Question-and-Answer Session
Operator
Thank you, sir. And ladies and gentlemen, at this time, we will conduct a question-and-answer session. (Operator instructions) Your first question comes from the line of Jack Kasprzak from BB&T Capital Markets. Please go ahead.
Jack Kasprzak – BB&T Capital Markets
Thanks, good morning, guys.
Robert Hardy
Good morning, Jack.
Jack Kasprzak – BB&T Capital Markets
With regard to the aggregates price increases that you guys are absorbing, I mean it sounds like this will be an area that you and perhaps others, other concrete companies, will be focused on given the pressure you're seeing, you've been seeing in volume and – is this an area you think I guess I'd say is an opportunity for you guys to maybe play suppliers off against one another, try to alleviate some of the pressure here? If you look at the aggregates results, their volumes are way down too. I mean, I guess the ultimate question is, how long do you think this pricing – upward pricing pressure on aggregates can be sustained?
Michael Harlan
Well Jack, I tell you, we did see some increases in the underlying price in aggregates during the first six months of the year, albeit moderate compared to the prior few years. So, I think they are losing some of the steam in increasing their price, and I think you're exactly right. As we continue to see these softening volume and demand both for our products as well as their products, they're not going to have as much leverage for increased pricing, and we are actively negotiating aggregate pricing for the balance of the year right now and have been for the last couple of weeks in all of our major markets. And I think we do have the opportunity to see that trend reverse itself in the underlying costs of the aggregate. What we really experienced in the second quarter, and we saw it in the first quarter although just not as severe, was the additional fuel charges. Some of those are paid to the aggregate companies who haul directly for us, and some are paid to third party haulers, and some frankly go to ourselves as we haul some of our own internal aggregates. But you're facing situations where you're having haulers who've said, "If I don't get this fuel surcharge I'll park the truck."
Jack Kasprzak – BB&T Capital Markets
Right.
Michael Harlan
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