United Stationers Inc. Q2 2008 Earnings Call

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2008-08-01 11:38:12.0

Tags: United Stationers Inc.

Question-and-Answer Session

Operator

And ladies and gentlemen at this time we will conduct a question-and-answer question. (Operator Instructions). And our first question comes from the line of Dan Binder from Jefferies & Company. Please go ahead.

Dan Binder - Jefferies & Company

Hi, good morning.

Dick Gochnauer

Good morning, Dan.

Dan Binder - Jefferies & Company

You guys had a nice bounce back this quarter after Q1.

Dick Gochnauer

Thank you.

Dan Binder - Jefferies & Company

Congratulations. Question for you is as you look forward over the next couple of quarters, a lot of the good work that you’ve done to drive top line in a tough environment has been working well. But the employment picture is getting worse and I’m just curious, seems like you’ll have to run twice as fast in the back half of the year to keep up the pace. So, one, I don’t know if you would be interested in sort of giving us a rough idea of what you’re expecting in the back half and two, how you get there?

Dick Gochnauer

Okay. Well of course that’s the $64 question we are all asking ourselves, as we are watching the same kind of employment trend numbers. Although, it seems to be leveling off at the moment but don’t know where it it’s going to go from here. Clearly, we saw the improvement in the second quarter. Part of it was a shift as we know from the first quarter and the timing of the Easter holiday. And as we indicated, July is kind of running along the rate, if you take really the first half of the year.

So to some extent we don’t know whether to say, hey, things have leveled off or we have some more deterioration in fronts of us. So I guess your guess is pretty much as good as ours on that question. The good news for is us is we are seeing good growth in the JanSan area and industrial area and the new channels and some of the new initiatives we have done. And so, some of those are really independent. The success in those areas are really independent of the economy. And as a result of that, aren’t going to be as affected I think by what happens in the employment numbers. So those give us some cause for optimism at this point. But figuring out the rest of it is what we’re all trying to do.

 

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