Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Michael Rehaut from J.P. Morgan.
Analyst for Michael Rehaut – J.P. Morgan
Yeah, this is actually Analyst for Mike. Congratulations on a nice quarter. Just a couple questions: [inaudible] the Canadian dollar was at about $0.91 last year, looks like steel’s up about 20% year-over-year. Just trying to get an idea of what you guys are modeling to your second quarter guidance in terms of inflation?
Barry McCabe
Well on the Canadian, it was actually $0.86 in the first quarter of last year and began to appreciate in the latter part of the second quarter to where it was close to par by the fourth quarter of last year. In terms of our modeling, we used a current exchange rate which is anywhere from $0.98 to about a par as we look into the second quarter. In terms of commodity, inflation that’s been primarily in metals that we read about as well as oil pressure, as well as oil-related commodities, we work hard with all of our suppliers, not just in those categories, to do everything we can to mitigate some of these inflationary pressures; and we will do so not only in the second quarter but in the second half of the year.
Analyst for Michael Rehaut – J.P. Morgan
Do you guys have like long-term supply contracts for steel?
Barry McCabe
We have a variety of contracts with a variety of suppliers.
Analyst for Michael Rehaut – J.P. Morgan
Then just lastly, if you guys could give a breakout of what the organic sales were and possibly if you can give out what International did and North America and how much Edelman Leather contributed in the quarter.
Andrew Cogan
I can tell you this: We had organic growth, but clearly on top of the organic growth, Edelman was a big help. The acquisition continues to perform better than we anticipated. It’s working well both in the marketplace and in the backend of the business, so we’re very pleased with how that’s going. Again, as Barry talked about, growth was led by our specialty businesses followed by our international efforts and then in the North America where we were pretty flattish to down a little bit in the Office end of the business.
Analyst for Michael Rehaut – J.P. Morgan
Then for second quarter are you kind of also modeling in that flattish North American growth?
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