Question-and-Answer Session
Operator
(Operator Instructions). And our first question will be from David Driscoll with Citi Investment Research.
David Driscoll - Citi Investment Research
Hi, good morning, everyone.
Sam Scott
Hi, Dave.
Cheryl Beebe
Good morning, Dave.
David Driscoll - Citi Investment Research
The stock does appear like it will be half a little bit this morning here nonetheless congratulations on the quarter and on the year-to-date performance.
Sam Scott
Thank you.
Cheryl Beebe
Thanks.
David Driscoll - Citi Investment Research
Just a couple of questions on the guidance, does the guidance include one-time gain?
Cheryl Beebe
Yes, the $0.05 from the CME. Yes, it does.
Sam Scott
Both ways, it’s true, David. Within and without that we expect it still in the upper end of the range.
David Driscoll - Citi Investment Research
I don’t understand that, Sam, what you trying to tell me?
Sam Scott
Well, the upper end of the range is the middle of the range and up. And I am saying with the exercise cents would out at, we still expect to be in the upper end of that range.
David Driscoll - Citi Investment Research
Okay. Can you give us a couple of comments here on '08, I know you’ve not provided any formal guidance, but obviously everybody is keenly interested in just hearing your thoughts on how strong the pricing environment is in North America. Even if you can’t give us some specific numbers, what can you tell us about the strength of the outlook for '08?
Sam Scott
Well, I can tell you that North America, David, as you all know and heard it, that our price increases out there on the table right now. I can’t comment on where they are, but the announced increases are in the range of 15% to 20%, depending upon the existing price this year.
Obviously, we are in contracting right now and I never comment on where it is when we are in the contracting mode. I have said before I think you said it is well that we expect volumes to the supply demand balance to remain in balance as we go into 2008.
It appears that the Mexican border will continue to open up. I have said, I expected managed trade; it looks like I might have been wrong on that. So, that will improve the overall demand pull of the product and again there is in North America to the most part on the world with the exception of our expansion. There is, nothing really is going forward with respect to expansion in the business.
- To read the full transcript on Seeking Alpha, click here »
