Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes from the line of Garik Shmois from Longbow Research. Please proceed.
Garik Shmois - Longbow Research
Hi good morning. Just first off on your pricing guidance; 60%, pretty impressive for 2009 considering looking at probably for straight year volume declines. Just wondering, if you could talk about, you're obviously confident of that number but what markets are giving you particular confidence and will you be able to achieve that?
Donald James
I think, overall we are seeing the opportunities for price improvement. Some markets are weaker than others, but its' not focused on any one market. I would say it is generally overall.
Garik Shmois - Longbow Research
Okay. And just to be clear, your pricing guidance does not include the Lake Belt.
Donald James
It does not include any effect from the Lake Belt.
Garik Shmois - Longbow Research
Okay, and just a follow-up on that point; are you seeing any weakness in the pricing in any of your markets?
Donald James
Well, yes. I think California has been weaker than normal. Other than that, I think there are some parts of Florida that have weakened, but overall our price increases have been good across the country.
Garik Shmois - Longbow Research
Okay, I just lastly, you mentioned in the prepared remarks, you expect have a mid-single digit volume decline on the combined non-housing end markets. Can you just talk a little bit more about what you are seeing both on the non-res side and on the public works side?
Donald James
Well non-res, the buildings part of non-res was down about 8% in 2008, and I think we expect it to be down another 7% in 2009. That includes office buildings and retail hotels. There is not a great deal of strength in that end market.
Other infrastructures, construction volume was down about 11% in 2008. We see that being down about 6% in 2009. The strong point there is we I think have said publicly is in large industrial and energy projects along the Gulf Coast which have been the bright spot for us over the last year and should continue to be and are continuing to be bright spot for us in 2009.
Housing was extremely weak in 2008, which should come as no surprise. It was down about 37% and I think we believe it's going to be down about 19 or 20% more in 2009, down 37% in 2008. Highways were down about 9% in 2008. We expect that to be down may be 6%. There are several things working there. Obviously, the stimulus being one of them and the California infrastructure program being another one.
- To read the full transcript on Seeking Alpha, click here »
