Quaker Chemical (KWR) 2 Aug 232023 Q2 Earnings call transcript

Greetings. Welcome to Quaker Houghton Second Quarter 2023 Earnings Conference Call. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the call over to Jeffrey Schnell, Vice President of Investor Relations. Mr. begin. may you Schnell,

morning, call. to Good XXXX second earnings conference and you. our welcome quarter Thank

today Andy Vice us General and Financial Joining are and Counsel. Shane Executive and Officer; Hostetter, Officer; Chief our Traub, Executive Robert President Chief Tometich, and our our President

U.S. Our the the close to Xst, August relate information released yesterday, comments the XXXX. after financial of market

Our website. on our press investor release and accompanying slides can be found

to events contain and commentary involve forward-looking and may potential performance. view discussion forward-looking may statements no differ. to these prepared call current financial reflecting actual company the cause Quaker Both of uncertainties statements. on is obligation this future their effect and updates which Houghton's under company's the provide during to results The and operating risks, statements These subsequent

and appendix contains has on are presentation to the available also certain company of non-GAAP financial measures, GAAP of our the comparable website. financial non-GAAP measures financial the these presentation in the most measures reconciliations provided which This materials, directly

additional For to the with filings our SEC. please information, refer

is Now over Andy. call to to the hand pleasure my it

morning, Thank and good everyone. you, Jeff,

second objectives the our and delivering we In consecutive another commitments, advancing flow. executed double-digit We earnings in quarter non-GAAP stated share challenges. persistent drove and despite macroeconomic on strong per cash and operating strategic of once our key EBITDA generated well, increases quarter, financial again adjusted and

the several commitment to focus our on quarters, last with confident control continue solutions capitalize we what operational financial pleased executing the performance underscore I to value-added strategy have of built. our momentum am I prioritizing over have the on strict results services preserving be These we to we customers. a and right for can while the and and

the driven prior to serve. second the our quarter offset similar executing year million. X% were by inflationary sales declined to Net our primarily was This compared pressures the year-over-year Volumes sales prior were implemented cost $XXX pricing to value-based to improvement continued which impacting quarter. in net initiatives, in to and the increased

new business continue and we've top of initiatives. We of our trending value, offsetting to at range long-term improve levels to due higher at improvement competitive margin declined wins with position the volumes our our

industrial, Market soft. conditions, be general and in to continued steel primarily

Our diversified business new challenging in wins growth emphasis provided on profitable and portfolio through this has environment. resilience

together, are specific with directionally serve. and end we volumes Taken our tracking in the line regions customers, markets

made reflects improvement our our gross of in put our in XXX markets. the us margins as well progress margin Gross have We recovery our to points, in than more basis place first in the a well the points, as eventual raw materials prior than modest of to and and manage the pace our positions very on XX.X% of XXXX. The of actions compared for margins XXX journey. more quarter year strong improved compared an basket we recovery portfolio, to basis

persistent the business. backdrop, aspirations macroeconomic customer the again we significant our and growth have challenging made once and of balancing while profitability Despite of relationships long-term our business, the progress improving

customer while in also customers is the to in innovation, value balancing for that clear. by and tools, Our focus intimate investing cost our our Delivering deliver capabilities model.

year. quarter, share, second per compared a million earnings double-digit the non-GAAP of In diluted the to generated of and adjusted EBITDA $X.XX we prior increase, $XX

of generated uneven XXXX. second Our cash the in operating environment. financial the managing results are the team's through first-half We recovery and business primarily market gross and $XX $XXX execution, and driven the million of complex million by in ongoing our the in margin quarter the flow

start to confidence XXXX our consecutive the results cash highlighting and quarter in strong annual on of increase dividend, we focused year. We These sheet. our the our in approximately down paid balance also the debt have and announced first-half remain strengthening $XX generation of second in our Year-to-date, million capabilities. represent a XXth

pronounced Turning market margin segments. softer improvement segments We Asia and Volumes improved were a our targeted declined in to most on our conditions all the and year-over-year margin and initiatives. of basis. segments, in our end because of all in performance segments delivered Pacific EMEA

on strengthen We greatest our yield products, services to the our the continue portfolio, and that focusing customers. for solutions benefit

are with in enhances from our prior our earnings, year, delivered ability the lower underlying to levels. compared We All demand double-digit current confident driven customers, an to in approach by as increase segments improvement especially profitably grow our recovers margins. a

efficiencies, both balancing margins to our initiatives with profitable progress further from and growth. drive while expect We cost

look difficult continuation considerable is a limited of a uneven we visibility. with the demand second-half environment there the and third We ahead, differences. market customer As quarter current and of the anticipate and environment amount uncertainty in in regional

adjusted similar translating be expect third quarter, earnings quarter EBITDA growth. the into quarter of will to solid second in We year-over-year another the

