Leggett & Platt (LEG) 1 Nov 222022 Q3 Earnings call transcript

Greetings, and welcome to the Leggett & Platt Third Quarter 2022 Webcast and Earnings Conference Call. [Operator Instructions] At this time, I will now introduce your host, Susan McCoy, Vice President of Investor Relations. Thank you. Ms. McCoy, you may now begin.

you conference part call. thank Platt’s Leggett and quarter third morning, for in taking & Good

for CFO; IR. follows. Vice is On Bedding questions XXXX. of summary and President operating Products Tyson details will morning the Tate, Branscum, And and have. release in start Hagale, of and Cassie call Jeff and may Products revise the reconciliations. the Mitch to CEO; no answer including financial statements. risks concerning Platt of Henderson, supplement website. IR forward-looking website trends The and the to with today Textile Director need This press the not call our details. company the summary portion or release Leggett’s or President a results Senior conference future This discuss as will Jeff segment along segment; transcribed, strategies, yesterday’s statements. address information recorded Executive PowerPoint are due recorded available group will objectives, to a with Furniture, Flooring and posted our expressed Senior call Vice non-GAAP and update call without Products main is results of and Vice remind and this the you the obligation President results Those I replay events, IR material. made President or you trends. Mitch and our is Actual agenda being be & Dolloff, broadcast materially our Steve of a from and permission. of information, of set outlook Specialized demand points Executive segments; slides of we any may portion for call, A this for President we cover & President remainder press or Leggett and of undertakes remarks documents the uncertainties, events financial expectations, We these copyrighted on is to contain number that today and discuss differ yesterday’s constitute that the

summary most entitled For information, press our I’ll and additional these please subsequent recent in release risk call refer Factors yesterday’s XX-K the now in and and Forward-Looking sections over XX-Q a Mitch. to the Risk turn to Statements. of factors

demand in Good morning, EBIT quarter The environment third in call. and third consumer current impact the and you $X.XX million thank were volume in on EBIT versus quarter for by earnings participating was primarily Sales The volume, third impact, operational global absorption from economic quarter levels quarter our was lower automotive partially price X% impacted increasingly increases. and growth demand residential continued metal XX% in primarily by macroeconomic We third specialty guidance on softness XXXX, lower XX to quarter offset full decreased versus share offset overhead October year industrial per in XXXX. inefficiencies from third phone, production environment. XX% decline its by partially billion, XXXX, negatively margin partially Earnings lowered raw and $XXX markets, reflect our our markets. end results. in was the per versus end decreased and were Sales expansion. material-related the challenging down volume from $X.XX. by quarter lower lower share and driven currency reduced offset

With in Technology, October. sales heavy further due for we At to cylinders, U.S., than third In equipment million expected, global expected to now August rod of primarily construction Third fourth primarily acquired quarter, compensation quarter X quarter response the to midpoint slowing steel share in slightly completed lower next in and for per earnings textiles Hydraulic the operations to industries. hydraulics August, the adjustments. Pacoma in hydraulic growth due China $XX production is other guidance, the and manufacturer acquired early the steel were acquisitions market. leading storm primarily industry. X incentive than In October, component a better also distributor We Pacoma in of and reductions of slightly be late business approximately and a August, the Leggett Platt. is profitable Canadian-based businesses furniture we and employees the and & Germany, We of construction to the control, we water X step for acquired industry. a in strategy in In management that welcome all a in small products used XXXX from bedding distributes various fabrics small version applications. engineered the converts to executing pursue our

our to on of offset second XX% moving soft and versus increases European Rod Steel sales and currency XXXX. Now Volume selling along by as impacts, down quarter, U.S. weak partially in levels at were price remains from Bedding the fairly and Wire on declines spending quarter markets, was bedding market consumer in in trade segment segments. were macroeconomic Drawn demand versus Products persist. in our material-related the bedding growth but with Sales impacts raw stable Demand relatively U.S. businesses. third

impacts Commodity the more business supply Other previous and high manufacturing of although the and been Specialty geopolitical amid costs European pandemic-related increase. in to costs, consumer energy historically a Our Phone stable, have significantly impact levels. issues has has experienced ensuing more inputs, as including continue larger spending. channel-specific related at disruptions, on pressures. energy declined bedding demand result Demand crisis

and and these our customers. managing are carefully impact We to business the costs

