Question-and-Answer Session
Operator
Your first question comes from John [Wathusen] – Wathusen and Co.
John [Wathusen] – Wathusen and Co.
On your engineered business the Orion project, you’re very specific about it but is that a one-time only project or is that just a first stage and there may be multiple stages of it?
Roger L. Fix
It’s the latter. That is the first stage or first step in the project. This is for tooling and prototype hardware that we understand will be used in the initial design and qualification of that rocket. Assuming it’s successful there’ll be then additional hardware over the years that will be used for actual launch purposes.
John [Wathusen] – Wathusen and Co.
In the [inaudible] group, you are very eloquent about how enthusiastic you are about the business, but can you be a little bit more specific about what types of things you’re making and for what types of customers beyond the broad industry segments that you serve?
Roger L. Fix
The Spincraft business, their core competence is in the area of large fabricated metal alloy components used in a number of applications. For example, in the rocket program, they were used to make domes that are used in the fuel tanks for the rocket programs. In the energy side, we’re doing business with stationary land-based gas turbine manufacturers where we manufacture components in what I call the hot section of the turbine. Again, parts that are fabricated well and then spun for high alloy kinds of metals.
In aviation, a good example is the lift skins which is the piece of the cell that surrounds the jet engine on an aircraft. That’s the inlet piece and we fabricate those components as well. So, a pretty wide variety of what I call engineered products where metallurgy and our ability to fabricate products into unique configurations is a core competence we’ve developed.
Operator
Your next question comes from the line of Michael Gardiner - Wedge Capital Management.
Michael Gardiner - Wedge Capital Management
A question on the air distribution products group. Do you think you can hold it at breakeven given the top line and cost pressures?
Roger L. Fix
You know we don’t give projections. I think we’re going to be challenged in that regard. The industry has not gone for price increases. Metal prices seem to be stabilized at the current level, but we’re concerned about our volume going forward. We really haven’t seen that we’re at the bottom and the question is what really happens to the volume and do we get any relief on the metal costs?
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