Good day, and welcome to the third quarter 2022 Cabot earnings conference call. At this time, all participants are in listen only mode. After the speaker's presentation, there'll be a question and answer session. As a reminder, this call is being recorded. I would like to turn the call over to Steve Delahunt, Vice President, Investor Relations and Treasurer. You may begin. Thanks, Michelle. Good morning. I would like to welcome you to the Cabot Corporation third quarter earnings teleconference. With me today are Sean Keohane, CEO and President, and Erica McLaughlin, Senior Vice President and CFO. Last night, we released results for our third quarter fiscal 2022, copies of which are posted in the investor relations section of our website. The slide deck that accompanies this call is also available in the investor relations portion of our website and will be available in conjunction with the replay of the call. During this conference call, we will make forward-looking statements about our expected future operational and financial performance. Each forward-looking statement is subject to risks and uncertainties that could cause actual results to differ materially from those projected in such statements. Additional information regarding these factors appears in the press release we issued last night, and in our 10-K for the fiscal year ended September 30, 2021, and in our 10-Q for our fiscal quarter end March 31, 2022, which are also available on the company's website. In order to provide greater transparency regarding our operating performance, we refer to certain non-GAAP financial measures that involve adjustments to GAAP results. Any non-GAAP financial measure referenced on this call are reconciled to the most directly comparable GAAP financial measure in a table at the end of our earnings release issued last night and available in the investor section of our website. I will now turn the call over to Sean, who will discuss the third quarter highlights and provide an update on our progress in the areas of Battery Materials and ESG. Erica will review the company and business segment results along with some corporate financial details. Following this, Sean will provide some closing comments and open the floor to questions. Sean? Thank you, Steve, and good morning, ladies and gentlemen. Welcome to our call today. I'm very pleased with our performance in the quarter, as adjusted earnings per share was up 28% to a record of $1.73 compared to the same period in fiscal 2021. This record level of performance reflects the resilience of our businesses and end markets, our focus on execution, and the continued momentum in our high growth vectors. As a result, our team was able to navigate dynamic market conditions, the impacts of pandemic lockdowns in China, continued logistics constraints, and higher energy and raw material costs. Results across our businesses were very strong, with consecutive quarterly record performance in the Reinforcement Materials segment, where EBIT was up 33% year-over-year. In the Performance Chemicals segment, we delivered 17% year-over-year EBIT growth through effective pricing execution and strategic actions to enrich the product mix. Battery Materials continues to outperform the market, driven by strong execution and continued customer penetration. Finally, central to our purpose and strategy is a commitment to leadership and sustainability. During the quarter, we published our 2021 sustainability report highlighting our continued progress towards achieving our 2025 sustainability goals. Year to date results in Battery Materials have continued to exceed market growth rates. In the third quarter, volumes grew 60% year-over-year, while EBITDA grew approximately 70% over the same period. We continue to expand our relationships with the world's largest battery manufacturers and are building significant momentum outside the Asia region as our global customers build factories in Europe and the U.S.. For the full year, we continue to expect EBITDA to be in the range of $30 million-$35 million. The midpoint of this range equates to 100% EBITDA growth year-over-year, driven by rapid market growth for electric vehicles and continued momentum with customer adoptions of our products. The growth of Battery Materials is underpinned by strategic capacity additions, which are critical to meet our customers' volume ramp-up requirements. Recently, we completed technical upgrades at our Xuzhou specialty carbons plant, with the plant becoming operational during the third quarter. The facility will optimize our specialty carbons production network to meet customer demand across a wide range of applications, while immediately freeing up additional conductive carbons capacity in our global network to support the growth of Battery Materials. We are also well underway in the first phase of technical upgrades at our new Tianjin, China site, which is specifically targeted to support the growth of Battery Materials. We expect the first phase of the Battery Materials capacity expansion to come online in mid-fiscal 2024. Finally, we've completed the first phase of a carbon nanotube dispersion capacity expansion at our Zhuhai, China facility in July. These investments will give us a combined capacity position that will enable us to continue growing at above market growth rates. As we outlined last quarter, over the next three years, we plan to triple our capacity across our Battery Materials portfolio to ensure we are well positioned to capitalize on the transformational opportunity of electric vehicles. Now moving to an update on the ESG front. This