Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Analyst for Michael Rehaut - J.P. Morgan.
Analyst for Michael Rehaut - J.P. Morgan
I was wondering if you could give some more color on the commercial side of the business relative to historical kind of slowdowns. Is there usually a delay in terms of you activity there and what’s happening in the general market?
Robert R. Buck
There’ve been a lot of questions about the commercial side. The first thing I want to do is remind everyone that in commercial re-roofing is actually a bigger part of that segment than residential. Re-roofing is about 80% of the commercial business. I would expect that new commercial construction would decline and we will get our growth in that area from re-roofing and there’s always the possibility of price increases. That’s how I see that segment. I try to stay away from predictions. I basically have read everything about commercial new construction. I think in ’09 we’ll work hard to emphasize re-roofing in that area.
Analyst for Michael Rehaut - J.P. Morgan
Following up on your comments on the first quarter so far, you said October and November were pretty good. Is that like you’re talking about 10% to 15% sales growth so far or how should we be looking at that?
Robert R. Buck
I think what we always try to do is state how the quarter’s going and it’s off to a really good start. October as David said was very healthy so we’re optimistic about the first quarter. I think the estimates for the year look very doable so we’re off to a good start. [Inaudible] percentages. So we’re doing very well.
Operator
Our next question comes from Michael Cox - Piper Jaffray.
Michael Cox - Piper Jaffray
On the pricing side I was wondering if you could just comment on what sort of sign posts we should look for in terms of looking at the shingle companies cutting prices. It seems like asphalt costs remain at very high levels despite the drop in oil prices so it seems unlikely they would be lowering prices any time soon. But can you provide a little more color there?
Robert R. Buck
Actually you’re correct. Asphalt prices have held up mainly because asphalt is not the primary thing that the refineries like to make and there have been some shortages regarding asphalt. So I think that is one factor that keeps the prices up. Our anticipation is that the shingle manufacturers will not reduce prices. I think they needed those price increases and we worked hard to pass them on. We don’t anticipate that.
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