Question-and-Answer Session
Operator
(Operator Instructions)
Your first question comes from line of Mike Schneider of Robert Baird. Please proceed.
Mike Schneider - Robert Baird
Good afternoon.
Pat O'Keefe
Hi, Michael, how are you doing?
Mike Schneider - Robert Baird
Good. Pat, maybe first just on your opening comments about some of the European restructuring being rethought. I think you use your word. Could you explain what is changed there and again run through the math as to the savings delay, or push-out?
Pat O'Keefe
We are rethinking some of the restructuring mostly in terms of the timing of it. It is mostly delayed because of the fact that I mentioned later in my comment that we were hiring a new manager for one of our operations, the French operation. They want to make sure that he or she whoever comes on Board is completely behind that program and is brought into it. So, that is really what it is, more of a delay, Mike, than a change in the program.
Mike Schneider - Robert Baird
You had done modeling, 4,000 of the savings gets pushed from '08 to '09?
Bill McCartney
That is right.
Pat O'Keefe
That is correct.
Mike Schneider - Robert Baird
Okay. Then just in the domestic wholesale channel, if I recall last quarter, the volumes in U.S. wholesale were down about 10% in Q1. In Q2, it looks they were probably down mid single digits. Any change in distributor tone or restocking, destocking or just in product mix or strength that occurred during Q2 to explain the less negative results?
Pat O'Keefe
Yes, it is quite clear, Mike, what was going on. In Q1 and for the first half of Q2, we still had destocking going on. They were selling off their inventory and bringing their inventory levels down. Apparently, they went too far, because we saw both on the retail side and on the wholesale side, the last 45 days of the quarter are very strong import that continued right through the end of the quarter.
Now, I think that is a reflection of the fact that activity was not as low as they anticipated it, going into the summer months. So, the question that we are struggling with now is where we see that continue into the third quarter. We do not really know at this point. We also do not know what they are going to do as they get toward the end of that quarter.
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