Question-and-Answer Session
Operator
Thank you. (Operator instructions). Our first question comes from Mike Harrison from First Analysis. You may ask your question.
Mike Harrison - First Analysis
Hi, good morning, everyone.
Jim Kirsch
Good morning, Mike.
Mike Harrison - First Analysis
I had a couple of questions on Electronics to start with. On the dielectric side, what is the strategy going forward there, now that your largest customer has decided to make those materials in-house?
Jim Kirsch
We are running the business for cash basically. We are supplying – if you look at the dielectrics business, there is two pieces broadly in the segments of commodity and specialty segment. We are continuing to support technically and with excellent sales and application technology to specialized segment.
On a more commoditized segment, we are running the business for cash, taking out cost and expense where we can, when we can. And the modest volume increase that we saw during the second quarter is certainly up with absorption in our major facility there which is in Uden, in the Netherlands.
Mike Harrison - First Analysis
Do you view that business, Jim, as a potential divestiture candidate?
Jim Kirsch
I will tell you, Mike, that on the commodity side of dielectrics, all options are on the table.
Mike Harrison - First Analysis
All right. Then, in terms of the solar conductive paste demand levels, have those demand levels dipped at all from Q2 levels, and also wondering how much pushback you are getting from customers on pricing?
Jim Kirsch
You say the demand levels have been dipped from Q2 – do you mean from Q1 to Q2 essentially – sequentially or from Q2 this year to last year?
Mike Harrison - First Analysis
From – I am talking about from Q2 levels to what you are seeing maybe in July of the medal conductive paste side.
Jim Kirsch
The volume has actually been increasing modestly month by month as we have gone through the course of 2009. And my expectation would be, it’s going to be lumpy where we are going to continue to see some modest increase. The dilemma has been that it’s – it’s kind of like a car firing on not quite all cylinders.
Europe started out very strong early in the year on relative basis and China was quite slow. That’s transitioned as I mentioned in my comments, the good news for us is we are selling higher margin products on the Chinese front and the Chinese stimulus plan is helping.
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