Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Arnie Ursaner – CJS Securities.
Arnold Ursaner – CJS Securities
My first question is related to margins and sort of the level of activity as it relates directly to steel. Obviously in the early or mid part of the year you were absorbing massive steel increases, you built up inventory.
You mentioned on your last call that you weren't fully recovering your higher steel costs. Steel has come in a fair amount so I guess a two-part question, one is are you getting closer to more recovering your costs and B, do you think it impacted your customer demand quite a bit in September and may be one of the reasons you're seeing a pretty aggressive slowdown in the short run.
Barclay Simpson
Yes, I think at September there was quite a bit of buying ahead and I think that made our sales higher, it goes both ways. One time we won't be able to get a price increase nearly as soon as our cost goes up for basic raw materials, and other time you have a little bit of an advantage. This time we had a little bit of an advantage, that is we were able to buy some steel ahead at the lower price and it lasted for just a little bit but that's over.
Arnold Ursaner – CJS Securities
I'm trying to get a better feel for how we should think about gross margins going forward. Obviously if your steel costs come in a little bit and you are able to maintain price that would be a positive for margin offset by less plant utilization. How should we think about balancing those two out?
Barclay Simpson
I think margins, that's not a realistic margin over 40% in these markets particularly as, I don't know what you're looking at, but what I see mostly say that it's not going to get better probably it's going to get worse for a while. So, certainly we don't expect our gross margins to stay up there. In fact, what do you think it's going to be, Mike?
Michael J. Herbert
I think 37, 38% if we're lucky going forward in the next couple of quarters.
Operator
Our next question comes from Barry Vogel – Barry Vogel & Associates
Barry Vogel – Barry Vogel & Associates
First question, can you give us the change in sales for the west excluding California, California, south-southeast, Midwest and northeast?
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