Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Tom Klamka - Credit Suisse.
Tom Klamka - Credit Suisse
The profit improvement point that you outlined on page 20, for $28 million, as you go through this list, are all of the steps necessary to reach $28 million already done at this point or are there other additional actions you have to take in this list that haven’t happened yet.
Mark Zeffiro
The actions are implemented, Tom. With respect to the employee personal actions, obviously with exception of the realize savings that will have starting in September with the closure of the Mosinee facility. So everything is implemented as time paced as it can be and we have that additional facility closure that will happen later in the year.
Tom Klamka - Credit Suisse
And some of these are directly, someone just laid off to save, you save right away. Are any of these more volume dependent in order to obtain this level of savings? So if volumes are lower than you expected, you wouldn’t actually save that much.
Mark Zeffiro
Tom, what we have done is gone through our cost saving metrics and looked at indirect fixed overheads and the like and that’s what we are doing in terms of really trying to drive reduced overall spends. So these would not be as volume sensitive as maybe, for example material costs productivity and the like.
David Wathen
We are doing all those things too but we are not counting those as part of the profit improvement.
Tom Klamka - Credit Suisse
Okay. On some of the more OE related businesses, I guess Aero and say Norris Cylinder and some of the others. Can you talk about what you’re seeing there as far as I guess maybe start with energy; they did great in the quarter in the year. How did that performance vary between Lamons and Arrow?
David Wathen
Lamons with the upside coming from the new store openings, is kind of bucking the trend. I wouldn’t call them up, but they are hanging on the revenue side and they have got a variety of cost reduction programs that will come through. Arrow like I said is the hard-hit business and you know it’s hard to model any of these kind of businesses when we can look at number of wells completed and all that as you can, and any count of that stuff is way down 20%, 30% down.
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