Additionally, material gross raw the and will margins third quarter we we the balance environment relatively stable, cost anticipate as in pricing with to serve. remain our

our We position. balance sheet and our also expect financial delevering another strengthening further cash solid of quarter generation,

full-year. the to Switching

the in progress year. on for on improvement earnings enhancing cash strategy, focused and the into organization the advancing are the is delivering That to considerable translating said, and growth current our value our in we likely through customers. persist of objectives, uneven end and our XXXX. strong including to a provide backdrop We we expectations uncertain contemporizing flow our have financial margins, The made solid

the investing environment. of differentiated foundation in our in have model. initiatives earning value to targeted is company on growth any Houghton momentum Quaker and positioning a customer intimacy our in through profitable business, deliver built We market built

deploy broad more even a the will to enhance to effectively leading As of and value realize and team, to better engagement. processes us our This organization portfolio energizing are deeper quality efficiently for customers. and leadership our the we enable drive

and key analytics to continue and is profitable leading make with across in growth our effectively and to platform, global healthy, our sustainability. Our themes, leveraging growth our deploy we progress culture tools investing digital scale,

and actions to of and be to investments customers. committed prioritizing also vigilant meet profitable needs for company growth, our in we the uncertain are enablers and long-term and current long-term environment, We the our our will

foundation, and performance segment and the are EMEA advantage more intimacy profitable building organization for taking our we operational improvement deliver despite are is by the new improve cost we region. what has, customers weak new the These refining This efficiently end cross-selling our our the exactly Moving competitiveness and essential value advancing also forward on including as activity our actions, of heightening opportunities scale. in and in market global initiatives underway, targeting of our advance the model. This example, helped growth areas. already and and operating

as new and customers and more data We're relationships also with part deepen suppliers. being our of digitization existing thoughtful to with focus our

as progress platform, intimacy software In how and transform As we will our which held I proposition. customers FLUIDTREND energy value on highlighted water at global and waste to our a communities. customer efforts with last for well deliver consumption as our quarter, sites, reinforcing we help we our our company, the event making sustainability future in and in advance reducing lead our our expand drive management to April, are further

energy Recently, in we energy of invested their approximately at solar of covering use gas half eliminating our XX% site that and India, emissions. greenhouse in site's

to our more new are and will our sustainable to and sustainable achieve important strategy and teams goals. Additionally, existing turn, lead our deploy a with to, driven future. grow continue our enabling initiatives customers R&D our and to partner These markets their expand in help us solutions, portfolio industry our of and with by customers, commercial overall customers expand

at positive Quaker there In momentum summary, clear Houghton. is

progress financial making are and We our on operational priorities.

strong a this which long-term attractive and characteristics. are market industry, fully have to position We has committed growth

including their on tackle We businesses, secular increasing productivity, opportunities as new and pursuit they own and of managing objectives. addressing and labor demands our cost and are supporting challenges delivering the skill customers their transition sustainability impacting on applications, pursue new to shortages,

and positioned value for The to our and quality and technology and we uniquely are with product, our earn breadth portfolio is of solutions unparalleled, customers.

prudently our digital innovation our This people to most also the initiatives, growth investing to are for customer future. we and and how and our effectively talent, intimacy We and redefine developing deliver supply pipeline. for includes capabilities efficiently advance today our chain

unlocking the in leadership the achieve the generation goals. We our conviction am our the and our cash power environment. regardless that I confident execute including our earnings have committed to and continued and will and remain operating strategy, of we flow potential, people of enterprise, our fully

it I'd like over pass discuss Shane to With financials. the to to that,

good the $XXX In to was XX% quarter, million, mix, by an driven second was increase compared decline delivered and we but a This sales X% Thanks, of a net Andy, XX% everyone. price in increase, which morning, in the increase and prior by volumes. offset year.

