Question-and-Answer Session
Operator
Thank you. (Operator Instructions). We will take our first question from Bruce Klein with Credit Suisse.
Bruce Klein – Credit Suisse
This slide had the downtime and volume impact 4Q versus 4Q '07, could you help us what it was versus the 3Q '08?
Michael A. Jackson
Hey Bruce. The first part of your question didn’t come through could you repeat that?
Bruce Klein – Credit Suisse
Yeah. What's the downtime and the volume impact separately in 4Q versus 3Q?
Michael A. Jackson
In the third Q, we had about, I think about 16,000 tons of downtime and in the fourth quarter we had 60,000 tons.
Bruce Klein – Credit Suisse
I meant the impact on EBITDA I think you gave us the impact year-over-year, but I don't think you gave it sequentially, or was I mistaken?
Michael A. Jackson
We had Bruce, we had the total combined between the volume loss and the downtime equated to almost 30 million in total.
Robert P. Mundy
Yeah. But sequentially the downtime, the unabsorbed cost impact was about 13 million.
Bruce Klein – Credit Suisse
Okay. So, that's 13 million, I'm sorry downtime 4Q versus 3Q, and then I'm assuming $17 million would be the volume impact sequentially?
Robert P. Mundy
That’s about pretty close.
Bruce Klein – Credit Suisse
Okay. That's helpful. And then I guess the cost inputs I guess on your chart, okay when you said $2 million that was sequential correct?
Robert P. Mundy
Yes.
Bruce Klein – Credit Suisse
That was 4Q versus 3Q?
Robert P. Mundy
Yeah.
Bruce Klein – Credit Suisse
I guess in chemicals, I guess the two that didn't go down I guess sequentially, chemicals and wood cost, can you give us a little more color it sounded like, wood cost should they be down 1Q versus 4Q and same with chemicals or are they just trending down, so the average might not get us there or could you help us with that?
Robert P. Mundy
Well you said 1Q versus 4Q, I think the, overall I think they will be trending down they weren't down 4Q versus the third quarter, as I mentioned, but I think we expect to see that been down sequentially in the first quarter.
Michael A. Jackson
Yeah Bruce. A lot of that has to do with the particular chemical as well as we try to describe in the opening call latex is a large buy of ours as well as clay and latex went up very, very high to the November, December timeframe, but we are beginning to see some relief on that and clay has been clearly neutral.
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