Question-and-Answer Session
Operator
Your first question comes from Ben Nolan - Jefferies & Co.
Ben Nolan - Jefferies & Co.
Hello Joe and Fred; another nice quarter there. I have just a few questions for you quickly, first of all I was going to just get your sense given the fact that you guys have moved more into the steel trade from China to South America and really I guess from the Far East to South America, the Chinese have cut subsidies for some of the steel makers and their steel exports, have you guys seen any change in the volumes that have been coming out of the Far East in terms of steel to South America?
Joseph Royce
Well there are different types of steels. First of all our new service from Japan and the Far East, Korea and China going into Brazil is based around specialty steels for the automotive industry in Brazil and we see this growing into, with our present customers, into a five year contract business. So that’s very solid. China, in the basic raw steels, we saw a little bit of a tail off towards the end of last year; it’s been quiet in the first quarter and the expectations and one of the reasons that the feeling that it’s been quiet was based on the fact that the iron ore negotiations weren’t concluded. But our expectations are that it will pick up in the second quarter and pretty much follow the same pattern that it did last year. So we’re hoping and with expectations that the steel parcel service from China will pick up in the second quarter of this year.
Ben Nolan - Jefferies & Co.
Okay great and then another thing quickly maybe for Fred, I noticed that the G&A expenses have picked up a little bit quarter over quarter, I was going to see if there was any year end sort of annual one time expenses affiliated in that number or is that maybe a good run rate going forward?
Fred Lepere
Well you know in absolute terms every line in the financial statements are up, especially revenue and other associated expenses as is the G&A’s. However if we look as a percentage of revenue between 2006 and 2007 there is a consistency. In the fourth quarter in particular we had of course our bonus considerations once we solidified the result of the year and feel comfortable then we look at the bonus situation and this year was a bit higher because we have more employees and because of the performance of the company. I do feel on the run rate portion of your question that this run rate given the results we’re expecting for 2008 should be continuing, yes.
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