Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes from Edward with Sidoti.
Edward Marshall - Sidoti & Company
Good morning, gentlemen.
Denny Oates
Good morning.
Edward Marshall - Sidoti & Company
My first question is how soon do you think you can match your material cost and current cost of the market this time?
Denny Oates
When you take a look at the trend in raw material cost over the last four or five months, I think we're coming out of that squeeze that we've been experiencing. I would say by the end of the second quarter, we should be in good balance, barring any unknown movement in raw material cost. Our expectation has now essentially moved sideways as we go through the second quarter.
Edward Marshall - Sidoti & Company
Okay. And then with the inventory, what's your expectation for the inventory for the year? Do you assume that will come down or stay flat?
Denny Oates
You're talking about our inventory or customer's inventory?
Edward Marshall - Sidoti & Company
No, your inventory, I'm sorry.
Denny Oates
We would expect our inventory to come down during the second quarter and the third quarter based upon our current expectation on market demand. It always has been a very exciting industry and things are changing week-to-week-to-week. And our current plan would be to have further inventory reductions here as we move through the second quarter.
Edward Marshall - Sidoti & Company
So, kind of looking at then your working capital for the year, do you expect to see that as an inflow or use of cash?
Denny Oates
When you say for the year, you mean through December of 2009?
Edward Marshall - Sidoti & Company
Right. With respect that it's, a lot of things can change.
Denny Oates
When after the year-end 2009, nine months out, it's a little hazy for us and that's why we've been reluctant and pulled some of our earnings guidance. But, I would tell you, over the short-term of the next three to four months, we would expect to see further decreases in inventory. That would be a generation of cash as you look at our working capital position.
Edward Marshall - Sidoti & Company
Okay. And then as far as the destocking is concerned, do you have a timeframe as to when this can be completed in the industry, and again with respect that it's very difficult to make those projections?
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