Question-and-Answer Session
Operator
Certainly, thank you. (Operator instructions). And we’ll take our first question from Bryan Hunt from Wachovia
Bryan Hunt - Wachovia
Good morning everyone,
Robert Harrison
Hey Bryan.
James Cooley
Good Morning Bryan.
Bryan Hunt - Wachovia
I was wondering if you could discuss in general your inventory levels because they are quite low and how that might impact planting commitments in the up coming periods, two also if you could discuss your uncommitted inventory levels and then lastly with inventory so low, is there a potential that you may miss some shipments or it may impact revenues in an upcoming periods, so a three part question.
Robert Harrison
Taking the last one first Bryan, we don’t think so, but obviously we’re focused on the number one issue which is security of supply for our customer base, the, we’re looking at the crops as they’re coming up in the next cycle and making sure that we’re doing the maximum we can to ensure that adequate levels of tobacco will be there for us to be able to provide that to our customers. We’ve had had and unusual year this year with some of the weather conditions in the various countries. Hopefully that’s just a one off and we’ll see a return to more normalcy. In terms of the uncommitted levels of inventory, there toward our lower end of our range and we were very comfortable with them.
Bryan Hunt - Wachovia
And when you say returning to levels of normalcy, does that imply we’re probably looking at from cyclical standpoint, your troth inventory levels, and we’re going to see working capital build back up a little bit from here?
Robert Harrison
Depending on the level of prices that are out there to get the production stimulated to the right level, you could potentially see some yes.
Bryan Hunt - Wachovia
Okay, next I mean, looking at prices, they were up nicely in the current quarter, could you discuss whether the increase was a result of your sales mix? Or whether actions taken by you in the last 90 – 120 days to achieve an economic profit, the profit is sustainable at these price increases?
Robert Harrison
It’s a combination of both, clearly when you’re dealing with a green cost prices, which are being impacted by supply and demand factors as well as currency factors we have to work very closely with our customers to ensure that they’re getting the tobaccos that they need so it’s a combination of mixed from where they are whether the tobacco’s being shipped in and working very closely with our customers.
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