quarter, we published our annual sustainability report, which further advances our commitment to transparency and progress. This year's report includes enhanced disclosures and reaffirms our commitment to the UN Global Compact. Our sustainability report details the achievements and progress we have made toward our 2025 sustainability goals and discusses our focus on achieving our net zero ambition by 2050. The report outlines the following noteworthy achievements. We realized 91% of our 2025 greenhouse gas intensity goal by the end of 2021, and are evaluating options for establishing interim greenhouse gas reduction targets to support our ambition of achieving net zero emissions by 2050. We also made significant progress against our 2025 energy goal, achieving an energy ratio of 157% by effectively operating our fleet of cogeneration units. By capturing and exporting excess energy from our operations, we are helping to provide neighbouring businesses and communities with clean energy. We see great potential in the evolution of our transportation fleet to electric and other low carbon vehicles, and to that end, we collaborated with one of our suppliers to conduct a successful pilot project to test zero emissions trucking technology. Finally, we're committed to continuing to develop innovative products that improve performance for our customers by imparting properties that provide sustainability benefits. Over the past year, 100% of our new products were evaluated and scored for their sustainability benefits. We have long been dedicated to comprehensive reporting on our sustainability performance and aim to provide transparent disclosures as a tool for engagement with our customers, shareholders, employees, and communities. To this end, we incorporated the climate scenario analysis and climate-related risks and opportunities matrix we completed in accordance with the Task Force on Climate-Related Financial Disclosures, or TCFD, in our sustainability report. We are very pleased with our progress this quarter, both on the operational execution front and against our strategic priorities. Our products are helping to enable the transformation to a more sustainable world, and our entire global team is excited about the opportunities that are in front of us. I'll now turn the call over to Erica to discuss the financial and performance results in the quarter in more detail. Erica? Thanks, Sean. I will start with discussing results for the company and then review the segment results. We reported record adjusted EPS of $1.73 in the third quarter, up 28% compared to the third quarter of fiscal 2021, driven by record results in Reinforcement Materials and strong earnings in Performance Chemicals. Discretionary free cash flow in the quarter was $135 million, driven by strong EBITDA, and we ended the quarter with $208 million of cash. CapEx in the quarter was $50 million, and year-to-date is $121 million. We expect full-year CapEx to be in the range of $200 million-$225 million. The balance sheet remains strong with total liquidity of $1.1 billion and net debt to EBITDA of 1.8x as of June 30. In the quarter, we issued a 10-year, $400 million bond, the proceeds of which were largely used to repay a maturing $350 million bond. Rising interest rates have impacted both our bond refinancing and our short-term commercial paper. This resulted in a year-over-year interest expense increase of $3 million in the third quarter. In addition, the strengthening in the U.S. dollar was a headwind to business EBIT in the quarter o f $8 million as compared to the prior year due to the unfavorable impact of translating foreign earnings into U.S. dollars. The primary driver of this came from the weakening of the euro and the yen against the U.S. dollar. The year-to-date operating tax rate was 26%, which is now our expected operating rate for fiscal 2022. Our operating tax rate in the third quarter was 24%, which included a benefit from the anticipated operating tax rate reducing from 27% to 26%. Now moving to segment results. During the third quarter, Reinforcement Materials EBIT increased by $28 million as compared to the same period in the prior year. The increase was principally driven by improved unit margins from higher pricing in our 2022 calendar year customer agreements and higher volumes across all regions. This was partially offset by higher fixed costs associated with increased utilities and the unfavorable impact of foreign currency movements. Globally, volumes were up 5% in the third quarter as compared to the same period of the prior year, due to 6% growth in the Americas, 10% in Europe, and 1% in Asia, as the global replacement tire demand remained resilient. Higher volumes in Europe and the Americas are largely due to increased demand for our products, our unique position in Mexico, and supply tightness in the European market. Looking to the fourth quarter of fiscal 2022, we expect Reinforcement Materials to report significant year-over-year EBIT growth due to the impact from our 2022 customer agreements and strong volumes across all regions. Sequentially, we expect EBIT to decline, largely due to the normal seasonal effect on both maintenance activities and European volumes. We expect maintenance expense to increase sequentially by approximately $5 million in the fourth quarter. Now turning to Performance Chemicals. EBIT increased by $9 million in the third fiscal quarter as compared to the same period in fiscal 2021. The increase was driven by higher unit margins as a result of improved pricing and product mix in our specialty carbons and fumed metal oxide product