Worthington Industries Earnings Call Insights: Flat Rolled Steel Price Outlook and Guidance Detail
Flat Rolled Steel Price Outlook
Martin Englert – Jefferies & Company: In December saw a modest pick-up in flat rolled steel prices, it looked like the quarterly average was up a bit. Also when you look at the direct versus tolling that continues to increase there as you noted. Can you talk about the impact that that has had on the operating income per ton within the steel segment and how you would expect that to trend with the direct versus tolling mix in the future quarters?
B. Andrew Rose – VP and CFO: I think the biggest impact there is just going to be related to a shift in mix direct versus toll and you may have heard us mention, one of our facilities, a joint venture facility at Spartan, we’ve seen a decline in volume as our partner there has built a line of their own and has taken some of that volume in-house. That’s probably the biggest driver there. I would not expect that trend to continue just because we’ve seen volume stabilize in that facility. I think our bias is that there may be some opportunity for those volumes to actually start to go back up, probably not immediately to the level where they were, but I would think that the trend would be somewhat stable from here on out, depending on the mix of toll versus direct.
Martin Englert – Jefferies & Company: Are you able to provide any other detail within Cylinders where you look among the different end user there within retail, industrial and alternative fuels as far as year-over-year growth rates and volumes?
B. Andrew Rose – VP and CFO: We have not historically broken those end markets out. Although, we did last year during in our 10-K, we broke out the revenue by segment, and I can’t remember actually if we broke out the volume by segment or not. I’m guessing we probably didn’t. But we are starting to, we’ll likely do that again at the end of this fiscal year as we are starting to somewhat change the way we manage the business internally in Cylinders as those businesses grow and expand. So we can’t give you any detail now is the short answer, but we’ll likely give you some more detail in our next quarter’s announcement…