Question-and-Answer Session
Operator
(Operator Instructions) And your first question comes from the line of John Rogers with D.A. Davidson. Please proceeds.
John Rogers - D.A. Davidson
Hi, good morning.
Greg Witherspoon
Good Morning. Welcome.
John Rogers - D.A. Davidson
A couple of quick things, first of all, Greg, you mentioned -- it was Greg or John mentioned, CapEx would be flat in fiscal '08 with '07. Do you have what it was for fiscal '07?
Greg Witherspoon
I believe it was $81 million.
John Rogers - D.A. Davidson
Okay. And depreciation for the year?
Greg Witherspoon
$41 million.
John Rogers - D.A. Davidson
Okay.
Greg Witherspoon
Up, $10 million from '06.
John Rogers - D.A. Davidson
Okay. And then in terms of the scrap business, can you give us a sense of the difference in margins for you between containerized shipping and bulk shipping?
John Carter
Well, as we said on that front, John. The margins for the container shipping tend to be a little greater at the moment because of the backhaul rate for containers. On the other hand, a container contains 17 tons of scrap. So?
John Rogers - D.A. Davidson
Yes.
John Carter
When you look at the bulk rates, it's a lot of containers to make up for one bulk shipment. Our expectation is that markets over time correct themselves but we want to be able to take advantage of what we see as an aberration in that shipping market at present and we will.
John Rogers - D.A. Davidson
And how much can you load in containers now? I mean I'm just trying to get a sense.
John Carter
Well its not -- let me make sure we're clear, it's not going to be a significant amount of overall shipments.
John Rogers - D.A. Davidson
Okay.
John Carter
What it does, it’s allows us to reach some particular customers that are more suited for container shipments. And it allows us to also keep our inventory turns at a higher rate because obviously we don't have to accumulate for a bulk shipment, if we see an opportunity to take advantage of a price change.
John Rogers - D.A. Davidson
Okay. And then the last thing is you talked about expected pricing in margins in the first quarter. But is pricing -- and I guess margins by virtue of freight rates, is it leveling off now or is it still coming down? Just tell me what you see there?
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