Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes from the line of Eli Lustgarten with Longbow Securities.
Eli Lustgarten – Longbow Securities
Good morning.
Carlos M. Cardoso
Good morning, Eli.
Frank P. Simpkins
Hi, Eli.
Eli Lustgarten – Longbow Securities
I guess, the only good news today is the cash flow was pretty decent. Can we talk a little bit about your demand outlook for fourth quarter? I mean if you look at your third quarter, you had a decline in metalworking that was almost twice to decline in advanced materials. When you’re talking about a 40% organic decline and probably, north of 45% on with currency. Is that equally split between the two or is that still more heavily, we’re going to see over 50% metalworking and somewhat less in advanced material. So give me some guidance of how you’re thinking about that.
Carlos M. Cardoso
Well. The metalworking is going to decline less this quarter. And we are going to see less than last quarter in relative numbers. And we anticipate to see a bigger decline than before on the AMSG side of it. We see the rig counts being down for the gas and the natural gas and we see the backing of the supplies. There is plenty of supply out there for gas. So, that has been holding pretty well for us throughout the year-to-date basis.
Eli Lustgarten – Longbow Securities
That’s sort of saying that you’re looking at metalworking, the advanced material decline almost doubling at this point?
Carlos M. Cardoso
Well. I mean, we still anticipate a significant decline in metalworking. Because I mean, all the indicators currently, the industrial production continues to be down and so forth. I mean every company that has announced so far in industrial space has announced a lower worst scenario for the next quarter than they had before. So we're in the same boat.
Frank P. Simpkins
Yeah. Eli, I'll just to directionally point you there. From advanced material, I wouldn’t say its double the number that you talked about. I would say its much deteriorated from the second quarter below kind of guidance we had in the press release and I’d say North America sequentially is down a little bit more, not substantial and that’s really due to the drop off in Europe, which we have to watch closely and it’s tough to gauge what’s going on in April right now, because of the Easter holiday. I would say it’s a little bit softer in the metalworking side, because of Europe, number one and then to some of the factors that Carlos mentioned, I expect AMSG to be below where metalworking was, but softer sequentially.
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