Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Ethan Star – Private Investor
Ethan Star – Private Investor
Was the acquisition on the cat litter side or the industrial side?
Daniel Jaffee
It was on the industrial side.
Ethan Star – Private Investor
Why was the CapEx in the quarter so much lower then usual and will it continue going forward?
Andrew Peterson
That won’t be an example of what it will be like going forward. I think in fact it’ll certainly pick up from that level in the fourth quarter and I would expect it to be picking up quite a bit next year.
Ethan Star – Private Investor
So why was it lower this quarter?
Andrew Peterson
That’s all about timing.
Daniel Jaffee
My general comment on CapEx would be I think its going to start being higher then we’ve seen and not because necessarily we’re going to do more but the cost of steel has gone so crazy that doing the same project, just keeping the infrastructure of our plants where it needs to be is costing more today then it did 12 months and 24 months ago. So the days of under-spending depreciation and amortization for the next 12 to 24 months may be over.
Operator
Your next question comes from the line of [Joseph Cregney] – Private Investor
[Joseph Cregney] – Private Investor
I have a question simply regarding the bleaching earth side of the business. I notice that you do plan to increase prices but I notice that one of your competitors BASF specifically, increased 25% to 35%. Do you expect to match that or be similar?
Daniel Jaffee
That’s news to me that they put out a general increase because I haven’t seen that. I know there’s selective stuff but if you had anything, I’d love to get a fax of that. I haven’t seen them announce a general across the board 25% to 30% increase on bleaching earth.
[Joseph Cregney] – Private Investor
I saw it several weeks ago, but I think it was put out even a couple of months ago.
Daniel Jaffee
I would love to get a hold of that, I’ll try and find it myself. I haven’t seen that. Usually these things come across our wire pretty quickly. But anyway we are out there working with our customers, raising prices. At the same time, a lot of our prices are—freight is a big piece of the equation and there you get fuel surcharges and things that are pegged to diesel and so you’re getting increases even above and beyond your product increases. You’re not making any money on that but at least you’re not losing it. Its basically the transportation companies that end up with it, I guess the oil companies end up with it. But so yes, we’re absolutely committed to maintaining our margins in the bleaching earth business.
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