Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Gregory McGowan - Sidoti & Co.
Gregory McGowan - Sidoti & Co.
Can you review what are you expecting for EBIT at Tropical Shipping for the full year 2008, as well as EBIT at OEV for the full year 2008? You can give it on a net income basis.
Richard L. Hawley
I will just give it to you on a net income basis. At Tropical we are looking at probably just north of $31.0 million. And other energy ventures, we’re looking at probably just under $14.0 million.
Gregory McGowan - Sidoti & Co.
Can you give a little bit more detail in terms of what happened at the retail utility products group and [inaudible] of the reduction in profitability there?
Richard L. Hawley
Sure. And actually, the retail business is right on our expectations and looking to be that way for the year. It’s all marked to market accounting at the wholesale marketing business. As I mentioned, when we look at what we were projecting for marked to market earnings to come in to the end of the year, at the end of the second quarter versus what we’re looking at now, there’s actually been a shift into future periods, 2009 and beyond, of about $11.0 million pre-tax. And that’s all with the declining prices. So that’s about $7.0 million on an after-tax basis.
Gregory McGowan - Sidoti & Co.
So it sounds like the change mentioned in the press release, in terms of retail products group, that sound like it was a really smaller piece of why earnings came in below, I’m sure your expectations were understood, but I understand that you didn’t give us any guidance, but it sounds like that’s kind of the reason why, correct?
Richard L. Hawley
Well, is suspect that had we not seen the performance in the wholesale gas business, and again, we’re talking about our expectations versus the Street’s, but that shift certainly, had it not occurred, would have increased reported earnings for the quarter and I suspect moved it closer to what you all had. Although I don’t reconcile to what you have.
Gregory McGowan - Sidoti & Co.
And finally, I’m not sure if you mentioned this, but the tax rate seemed pretty high in the quarter. Was there anything, in terms of reserves, that made the tax rate so high?
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