Question-and-Answer Session
Operator
(Operator instructions) Our first question comes from Mark Connelly with Credit Suisse. Please go ahead.
Mark Connelly – Credit Suisse
Thank you. A couple of questions, George, when I think about your engineered paper business, I think about sort of broad, but relatively shallow economic exposure. Is that still true these days? I mean, obviously, your overall portfolio has changed quite a bit in the last couple of years. But should we think of you guys still as gently sensitive to economic conditions in the US rather than severely? Is that still a right sort of calibration?
George Glatfelter
Thank you, Mark. I’m a little careful with generalizations, but I think your characterization is true. In general, we do have a pretty broad product line. And that’s complemented by some pretty strong customer relationships that in times of economic stress, tend to work in our favor. These relationships have enabled us to, I think mitigate, to date, a large portion of the impact of the declining economy. I think that’s important. Especially papers, for example, we’ve improved our volume shipped in areas of envelope and the uncoated engineered product grades that you’ve talked about. And in the composite fibers business unit, we continue to increase delivery in the tea and coffee markets. And we’ve grown composite laminates due to the exit of a number of competitors in that market. I think in fairness, the economy and its impact, particularly, on sales volume remains a risk as we look into the second half of 2008.
Mark Connelly – Credit Suisse
Just two more questions. Can you give us a little bit more color on what you think is happening in envelope that’s helping drive that? Obviously we had a couple of disasters direct mail months. Are we just rebounding from that? Or are we seeing an inventory build? Or are your customers and competitors doing something different now?
George Glatfelter
Thanks, Mark. I’ll direct that to Dante.
Dante Parrini
Hi, Mark.
Mark Connelly – Credit Suisse
Hi, Dante.
Dante Parrini
As you know our envelope and converting paper business has curved out a bit of a regional niche in the Greater Mid Atlantic and East Coast. And we’ve develop a service proposition that is viewed as the benchmark. So our ability to allow our customers to reduce working capital, especially during this type of economic environment, and the combination of our consistent quality, and the sticky relationships that we’ve been able to develop, and the utilization of tools like myglatfelter.com, have all kind of added up to allow us to continue to grow this part of our business. And we’re quite comfortable with the position that we have even as you reference the kind of tough few months in advertising and direct marketing.
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