Question-and-Answer Session
Operator
We will now begin the question and answer session. (Operator Instructions). Our first question comes from the line of John Franzed (ph) with Sedoherty and Company. Please go ahead.
John Franzed
Good morning Pat and Tom. First question is really just kind of a housekeeping question. What percentage of the oil and gas business was part of your commercial and industrial revenue?
Patrick McDonald
John we don’t typically break that out. But historically it’s run greater than 50%, typically somewhere between 60 and 80%. This last quarter it continued to be as relatively strong pace.
John Franzed - Sedoherty and Company
Okay. I guess differently then, yesterday OPEC announced the putting on hold of 35 driven (inaudible) and we keep hearing in the states about cancellations and deferrals. And Pat you kind of touched on it a little bit.
But can you talk a little bit about how oil and gas is impacting your backlog one way or the other. Are you seeing a refill with other types of products in the utility market? Can you kind of just discuss that topic because it certainly seems to be something that investors are concerned about?
Patrick McDonald
Well, I think the concern is a real concern as we look at the volatility of the market today. Our backlog continues to remain strong in the oil and gas area. We have constant discussions with our customers about where they’re going.
There is no doubt that we are seeing in our new order expectation levels a lot of projects that we had seen and were anticipating potentially for future orders for us are sometimes being deferred to a later time period.
I think what we are seeing is that we are a deferral. There’s very few other than maybe some speculative projects that we’re seeing that people are saying no we’re canceling it. We don’t see the need for that project. Most people are saying we are deferring to see where the economic times are going on this.
There is no doubt as we do this as we indicated in what we talked about here. We are looking for new opportunities and greater opportunities in the transportation area. That’s very solid. We’re very pleased about where that business is going; and what is being anticipated in the speculation of the stimulus package of how that can go up.
We’re very interested in the infrastructure areas. And we still see a lot in the generation and environmental side of the utility business.
- To read the full transcript on Seeking Alpha, click here »
