Question-and-Answer Session
Operator
(Operator instructions) Our first question is from Larry Solow of CJS Securities. Your line is open.
Larry Solow – CJS Securities
Hi good morning. Can you maybe discuss your Aviation Supply, it looks like your margins actually were, it surprised me, held up pretty well, obviously I know they have the last couple of quarters, but are the – first of all, the bigger ticket items, are those lower margin? Were you – kind of your sales were kind of down a little bit and was it due to better mix or what was the color on that?
Tim Romenesko
Well, I think the – I think, Larry, the – but just the volumes were lower in big ticket items and at the components shop.
Larry Solow – CJS Securities
Right.
Tim Romenesko
And the margin on big ticket items can – it’s volatile. They are – sometimes they are modest, but other times they can be significant. So, I think you have just a – recently experienced in the quarter just a general softness in demand for parts and then it was exacerbated by the lack of any engines or large structural components.
Rick Poulton
Larry, it’s Rick. I’d just add to what Tim said (inaudible) by pointing out that as part of what we described is some of the revenue weakness, which was really out of our component repair shops. Those tend to be a little lower margin than the other aspects inside Supply Chain. So you are getting a little bit of margin left as those things show some softness.
Larry Solow – CJS Securities
Got it. And I know you’ve had some weakness in the European component shop and you talked about some potential actions taken and I guess I see you’ve had some headcount reductions there and severance costs. Any other actions you could take or –?
Tim Romenesko
We are working it. We are working both the cost side and the business development side. We’ve – we’ve moved a team in there now and working on improving the performance there. We’ve got some things that we are working on that are going to help. So, it’s a priority.
Larry Solow – CJS Securities
Got you. And then just last question. Can you, Tim, maybe just discuss – I see recent – looks like recent trends are at least stabilizing. You mentioned last couple of weeks in you press release kind of during the quarter did things get progressively worse in the Aviation Supply as capacity started to come off or how that play itself out?
- To read the full transcript on Seeking Alpha, click here »







