Question-and-Answer Session
Operator
(Operator Instructions) We’ll take our first question from Timna Tanners with UBS.
Timna Tanners – UBS
I was wondering if you could give us a little bit more information on the mention in your press release on exports for starters?
Jack A. Hockema
Sure, Timna, it relates to automotive and as you know our London, Ontario facility is a world class supplier of automotive extrusions and we’ve frankly had a lot of interest in us exporting over the past few years but we’ve never been able to reach a situation where it was economically feasible. But with the weakening of the dollar we’re now in a position where some of our automotive supply customers have requested that we ship to Western Europe to supply their needs there and we’ll be doing that throughout 2008.
Timna Tanners – UBS
Is that something that you could quantify a little bit in terms of volume or something that we could measure a little better?
Jack A. Hockema
I would quantify it in terms of the total that despite industry forecast that car builds, light vehicle builds will be down in 2008 versus 2007. We expect with our new programs and with our exports that we will not suffer any decline in shipments to the automotive sector and there may be some up tick.
Timna Tanners – UBS
Okay, that’s interesting. Also was wondering on the guidance that you give for heat treat volumes which is helpful, is there a reason that this first half is that just because you’re trying to incorporate the timing of the down time? Is that more second half then?
Jack A. Hockema
What we expect is that the first three quarters actually will be, production will be curtailed if you look at the total first three quarters and then in the fourth quarter Phase 3 will have started up. So we expect to see a significant surge in shipments in the fourth quarter as the new production comes on stream. But during the first nine months of the year, even in the first quarter while the production will be stronger, shipments will probably be curtailed as we seek to level this out supplying customer needs through the year.
Timna Tanners – UBS
So even with the curtailment you’re saying here you expect first half heat treat plate shipments to be up 10 to 15% year-over-year?
Jack A. Hockema
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