Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Bob Labick with CJS Securities.
Bob Labick - CJS Securities
Good morning.
Harvey Blau
Hi Bob.
Bob Labick - CJS Securities
Hi, a couple of questions. I want to start with Installation Services. You mentioned that you're undergoing some continuation of restructuring initiatives. Can you give us a sense of the expectations from the expected return from the charges you expect to take in, and can you talk in the context of bringing down your fixed costs in that business. You had about $80 million in SG&A last year there, I don’t know its split fixed or variable, but how much do you think you can lower your fixed cost in that business?
Harvey Blau
Okay. Frank Smith will answer that.
Frank Smith
Yeah. Bob, I don’t really have that particular answer to the dollar. What we were talking about doing in general, was of the loss that we incurred in the first quarter. We would be looking to taking out from 50% to 60% of the loss. That should help you in trying to figure out some order of magnitude on the numbers you gave.
Bob Labick - CJS Securities
Okay That’s, I’ll start soon. The housing crisis has deepened, it has gotten worse, but the original goal probably a couple of months ago, was to shoot for breakeven for the year for this division through the restructuring. Is there still a possibility of getting back to breakeven at this kind of quarterly run rate basis this year, or how do you view this year playing out currently?
Frank Smith
Bob, results in sales have deteriorated so much from what we thought, even though from previous months, that I wouldn’t be comfortable with predicting what the future holds. We are doing our absolute best to reduce these losses and deal with the situation.
Bob Labick - CJS Securities
Okay. Just getting into doors, again, with the restructuring initiative in place there, is there kind of target savings from the current restructuring.
Harvey Blau
Yes there is. We are shooting at for least $10 million worth of improvements through the projects that what we have underway already.
Bob Labick - CJS Securities
Okay. That’s all off of the current level or should I take this quarter’s G&A and somewhere in the magnitude of $10 million off of that obviously?.
Harvey Blau
They are not all programs that address G&A. There's a combination of initiatives, reductions in the force, and sales and marketing program spending that will be either eliminated or deferred, and there are some sales initiatives that are taking place to improve the topline, some of which have already been put in place and will produce benefit over the remainder of the year. So it’s a combination of all lines of the P&L.
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