Question-and-Answer Session
[Operator Instructions]. Our first question comes from Arnie Ursaner. Your line is open.
Arnold Ursaner - CJS Securities, Inc.
Hi, good morning. I guess my first question relates to the transmission and distribution piece of your business. Can you give us a little better feel for the types of orders you're seeing, the types of dialogue you're having and how much of your '09 expectations do you hope to have in place before you begin Europe '09 [ph]?
Mogens C. Bay - Chairman and Chief Executive Officer
Let me start with conversations. I have actually this week met with two companies that are involved either on the engineering sides of transmission lines on the construction side. And both companies confirmed our view that the investments in the grids in North America will continue to be very strong. Our backlog is at record high and I would guess that when we enter 2009, I would guess that about half the year will be in the backlog.
Arnold Ursaner - CJS Securities, Inc.
And my second question relates generally to irrigation and your view going into the selling season in January and February and March. You mentioned obviously some detailed comments regarding input costs not coming down yet. Can you clarify a little bit about what they are? Because things like potash and some other things have come down a fair amount. And at what price levels do you except farmers to be impacted in their orders?
Mogens C. Bay - Chairman and Chief Executive Officer
First of all, when I talk input cost, I talk input cost like fertilizers, which I don't think farmers have seen come down corresponding to what we've seen in commodity prices at the retail level. I think fuel cost will come down as we've seen prices at the gas pumps come down. And I don't think, if we see a slowdown short-term, it is no different from what we've in the past that there maybe an imbalance and farmers are little concern short-term they may postpone some of their purchases.
I would expect that we will maybe see more of a compressed selling season then, because the farmers really don't need their equipment in place until planting next plan. And I think that if we see a slowdown, it has nothing to do with credit which is what we read about in the papers everyday is the main worldwide problem. I think it's just the farmers looking at commodity prices being reduced 20, 30% and just the emotional impact that has on short-term buying decisions.
- To read the full transcript on Seeking Alpha, click here »
