Question-and-Answer Session
Operator
(Operator instructions) Your first question comes from Andrew Obin with Merrill Lynch.
Andrew Obin – Merrill Lynch
Hey, Ron, can you hear me?
Ron DeFeo
Yes, Andrew. How are you?
Andrew Obin – Merrill Lynch
Hi, how are you? Just a question in terms of inventory reduction. Could you comment a little bit on the composition of inventory reduction sort of finished goods and versus work in progress and if you could give some color by segment?
Phil Widman
Andrew – I'll answer, it's Phil. Overall, looking at the cash effect of inventory reductions, the most significantly sequentially happened in the Material Processing & Mining group, mainly in the mining group because we had significant finished goods inventory reductions.
In the other segments, I'd say it was pretty equal across the cranes and construction group and AWP was a little bit less, but they were pretty close to equal to each other. But close to more than $100 million actually came from the MPM segment to give you a flavor of the cash impact of $278 million.
In terms of – now, I'm quoting – in terms of the inventory; this will be the balance sheet figure, so it has a little bit of FX in it. But our raw material did come down, order of magnitude $20 million in the second quarter. Work in process was down about $45 million to $50 million. Parts were about the same. Finished goods was down about $80 million or $90 million roughly.
Andrew Obin – Merrill Lynch
And just the follow-up question. If you could give us some color, what is the absolute level at which payables will stabilize by the end of the year? I mean, any sort of idea what do you think receivables will be by the end of the year?
Phil Widman
On a dollar basis, Andy?
Andrew Obin – Merrill Lynch
Yes.
Phil Widman
I think I would characterize receivables pretty close to the days number that we would have receivables. The issue on payables will be as we start to produce again, we will increase our payable. So the key there is going to be incoming material. We are still reducing our incoming material relative to the outflow that we have.
So I would expect – if you assume that we are close to a bottom in most of our businesses, the value of payable should start to creep back up in the businesses that are at the bottom. It's hard to give you an exact number per se, but I think it’s going to be relative to the production levels.
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