demand rod levels higher. in are steel inventory while to quarter for We levels Sequential needed the service our third demand segment focus inventory to support maintaining on reducing drove softening to ability steel requirements. across trade customer

operational in and volume offset by demand Sales efficiencies addressed These from margins are third absorption slowing improvements which increases businesses, are business. lower to from in quarter growth Rod These and quarter third market, our were Given meet our were Steel the bedding in during to EBITDA lower lower adjusted primarily in all segment steel were fourth we as X strong impact. the business currency cutting production and material-related partially volume metal to offset margins versus by XXXX, those environment overhead the production versus expanded reduce Phone, inventories. Rod Specialty demand segment the in levels were partially increased Pacoma days in August. Steel Products our decreases Specialized late and being price quarter continuing in acquisition work. by integration raw XXXX XX% reduced

to impacts and global While the The supply forecast at record inventories, remain improving continued weakness year-over-year, and markets volatility. geopolitical this year, low industry growth still shows America as forecasts in North in Consumer strong, while demand recover, in automotive remain for just levels. production continuing relative and major over reflecting remains dynamic industry China Europe. and strength X% production chain vehicle current bring

Aerospace In improve. As supply to stabilize, chains improving. production business, should is also demand industry continue further our

material raw backlogs shortages strong, However, the in is labor both construction cylinders segments and some and and levels. equipment creating volatility are across material hydraulic elevated market remain order in heavy industry. the demand handling End-market at

generally customers levels. seeing OEM in improvement are production some Our

are However, remain to elevated backlogs into XXXX. expected order

Cost While higher decreased, sales EBITDA fabric flooring dollars has home material-related were segment as Home expected. improving higher few the in than increased Work impacting at contract with and from Textile Components furniture Furniture were offset raw raw selling in is demand. slower inefficiencies. points This volume softened but continued margins converting lower price to in quarter, consumer and third in improved Sales the mid- currency our also with demand currency price in offset fabric Products in automotive, rate slower and and and volume months, by quarter largely excess Geo third Furniture significantly volume increases inventory flat & converting. EBITDA Flooring Furniture, at XXXX grow lower primarily Work in labor at a impact, last in particularly cost partially is retail. higher from impact. material furniture, recovery volume, by to demand

In However, the decreased levels. remained to overall primarily modestly the solid, versus construction EBITDA Products, pricing demand lower are demand civil to reflecting is pre-pandemic but Hospitality softened lower margins lesser below somewhat improving activity. XXXX, discipline. segment quarter has uncertainties. third extent, remains in offset in from improvement demand beginning by well with partially market particularly soften, in retail. and, volume, Geo home residential Component Flooring order the rates a slowly economic

focus we mitigate things aligning with control the demand. can of by are and and actions challenging We to this taking continue the environment impact on cost inventory to production levels

evaluating our opportunities are continuing are customers acquisitions. working on new our with also near-term through them with And developments. are out existing businesses and We to we product build

in markets ability our flow balance challenging in while long-term navigate sheet to and strong us give Our opportunities. confidence cash investing

employees and dedication, would your I for to like thank strength. Finally, our commitment

agility and dynamic markets collaboration to end circumstances Your our various in around enables to and assess world. rapidly respond the us

the appreciated. much very over are Jeff. efforts I’ll turn to call now Your

compared payable $XX capital annualized much year we use a quarter partially levels. increased the In in volume in to demand. our more third $XX ended everyone. and in depletion percentage to to offset cash as of the $XX Working but was to This Mitch, operations third working inventory partially continued million last earnings. efforts inventory We to restocking up sales increased to lower smaller with inventory by improvement cash as third accounts a lesser we a of you, the lower significantly following good slowed capital, XX.X%. as of and extent a to reflecting levels adjusted decrease reflective quarter year efforts million, this capital current from Thank return working purchases offset morning, due by reduce quarter, for generated due million of XXXX, XXXX, of as

use declared quarter funding order and dividend were closing with acquisitions $X.XX third We one annual They based expenditures X% in Directors among Mitch than a the or higher dividends, for of dividend. highest X.X% mentioned. growth, At previously share the kings. August, upon cylinders is dividend a Board dividend available our In that $XX priorities business strategic a $X.XX, funding of million million. cash business quarter Friday’s the quarter the last an third for during include the textile quarterly an unchanged. $X.XX Capital hydraulic of organic share, of cash. yield $XX Our used year’s paying of per indicated are priority, acquisitions, third and X price, repurchases

