. TiOX, we That’s super Where exit you moving pricing now? given to about pieces about you assumptions go And maybe here. half? you margins on all XX% helpful. about Just to second then just we’re could the year. bar second back your into as seeing think, the previously talk think the business talked And the getting second, is EBITDA do the I

We a provide Yeah. basis. on pricing forward-looking guidance don’t

quarter, price down X%. As was recent in you the our saw

And and so, reflects volume, flex relatively regional that mix mix. and also with both reflects speaking, That more channel customer distribution. through going

be So, slightly that expect flat we to up. to again, is, guided the second view volume, we’ve half our

half, really rationalizing will second on working clearly but XXXX. we be We’re which in go show real capacity, into as will starting beneficial the benefit

Thank you. Great.

Your next with John the of Suisse. Roberts comes question Credit line from

open. is line Your

Thank you. questions. Two

Europe that have mentioned do And drop short some network? do can the plant, longer you one. exports from it’s offering question now? North settlement? in your fund so You America how into the your do Asia? PFAS you you And customers First, TiOX of serve a swing just a to do you Do debt a you re-optimize the share is, to then plan

liquidity obviously looking the your we’re of business, here. sale at always it’s mechanisms project, Hey, the Glycolic Yeah. to the will we Obviously, question we Jonathan month. about at here. financing, which close John, Acid end different have the the drive of On

is make we sure the about of in have at looking we liquidity our always go-forward that capital feel good that the Today, the structure we’re balance So, order. sheet to business. liquidity

approach Obviously, that the we’ll Loan we have B. Term opportunistically. XXXX So,

kind you’re two of front the what term in loans that’s referring think I to us. of

take continue doing at look a maybe there’s think window, there. that. an we’ll something to And So, if open about

TiOX don’t any to on question plan respect our facilities, John, we drop, then, to unquote, no, with quote, the And customers.

in plants all tasked on of has service. we very team specific that’s done Clearly, high something today, to are of is And focused very to and very our capable globally. readjust We’re leverage what but of needs levels before. have plants our actually, requirements, with customer the customers serve we’ll customer terms

I don’t in as terms this customer requirements service of meaningful So, expect any result or here interruption a customer of decision. meeting

you. Thank Great.

from comes of Your JPMorgan. the with next line Jeff Zekauskas question

is line open. Your

I’ve was much. always XXX,XXX the or the cost making Is the capacity from savings is that plant any of thought Taiwan off talked about trade losing right? the very it that Thanks money, the there? tons. you’ve What’s money? closing is plant the And plant,

two report other Jeff, questions And probably wouldn’t our level, capacities. Yeah, don’t profitability. plant you’ve asked that in segment we individual a answer than we don’t disclose of we the sense certainly at out

of the fully is of ore. And, therefore, As benefits and reduce is high closure ore. in I mentioned, use its more remaining dependence our to on it a higher plant cost task plants, the grade our to fleet, the of because high grade

think, So, together have I meaningful benefit. those a will

we rate $XX the starting disclosed, second start form rate million cost on here, we’ve run obviously which it’s [ph] a in but a basis year. run a see in to would As rata-ish] expect again, to [pro half next savings,

net million cost the Is net officer savings? [ph]? a an is that So or $XX there’s

Yes, sir. That’s savings. a cost net

That’s cash, to on those, million there XXXX and effectuate things are materials, severance. as associated costs then, here release a in EBITDA, a be in number order similar XXXX Jeff. our our to net disclosed in like will obviously, And the impact those cost cash in in savings and press we $XX

And by don’t supplied they’ve XX,XXX your low is, stayed month, X,XXX I like cliff. that since tons That companies maybe imports Okay. something dioxide something and my more last is into now of follow-up, fell month, China they that fell a is imports for China, off being decision? into which time. titanium as a China of year, about August TiOX were to, Is China? That tons in know, affected a and

savings And, is, about? said above starting that’s plants. a the is in subsequent meaningfully above? your will million closing cost you cost substantial comments be secondly, That is What the XXXX savings $XX in that that that that’s in there

clearly savings the the is use there focus on which of be will a Jeff, savings, disclosed believe But plant. we of result fixed Obviously, what optimizing circuit ores. variety eliminating we’ve obviously, a as the now fixed cost circuit continued achieve a will and, a remaining remaining will by for that. cost there we So, is a wider

I are hasn’t local come the that again, and into China, on tied like furniture in also pigments would expectation this lot year have comment happened. and consumption, China that from do been roaring there a grade but durable the things to was end change on euphoria exports of with lot back, other and economy COVID-XX a some Just earlier a high with obviously which China think down. and High goods China degree to the

view North in high our by weaker but – being China a high both necessarily for are not products furniture America. go construction grade demand Europe tied terms which down to producers, Chinese where end impacted economy and being So those substituted into by imports is laminates weaker also are of the into in in is export, and

very Thank you much. Okay.

the Newman, There are no call further questions I you. at to this time. back turn over Mark

and about want very everyone, of company thanks, active really key priorities. And thank of the to employees, this to are our And entire you. passionate Again, strategic in driving continue for we take focused just moving who team forward. be X thank terms I your Jeannie, interest. to opportunity our

to up catching of and on with some the thanks look we’ll forward you So, road. again,

concludes today’s call. This

disconnect. now may You