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
Hey, Eli.
Frank P. Simpkins
Good morning, Eli
Eli Lustgarten – Longbow Securities
You actually had a nice quarter?
(Multiple Speakers)
Eli Lustgarten – Longbow Securities
One for a moment that the tax counting is sort of very crazy, do have any suggestion for fiscal 2010 tax rate?
Frank P. Simpkins
Yeah Eli. Again as you know, when you have a loss and you have a provision, it creates pre-mathematics, but?.
Eli Lustgarten – Longbow Securities
Yeah. You got a tax charge on the royalty?
Frank P. Simpkins
Yeah. What I'd say the tax rate next year will be in the 24% to 26% range in that area because the way we finished the year at 17% we had a couple one-time benefits last year during the first quarter the Spanish a valuation allowance and we had the second quarter pick-up if you take those out of the equation, it basically put you out above the 25% range in fiscal 2010.
Eli Lustgarten – Longbow Securities
You've got 25% I said is tax stuff is very crazy, you gave we have orders for June, can you give us any sign, what we are seeing over the summer so far as far, the order rate was still declining for you guys, did that continue through the July period we are seeing stabilization, you are getting comment, you sort of indicated you're getting closer stabilization, have you seen it or, and you feel the de-stocking is sort of coming to an end where we are still going to go through this summer at least in de-stocking?
Frank P. Simpkins
We’re, I mean I’m not sure about the de-stocking at this point, but we are seeing some small incremental sequential improvement from month-to-month and to-date, from July our orders are inline with our guidance.
Eli Lustgarten – Longbow Securities
Okay. I mean profitability of AMSG was very impressive the double-digit given the seasonality at that, particularly the any market is that a sustainable double-digit margin or do we get some seasonality, within the first half before we go back to it?
Frank P. Simpkins
Yeah, I will start with that. I think shorter term we will have some pressure with the energy business given some of the natural gas levels there, but then I think in the second half again I think will be pretty good, they have done a great job on selling on value from a pricing perspective and they have done a good job on maintaining the pricing discipline and then we should get some tailwinds as we move forward with some of the raw material input costs. So, I think given the top line with some of the industries shorter-term, but I think it will be a very good second half for them.
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