and we for opportunities level past deleveraging uses shares of an will of of including the few The our alternative use cash. over returned repurchases cash at accomplished as of repurchases depending the attractive vary price. repurchase priorities to considerations, share various With years, one on have

per for XX,XXX we During brings shares This or a total $X average quarter, of X.X million to repurchases of million. an year-to-date at the price million. third shares repurchased $XX.XX share, $XX

the paper of X.XXx of EBITDA $XXX net and we X.X% matured August. used XX-year million debt billion. $X quarter quarter, We XX-month liquidity third program total ended repay bonds adjusted in to with the that our trailing During commercial to of

remain through We growth deploying decisions. base gives while both a on capture near- financial sheet focused when making us strong capital investment balanced strength Our that flexibility positions strategic opportunities, capital balance organically manner long-term disciplined and and and our cash us acquisitions. in generation and to maintaining and

and Now guidance. now earnings are Guidance expected currency range from Products Cash quarter double million, small reflects shares framework, guidance sales digits expected share expected $X.XX. in Phone. lowered be versus lower reduced levels. volume of net October this Products mostly working moving flat amortization expense digits; net declines. approximately to add we for higher operations. Products Textile segment net The down of single acquisitions, cost a is expected X% XXXX. This down volume roughly share of diluted $XXX the year from offset XXXX in and as $X.X raw of Flooring should now expected increases guidance to quarter our with to and guidance, million upon approximate material-related full for earnings divestitures sales year automotive reflects below per to $XXX our to depreciation to X.X% full the be of to to On fully and and X% single million XXX over billion, to be full inefficiencies decrease and of guidance segment assumes digits. primarily to margin slower-than-anticipated be Based in capital range inventory price to to XX%, growth. balance should Specialized low EBIT cash are also down billion the mid-teens; now $XX lower up to earnings tax $X.XX Furniture, we And per low XX%. million $XXX per due Earnings operations The impact Bedding XXXX to rate $X.X sales, guidance primarily is XX, up XXXX million. interest continue recovery share effective volume, operational assumes year. and second expected guidance production, Specialty year second high

million $XXX capital in we navigate on and million. and For approximately environment closing, dividends challenging the & Leggett long-term the approximately $XXX remains expect markets. capitalize In various expenditures well to Platt of XXXX, economic end positioned of year opportunities our full

Our confidence call us to back enduring shareholders. fundamentals long-term ability I’ll creating those comments, in value With our turn continue Susan. give the over our to for now

Jeff. you, questions. and prepared our be we’re concludes Q&A for Operator, the your thank we’ll ready Thank That your answer We to attention, remarks. to you glad session. begin

[Operator Instructions] And line first the Sachs. Goldman Maklari question from Susan our of is with

that there on about first My past come a inefficiencies couple little move that next of undertaking in bit of to line could the of specialized seeing some and any time question And how thoughts bit Bedding. a those efforts you talk quarters? the over segment them? focusing the on of is you’re Can you’re foam together some that the

that Great you. I’ll to Yes. question, Tyson, pass over Susan.

involved in deeply that. You’re

Susan. Sure. Good morning,

You’ll and being companies XXXX. was acquired it in Leggett that together, when brought recall X was ECS, that were

usage more bit over demand, efforts has been else, brick-and-mortar the we’ve possibly months So pandemic. time labor and channel due had the pandemic, our the our and and then to much rest headwind, with have service course, obtaining equipment frankly, so. The acquisition a last efficiency integration And we during the We’ve really as struggling we has to scrap. a underway biggest we production working are entered our everybody market is in we the documented we or slow, and of and and time our And while issues. chemicals. And those challenged to during priority like labor XX that during also we invested then those that’s inefficiencies those our difficult also around through direct-to-consumer paused automation. a from primarily as customer away to been shift with than efforts, that were and bedding became some the once specifically, could costs really of But business material developed time. business were that really be back of had

