Question-and-Answer Session
Operator
(Operator instructions) Your first question comes from the line of Michael Gallo with C.L. King.
Michael Gallo – C.L. King
Hi, good morning.
Dennis Oates
Good morning, Mike.
Michael Gallo – C.L. King
Couple questions I have. First, I was wondering with obviously significant fall in nickel and other commodity prices, is base pricing still holding or customers asking for reductions in base price? Because I know fairly recently you were still able to get base price increase. I was wondering if anything has changed on that front over the last month or so?
Dennis Oates
We’ve not announced any changes in base prices. As we negotiate new arrangements with from customers, we are seeing some increased competition, but I would not say that we are seeing large scale reductions in base prices at this time. From a customer standpoint, they are seeing sizable reductions in the acquisition cost of our products due to the surcharge reductions.
Michael Gallo – C.L. King
Okay. Second question I have is you noted, Denny, that over the last couple weeks order entry seemed like it has really fallen off. I think when you had the call in early – earlier, a few weeks ago, you indicated that you are still seeing good order entry for tool steel plate and for power gen products. Have you seen a change in tool steel plate and power gen product order entry, or is it just obviously aerospace has grounded to a halt, I would imagine, but I guess have you seen the other areas start to fall off? Are they still holding up okay?
Dennis Oates
Aerospace is the one that’s down, Mike. If you look at our power gen business and if you look at tool steel, they are still relatively strong. Power gen is particularly a strong spud. The tool steel business is good. It’s down from where it was three to six months ago. But that’s not what’s accounting for what’s going on in the last two weeks, mainly the aerospace and primarily service center business.
Michael Gallo – C.L. King
Okay, great. That’s helpful. And then I guess final question for Rick. I guess looking at the range for the quarter, I mean obviously it’s a wide range and it’s a very uncertain environment. I was wondering – I mean, have you assumed anything in terms of resolution of the strike at Boeing? Do you pretty much assume that that continues through the quarter? I know it’s something you have no control over. I just want to understand kind of how you came up with the range given that?
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