Question-and-Answer Session
Operator
Great. Thank you very much. (Operator Instructions). And our first question this morning goes to the line of - I should say rather comes from the line of Mark Connelly with Credit Suisse. Please go ahead.
Mark Connelly
Thank you. Two questions, I mean when I look at these results, I can't help but think that it’s the traditional paperboard business that are doing well, even though historically input cost pressure has historically hit those business harder. So is there something fundamentally changed about the consumer solutions business making it harder to pass those through, vis-à-vis your paperboard business where you don’t seemed to be having anywhere near the trouble?
John Luke
Yeah Mark, its John. You said there are two questions?
Mark Connelly
Yeah, I am sorry. Yeah, the second question is on consumer and office with the changes in distribution channels. I am curious, last quarter you said that the shift towards the box retailers was playing to some of your strengths and I am curious whether that’s still feels true this quarter?
John Luke
Okay, let me pick up the first and I will turn to Jim to supplement as well as comment on the second. First, we are holding up with great discipline in the traditional paperboard business as you called them. But I would remind you that with the focus we have on our targeted markets that whether which were to characterize the traditional paperboard businesses or the downstream consumer solutions business now to include Calmar that we are focused on segment that we see good opportunity in which to grow and clearly we have had good success in aligning the paperboard business around those markets building on what we have done traditionally in the beverage and tobacco market. And that’s giving us good strength based on the performance in the quality leadership we have to hold our pricing and in many cases good premium pricing in those market. You are right, some of the downstream consumer solutions businesses tend to be a bit more competitive in certain areas and that’s particularly true in North America, I would say that we had a much better job generating price improvement and stability in other markets around the world. But we have good confidence that we can succeed with that, it just takes a little bit longer in certain cases to get some of these pricing move through. And of course in this quarter we each reference we have had some pressures that you have now seen reenforced with some of the third quarter headlines from larger personal care companies that those markets have been unusually weak. Jim?
- To read the full transcript on Seeking Alpha, click here »
