Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Analyst for Peter Lisnic – Robert W. Baird & Co., Inc.
Analyst for Peter Lisnic – Robert W. Baird & Co., Inc.
When you kind of talk about that plan B or the things that you have still to pull in terms of the levers. What relative to the environment today has to happen for you guys to feel the need I guess to kind of go forward with those? Is it something where you’re reassigning every month or do you need to see another step down on industrial demand to kind of make you pull the trigger there?
James O’Leary
We’re assessing it every month. If you look at our backlog relative to pretty much any recession Kaydon has gone through before and really relative to the great many industrial companies out there, the backlog looks pretty good. As we mentioned in our remarks and in our press release we are working with customers on push outs and the likes. We’re working with them to restructure around their needs.
Every month we’re going over that, every month we’re going over headcount relative to shipments expected over the next quarter and if we find out that push outs and retiming of shipments are really effectively cancellations we would take down headcount in a number of locations where we have not done it yet because we need to meet the demand over the next two quarters. That’s really a every single month action.
If you saw a big, big step down meaning the credit markets not only don’t get better, they worsen, customers just out right chancel and you find out we haven’t taken a gradual weakening, it’s a big step down we would be probably a lot quicker on across the board cuts but, right now our backlog and our expected shipments over the next two quarters probably mean we should stay our hand because we don’t want to disappoint customers who may have business.
Analyst for Peter Lisnic – Robert W. Baird & Co., Inc.
Then kind of pushing to the wind outlook here, I assume that would be one of the businesses you’re talking about where the year has become kind of significantly more back half weighted. Could you just talk maybe as you look a little beyond the near term financing pressures there what the outlook would be for 2010 and kind of with the production tax credit have been extended are your customers maybe a little bit more bullish about the long term outlook.
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