Question-and-Answer Session
Operator
Thank you, sir. (Operator instructions) We’ll go first to Jamie Cook with Credit Suisse.
Jamie Cook – Credit Suisse
Hi, good morning.
John Engquist
Good morning.
Jamie Cook – Credit Suisse
Just a couple of questions. Can you guys first give me an update for the full year, what you’re expecting sort of J.W. Burress to contribute on a revenue and EBIT basis versus where we were before as I think about your new guidance?
John Engquist
Jamie, I think the second quarter they were in the $40 million range on revenue, which was a big increase for them from the first quarter. Their equipment sales and rental purchase conversions were very strong. I don’t know that that will be a run rate for the third and fourth quarter. I would think more somewhere in the middle of that $30 million to $40 million would be more realistic.
Jamie Cook – Credit Suisse
Okay. And then just take sort of the same implied margins or should I see margins are down as well?
John Engquist
I would – I don’t anticipate margin deterioration there.
Jamie Cook – Credit Suisse
Okay. And then just my next question, you mentioned with some of the OEs that you are dealing with that they are having inventory issues, I guess, can you give a little more color there? Is it just on the aerial side or you seeing in earthmoving equipment as well?
John Engquist
I think the aerial manufacturers businesses have definitely slowed. There is no question about that. And I think the dirt manufacturers have seen the same thing. And I think if you listen to Caterpillar's reports, their domestic business has softened and they're really being carried by offshore business right now. The one area that demand is just phenomenal is on the crane side. The crane manufacturers really aren’t meeting the demand right now. So it’s basically aerial and dirt manufacturers.
Jamie Cook – Credit Suisse
And any idea when you think these inventory issues sort of work themselves through?
John Engquist
I don’t think it’s going to take long because I think the aerial manufacturers are being very disciplined in their approach right now. I don’t see them doing anything to try and force equipment into the marketplace and keep factories running. I think they’re taking a disciplined approach and I think they will deal with their inventory situation rather quickly.
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