Question-and-Answer Session
Operator
(Operator instructions) Our first question comes from the line of Ian Zaffino with Oppenheimer & Co. Please proceed with your question, your mike is now allowed [ph].
Ian Zaffino – Oppenheimer & Co.
Thanks, good morning. Question on the pricing environment, if you were to look out over the next one to six months or so what pricing you will still be doing it will not be the drivers, thanks.
Teddy Gottwald
This is Teddy. Right now we are seeing some raw material increases in the marketplace and it is certainly our intent to recover those increases. I do not see any – we are not forecasting any substantial change in the environment over the next six months but it is still a volatile world out there and crude oil is increasing back up so it is just hard to say.
Operator
Thank you. Our next question comes from the line of Ivan Marcuse with Keybanc Capital Markets. Please proceed with your question, your mike is now allowed.
Ivan Marcuse – Keybanc Capital Markets
Hi guys, great quarter.
David Fiorenza
Thank you.
Teddy Gottwald
Thank you.
Ivan Marcuse – Keybanc Capital Markets
Teddy you said last quarter that you saw the margins on the operating side being sustainable maybe in the low teens I think is what you said. Now that the margins have increased substantially again in the third quarter, do you still see looking out to 2010, 2011 (inaudible) being in the 11% to 13% range or are you seeing it more probably a little bit higher than that? What is your outlook looking towards that and what kind of profitability do you need to continue investing in the business?
Teddy Gottwald
Ivan that is a good question, yes we think we can do better than the numbers we were talking about in the last call. We would like the margins where they are because they do allow us to reinvest in the business and we have made some debt while doing that in recent days we have expanded our research center here in Richmond. We have opened a new one in Shanghai and David commented on the investment and manufacturing capacity in Singapore. All of these activities should help us to give our customers what they need to compete going forward and the current environment allows us to make investments like that.
Ivan Marcuse – Keybanc Capital Markets
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