Outlook For July & August

As we head into the next two months our sales outlook looks to be the weakest we have seen this year. We saw a similar drop in revenue last year at this time, but this year it is magnified by the state of our economy. As the price for a barrel of oil has increased we have seen many of our expenses increase. Our raw material has increased 10% over the past few months and we have seen similar increases in shipping, fuel, and other outside services. We expect that these increases will continue through the end of the year.

I will be meeting with employees over the next week to get input on where we can conserve on many of these expenses. As a team, we can work together to reduce and conserve the materials, goods and services needed to support our customers in our day-to-day operations.

We will have changes to work schedules over this period. Tino and I are working on minimizing the impact as much as possible. As we define the changes for each shift and/or group we will notify you as soon as possible.

It is important that we all understand that we should not panic or over react as we need to continue to support our customers with the outstanding service that they have come to expect from our team. We need to buckle down as a team and really work toward reducing cost everywhere we can.