Question-and-Answer Session
Operator
(Operator instructions) Your first question comes from the line of Mike Schneider with Robert W. Baird.
Mike Schneider – Robert W. Baird
Good morning guys.
Mark Gliebe
Good morning.
Mike Schneider – Robert W. Baird
Maybe first we can just start with the order rates comments. Henry, you mentioned that they've held up, but can you give us a sense, is that inclusive of price or maybe just in clarity as to what actually unit trends have done through the quarter and through October?
Henry Knueppel
Sure. As you look at unit volumes, we would have to say that in the industrial marketplace and industrial and commercial markets that we participate in, unit volumes have been relatively flat through the last quarter and as we’re starting into the fourth quarter. Certainly, HVAC has been negative in unit volumes. NEX has been helpful and particularly commercial refrigeration has been helpful, as well as I think a very significant replacement market. Let me take a look at, power generation unit volumes are up strong.
Mike Schneider – Robert W. Baird
Okay. When you said commercial and industrial was flat, you mean flat in units or flat sequentially at the same growth rate?
Henry Knueppel
Flat in units. And then in terms of sequentially, there is a seasonal trend as you know from past years. We will see a normal seasonal trend in the fourth quarter.
Mike Schneider – Robert W. Baird
And then your guidance for Q4, specifically are you assuming those trends continue into Q4 or do you assume a deterioration in unit volumes from those levels?
Henry Knueppel
Right now, based on our order rates, we would say it’s going to be a normal seasonal quarter.
Mike Schneider – Robert W. Baird
Okay. And then distributors versus OEMs, do you get a sense that distributors have de-stocked during the quarter or they will during Q4 based on your commentary?
Henry Knueppel
We saw some de-stocking early – well, late last quarter, in the second quarter, and early in the third quarter, but at this point they seem to be pretty steady.
Mike Schneider – Robert W. Baird
All right. And then on the hedging. David, you mentioned for the $13 million net impact on the trade of this quarter, did I hear you correctly that the net impact is $6.5 million to $8.5 million in Q4?
David Barta
Correct.
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