Question-and-Answer Session
Operator
(Operator Instructions) We'll go first to Mike Schneider with Robert W. Baird.
Mike Schneider - Robert W. Baird
Good morning guys.
Ed Buker
Good morning.
Jim Nicholson
Good morning Mike.
Mike Schneider - Robert W. Baird
Congratulations on the early progress. I know it's been a very challenging year. Maybe first we could just start on some of the momentum heading into 2008, can you describe, I guess, first on volumes maybe by product category, I know you gave some figures in the press release, but what actual unit volumes are down in the different categories of products and then I guess what your -- based on that momentum what your rough expectations are as we go through 2008? And maybe along with that color just what you are actually hearing from your customers at this point?
Ed Buker
Okay, I'll see if we can do this appropriately.
Jim Nicholson
I deal with history and Ed deals with the future.
Mike Schneider - Robert W. Baird
Sure.
Jim Nicholson
We had a lot of mix change during the year. We really were only down in terms of unit in the R&F market and R&F represents in terms of unit volumes, much larger unit volumes than the rest. Commercial units AC, those tend to be higher average prices, so even though you see larger increases in these smaller segments and decreases in R&F, in aggregate, when you look at all those together, our unit volumes are essentially flat in 2007 versus 2006.
Mike Schneider - Robert W. Baird
And was that true in the fourth quarter as well, Jim?
Jim Nicholson
Pretty close. Pretty close. I think, you know, I have seen your early release --
Mike Schneider - Robert W. Baird
Yes
Jim Nicholson
But I think what you've done is you've made an assumption where we reflected pricing and mix, I think you've assumed that that's all pricing and it's really more mix than pricing.
Mike Schneider - Robert W. Baird
Got it. So then -- with commercial construction slowing here in the United States and consumer spending seemingly globally beginning to slow as well, can you give us a sense of what the momentum has been through Q4, then your outlook in 2008?
Jim Nicholson
The outlook in 2008 for us is, we put in about a 7% to 8% unit decline, and if you look at what we are talking about for sales volume, most of that is offset with the increase in raw materials, the increase in exchange rate and there is some price increase in that.
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