Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from George Notter with Jefferies & Co.
George Notter - Jefferies & Co.
I guess I want to just ask about the comments side of Sienna this morning. I’m not sure if you listened to their conference call or read the transcript, but they’re commenting on a number of carriers around North America exhibiting weakness here as we roll into the October quarter. I guess I was hoping to get your comments on that. Are you seeing similar kind of weakness or is this something that’s more idiosyncratic to Sienna?
Robert E. Switz
No, I did not listen to their call. Unfortunately I had work to do but relative to what we’re experiencing, during the month of August, which is the first of our fourth quarter, what we have seen, more or less at this point in time anyhow, reflects the normal seasonality that we see during that summer months. So a lot of sluggishness, not much happening in Europe. A portion of the U.S., the East Coast particularly, where vacations tend to be taken in August. Typical slow pattern. So we have not seen anything that would constitute a dramatic change from past periods.
Having said that, there are certain carriers that obviously have continued to be soft in terms of demand, such as the BellSouth piece of AT&T. But we have lived with that all year and hadn’t really expected a lot of change in the fourth quarter. So again, not having heard the details of the Sienna call, there’s nothing at this point that seems out of the ordinary, given our seasonal pattern.
George Notter - Jefferies & Co.
And just shifting gears a little bit, I was interested in your commentary on commodity costs. I guess I would be curious how much of your cost of goods sold is tied up in the things you referenced, steel, aluminum, copper and so on and how much of an impact has that had on gross margins.
And then referencing the pricing actions, I would be curious to know when might we see pricing increase in terms of the timing and how much would you expect those price points to come up?
Robert E. Switz
In terms of how much of our COG is exposed is about 25%, to those commodities. Jim has some more specific information that he can share in a moment.
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