Question-and-Answer Session
(Operator Instructions) Our first question comes from the line of David Strauss of UBS. Please proceed.
David Strauss - UBS
Good morning.
Nick Howley
Good morning, David.
David Strauss - UBS
Nick, did I hear you say the aftermarket was modestly lower in the first quarter?
Nick Howley
Yeah, down 5%.
David Strauss - UBS
Okay and that's.
Nick Howley
This is commercial aftermarket, le me be clear on that.
David Strauss - UBS
Right, so down 5% and I assume embedded in that is decent kind of price increase. So volumes were obviously down even more than that.
Nick Howley
Correct.
David Strauss - UBS
Okay.
Nick Howley
I think, as I said, David, we believe that it's hard to quantify. We think there is some restocking going on through the system.
David Strauss - UBS
Okay. But it's tough to quantify.
Nick Howley
Yes, tough to quantify.
David Strauss - UBS
Okay. And then on the OE side, to your holding this flat, but the business shift side has deteriorated, I think, fairly significantly since your prior guidance, I think that's roughly about 15% of your sales.
Nick Howley
Well, that’s business and regional, you got some regional in there.
David Strauss - UBS
Okay. Well, I guess on a business shift side, where you have concentrated?
Nick Howley
I think, David, just to be a little clear on there, what we said for the year on the OEM is we think it may be weaker than the flat year-over-year comps we gave you 90 days ago.
David Strauss - UBS
Okay. Is that weaker forecast? Is that incorporated into the some big answer now?
Nick Howley
Yes.
David Strauss - UBS
Okay.
Nick Howley
Yes. I would say, we're very uncertain, I mean, who knows what we're going to see on these OEM rates. One of the big uncertainties in my mind is where are we going to see another shoe drop on these commercial transport rates?
David Strauss - UBS
And then, last one. The 9% headcount reduction that you have already undertaken, what does that size you for, I mean, are you probably aside at this point for Boeing production rates to come down or would you look at potential take an additional headcount out if that would happen?
Nick Howley
David, it depends how much. We are appropriately sized for sort of the guidance we gave you. We look at this month-by-month now. This is a time in the market that needs just continual tension. We will keep trimming a little bit, each time we see softening across individual operating years. We did little of that in the first quarter, I suspect that's a tweaking we are going to be doing all year.
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