Question-and-Answer Session
Operator
(Operator Instructions) The first question comes from the line of Eric Stein – Northland Securities.
Eric Stein – Northland Securities
I was wondering if we can just start with margins and you could just help us out a little bit and walk us through the components. Certainly it was a very strong margin quarter. In the first quarter you commentary had kind of been not to expect the level we saw there and certainly that was not the case in the second quarter.
Jim Porter
I will address that. I think in general probably the simplest way to respond to that is we tried to articulate it was really the accumulation of many positive aspects across all of our businesses. Really just kind of lining up, as we indicated the timing of projects and in our business one of the most difficult things to predict is the specific timing flow of shipments to a project. So when we look at some of the timing as well as the mix of deliveries during the quarter with a nice amount of that being projects bid during strong time periods combined with cost reductions and productivity improvements, it is really kind of a number of things all lining up in the quarter to really drive that strong performance.
Eric Stein – Northland Securities
Materials cost?was that a major portion of it in the quarter?
Jim Porter
The two primary drivers from a material cost perspective are going to be glass and aluminum and we did see a benefit from that kind of roughly a point of margin in the quarter.
Eric Stein – Northland Securities
Your thinking on keeping operating margin guidance relatively the same? Is the main component there just that you are now getting business signed since the downturn started?
Jim Porter
Yes.
Eric Stein – Northland Securities
Maybe we could just move to your commentary related to 2011. When you talk about it being a tough year are you including any stimulus impact in there or would you consider that on top of that guidance?
Russ Huffer
I would say we are including some of that. Certainly we have seen a few projects now flow into our backlog that will be recognized most of the revenue in fiscal 2011. We would anticipate to be able to win other projects. We don’t see it as being incremental. We see it as part of what we are projecting right now.
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