Question-and-Answer Session
Operator
Thank you. Ladies and gentlemen, we will now be conducting a question-and-answer session. (Operator Instructions). Thank you. Our first question comes from the line of Mr. Robert Felice with Gabelli & Company. Please proceed with your question.
Robert Felice - Gabelli & Company
Hi, guys. Just a couple of quick questions. First, what was the magnitude of the price cost gap during the quarter?
David Fiorenza
It’s in the 200-250 basis point range.
Robert Felice - Gabelli & Company
Okay. And then I guess what is the cumulative amount of pricing you have announced year-to-date, and how much of that have you realized?
David Fiorenza
We don’t announce price increases as a sense of the stated price increase. But we have announced several times already this year, three times as a matter of fact, and we’re having good success with it.
Robert Felice - Gabelli & Company
Okay. Well, you seemed clear in press release that there are no fundamental changes to the industry and the margin compression during the quarter is really a timing issue? And sort to that end how quickly do you expect your margins to snap back here?
Teddy Gottwald
This is Teddy. I think we’ll see margins improve in the third quarter, barring any unanticipated further increases in raw materials. We have been out in the marketplace. We have agreement on a -- a lot of the increases and they are rolling through now.
Robert Felice - Gabelli & Company
Do you think those margins will get back to levels commensurate with third quarter of ?07 or just improve sequentially?
Teddy Gottwald
I think they will improve sequentially and it's certainly our intent by the end of the year to be at that same kind of third quarter of '07 margin rate.
Robert Felice - Gabelli & Company
Historically your fourth quarter has been weaker than your third would you expect that to persist this year and fourth quarter of '08 to be on par with fourth quarter of '08 or to actually seeing improvement in margins continually through the year of such that fourth quarter or that should be up around that 10% level?
Teddy Gottwald
It's our objective to get there in the fourth quarter. It's hard to say, the rate of increase of raw materials that we have seen this year has just been unprecedented. So it's kind of hard to predict out two quarters right now and what cost it going to do, and if the cost continue to move we’ll continue to be in the marketplace recovering those costs. From a volume standpoint, fourth quarter tends to be lighter than the middle couple of quarter and we know we have no reason to expect anything different this year.
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