in prices. the ongoing Similar to at our was both our approximately softer divested on down as part volumes due war primary the of a slight in and an driven to decline previous decline declined sales tolling the wind to and selling the The in our our in was sales was Ukraine price we which X%, slightly by conditions, quarters, and market mix. of volume recent primarily combination. increase Sequentially, net volumes driver

material quarter XX.X%, XXX well This XXXX. in reflects remain which points, actions, the were which raw year in of quarter execution in costs, of an improvement compared on our elevated. Gross our in first and margins represents to XXX compared prior decline to basis as pricing points, overall basis XX.X% the the XX.X% second increase continued a as modest

incentive timing at on sequentially. inflationary costs, SG&A, well as compensation the the million, to of to $X as items, This due of million period our reflects our X%, an and levels primarily impact and increase labor foreign Looking annual or one-time $X excluding compared the had prior-year impacts we year-over-year exchange. our

implementing. these XXXX, high-single-digit which For the we targeted XXXX. on are cost net with costs, of by inflation of implemented our targeted We will end cost mid and the be labor to continue expect on operational expect remain track the efficiencies, full-year is we we to actions which

Overall, of which of an in $XX year. EBITDA is increase the to we compared second million quarter, adjusted XX%, the prior delivered

margins reflect basis to compared basis growth year prior XX profitable which was These we've made priorities adjusted progress a and advancing point near-term increase, our strategy expanded to to quarter. prior point with the initiatives. EBITDA and the increase, XX.X%, a our balancing long-term improvements XXX the Our compared

partially growth, a segments. modest volumes, underlying which and decline generally our due line year-over-year markets. The increase to in delivered by in with primarily a Americas Switching double-digit was price in our to sales mix, offset

continued modestly, EMEA year offset sales declined by net decline compared volumes a demand mix was price to due environment. Our and than more increase in the prior a as to in soft a double-digit

the for tailwind a Foreign slight segment. currency was

the in in declined Pacific currency to were foreign headwind mix mid-single-digit sales price Net offset more to compared by a and volumes. Pacific sales than Asia as increases was prior a Asia year in the also Also, decline segment.

volume consistent. of market impact pricing as drivers business volumes each conditions the quarter softer by ongoing were And in were segment. Ukraine offset our Also, of year. our than the combination geographic for the the new value-based EMEA were our were of as overall prior war agreement second by the relatively in segments The which as wins our actions, of tolling well the in the part and expiration impacted

than Sequentially, at net but EMEA. a were Asia prior the sales the Americas, year-over-year in with pace increased in and sales double-digit consistent declined expected. Net quarter they delivered slower increases in efforts. to strong for We earnings due positioned in future XXXX, primarily of growth. first our the are of we segments, all margin operating half in well performance in our our was recovery and Pacific Overall,

interest second higher prior our expense and quarter, compared line, year the Below sequentially. to was the in flat was

Our line debt quarter. approximately was was we second prior in exited quarter where largely the of with X%, cost the which in

forecast excluding rate, our was for consistent XX% XXXX. well was in effective items, our expectations, as non-core quarter, the which tax full-year the Our with second as approximately non-recurring and

GAAP our earnings. $X.XX. This quarter earnings improvement per in our earnings was represents increase, the share by were primarily per operating and second which XX% were diluted year-over-year Our a diluted driven share non-GAAP $X.XX

operations We in to the generated second Switching cash quarter. $XX from million liquidity. of

of due a to This efficiency. generating strong and of the year-over-year off generation to strong in improvement conversion year, a $XXX start million operating million, cash and represents cash earnings our are We the an in improvement of with capital flow first-half working flow. $XXX

approximately $XX our during quarter, the second million $XX in reduced debt gross invested Also, and by in capital $X million million. we dividends expenditures, paid

invest and return to allocation priorities further business. remain and organically both our balance strengthen capital through consistent: inorganically dividends, Our continue the to grow sheet capital

CapEx our approximately at full-year remains anticipated spend net XXXX, sales. to For X.X% X% unchanged of

our dividend increase We committed a to X%, the conviction approved approximately in sustainably our cash generation. are dividend. XXth flow which represents which week, highlights our increasing Last annual of increase, consecutive our Board

Overall, our remains liquidity balance strong. sheet

times the end of at ratio at million, X.X was quarter to our end and last debt X.X net the net compared $XXX of the to leverage Our EBITDA, second quarter. improved adjusted times

We have and drive ample organic opportunities inorganic to both growth.

