Question-and-Answer Session
Operator
Thank you. We will now be conducting a question and answer session. (Operator Instructions) One moment, please, while we hold for questions. Thank you. Our first question is coming from George Staphos. Please state your company name.
George Staphos - Banc of America Securities/Merrill Lynch Research
Question on food service and pricing to start, from what we recall your earlier price increase in food service that was resented as I can understood it from our trade contact is because, it wasn’t acquired because of resin pricing and trends there nonetheless in the guidance for fourth quarterly that you are saying that resin now looks like it could be a little bit more of a burden and perhaps you were thinking a few months ago. So, how are you handling that with your pricing g strategy and food service? Thanks.
Richard Wambold
Just remember now, food service that a substantial amount of our food service business over half now is factored on contract pricing, so, which are automatic past, so we are really talking about, less then half of that George is really subject to a price increase anyway. And, yes, we had a price increase out there, as did, there is I can tell many of the other people that participate the industry as it look like resin prices in price is, were backing down or certainly is it looks like they are not going to increase anymore. You could say, we resented the price increase but I think another way of looking at it is, and then we just looked at it, realized that the price increase really wouldn’t be effective at that stage of the game and so we kept it off the cable.
Obviously, as prices go up assuming they do go up, we will adjust our pricing accordingly going forward. And, not really, we were looking at now on, in terms of net-net pricing when we look at all resins combined that we buy. Really they are not net-net going up. We forecasted that resin prices for the fourth quarter going to more or less equal to what we saw in the third quarter, it would be nice for them to drop a bit we had hope that they would, maybe they still will George, I don’t know. But nevertheless being equal to third quarter I think we still made the right decision in terms of resenting the price increase. Now if we do see resin go up we won’t hesitate to adjust our pricing accordingly.
- To read the full transcript on Seeking Alpha, click here »
