Question-and-Answer Session
Operator
Thank you. (Operator Instructions) Your first question is from Michelle Applebaum.
Michelle Applebaum - Michelle Applebaum Research
Hi. I’m thrilled to see the beginnings of spring in your results this quarter and wanted to ask you some specific questions about all three of the businesses. First, on the Metal Framing--you were profitable in February. Do you anticipate that will be continued into the May quarter?
John P. McConnell
We do.
Michelle Applebaum - Michelle Applebaum Research
Okay. And how can we look at the timing in terms of the price increases that are coming through the company in terms of Metal Framing and the timing of your own price increases? Do you think we have passed the corner and will continue to see profitability beyond that?
John P. McConnell
Yes. We will have to watch and see what happens in the commercial construction markets. We are, as I said, knowing that there would be some retraction, there’s also retraction from a very robust level. So we think business will remain fairly strong. Whether or not steel pricing continues to ride to a point, Michelle, that it would slow it down beyond what we think at the moment, that’s a possibility we’ll have to watch. But we feel good about this business. We were out with two increases well before the announced increases on the steel side came and we’ve continued to keep pace with the increases that are out there in the price of material to market. So we feel good directionally about the business; we’re taking a bunch of costs out of it and improving our performance with our customers, which is the part that pleases me the most, as it showed up in volume gains as we started to regain some share working with people in a more open, better way.
Michelle Applebaum - Michelle Applebaum Research
That’s great. And you’re not concerned about the steel price projectory in April and May where things got accelerated then?
John P. McConnell
It certainly got our attention. That’s a big move to get steel to a hot rollup to $800/t in May. And for us, a concern generally has to come on the back side of this more than the front side of this. Obviously we want to work with our customers in these difficult environments for them, giving them plenty of heads-up, where we see the markets going. Watching our inventories is something we will double-down on, though they’re in very good shape at the moment. And I don’t think there’s anything out there that tells me pricing will cliff-dive on the other side. The current economic environment, I think, is supportive of sustaining pretty robust prices as the mills try to cover their increased raw materials costs and other things that they’re doing.
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