We’re stabilize improving controls around our processes material. also labor and and our to working force

bit good These problems. progress. that us are and is of would It I year to take will of is some making really address we footing can these already underneath We’re out there. into a definitely time. But control, our us say going next take and us are the news to things already it our underway. fixable get aren’t them have those

very of segment, how that about pricing just of a And That’s the production helpful those that, ability Specialized the X And on color. lift of with? you’re businesses? actually, then how the too, commentary X to nice And been inflation piece businesses you’ve to about thinking Okay. that, rate volumes, catch on little there? shifting in up this any the thinking perhaps all of bit Can the hit saw those talk those across some volumes with obviously you’re of really the quarter. you the you in perhaps outlook automotive a

there. There’s Sure, a unpack Susan. lot to

the it to think But So dive really remind soften start then quarter in from it’s third but little bit, I’ll continue volatile, a of last Steve, turn production for a you auto to year but overall. we see increase of and bit, lowest still I over improving. production side, you. will industry as I that was the the little an to shortages relatively chip point I’ll

as But of continued industry XX%-or-so the expect a well. our big and business improvement was sequential in bit bit a do year-over-year increase – an outlier. that we So is across

X% for sequentially. I about year-over-year, it’s So and industry up about forecast quarter is X% same think the the or fourth the

would So see as growth well. we that

to on bit commented downs make little on We I’ve with works the pricing of expected. longer programs. automotive, the in just continue it’s life The than cost cost progress recovery but taking over before, those as a industry, fixed

up but across a the bit quite of concede for time really that place, that to pressure on process complicated OEMs really supply really it’s And that takes a is price to changes. time. chain takes forced enough it mount So are the taking

which our that changed – So whether is those maybe again, the predict but changes through guidance. that part into you or cost recoveries or remind quarter from take engineering hard that, of previous what one-off multiple or delayed first will in making to this forms, just to payments price progress, us And that But ability down. could even so. make or continue it and to value probably take it’s our confident progress, year

might So extended. strong, geopolitical of times there. I remain demand we that levels the the the there. the backlog average out as or age dynamic and low also think vehicles industry is very outlook automotive But that little very the and navigate are remains at is inventories a for be bit us, macroeconomic for The

to tailwind positive dynamics Steve, more in in So add I turn long-term cylinders, to a it term. think the But to growth there’s benefit very us stronger I’ll aerospace near there there there. hydraulic for in even over probably and from. comments you Also

Mitch, right, Susan. you. thank Good All morning,

maybe So aerospace, up start XX%. with I’ll

sitting improving, Fuel And challenges being numbers the at really, the exceeding planes. to is that’s are X efficient a driven need for planes challenge. travel really of the and is driving making and more planes. still or demand the So by years cost Consumer pandemic. costs the prior is airworthy single-aisle after

is XXXX XXXX increased And that So slightly company to that’s a offsetting really XXXX. in getting XXX% -- basically and reduced have but what’s XX about the industry, to reduction forecast levels, the so forecasts XX% as that driving of by X%, [TL], result, XXXX the which they’ve growth. the of

heard. faster recovering than Boeing, is forecast So to probably Airbus which have pretty significant increase. you

a we’ve somewhat to across seen So positive through work we improving, very, but shortages that. bit little very labor that material in as similar of demand and what raw automotive, volatility creating is are that as industry,

You changes. mentioned pricing, price purchase cost

cylinders We’re material backlogs as the largely construction. customers. on are then well probably industry to hydraulic and both able Mitch at into do that our to And the those handling mentioned, And pass for levels we’ll in area, XXXX. high heavy

Caterpillar their Some third during demand their beat and significantly of most of customers the end markets across our like quarter quarter. earnings healthy said remains

in would And strategy little if our we talk well and U.S. equipment hydraulic late a heavy trends They’re sales hydraulic a construction of of the I of really technologies as excavators about leading primarily autonomous reduction positive macro loaders, area. acquisition, that manufacturer that like well and that such Pacoma China the fits bit wheel us. and be have ‘XX made sort the $XX in emission equipment and large in distribution and which I about that’s towards then a cylinders the didn’t August, Germany as for and in for So with operations industry remiss as million.

space; increases as $XXX markets, So able our pricing in hydraulic engineered growth participation next which million. And and pursue total to around it largely business our represents group on to profitable very is that pass as well. components has in brings some necessary positive; the to also step the scale been be industrial now

So pretty exciting things going on in that business unit.

