Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Brian Sponheimer - Gabelli & Co.
Brian Sponheimer - Gabelli & Co.
You talked about getting share from distressed suppliers. I was hoping maybe you could talk a little more about that and behind that, regarding your own [discussions] with the suppliers, has there been anything discussed with supplier cases in which you have had to ship vendors to ensure a steady supply?
John Corey
Yes. I think that we can’t disclose who we are going to take business from, because I don’t think we have got verbal awards. They need to notify the other side, so that is all we can say right now.
Regarding our supply base the team has done a very good job in managing it better. We have meetings that looking at our suppliers capabilities. They are not only looking through the financial capabilities but also seeing if we are having any problems with the product coming in the door because that is always an indication.
In a few select instances we have had to move tooling to another supplier, and have a couple of programs that are actively underway now to resource business to suppliers that are more financially capable and operationally capable and on the supply side what we have really seen is the smaller suppliers that have had some problems with liquidity and availability. We have developed a list of those. We work with them and in three cases we have had to switch our tooling and capabilities so that we can respond to their financial difficulties.
One other things we have done also is selectively where we felt were not sure of a supplier’s future, we have increased inventories from that supplier until we could get a better fix on it so we wouldn’t have a supplier disruption.
Brian Sponheimer - Gabelli & Co.
Okay. Can you give me any idea of the timing that took place on these three instances where you had to move? Whether it was earlier in the quarter or later?
John Corey
We actually have done all the moves we are working with one remaining one that we’ll have in place by September, so there will be no disruption in any of our production capabilities.
Brian Sponheimer - Gabelli & Co.
Secondly, Banko Santander just announced that they are active on their Brazilian unit. So it appears that the Brazilian market is opening up somewhat. Can you give an update on the PST business and where that stands with regards to potentially setting that off?
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