Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Arnie Ursaner – CGS Securities.
Arnie Ursaner – CGS Securities
Can you give us the percentage of your revenues and profits from international please? And, if you can separate out China or give us a sense of the magnitude of the losses you’re incurring there.
Barclay Simpson
The magnitude of losses are cutting down there yet in China and it’s pretty substantial. I don’t have exact numbers because we haven’t gotten them really separate out yet.
Karen Winifred Colonias
Revenue is 22%.
Arnie Ursaner – CGS Securities
As you think about seasonality in your business, typically you get some activity if there are hurricanes or other events that occur in this time of the year. We don’t seem to have had a very strong hurricane season. You’re going in to the winter I’m assuming both you and your customers are looking to reduce your inventories. Can you give us a feel as best you can for your inventory levels going in to the seasonally low period and your customers’ inventories going in to this period.
Karen Winifred Colonias
Profits for international were pretty much flat, revenue 22% profit level flat.
Arnie Ursaner – CGS Securities
Flat meaning similar percent of the overall company? I’m just trying to understand what flat means, I assume it’s the same percent of revenue but I want to be clear on that.
Karen Winifred Colonias
We lost money in Asia.
Barclay Simpson
Lost money in Asia, we made a little bit in Europe.
Arnie Ursaner – CGS Securities
But as a percent of the profitability of the company, it’s much less than the 22%?
Barclay Simpson
Oh yes.
Karen Winifred Colonias
Right.
Arnie Ursaner – CGS Securities
What is the percent these days? Can you give us a feel for that?
Barclay Simpson
Well, it’s very low, very low.
Arnie Ursaner – CGS Securities
Going back to the seasonality and inventory question?
Karen Winifred Colonias
Our inventories, we’re at a level at this point where we need to start building inventory. We have our pre-seasonal and fourth quarter is typically a slow time based on winter conditions that happen in the northeast so it’s just typically a slower time. However, we don’t think there’s a lot of inventory in pipeline with our customers and it does take a little time for us to build inventory so we will be looking at fourth quarter to build some inventory so that we will be able to take care of any customer demands as they come in to the first and second quarter.
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