Question-and-Answer Session
Operator
(Operator Instructions) Our first question will come from the line of John Rogers with D.A. Davidson. Please proceed.
John Rogers – D.A. Davidson & Co.
First on the scrap business how far out are you selling now into the export market?
John D. Carter
John, we do sell forward but we sell forward based on our current look at inventories and our flows have remained very strong so our adjustments on the timing on sales is really very minimal and depends on how we see the market movement. We don’t give specific guidance on that as you know but we’re very comfortable with where we are and how we see the market going upon where our inventory supplies are.
John Rogers – D.A. Davidson & Co.
Okay. Then in terms of the steel mill I was just trying to understand the reported average prices that you saw there, $616 a ton, if you take the revenue divide by the volume you get a number closer to $700, over $700 a ton, I know there’s some adjustments in there but it’s a bigger gap than what we’ve seen in the past. Was there anything else in the steel operations that contributed to the profitability or the revenue in the quarter?
John D. Carter
Well, I think other than the shut down which of course has an effect on what our costs were during the quarter there’s also a product mix that has an effect on those average prices and some of our products have a larger margin for us than others. So, if the mix goes in that direction then obviously that increases the margin it’s not just the tonnage, it’s the mix of products.
John Rogers – D.A. Davidson & Co.
Right. But, in terms of the average pricing too, it should be picked up in there.
John D. Carter
We’ll get back to you on that John but I think it’s really just product mix.
John Rogers – D.A. Davidson & Co.
Okay. Then lastly, just in terms of the share repurchases, were you buying through the quarter or given where the price is I assume it was the early part of the quarter? And, any thoughts on it? I mean, how aggressive you plan to be in terms of the 1.7?
John D. Carter
Well, as you know our repurchase program is based on what we think is appropriate at the time. It varies from quarter-to-quarter and we can’t really predict where we’re going to be with that going forward. It depends on our view of the market and we’re pleased with what we’ve done to date.
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