Great. queue. get was That I’ll the in great overview. And a back

line Raymond is Our the James. of with next from question Griffin Bobby

environment. tough of predict today's the going to is power one First to business earnings clearly, me just happen economic forward. for of going the kind what's I mean, in

it's need Is out. earnings tell economic as business to in kind would there to $X, Or back business? $X of right levers today's earn a about take power about mind underlying to XXXX it's for or annualize So $X.XX imply In year improve? the that that when for of that, you in the in environment, other to keep maybe earnings us way to at us to we are $X, that going and this we half XXXX? and environment look economic think some we're of $X thinking the we grow, order that the

with Tyson efforts this. initial financial dynamic environment automotive, of do all making industrial there think But mean, of to we the Yes. maybe We recovery in a Jeff, a for beyond the there. that. markets make that of some quite that have maybe But some I Bobby, is that, some talked -- Great question, undoubtedly ask details. some about has that know as automotive. the Yes, the more business you think improving it's Bobby. And I'll we jump and comments, stronger we mentioned at well we're to improvement been the and that can operational while. I underway I see those control cost performance in also that first businesses. in the off, execution you

expect that, bit structure actively can actively. doing that Flooring can move continue is that, our But benefit variable really So portfolio. the across stable. a seen, some maybe also relatively we & of balance business the We've we from think, fixed Furniture, lower structure. with diversity in We've our But while we cost to the business to of little assess to and whole very our demand. beyond also our Textiles and inventories corporate I been cost really still

and place. we the most that value me, continue in prepare need us drive eliminate business fixed a key our support $XX for remember that and reduced to to and future. -- historical we investments really we we capabilities of infrastructure to to in And that that fixed cost by valuable million really lesson, in that's lower to think You XXXX, I costs about could kept

I that and think, do So at will that portfolio the to as to the cash to continue allow also our and both to that benefit I think those continue we future the us I that. we'll make investments. do corporate we'll help us strong level. unit continue mentioned, in that know level diversity, to business flow

present perspective? continuing on dynamics. volatile these over businesses you. our turn So our would you We're times grow just to Jeffrey, opportunities across think it it's economy from to capabilities We're content the for and very and financial Anything for prioritize not add improve. us. more sitting improve to the and here with a I focused waiting that

And think it you covered I morning, good Bobby. Mitch. well,

here is at that that look that those to on levers flexibility number things around have of agility that already those the and we'll to I action the as Mitch a internally, we'll times, through to flow cash in to we really In continue And regard. working manage company continue you quarter-to-quarter as extremely know generation we of emphasize started and well execute mentioned, those well. have work definitely that that on some we to demand we we've a of actions we strong continue our capital number softness Bobby, just want the go as forward take we challenging think move very and through dynamics. because our

that's That's X helpful. the detail I quick integration is And Is place. at combining more case? adding then a of questions bit for the maybe type looking One, you a about XQ bedding we're volumes plants, And on And implied follow-up guess if the new a unpack taking somewhere? of give acceleration new both systems, what the integration manufacturing I think can Just here imply secondly, Is just ECS? manufacturing bedding-related. volumes. year, that does there me correct? that if anything on little modest for in it it plant

Bobby. Sure,

on first quarter, quarter. demand, stable pretty third seen So last the we'd question late see quarter. around I with levels. still Remember, the And fourth fourth fairly see early consistent your started weak we stable, things third remaining relatively to the at things remain think we've quarter, year, slowdown into

plants. trying remain to manage controls systems, together we like I on IT and we than working At ECS, It's So is generally cetera. business our around still integration visibility new our just But having rest processes on Spring of work, It's our things the the U.S. equipment; pretty inventory, to are with of our into and mentioned; bring other we're better different and generally, market. data more combination that automation, not our consistent. right a to comparison the like business. that more use business planning a now, little our et our

appreciate. into Thank on XXXX. I here luck quarter the Best you. and of fourth

next [Operator comes the of with Instructions] line Hughes The Truist. Keith question from

cutting positive a the to was and of that. third affecting in know steel the result that's turn inventory there it and margin? any markets given You to in that comments Is the in year? referred dynamic the in fourth Is building around metal as indication that quarter. going the production next into a I prepared

question, Tyson, you Great one let handle well. Thanks. Yes. Keith. that as I'll

not about in Keith, so seen the rod attributable declining to much has margin. so seen although think increase And the scrap. the we've -- scrap, rod and as market and Sure. but declines not we'd the that seen. that's producing conversion much And also we've pricing goes softening in say pricing I some steel. I it's cost as of just seen consumables we've metal into Actually, think everything the some late, utilities,

build proactive We quarter our been sequentially making more our seen have we we've of that steel has don't being at probably of think sure And in confusing. mix billets. what inventory. impact trying why dynamic. seen some seen to But trade and looking that's has when business the where Normally, steel, some in the that's a bit been this the mix fourth inventories at be I out, and business might And softening really in just don't you we're business, quite it late, rod our in bigger our take towards of we've increased. the look days kind is of

trade. So more the we overhead get provide or costs doesn't full us product the of profits that rod from to getting rod. a semi-finished helps internal it that production steel and shop, rod while type same the melt selling And either in of into cover

given number? up in the in interpretation Is as third sell more a that quarter. on And the rod really need was didn't going right big what's the mattress in Okay. into trade to decision that the volume just the Is industry? much because of you that

than Yes, rather volume internal the but production, rod impact the trade it for sales large in seeing is increase utilization billet that year-over-year, you're even a there is rod. really lower bigger

