Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes from Laurence Alexander with Jefferies. Please proceed.
Laurence Alexander - Jefferies
Good afternoon.
Patrick Prevost
Good afternoon, Laurence.
Laurence Alexander - Jefferies
Patrick, first on the new contracts that you're negotiating in the Tire Black business. Could you discuss a little bit what you think normalized margins for those contracts should be. Because obviously the data we have is rather volatile and skewed by the historical contracts?
Patrick Prevost
Well, as you know, Laurence, we do not provide details with regard to margins because of the competitive concerns that we have with regard to providing that information. But what I can say is that we've had -- with the contracts we have in place and the formulas, we've had some stability in the margins and that has come through in terms of the profitability levels of the business.
On the spot side of the Carbon Black business or Rubber Blacks Business, there has been more volatility, essentially because of the rapid decline in the feedstock market, but I would say that there again, the ability to retain margin has been excellent.
Laurence Alexander - Jefferies
Maybe to come at it from a different angle, if oil prices were to stay flat for the rest of the year, would you expect the profit before tax, excluding lag and LIFO, to be more comparable under the new contract regime with the back half of '08 or with 2007?
Patrick Prevost
I think, Laurence, the issue here is that there is a large volume factor, in addition to the volatility on the feedstock side. And right now, what we're focusing on is getting our fixed costs aligned to a new level of demand, and we're certainly working very hard to manage our working capital. And pricing at this stage has remained stable, in the sense that we've been able to retain margins underlying and basically corrected for the feedstock volatility.
Laurence Alexander - Jefferies
And I guess then just lastly, can you discuss in the Carbon Black market on a regional basis, utilization rates currently and what will happen once the facilities are closed?
Patrick Prevost
Right. Perhaps, what I would do here is ask William Brady to give you some background, in terms of the geographical situation in the Carbon Black business. You've seen that we've indicated our volumes by region and the volumes do mirror the utilization. But, Bill?
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