Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes from the line of Michael Gallo with C.L. King.
Michael Gallo - C.L. King
Hi good morning.
Denny Oates
Good morning, Mike.
Michael Gallo - C.L. King
A couple of questions. Rick, did I hear you say right that you sold $1.1 million of excess scrap in the quarter, and that was booked as other revenue?
Rick Ubinger
That's correct.
Michael Gallo - C.L. King
What was the earnings impact, if anything significant, as a result of that?
Rick Ubinger
I think Michael, we made a couple of about $200,000 on that.
Michael Gallo - C.L. King
$200,000 net?
Rick Ubinger
Yes.
Michael Gallo - C.L. King
Okay. Second question I have is for Denny. Obviously I know earlier you had anticipated that we would start to see some service center restocking starting in the second half of the year. It seems like that is getting pushed out somewhat. And it seems like service center customers are continuing, at least from what they're stating publicly, to indicate that they're going to continue to manage their inventories of stainless product very carefully. So, I was wondering, I guess we come back to that question here. If you're continuing to see them cautious on behavior as we enter the third quarter, they typically are always cautious about their inventories at the end of the year. What gives you confidence that they're going to come back in a meaningful way in the second half of the year and restock?
Denny Oates
As we look at the trends and their end use demand, the demand they are seeing from their customers, we see a very strong demand picture in the second half of this year. Actually, it has been pretty strong all year long. The level of their inventories, if you go back over the last several quarters, you can see those inventories coming down pretty consistently. When you put together the strong demand that's out there, they're still making airlines despite all the negative things you read about in the news. And look at where their inventories are today. My view is they're going to have to start buying.
Are they going to be very conservative in their buying and very risk averse? They certainly are. They are looking, as I mentioned in my prepared comments, at nickel prices and making that judgment call, and will nickel prices be going down over the next couple of months, should I defer a buy that I need and try and get by with slightly lower inventories in order to have the benefit of those lower surcharges?
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