Question-and-Answer Session
Operator
(Operator instructions). Your first question comes from the line of Michael Schneider with Robert Baird. Please proceed with your question.
Michael Schneider – Robert W. Baird
Good afternoon, guys.
Patrick O’Keefe
Hi, Michael.
William McCartney
Hi, Michael.
Michael Schneider – Robert W. Baird
Maybe first we can just talk about the wholesale channel. I'm curious it sounds like the unit declines were maybe a little more steep than even the second quarter. And is that just because you have more pricing coming through in the wholesale channel in North America?
William McCartney
I think what we've seen, Mike, is sort of mid-single digit declines there in terms of unit volume, offset by some pricing.
Michael Schneider – Robert W. Baird
Okay. And then you were supposed to go out with somewhat select price increases in September. Can you give us a sense of did those go out, and the extent they were successful?
Patrick O’Keefe
Yes, most of the price increases, Mike, relate to – particularly relate to iron products. And they went out in August and were in effect, basically, by early September. I think they're well justified based on what's happened with the cost of iron, so most of them are, at this point in time, in place and holding.
Michael Schneider – Robert W. Baird
Okay. And then as you look now into Q4 and 2009, you've been very successful in passing price along for the last two years, especially in copper products. Give us a sense of what you expect in the wholesale and retail channels now that copper has been cut in half.
Patrick O’Keefe
I would expect that – let me talk about what's happened in the past. When you had a period of rapid inflation in our industry it's been followed by a period of sort of graceful deceleration in pricing. So you have deflationary period. But it's been at a relatively slow pace. The reason I attribute that to, Mike, is because all members of the channel would like to see price stability. So they're all resisting price declines and allowing those to go through. Now, the other, I think, I would expect that it would be – that the pricing would – we'd be under some pricing pressure, but I would expect that we'd hold on to a good portion of the gains that we've fought for over the last five years. Remember, we were following cost up, so I think most of the channel members will be reluctant to pass that back down.
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