Question-and-Answer Session
Operator
The question-and-answer session will begin electronically. (Operator Instructions). And we'll take our first question from David Wells with Avondale Partners.
David Wells - Avondale Partners
Good morning everyone.
Kelly Tacke
Good morning.
David Wells - Avondale Partners
First off, if you were to take into account the plant closure in Siler City in the fourth quarter, what would capacity utilization have been assuming in the third quarter rather?
Larry Keener
David, it wouldn't have changed the whole lot, probably gone up about a 4 to 5%.
David Wells - Avondale Partners
Okay. And then looking at ASPs for the HUD product in the quarter; it looks like it continued to trend down. Was there some mix shift going on there and what are the drivers for that?
Larry Keener
Well there are several drivers. We do have a larger percentage of our businesses in single lines than has been historically and that's principally in Texas, Oklahoma and Louisiana. But the biggest driver is the competitive forces in the marketplace looking for less and less expensive products, especially product that's financed with conforming mortgage financing because appraisals are being driven down.
David Wells - Avondale Partners
And then in terms of the military business, I know on the last call there have been 16 million awarded and there's 25 under contract. Is the 14 that's discussed in the release from last night, is that included in that 25 or is that incremental to that?
Larry Keener
No David, it is part of that 25.
David Wells - Avondale Partners
Okay. And then the 16 million from the prior quarter, is that ... should we infer that that work is ongoing and was that a percent of the units that were shipped in the quarter?
Larry Keener
That's correct, okay.
David Wells - Avondale Partners
What percent would you say then the military was in the quarter versus commercial?
Larry Keener
It was small. It would have been... I have to get that number and get back to you, but it was very small.
David Wells - Avondale Partners
Okay. And then in terms of your raw material costs, I am assuming with the drop in commodity prices we should see some of the pressure subside. Do you have higher cost inventory that's still on your books and are you working through that? And from a timing perspective, when should we think about any improvement just from the decreases in petroleum and the like?
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