lines, and higher volumes in Battery Materials. We delivered impressive volume growth of 60%, as Sean noted, in products sold to Battery Materials applications as we continue to see growth driven by higher EV demand. These benefits were partially offset by higher fixed costs associated with increased utilities and the unfavorable impact of foreign currency movements. As we look ahead to the fourth quarter, we expect strong year-over-year EBIT growth driven by higher volumes and strong unit margins. Sequentially, we expect strong volume growth in our Battery Materials and inkjet product lines to be more than offset by normal seasonal volume declines in our specialty carbons product line and higher levels of maintenance spending. We expect maintenance expense to increase sequentially by approximately $7 million in the fourth quarter. Now moving to our capital allocation priorities going forward. We remain committed to the framework we have shared previously. We will prioritize high confidence, high return investments in our growth businesses, particularly focused on those in Battery Materials and inkjet packaging. The growth projects we are funding have compelling business cases to grow the company, and we expect that we'll be able to fund these with our operating cash flow. As we think about the hurdle rate for these type of projects, we usually fund projects with an IRR of 20% or greater. We also look to execute attractive bolt-on acquisitions. The focus area will be in areas that enhance the performance of our existing businesses and strengthen our growth vectors. Our investment criteria are for growth and margin enhancing opportunities that are accretive and strengthen our competitive positions in our businesses, and where we expect to see an ROIC in excess of WACC in the first 3-5 years. The recent acquisitions in China that Sean discussed earlier are good examples. We expect to maintain our industry-leading dividend yield, and we plan to continue to opportunistically repurchase shares. During the third quarter, we did both, with $21 million of dividends paid to shareholders and $13 million of share repurchases in the quarter. We believe we can do all this while maintaining a healthy balance sheet and our investment-grade credit rating. I'll now turn the call back over to Sean. Thanks, Erica. I'm extremely pleased with another quarter of record operating results in what was a challenging environment. Based on that performance and our outlook for the fourth quarter, we are tightening our expected full year outlook of adjusted earnings per share to be in the range of $6.10-$6.20, which is at the high end of our previous guidance of $5.80-$6.20, and up 15 cents at the midpoint. This is truly exceptional performance for our company and reflects our strong commercial and operational execution, and the value of the strategic choices that we've made in recent years. In the fourth quarter, we expect a continuation of our strong performance. Our results will also reflect traditional seasonality and higher maintenance, as Erica outlined, as we shifted turnarounds from the third quarter to the fourth quarter in order to support our customers' volume requirements. Negotiations with our key tire customers have begun earlier than is typical this year, as both global and regional customers are focused on security of supply. This has led us to reach agreements with several of these global and regional customers, some over multiple years, that address the inflationary environment and have pricing that aligns with our expectations. I continue to be very excited about the momentum across our growth vectors, particularly in Battery Materials. We remain on track to grow volumes at double the market rate, and the midpoint of our fiscal year 2022 EBITDA outlook for Battery Materials represents approximately a 100% year-over-year increase. At the same time, we're making the capacity investments necessary to win as the automotive industry undergoes the transformational change to electric vehicles. Turning to the longer term, I'm excited about the positioning of our businesses and the market outlook. Our Reinforcement Materials business is structurally stronger and is expected to be less cyclical due to the following factors. The tire migration to China that played out over the past 25 years was very disruptive for the entire value chain. This migration has stabilized, and we believe we are in a new normal in terms of regional tire production. Our business model was built on making and selling in region. This is driven by economic fundamentals, but even more durable given our customers' growing preference for regional supply chains to ensure supply security. There are no material announced supply side additions coming on in the mature regions, and the supply demand dynamic is very balanced. In fact, this is only getting tighter given the Russian invasion of Ukraine. Beyond these structural market dynamics, we've been laser focused on a broad range of commercial and operational excellence initiatives over the last several years that have structurally improved the profitability of the business. Such initiatives include changes to the structure of our formulas to eliminate lag and ensure better matching of our costs. Energy recovery and yield investments to improve economics and reduce emissions. A step change in plant operating performance, and strong commercial practices to ensure we remain our customers reinforcing carbon partner of choice as we deliver value to them and get paid appropriately for that value. Our Performance Chemicals portfolio benefits from attractive