Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Tyler Old with J.P. Morgan Securities.
Tyler Old - J.P. Morgan Securities
Good morning.
Bill Rainville
Good morning, Tyler.
Tyler Old - J.P. Morgan Securities
Its sounds like you are seeing some sign, encouraging signs of activity in Asia. Right now, it will be helpful if you could talk maybe about recent trends since quarter end in North America and Europe?
Bill Rainville
Okay. I guess the Asia first. I think what's encouraging for us and Asia at this point that we are not benefiting from it. The GDP in China continues to be fairly active. Most of that is in internal China is doing fairly well but there is stimulus package in there. And which is going to drive some consumer needs mostly in all grades of paper. We do see potential perhaps some especially white grade of paper where they really do not have the capacity to handle any increase. So that’s an encouraging sign for us.
The other offsetting that, however is that on the running of the linerboard mills has been curtailed in a lot of these the newer machines have not been put online yet and that impact us in some of the parts offer the stock prep. But we are making, we’re ahead of expectations and accessories and water management in penetrating the market. We’re very encouraged by that market penetration at this point.
Now concerning in the North America, we see certainly, I've been in business long time, Tyler, I've never seen such a rapid drop off in the capacity in the US for example. And we see in the linerboard that was really cut down and as pricing the manufacturing in the US I guess that have been somewhat expected but not to the extent that it had it running, running into 70% range on operating rates and plus of that includes the number of the mills that had chucked on machines.
So, that really has impacted us very negatively and as you know we got large install base in the US and that’s impacted our accessories, a lot of our parts, business has been impacted by that. I do not think that’s sustainable. And what is encouraging is the fact that rating and putting grades and as well as linerboard have relatively low inventories in the chain. And I think that when there is any pickup at all within the economy into US I think that should be leading indictor at least it has in the past.
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