Question-and-Answer Session
Thank you, Mr. Wood. [Operator Instructions].
And our first question of the morning, we will go to Robert Koort at Goldman Sachs. Please go ahead, sir.
Robert Koort - Goldman Sachs
Thanks. Good morning guys.
Robert L. Wood - Chairman and Chief Executive Officer
Good morning Bob.
Robert Koort - Goldman Sachs
A couple of things. First, in the Polymer Additive areas, Stephen, I think you said you had $22 million of year-on-year raw material inflation. Given the path of raw material increases during 2007, is there at some point where you think you might actually get to a neutral environment there or what is the outlook sort of sequentially through the year?
Stephen C. Forsyth - Executive Vice President, Chief Financial Officer and Treasurer
Our goal by the end of the year is to be neutral in 2008 or 2008 price increases. It would be great if we could also recover what we gave up in 2007 that would be what I would term to be a stretch goal. But if that opportunity arose, we would certainly pursue it. But in 2008, our focus will be on getting neutrality in terms of cost change. The challenge in 2008 is different. In 2007, we had some much more focused courses of price increases like the increase in the cost of tin. The pressures on input costs are more broad in 2008 and I think, most companies in the industry are responding in a comparable manner and there is an expectation that is the petrochemical derivatives increased in cost those have to be passed through, and we see momentum in the actions that we take to pass those costs on.
Robert L. Wood - Chairman and Chief Executive Officer
Bob, let me just add to that, that one of the most volatile of our areas of price increase in where we're seeing a significant amount is in the surfactants business that is our Memphis facility. We expect to close that transaction in the near future and that will have a positive impact on raw material costs as well.
Robert Koort - Goldman Sachs
So, maybe I think I didn’t ask clearly enough. What are you expecting on the raw materials? I recognize, you want to get the prices to sort of accommodate the raw material inflation. But what are you expecting on raw material?
Stephen C. Forsyth - Executive Vice President, Chief Financial Officer and Treasurer
- To read the full transcript on Seeking Alpha, click here »
