Question-and-Answer Session
Operator
(Operator Instructions). The first question is from Matt Sheerin with Thomas Weisel.
Matt Sheerin - Thomas Weisel
First question, Kevin, just back to your commentary on what you’re seeing in the market as well as your guidance. You’re being cautious trying to figure out how much of that is just being conservative like you end up being last quarter or are you starting to see September off to a slower start? You obviously saw talk about the US specifically being softer in the month of September and also if you could talk about your approach regarding the freight cost being passed along to customers by your competitors, whether you think that’s going to help you gain share there, or are you seeing share opportunities in that way and what does that do to your margins?
Kevin Murai
First of all, just in terms of the overall market and what’s happening right now in the economy, there’s certainly more uncertainty today than there had been in previous quarters, but as we see the market right now, it is still relatively stable here in North America. There are certainly shifts in demand, up and down, week by week and month by month, but we haven’t seen any meaningful change overall in overall demand. Moving onto the second question, we’ve been working very, very hard on going back and renegotiating our freight costs and really leveraging the network of 17 warehouses that we have across US and Canada and then being able to drive any cost efficiencies that we’re able to get from that back to our customers. So as we constantly evaluate the impact of increasing surcharges and overall profitability, at this time we have no changes planned and we’re waiting to see how this all really plays out in the marketplace, but again I think the proof is we’re able to continue to gain share profitably and at the same time increase our overall margins.
Matt Sheerin - Thomas Weisel
Does your strategy on the freight side and your setup logistically, is that helping you gain share do you think or too early to tell?
Kevin Murai
I do believe that there probably are some share gain opportunities, but again, looking at the opportunity, it’s really profitable share that we’re focused against and it’s not just a freight charge component or terms around freight. I truly believe that we’ve been able to out-execute in particular in the past few months, we manage our cost so well, we manage the business so well, and as we continue to enhance service to our customers, I do believe that we’re just winning share on the market place.
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