industry structure and is poised for growth driven by new products and underpinned by the compelling macro tailwinds of a changing mobility landscape, an increasing focus on sustainability, and the trend of becoming an ever more connected world through digitalization. As we outlined at our Investor Day in December 2021, we expect strong volume growth across this segment over the next few years. We've nurtured a great set of growth vectors that are inflecting, particularly Battery Materials, and we're investing behind this transformational trend to win. We expect strong discretionary free cash flow to fund compelling growth investments and return capital to shareholders. Finally, we're a leader in ESG and recognized by our customers and shareholders for excellence. Overall, I'm very pleased with our strong execution and the progress against our Creating for Tomorrow strategy. Thank you very much for joining us today, and I will now turn the call over for our question-and-answer session. As a reminder, if you'd like to ask a question, please press star one one. Our first question comes from Jeff Zekauskas with JP Morgan. Your line is open. Thanks very much. You said that you negotiated some multiyear contracts with tire manufacturers. Were price increases over a multiyear period also part of those agreements, or were they simply volume commitments? Hi, Jeff. This is Sean. Those were price increases in both years of the agreements where we entered into year agreements. Were they higher in the second year than in the first, or the same, or lower? That's competitive information, Jeff. I can't disclose it. What I can say is that the environment, which is really putting an emphasis on supply security, remains the case, and the structural dynamics that we've talked about, remain intact. A gain, customers really placing a premium on supply reliability and leadership in ESG and these factors where I think we really stand out, and I think that's reflected in the agreements that we have reached. There's not really very much operating cash flow through the first nine months. Your inventories have moved up quite a bit, so have your receivables. Not really payables so much. Can you talk about cash flow prospects in the fourth quarter? Sure. Hi, Jeff, it's Erica. Hi. You're right. We've had a pretty significant increase in the working capital position, the biggest driver being the higher raw material costs that flow through both the inventory and the receivables balances. In terms of payables, we have relatively short payment terms with raw material suppliers, so that is not as resident in those balances. We have seen a pretty significant increase in that. We do have the balance sheet to fund that, and this is what we usually do as oil rises, fund it with more short-term borrowings, which we have done here. I would say as oil now is starting to come down a bit, as we've seen in recent weeks, you would see that impact diminish. If oil stayed flat, you wouldn't have further increases. If it comes down, we'll see more of a benefit from the lower values more immediately in inventory, and then usually in the following quarter or so as prices reset back down, as the flow through the inventory happens through the P&L. We wouldn't expect to see this significant increase continue unless oil rose a dramatic amount again, but that's not what's happening currently. Okay. Lastly, can you talk about volumes in your specialty blacks business? Yeah. I think, as we disclosed, I think volume trends were solid in the quarter, up about 2%. I think given the dynamic environment in China around rolling COVID lockdowns and the like, I think that represents a very solid performance. Of course, across this portfolio, it's a quite diverse portfolio of applications, and we're very well represented both on the application front and also geographically. We've performed, I think, quite well in the current environment on the volume front. Does that 2% include the EV growth? Jeff, yeah, it does. 2% was Performance Additives, which includes EV. If we try to isolate Specialty Carbons, it's up a bit, so more like 1% in the quarter. Okay, great. Thank you so much. Our next question comes from Josh Spector with UBS. Your line is open. Yeah, hi. Thanks for taking my question. I just wanted to drill in on the guidance for the fourth quarter and ask if you can do a bit more of a detailed walk in terms of your sequential bridge from third quarter to fourth quarter. I mean, you clearly called out the maintenance impact in the performance business, and you also talked about seasonality. I guess, me looking at it, maybe three of the past five years, EBIT's been up sequentially in the fourth quarter, so it's not readily apparent to me what the seasonality is or if there's some exacerbated impact there this year because of some higher selling into Europe. Any additional color would be appreciated. Thanks. Sure. Hi, Josh. We continue in terms of our outlook, we continue to see strong demand as we progress into Q4, especially in Reinforcement Materials and Battery Materials. Again, we expect this current trend of strength to continue into Q4. As Erica called out in her remarks, we are expecting to incur about $12 million of higher maintenance in Q4 as compared to Q3. This is related to annual site turnarounds, maintenance turnarounds. The number is higher than expected and what might be a more typical profile due to a conscious decision to push Q3 maintenance into Q4 to help support our customers' need for volume for demand. A conscious decision there, but that's a fairly material swing in the maintenance