CRS
#Yes, I think it is more the latter.
We think aerospace ---+ we know aerospace is going to the consistent for us.
We are like everyone else trying to understand where the bottom is on energy on our two different businesses.
We're looking at ways to offset that as we move into other markets.
We see the medical market doing better for us.
That is relatively small.
But still obviously, a very good margin business for us.
So I think it's quite frankly, <UNK>, more the better as we take away quarter by quarter through this year.
Well I will tell you it this way.
I would normally never call that out, because any type of inventory valuation changes, that's part of your numbers whether they're positive or negative, and if it was negative it shouldn't be excluded.
The only reason I mentioned it is because you saw our PEP business be relatively flat quarter over quarter from an operating income.
I would tell you this, if you would exclude that, you would have seen the type of decline in PEP that we had guided to last quarter, which was around 25%.
And that way you can do the math and get the feel for that edge, it's is in that $2 million to $2.5 million range.
Yes.
Let's just call that $2.5 million.
We know that is not going to repeat and then we have the normal ---+ the other items that we gave you on the slide.
For us we are ---+ some of the news that you're seeing out there, remember we play in the top end of this market and especially steel market.
We do not participate in those lower commodity areas, so therefore that's not an impact for us.
Well, I have to say on our backlog if you look at ---+ let's say from a revenue basis right now whether it's year-over-year or sequential.
It is down slightly, but almost all of that is driven by energy market, right.
Our aerospace backlog is going to be up, a little down, but it's pretty consistent at least it has been over the last several quarters.
But the main driver for our backlog now is energy and some on the industrial side as well, as we move, selectively move out of that market, and move more into the higher-end automotive side.
So our backlog is going to move around from quarter to quarter; as I said right now the main driver is energy.
Yes I think it's going to be ---+ there is a wide range of what folks say out there, we look at as it going to be in that 2% to 3% or that type of range, that's what we've planned for.
And if it's a little bit more than that, that'll be great, but from our planning standpoint that's what we are looking at.
Certainly we have seen some of that on the energy side.
Right.
And we are being very selective on what those trade-offs are.
But we've not seen a significant evidence of that in our ---+ that that has been bleed over into our other markets.
No, that's contemplated in our outlook right now.
We don't perceive it.
Well, I will just say that our immediate customers saw that, so I will the that to them; we supply to a broad range of folks.
Well, I think it was probably, to be quite frank, probably more specific to Boeing.
Thanks <UNK>.
Thanks for the question, <UNK>.
Joe Haniford is not here with us today we wouldn't allow him to be here, he's out in the plant, so he was in Athens earlier this week, and he's on his way to Latrobe today.
So that's where his expertise will help.
Joe has had a 30-plus year career in this industry and operations in commercial.
He brings a wealth of knowledge to us, and ideas, he's been very well received.
I think he's in his third week right now so we're looking forward to that.
On the commercial side, Brian starts on Monday and again, we have got a very workforce and we are trying to supplement that with some key external hires that bring sometimes a different view and some different experiences that we can leverage and take this company to the next level.
And from a strategic standpoint you're not going to see any drastic changes from me.
We've got our marching orders on where we think we add value with our customers.
We believe we have capabilities and products that others don't.
And we are going to make sure that we leverage those to the best of our ability.
That's the key for us.
And we know there are areas where we need to improve on to make sure that we maintain that position.
Thanks <UNK>.
That's very exciting, it's right across the street from our Athens facility.
We are in startup mode right now with that facility.
And are very excited about the potential there to supply super alloy powder into the engine market.
As you know, we have an agreement with <UNK> & Whitney.
We are very excited about that.
And we have other possibilities there as well.
So that is an area where the market is moving and we are at the very beginning of that and we think going forward we will remain a leader in that area.
Thank you.
Thank you again for participating on today's call.
We look forward to speaking with you again next quarter.
Thank you and goodbye.