outlook We prudent the remain shareholder and these will our company with returns. long-term and short with balancing overall for macroeconomic investments, the environment

the macroeconomic in well executed first-half cash we of flow summarize, XXXX. a environment. earnings uneven To strong and We in growth continued delivered

end profitable markets our well growth. positioned long-term focused on driving within are and are We various

significant While earnings end of and the environment demand uncertainty committed we the we confident the strategy we are through in the our the the expect to tepid built. and persist to momentum excited of by year, organization, power have

back to With over Andy. turn it I'll that,

you, customers is entire Thank business and our evident, Shane. our positive and The focused team momentum is Quaker in Houghton for on company. executing very our the

be that, your to questions. happy address we'd With

Instructions] [Operator Harrison Mike you. Please first Seaport Thank Our is from question Research. proceed. with

Hi, good morning.

Good morning, Mike.

morning, Good Mike.

It maybe was a in sequentially I'm But that that the like XX% destocking, where where you're from like year-on-year was of of hoping value-based talk things and market strategically little what margin in what much walking the I you're business were performance? terms impact performance, of decline, sounds some impact not appropriate pretty were you how initiatives to underlying maybe volumes. could related sounds seeing about you of the you're away getting in it bit curious flattish. some seeing terms what of was

Yes. good Thanks, Mike. question. Really

You're course, explain you when the right. for basis, look had differential year-over-year on stability a now there's here actually components decent there. Sequentially, But you're some couple quarters. seeing some that of of a we've

rolling tough some First, really I'd comps. China of last still of year, patterns. particular, order were with second just lockdowns our quarter playing start off the in with the was havoc there which customer happening, in In

not and the decision EMEA, made not of Russia. exit really, we had to impact from In fully the full our war had developed

different. bit little a are components those So

are are underlying believe, There It of markets, that down some soft. we particular depends are bit upon market some based that mid-single-digits. a are segments. improving, little Our kind

would their unevenness, And as customers I order of they're then there's patterns themselves, and to inventory. within cash a our bit been to manage say, trying little their

they're customers that we to down while numbers. year's are that go good still manage their visibility had trying little little highlight a combination I'd as they what from of we chain, was bit exactly better. last that our a have lingering business tolling So to bit needing supply also the in

churn actually To to from have kind of the played have we're cumulatively, earning your make has that. new our through. been mid-single-digit customers wins business and higher And of question, for we created at the though, pricing our value sure profitability us, that we're value-based offsetting that really much using levels but

we've appropriately. we're like got strategy So right there, we feel and it the balancing

in underlying significant of not complex markets, all of net So forward. we're seeing any are a what's again, or with going going that, little our a of on we uneven. in which, believe a fundamental line bit Pretty shift shift we're environment. indication And

All number than right. looking higher think little some were price us mix came And for. bit a then of in the I

that this expect pressure from curious are a that down second-half, level, pricing do year-on-year to raws putting XX% in number. coming and trend some you little still Just how assuming maybe bit that the on

Mike. Sure,

In quarter, in see the right. obviously, did margins. So you're second some gross we progression,

won't did a pre-pandemic it highlight towards we second to expectations would move levels. get in modest well. the see easing low a our talking long-term material we've back raw relatively and expected linear be journey the As price very We although adjustments. We're about, held still to quarter, I high single-digit We is as levels. this some talked journey

where margin churned of And we mix margin that business was lower impacts we business business. did have some higher the gained and some some

forward, look the we as and anticipated we as of kind So journey continues.

balancing the constantly the way pricing our providing we those expectations. and we're use. We're and that towards value long-term driving for we're our So value do still and customers

not would We just highlight price. And that I have work to it's do.

to to be to saw quarter, think, our the provide, levels getting higher to in our similar So wins have But the value to and continue improve new going also the the improve work dynamics, at And we quarter. goals. business won't the efficiencies, to it's all it to get target opportunities third again we'll linear. long-term what pretty the our for second we in we given we while we services be

And right. just QX about expectations that be curious should gross views similar. higher are terms really trajectory. margin the and to that third think lower to fourth quarter, about key or second-half, I for All you drivers of what take on I in understand as guess, could And some then trying your are thinking what said be pretty the sequentially. and then EBITDA guess we are I'm

really saw QX. nice in really, step-up the You

You higher than you saw in second-half another QX? that sequential EBITDA Thanks. that something should get even step-up continue in here expect to QX. expect as in Is drive we that the we and QX into

