Question-and-Answer Session
Operator
(Operator Instructions) The first question comes from the line of John Nobile – Taglich Brothers.
John Nobile – Taglich Brothers
At the conference in May you mentioned that the fleet age is at a record level of over six years old. Typical truck lasts approximately 8 years. Do you believe pent up demand could result in record revenues in the next couple of years?
Patrick Cavanagh
It is hard to say. One of the things that is going on too is this has been more than discussed in the industry. The issue is that while the trucks are at a record age at this point many of those trucks have very low mileage on them. What you are seeing is reflected in some of the used truck pricing. It has deteriorated substantially over the last six months. I think comments I made here I think there is going to be a time to work off some of this over capacity. We have got to see the freight tonnage come back up which there have been signs that is happening.
Those trucks at some point are going to be old but they have a useful life based on their mileage and I think they are going to have to be used to the point that they want to retire them or second tier those trucks.
John Nobile – Taglich Brothers
I’m curious, you have plans for Q4. With the improvement in orders, at least the press release alluded to improved orders and shipments as compared to Q2, what do you believe we can expect in Q4 sales?
Patrick Cavanagh
I don’t think we said that in our financial release. I made the comment in my remarks we are seeing improved schedules by our customers both last month in July and this month. It is a little bit early in my view, and maybe I am too conservative, but in my view it is a little bit early to get that things are going back to normal. We are seeing improved order patterns by our OEMs and I think that is the good news. How long it is going to last or how big it is going to be, I don’t know.
John Nobile – Taglich Brothers
Compared to what you just reported, the third quarter results to Q4 if things continue the way they are should be better than Q3?
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