Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Kevin Maczka – BB&T Capital Markets.
Kevin Maczka – BB&T Capital Markets
I guess my first question is on pricing, you made some comments there that price erosion has not been an issue so far. It sounds like with raw materials ticking back up, you’re looking to go back to the market for more price. I guess, can you just comment with the top line outlook you gave for 2010, what kind of assumptions are you making there and what is the market look like? Does it look to be receptive to price increases right now?
Patrick S. O’Keefe
I’d say it’s too early to tell with reset activity. We all are affected by the same raw material escalation that we anticipated. We’re seeing it already in terms of purchase orders that we’re placing in to the market. With regard to what happened in the third quarter we really saw pricing being relatively stable and even throughout the quarter consistent with what we saw in the second quarter. We anticipate to be honest with you, in the fourth quarter of 2009 for it to be consistent as well.
William C. McCartney
The other point I’d like to make there Kevin, just reading the transcript of some of the companies that have released, quite a few of them have mentioned price increase coming early in 2010 as well so we’re not alone in this regard.
Kevin Maczka – BB&T Capital Markets
Bill, what’s your view on the channel inventory now. We went through such destocking for so many quarters and maybe we’re reading to see some restocking now. What’s the channel look like?
William C. McCartney
Well, our belief is that the channel looks pretty skinny at the moment.
Patrick S. O’Keefe
We don’t believe that there’s going to be any restocking here in the fourth quarter because people are going to play their cards pretty close to their chest with regards to balance sheet at December 31st. We see no restocking whatsoever in the fourth quarter.
Kevin Maczka – BB&T Capital Markets
Then just quickly on the market share gains you referenced at retail, can you put any numbers to that or more color? Maybe who you’re taking share from?
William C. McCartney
We have the normal competitors out there Kevin that we always talk about. This is some of the larger chains where we’ve picked up some additional shelf space.
- To read the full transcript on Seeking Alpha, click here »