Mike. Sure,

yes, I EBITDA beginning, if So on unevenness. of of basis, kind complex a still a you start it's with the with lot environment think off

down. indicated, And even than some a indicate in some visibility more little I markets would clouded normal the times. I up, As is

kind and that, recovery slower than movements, that see I regional If continues. of Asia in any China of improve forward. about and could optimistic has So although think us that don't our we complexity little as segments, we anticipated move significant a cautiously we're the been think we any

fairly and of we between of of in are rates. out levels the be had historical vacation the segments course, low to QX. has some we there EMEA. of the we've of That And compared continues. a very now resilient. evened EMEA, little bit some been are soft. occurs that have at improving think challenges QX that we third some And In the and will August time In lumpiness that Again, in kind Americas, quarter, that but

and similar expect earnings And of that go strong cash in is move on the improve, the be through as net are not going continue. But we indicated, generate be to think is to will we forward keep as quarter it's third of we We'll margins we continue going flow. as gross that that to working I but linear. the Net to that stable our journey year.

we've a of pattern the continuation of in seen see the some we second quarter. So

Thank very good. Sounds you much.

yes, -- Mike. thanks, And

Our question is Please next Tanwanteng Jon from Securities. CJS with proceed.

and morning you Good guys. thank Hi, taking my question. for

Jon. Hi,

gross QX. to not ability price in in your an correct? plateau near-term That's and a volume, function of uncertainty a the value, in seasonal heading wanted just Is drive maybe margins and the macro to on I clarify that lower mix.

room journey get use Well, use to and against we're to total their We with of be customers. cost to targets. always I And approach ownership. value around our think customers the with value that. our long-term would we'll overall to continue do cost to balancing go forward expected adding there's say, on still We our going a serve is towards going the the

won't pricing this It our is be to way there. But and some of that get we We're the not going mentioned on mix is continue fact progression linear. before, goal. new only But be our with our work we that. I And profitability, efficiencies. off our the to a significantly have going and growth to with business thing be that pleased wins the key towards to improved as we're the will build we're going drive

Got it.

so done question you've Shane, far. Now a for great job a you.

the great pace normalized is to Should that a upside more forward? stabilize we we more to going going more as -- cash conversion in expect quarter. Just out Or there? look

the as capital Yes. based Thanks, of, off I as mentioned working well Jon. inflow. conversion earnings good the strong in was script, obviously,

we EBITDA. do As anticipate just Andy described, similar

in earnings QX. So therefore, similar

be we have provide continuity sure a think more That work we done From still a supply. there I and of to working on position all perspective, making to receivables, to said, as in value customers payables to be inventory. well as capital our want is do

generate And that efficiency on and accordingly. flow so working continue we'll to capital focus cash

Okay. for me. One more

you M&A in out prospects, reduced cash performance and to be things on be aggressive up growth might the allocation the that are or more given the Just capital there? gearing leverage, to flow your

not mean Yes. I'll has allocation capital our changed. I take that.

that shareholders. the for remains strategy value Our best our find

long-term provider, increase on As million an we've in debt and $XX dividend forward. fact, we're in talked a our before, that We've that. down. the about year-to-date going working we've just, paid on had dividend pay about approve Board We're

through the continue that. scale is M&A where of growth opportunities, of to inorganic a channel and our and business take those a and to But growth for in we'll And our the invest our of or geography our successful very contemporizing valuable to driving itself look play more course, to sustainability. on by to serve technology digitization continue in adding of model themes our complement We or more our all particular, a ways. customers and business around advantage service been in we've capabilities then,

capital made So to like allocation in balance feel improvements we're the execute able on significant position a and that be we've to good sheet strategy. against

Andy. great. Shane. Thanks, Thanks, Okay,

Our Alexander from next Laurence question with Please Jefferies. proceed. is

it’s on Dan Rizzo for Hi, Laurence.

usual and going of offset with markets. your was share if You are the continue. to if gains I being you're hikes market from your of by guys kind volume that's kind mentioned losses down price wondering

question. the for Thanks Yes.

we've So new always those that been balancing wins. business

cumulatively, of X% and of range. X% not pricing we historically underlying that we're to near at here spread doing. indicated, we that, on ahead actually pretty It But the business business where successful short-term been that believe in top we've lower as to We've value-based net whatever we've the As supporting continue that that though, operating we gaining with want our go and staying widen we'll end be margins. chosen still the was is to offset, forward. to at over some being continue is some

have of having softness down end the the and -- of is or I across one the others Okay. market general for still mentioned some seeing with kind kind restocking. particular as And that pointed wondering if performing rest? it's if board, but you've still well that was then strength auto to still

