Worthington Industries Earnings Call Insights: Volume Contribution and Commercial Construction Market
Martin Engler – Jefferies: So I’m trying to think through the impact of TWB now consolidated within steel, any detail on a go-forward basis for modeling purposes, how we should think about the volumes, EBIT contribution and also D&A for the overall Company?
John P. McConnell – Chairman and CEO: I guess, I would point you to the 10-K, Martin, where we list out some of the annual performance measures for the JVs. TWB is listed in there with revenue and operating income, so I would use that as the basis.
Martin Engler – Jefferies: Is there any kind of base that you can give us for the volume contribution maybe on a trailing 12 months basis or prior year there?
B. Andrew Rose – VP and CFO: Off the top of my head, I don’t. We will work on that one.
Mark A. Russell – President and COO: Let us check.
B. Andrew Rose – VP and CFO: Maybe by the end of the call we can give you a number.
Martin Engler – Jefferies: Within WAVE there, what are you seeing regarding the commercial trends, is there any more of a shift towards new projects and private work as opposed to the refurbishment type work?
Mark A. Russell – President and COO: The mix of business there is pretty much unchanged and still is dominated by a remodel work – remodel and refurbish is the dominant part of our business. That’s one of the reasons we are very bullish on commercial construction recovery, because we think they will still have a good book of remodel business and then I will get the new build as well on top of that.
Commercial Construction Market
Curt Siegmeyer – Cleveland Research: This is (Curt Siegmeyer) in for Chris. Just maybe digging in to the commercial construction market a little bit more. There is a lot of mixed signals out there right now, so I was just wondering if you guys could maybe just give a few more details on what’s driving your confidence in that market. Maybe some specific examples of where you’ve seen some incremental demand pull and kind of what you are expecting as you move forward in the next year?
Mark A. Russell – President and COO: Well, don’t misunderstand us, we are not projecting the recovery at this point, we don’t see it yet. Now where we see some strength, obviously, residential everybody sees the strength there. Where we see some strength on the commercial side, which is encouraging is in some of the prebuild infrastructure. We picked up a lot of Covert business in the Steel business, which coverts are usually a leading – can be a leading indicator for a subdivision development et cetera and things like that. I wouldn’t say we have any definite signs of a commercial construction recovery in our numbers, but we certainly believe that will happen eventually and when it does, we think – we have several businesses that are very well positioned to take advantage of it.
Curt Siegmeyer – Cleveland Research: Then just maybe as a follow-up, are you able to quantify how much of an impact weather might have had on the quarter, if any, on the Cylinder’s segment?
Mark A. Russell – President and COO: We don’t see a real big weather impact to what the results are for the quarter. Where we do sometimes see a weather impact in some of the business lines we didn’t see. I think that was fairly consistent for the quarter.
A Closer Look: Worthington Industries Earnings Cheat Sheet>>