Question-and-Answer Session
Operator
Thank you, Ma'am. (Operator Instructions). Your first question comes to you from the line of Gautam Khanna of Cowen & Company. Please proceed.
Gautam Khanna - Cowen & Co., LLC
Hi, Gautam Khanna, Cowen. Wanted to just ask a couple of questions Doug about the LIFO effect in the quarter, were you expecting a $20 million negative and it was a 12 and so how should we think about whatever lingering impact there maybe going forward?
K. Douglas Ralph
Yeah Gautam, the primary difference between the 20 that we were expecting in the 12 is really due to the progress that we made on inventory. So inventory levels finished lower then what we were anticipating which actually created a bit of a positive LIFO decrement so to speak. And that would not have any impact carrying forward in fiscal year '10 and then is to manage to about that same inventory level at the end of fiscal year '10.
Gautam Khanna - Cowen & Co., LLC
Okay. And when it comes to the dividend, given the balance sheet look strong and you're looking for positive free cash generation, how do you view kind of dividend policy? Any chance for a hike, any risk of a cut...
Anne Stevens
I can give you some comments obviously it's a Board decision and we review it with them every quarter, but as we said before we do have the cashes you've pointed and we will continue to generate and expect to continue to generate the free cash flow on the business. So the dividend right now cost a little bit more then 30 million. So, we've got the financial flexibility to continue it. If it's the right strategy for deploying the cash our yield attractive versus industry and historic level. But at the end of it's a Board decision and it's a decision that has supported in the past continuing with the dividend.
Gautam Khanna - Cowen & Co., LLC
Okay. And perhaps the last question I'll pick it over to someone else. When you talk about, we haven't talked much about the automotive business. That becomes smaller and smaller. But there is some talk about production rates coming up in the second half of the year, of the calendar year and in '10, what is your expectations through this year, you're fiscal year on automotive?
Michael Shor
We believe -- this Mike Shor speaking. We believe that automotive in particular is at for near bottom. We see little inventory remaining in the supply chain. So, we are preparing for short-term requirements as they come towards us. But this is a market that we do feel as either at or very close to the bottom.
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