Question-and-Answer Session
Thank you. [Operator Instructions] Our first question is from the line of Jeff Zekauskas from J.P. Morgan. Please go ahead.
Jeffrey Zekauskas - J.P. Morgan
Hi, good morning.
William L. Mansfield - Chairman of the Board and Chief Executive Officer
Good morning, Jeff.
Jeffrey Zekauskas - J.P. Morgan
A couple of things. The overhead expenses you had in the quarter were roughly 188 versus 172 in a year ago period, were up 5%. Why were they up so much in the quarter?
William L. Mansfield - Chairman of the Board and Chief Executive Officer
Frankly, I don't have an answer to your question, Jeff. Why don't you give us a second and go on with the rest of the questions and we'll see if we can sort that out.
Jeffrey Zekauskas - J.P. Morgan
Okay. Second, raw materials are obviously coming down at a pretty rapid rate and through the year you've been increasing prices. How do you expect the dynamic to play out between you and your customer base in terms of the split of who benefits from raw material? And what are the operative dynamics there? Could you here that?
William L. Mansfield - Chairman of the Board and Chief Executive Officer
Jeff, are you there.
Jeffrey Zekauskas - J.P. Morgan
Yes, I am now.
William L. Mansfield - Chairman of the Board and Chief Executive Officer
Oh, I don't know what happened. Sorry about that.
Jeffrey Zekauskas - J.P. Morgan
No it's all right.
William L. Mansfield - Chairman of the Board and Chief Executive Officer
We were talking about raw material cost coming down and pricing and how that dynamic will play out in 2009.
Jeffrey Zekauskas - J.P. Morgan
Yes.
William L. Mansfield - Chairman of the Board and Chief Executive Officer
As I mentioned in my opening comments, we are committed to restoring our margins during 2009. As the cost went up, our pricing lagged and our margins went down in '08. So first order of business is we need to restore our margins and second order of business we'll be the right thing for our shareholders and our customers if the material markets continue to decline during 2009.
Jeffrey Zekauskas - J.P. Morgan
So when you talk to your major customers, what did they say about that? Did they say yes your margins have lagged on the way up and so we are going give you a certain amount of grace and then after that we'll see where raw materials go or is it more contentious than that?
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