Okay.

about bedding over adjustables in Okay. third. XX% to happened what of first we adjustable the year, The slightly been on in talk had real And Can year-over-year decelerated the in number the into switch quarter, are? the half quick. outlook if you what the third up down of here and units, terms

last direct or held better things did quarters than it's customers. mattress-related noted, you with just see, the Adjustables slowdown where But mostly been up, our we've quarter. so. been And businesses over the as had partnered third we our in it's up some X as held

seen third impacts adjustables. activity some quarter chain-related in around have more slowdown consumer We supply the in some and

we'd business. I seen of better. probably those think we we've forward, some it's improvement getting some mattress-related the in line as there, things consistency kind with But rest more as more of what look our get of see

supply from to chain rest of been maybe been tough, a it's and clarify, our the standpoint, team more for the chain. I And has just they've navigating, impacts but think

Right.

next of Peter Sandler. Our with Piper is the question from Keith line

I that has think it's first question now I maybe looking down position. and are U.S. But basis negative, increased on U.S. like just the whether just Spring Spring imports competitive with from having the And the production? sales dominant at all, The landscape Spring's your others X-year changed a other domestic thought or very about some a have business. businesses we historically on have had was

a the say meaningfully, But detail. really me as to through I and Good is dynamic thanks. over good let morning, think But answer last it's the That's the large Yes, we've Peter. I that situation would a degree. you to gone stabilizing for it think that years. not I over I mean more few question. turn degree, Tyson, yes,

the talked import and saw during about that customers Recently, We than in did our and demand seen the pick really and production year-over-year, the for activity pandemic, not we market market right. had decline on did just we from stabilized. allocations when down have we've find importers has in for the customers sources in available have impacts more see I That's in impacts see merchant think Recently, and it Sure. even some activity. imported having our up some activity U.S. as estimation spring to than go maker-user did certainly XX% more

done We for well. and I products more focus is sell in different think content keep in with our mind what do as in now Core U.S. is Comfort some another little business. a we especially our than historically of to on thing us we've Spring

our it content, a changing is unit the little while also So been different. has picture

the business Yes. very get add the sure able paid. out we're that I'd profitability there, that, only to we're of cognizant not of making credit to just but profile the maybe

How maybe talk or you dynamic, now is any more little Okay. as weaker in lower-end we which remains you're there could bedding Europe All obviously about between And just over to difference what today? the just of right. you're seeing seeing if gotten of there. pivot higher-end of month-over-month? kind side, kind bit -- if sequentially very it a European Has

one, jump Sure. in too, on I'll that Peter.

more are we see So challenges that we the in than European U.S. yes, here facing business is would the

availability, Over to between the cost, market have with closely energy couple impact the European happening been but what's in the things of tracked the just years, here with last pretty and U.S., consumers.

being than is It bit seen our of in product have Home late biggest being European high innerspring our generally, we end time, versus That's have been of end mixed the your down little effect. end. and it We more generally about seen like things feel activity. but high less a business. the low some is we've with pretty less impacted still like more Cape a On feel slowdown slow that's trend finished impacted little we U.S. our the activity low over between or yes, question, a there than end, But the the consistent just where

and that's emphasize this, market, there exports is of holding chemical of pricing albeit of in energy chemicals also issues the up. and to in that mentioned where, challenge the just to those -- but the of some a you some pricing the impact somewhat and supply, is right? production chemical right, a softer impacting also And U.S., And

this the McCoy to back over time, Susan comments. to for further like turn are questions. floor would closing I there At no

for us you today. Thank joining

again on We will you speak X report fourth February to after we results. quarter

you press release. Thank If please us questions, yesterday's using have the you. information contact in

teleconference. This concludes today's

your You lines time. this you participation. may disconnect Thank at your for