Yes, thanks.

aero. And relatively there business as to positive indicated, pretty be sure, improvements are steel well. still For actually for continues in general is script, around world. the And our and seeing us and the as in of indicated We're Greece soft softness. we some automotive some I pockets industrial as

that and I seeing part some complexity So a that's keep the but bag mixed we're to, referring it's positives. of actually that unevenness

we relatively have are low these some now. about And of the still we're off Now bases. position pretty pleased

to in to support markets, recovery a be As these great able position our the going we're occurs to customers. be in

much. very you Thank

welcome. You’re

Vincent next Please proceed. Instructions] with is Anderson Stifel. from question [Operator Our

and good morning. thanks Yes,

morning, Vincent. Good

Good morning.

Or but just attributable You've a little price seen expect this been customer the that general about from market mix already, to there? or bit something there anything on specifically, about in more China, has this is surprising you your you've just that something touched more unique in more particularly maybe there? elasticity

there's unexpected. significantly anything I think don't

disappointment a haven't the Asia improved and things just within quickly. think pretty I soft we and lockdowns recovered. that more Again, a all last rolling chain year, -- saw supply really in a little particularly not interruptions, all with China saw pretty second-half the we and that's just

been And And of I constantly new strike after levels on we've higher doing that done a job trading good right believe, the volumes. off wins trying that. we're and good that at we've pretty a going balancing job, on balance. pretty much I to some think profitability We're

now relatively the of been has China actually couple for stable last So quarters.

that think we we've churn managed well. pretty So

Okay. And kind helpful. of you. No, the then that's Thank back conversation. market to share

environment. to You that, on with we're in chain you're get and back track softer trying obviously demand pretty supply big backseat a crisis the but during a took

required kind So can SG&A of new a to costs to of balancing then just about you what kind X% steady you bring catch targeted speak about customers? in just whether X%, trend that kind towards against up be see how if going or levels? of back slow, there, And of plus do to kind it's your opportunities think any you

Sure.

end that losses top way volume during some masked this the due by It's been to about So think doing. we're this would the is of actually range of even I that to closer the just been period. strategic the we've pricing operating

haven't that we So lost focus.

think levels be in the continuously really to up that. pick We're And to continue doing great a of to We business, I and just stabilize focused it's penetrating market on a customers. as profitability. at of the things going new our going job team and We're higher recovers, we're position. keep nice

capabilities think we're more the serve of advantage as of really allowing take that's Houghton. opportunities and to in and their Quaker complexity to full us their add dealing value they're more more business. And finding more needs of I with

we're SG&A, we advantage about capabilities efficiently think that we I deliver for you look of going our we're most supporting always same how the value When need. sure optimized going think way. the invest that make take at our to time, to At customers and in the value

So advantage to to balancing I that we market. really strategy of things sure those outperforming take our make of think we're continue long-term

do early. willing That's Excellent. Would quick to hear. you too to kind the -- That sophisticated are on these digitalization are can't be as -- one tools piloted now, targeted more just would it to a you're you're bit. them would little piloting readily to you the It's about good I talk believe currently that effort. being digital customers? if tools that And then of, larger, characterize applicable your Or smaller be, ones that a operations?

Sure.

a different as the in quarter, with customers. So well our targeted group. as think I developing, we're our mentioned, been It's I we've previous deploying FLUIDTREND within capability as as own laboratories,

segments we customers. working multiple that are applications multiple and have We with

and customers' control our lot on in operations the into with indicated, is today goal capability the of I subsequent an more But way, not As in and and different way. days. isolated different phases in going our products. monitoring a at some to start the focus segments applications of in looking of at it making early getting the use but a targeted and We're we're the optimization progress

Great. Alright, thanks.

Thank you.

There time. comments. over closing like I the questions Andy to back for no to further would at conference turn are this

any to Yes. time. very questions. in have out reach Houghton. you I if Thank about interest very the much, Quaker your We're excited and Thank you. you Please continued future appreciate and follow-up Jeff appreciate everybody's

will This today's you. Thank conclude conference.

disconnect your time, at thank you may and lines You this for your participation.