Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Shawn Bailey – THM Holdings.
Shawn Bailey – THM Holdings
I know you don’t generally give forward-looking guidance, but the stock is having its worst day in its history, down 55 points, 6%. How do you feel about ’08?
Michael Batten
Actually, I am encouraged by the prospects for the second half of the year. As I have indicated in our general outlook in the press release and my remarks right now, we are seeing, obviously as reported, some slowing down of activity in oil and gas and in industrial. But our volume did increase despite that year over year and quarter over quarter; we see that continuing for the balance of the year.
Our marine markets, represented by propulsion products and marine transmissions going into commercial applications, and our transmissions going into military and [ARF] applications are still going and we are comfortable about our outlook for the balance of the year.
Shawn Bailey – THM Holdings
How much do you have left on the repurchase? Is it accretive at this level?
Michael Batten
I am sorry, I didn’t understand the question.
Shawn Bailey – THM Holdings
How many shares are left on your repurchase authorization?
Michael Batten
140,000 shares are available under the repurchase authorization that we have.
Shawn Bailey – THM Holdings
Do you expect to go to the board to increase that?
Michael Batten
At this point in time we will work with the 140,000 and to the extent that we need to go to the board or want to, we have that capability.
Operator
Your next question comes from TJ Carter – Outpoint Capital.
TJ Carter – Outpoint Capital
Can you give more color on the oil and gas transmission weakness that you are seeing? Is that any particular region or is that across the board?
Michael Batten
The oil and gas market during the second quarter did see some softening and it was largely here in North America that we saw it, both Canada and in West Texas. Some rescheduling or in some cases some cancellations of transmissions. We do see that activity does continue; not everybody was involved in that activity and we have customers that are hanging on to their schedules and we are planning to ship more in the second half.
The activity seems to have moved to Russia and to China. We are active in selling transmissions directly. So in that regard, we do supply our good North American customers but we are also involved in supplying and have shipments going out this quarter to a new Chinese customer that we have acquired for application on their Chinese-built rigs. We are also supporting the population that has gone into Russia and see opportunities in that market area as they are prepared to spend a lot of money to develop their oil and gas markets as well.
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