Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes from Luke Folta – Longbow Research
Luke Folta – Longbow Research
Hi, good morning. First question I had, would you be able to break out for us sales by product including the surcharge?
Anne L. Stevens
Yeah.
K. Douglas Ralph
Sales by product including the surcharge.
Anne L. Stevens
Hold on. Just give us a couple seconds. We will locate the data.
Luke Folta – Longbow Research
I guess I’ll ask my second question. Regarding what you’re seeing as in the Airbus supply chain, has there been any real change in your expectations there due to the economic situation?
Anne L. Stevens
Not at this point in time. The majority of what we have seen was due to the impact of the Boeing strike that was out there as well as just some general concern in the economy. Honestly, we really don’t separate out whether the material is destined to Airbus or to Boeing. Overall I would say no.
Luke Folta – Longbow Research
Okay. And you talked a lot about some cost initiatives that are underway. Can you give us some sort of quantification on how much you think might be available to take out of the system?
Anne L. Stevens
Yeah, let me just tell you the way that I look at it. I constantly monitor the fixed-cost structure of our business because that’s really important in generating positive cash flow. Now, as we started to see the top line come down then I realized what I needed to do was adjust the fixed-cost expenditure of the company. So at this particular point in time I can’t give you a dollar number, but I will tell you that we are reducing our fixed costs by two percentage points. I will constantly monitor that top line and keep the costs under control.
Luke Folta – Longbow Research
Okay.
Anne L. Stevens
Do you have the data, Doug?
K. Douglas Ralph
Yeah. Luke, I’ve got this sliced about any way that you want it. You’re looking for product form or end market?
Luke Folta – Longbow Research
I was looking for product form with surcharge.
K. Douglas Ralph
Product form with the surcharge. So stainless steel products, $144.9 million; special alloys, $205.2 million; titanium products, $41.8 million; and then we have other products that add up to the balance of the $21.8 million.
- To read the full transcript on Seeking Alpha, click here »