expense. At the business volume level, our business typically does see a seasonal impact to volumes in Q4. It's most pronounced in Europe because of summer shutdowns. You're probably familiar with, it's pretty typical that you would see more extended summer shutdowns at manufacturing plants in Europe. We've seen that over a very long period of time, and we're expecting that historical pattern to flow through in Q4. A seasonal adjustment down to volumes. What you typically see from a volume standpoint, Josh, is that our Q1 and Q4 are the lower quarters, and Q2 and Q3 are the higher quarters from a volume standpoint. Again, that's the seasonality. The Q1 would be the Christmas seasonality, and then Q4 would be the summer seasonality, which is most pronounced in Europe. That historical pattern is what we're expecting to see here in the quarter. I guess the other point that I might call out is that with the tax rate catch up in Q4, that did increase the Q4 results by about $0.04 on an EPS basis. When you look at the higher maintenance, the historical expected volume impact from seasonality, particularly in Europe and the tax rate catch up, I think that gets you squarely there. Okay, thanks. That's really helpful. I mean, just to follow up, I guess on Europe specifically, the 10% volume growth, I mean, it's been a choppy couple of years, so getting a two years back there is maybe a little bit challenging. I guess, would you say did you gain share? Are you supplying more spot volumes? Are you supplying more out of your other regions into Europe? I guess, what drove that volume strength and how sustainable is that into next year if this supply construct stays in place? Europe is certainly a dynamic environment right now, given the challenges inflicted on the region from the Russian invasion of Ukraine. Volumes grew year-over-year in the Europe region as you said 10%. This is due to higher contractual volumes in our 2022 customer agreements, as well as increased spot volumes because supply remains tight in the region given this impact from the Russian invasion. As you know, it was structurally a very balanced market prior to that and even more so now. We have picked up some additional volumes here, and this connects to the maintenance pushout into Q4 as well because our customers were looking for volumes, we ran a little harder in the quarter, as well. I think our position we feel very good about in Europe. We think there's a growing preference for regional supply here, even more of a priority being put on that. Our view is that, customers are looking to secure that regional supply, and therefore, that position should be pretty durable as we progress into 2023. Okay, thank you. Our next question comes from Chris Kapsch with Loop Capital. Your line is open. Hey, good morning. I was hoping to get a little more granular on the Battery Materials business. I'm wondering if you could further characterize the commercial traction momentum you're seeing there and feeding into the EV supply chain. Just curious if the traction is balanced across, I guess, conventional conductive carbons and carbon nanotubes, or is it skewed towards one or the other? Then just other than your global footprint and your presumable world-class manufacturing and quality control and all that, I'm just wondering if there's any asks or needs from these customers that aren't currently part of your portfolio or solution set that you're you know that they're asking for that may take some innovation or other investment to address those needs. Thanks. Yep. Hey, Chris, thanks for the question. Certainly very pleased with our performance in Battery Materials, and I think we're executing very, very well against the growth strategy. We're putting the investment behind this, as we called out in our remarks here, to win as the auto industry transitions. Really pleased with the execution here. T he results and our expectations for the full year, are running ahead of where we called out on Investor Day. Early on here, we're running a little bit ahead as key customer wins continue to build momentum here. I mean, our belief is that the use of conductive carbon additive blends, so this would be blends of conductive carbon black and carbon nanotubes, is the direction the industry is moving in. You might recall last quarter, we talked about a top five battery manufacturer that has adopted one of our blends. We think that portfolio is unique among conductive carbon additive producers. We still see that building momentum here because the optimal battery chemistry really needs both long range and short range conductivity, and the blend of conductive carbons and CNTs is the best way to get that. Continued traction on that front, I think, which is great. That's core to our strategy, one of the reasons why we bought the CNT business in China, and I think that's playing out well. A s we look forward here, of course market expectations are for a pretty significant CAGR out through the balance of this decade, 25%-30% compound annual growth rate in demand. We're certainly continuing to expect to outperform that. The 50%+ number that we talked about at Investor Day remains our target. I think customers right now are very focused on building out regional supply chains. Most of the industry is still very Asia- Pacific focused, with China playing a key role there at about 50% of the market. There are plants that are coming on stream in Europe and under construction and coming on in the U.S., and that will build over time. Having regional supply, I think will be a critical part of the value proposition for customers. I think