Question-and-Answer Session
Operator
Thank you, sir. (Operator instructions) We'll go first to Charlie Brady with BMO Capital Markets.
Charlie Brady – BMO Capital Markets
Thanks. Good morning, guys.
Bill Higgins
Hi, Charlie.
Charlie Brady – BMO Capital Markets
A question on pricing, I guess you alluded to it a little bit, but a major competitor of yours has put through some rate and price increases. Are you – I'm assuming you're doing the same, but are you fully capturing raw material price increases, or is there still a little lag there, a headwind?
Fred Burditt
Are you talking, Charlie, across the board or any particular segment?
Charlie Brady – BMO Capital Markets
I guess – yes, I'm sorry – I guess I was speaking more specifically to Energy with regards to the competitor. But I guess I'd look at that also broadly into Instrumentation business. The major competitor there has put through price increases last few quarters. Are they still doing that or has that kind of stopped out?
Fred Burditt
Okay. In the Energy statement, on the project side, obviously we quote different prices. So I think we're doing – we feel we're doing a pretty good job in that area. In the distribution side, yes, we are working on putting in – we're putting in price increases this year, which will help us to offset the – both currency and material inflation. And I don't know that we will totally offset that, but we'll certainly make a dent in it as we start into the second half of the year. On the other segments, and certainly in the Instrumentation part of business, we have seen price increases this year. As we mentioned in the first quarter and also in the second quarter, we've received some more. So we're beginning to get some movement there, which we had not gotten in the prior year.
Charlie Brady – BMO Capital Markets
Could you comment on – to what degree of sourcing are you doing from low-cost countries currently – and with particularly on the Instrumentation side?
Fred Burditt
For the Instrumentation side, really we are working – it's not a significant amount at this point, although we have a lot of activities in that area. We did close a facility in Connecticut last year, and we – a lot of that product was outsourced and some of it was moved to Spartanburg. We are currently working on a lot of across-the-board sourcing activities in both – many low-cost areas. But to date, we've not had a significant impact on our business, more of that will happen in the future.
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