on this front, we're very well-positioned with our global footprint here. We'll be investing alongside that requirement to support our customers. Feeling really good about where things are. Chris, I think a real transformational opportunity for the automotive industry, but certainly a transformational one for Cabot as well. We intend to invest to win on this one. I appreciate the color. I have one quick follow-up on the conversation around the supply agreements in the Reinforcement Materials business. I understand you don't wanna talk about the magnitude of the price increases in the next couple of years, but can you just talk about the magnitude of the price increase for calendar 2023 vis-à-vis the increment that you got for calendar 2022? I'm just asking because when coming into 2022, back in middle of 2021, there wasn't obviously this crisis in the Ukraine. There wasn't as an acute concern about security of supply. Just wondering if that translated into a bigger increment. The deals that you have in place already, do those? I'm assuming those are global tire players, but do they skew towards Europe vis-à-vis North America? Any color there appreciated. Thanks. Sure. In terms of the agreements we've reached so far, they are a mix of global tire customers and regional customers, and they are a mix of one-year and two-year agreements. As I commented earlier, certainly the one-year agreements have price increases embedded in them, and in the two-year as well, price increases in both years. I think this reflects the outlook in terms of growth for the tire industry and the supply dynamics and also, the preference for regional supply. That certainly, as you commented on, Chris, is more acute this year, given the dynamic related to Russia. The market even prior to that was structurally set up for this, and it's only become even more pronounced here, given the Russia-Ukraine situation. The market remains very tight, and customers are really putting a premium on supply security and supply reliability. Cabot has definitely distinguished itself on that front over the last several years, and I think you're seeing that show through here. With respect to commentary on magnitude, obviously I can't comment on that as we're still in the middle of negotiations. As we always do in the November call, we try to wrap up and provide some visibility into that as we talk about outlook for 2023. Certainly we feel very good about the outlook for 2023. Fair enough. Thank you. Our next question comes from Jeff Zekauskas with JP Morgan. Your line is open. Thanks very much. Can you talk about industry capacity expansions in India or any major expansions outside of Europe and United States in carbon black? Jeff, you're seeing some capacity investments both in China and India. What you see there in China is typically the bigger players, the more established players. I think their investments are really probably, my view, part of what will be a longer term continued restructuring as the number of players shrink in China, the big get bigger and the number of players consolidates. That's not surprising as the growth rates have moderated in China from double digits for a very long time down to mid-single digit GDP, that you would see a reordering of the competitor landscape. I think you see the bigger players investing and smaller players fall off the table. That's how I would characterize what's happening in China. Basically China is for China because the cost structure to export out of China, given the structurally higher coal tar price, the fact that there's a substantial export VAT, as well as then transportation costs. Let's put supply security to the side for a minute, but just looking at the economics, trying to move that into another region certainly is the highest cost landed capacity. I think generally these investments in China are for China. With respect to India, there have been some investments there as well by Birla in particular. I would say nothing really new here. India is a fairly large market and Birla being a leading domestic player there continues to invest. Some of that product will typically flow into other areas outside of India, mostly into Southeast Asia, is what was historically seen. I wouldn't be surprised if that continues to happen. Again, the market is pretty tight and pretty balanced there. They did announce an investment in Poland, Birla, and I think that is probably motivated by the Russia situation. On balance, what you see is I think a very constructive picture and a pretty balanced picture, and that's our view on it. Thanks for that. Do you plan to expand carbon black capacity in the United States or Europe over the next several years? You know, sort of what's your utilization rate roughly in those areas? Yeah. Utilization rates are high, Jeff. T hey've been running in the high 80s or 90%, which is pretty tight in this industry. W e'd expect that situation to continue. W ith respect to growth capacity, we certainly have from a capital allocation standpoint, priorities around supporting growth in Battery Materials. There will definitely be investments in both Europe and the U.S. as we to support that business over time here, for sure. With respect to Reinforcement Materials, we wanna continue to support our customers' growth requirements. Our first focus area in doing that is to drive up what we call OEE or overall equipment effectiveness. You can think about this as the uptime and the throughput on the plants. We'll continue to push that. There's further runway to do that. Every plant always has debottleneck opportunities that tend to be pretty capital efficient. That would be the next priority area that we would work on to support our customers' growth. The question of whether or not there's new units for Reinforcement Materials in Europe, I think remains to be seen. I think we have to see. We would certainly work these two other areas first, and we think that provides good growth runway over the next few years, and then we'll see how things settle out from there. In the quarter, your growth in EMEA was 10%. Does that mean that you exported material into Europe? That seems like a very high number to grow from European operations themselves. Yeah, we did not import from other regions into Europe. We certainly have our plants running at a very good level in terms of OEE. As I mentioned a little bit earlier, we also moved some maintenance into Q4 to support our customers. The on-stream factor was a little higher in the quarter because of that, because our customers needed product. It's really a combination of those two factors, Jeff, that allowed us to grow by that 10% number. Lastly, maybe for Erica. In the Q, there's a discussion of byproduct sales. Is byproduct sales, in part sales of power to the grid from cogen in the United States? Maybe you could discuss that. Are cogen sales all profit? It is exactly what you're saying, not just the steam sales, but the cogen revenue is what the. Byproduct revenue is, Jeff. It is what we call our energy centers. That's what that is. I think the increase in that comes from the increase in basically the energy prices around the world that have happened over the last year. The sales is just the sales number. There is a cost associated with running those, which would be embedded in our cost profile. But what is disclosed as required from GAAP is the sales. Is it high margin or low margin? What's it like? Yeah. Relative to carbon black? Yeah, no, I mean, it moves around quite a bit based on the price of energy. It is, I think, a good margin, and it's a good profit stream for us. These are profitable investments and why we have made them. They are good, but they do move around quite a bit, depending on what either the electricity price is in a given country, the steam price that we might sell at as well. Some are also connected to either a natural gas or oil type price. Does that flow through Reinforcement Materials mostly? Mostly Reinforcement Materials, but plants where we have also specialty carbons, there's a piece that goes to specialty carbons as well. Okay, great. Thank you so much. Sure. Our next question comes from Josh Spector with UBS. Your line is open. Yeah, hi. Thanks for taking the follow-up. I was just curious, given all the moving pieces in Performance Chems, the battery startup, the outage you guys had last year at your Belgium site, what are you thinking volumes look like in Performance Chems in your fourth quarter? Of the startups, I guess, how much of that carries forward into higher volumes next year? Yeah. Hey, Josh. We will see higher volumes in Q4 across Performance Chemicals, continuation of growth in batteries, but also broadly speaking. With respect to the new plant, as we commented, the Xuzhou plant became operational in the quarter. It did not really have any material impact on the quarter. It was really commissioning and starting up, which takes usually a month or two to kinda shake it down and get everything working well, which is the case. Now, what normally happens in a startup is you go through a ramp where you're getting customers qualified on the new units. That generally then what you see is a ramp over multiple quarters here, and we'd expect that pattern to continue. It will likely be a little bit of a slower ramp this time than our historical experience given the COVID situation in China, which is simply moving product around, getting customers to adopt product off the new line, qualify off the new line is definitely a little more challenging in this dynamic China COVID environment. We feel really good about that investment. Of course, it immediately unlocks some capacity in our global network for batteries, but we also feel really good about how that's gonna support growth across the specialty carbons application. You'll see that begin to ramp up in Q4 and in the following quarters, Josh. Okay, thanks. Maybe I could try it a little bit more explicitly. I guess if I look at the Formulated Solutions and the headwind you had last year and say that kinda normalizes to a two-year stack, and you get some growth from these new projects, I guess I can calculate volumes being up something in the range of mid-teens year-on-year in fourth quarter. Is that realistic or not? Yeah, Josh. I think you're thinking about it right. I think on specialty compounds, particularly the year-over-year Q4 number is pretty substantial because we did have the one plant offline for most of that quarter. If you think about it sequentially, Q3 to Q4, I'd say the bigger driver in Formulated Solutions is inkjet, because we did have that plant back online this third quarter. As you saw in the volumes for Formulated Solutions year-on-year, they were roughly flat for Q3. It's less of a sequential story, but as you're looking year-over-year, yes, there should be a pretty significant pickup, given the plant's online. Okay, that's helpful. Thank you. There are no further questions. I'd like to turn the call back over to Sean Keohane for closing remarks. Great. Well, thank you very much for joining today and for your continued support of Cabot. We look forward to it. Have a great day. Thank you. This concludes the program. You may now disconnect.