GTLS
#Hi, Al.
It is.
And the areas where we have proprietary products and higher margins, less competitive intensity, are being more dramatically impacted by delays than some of our longer standing industrial products where there is more competition and hence more price pressure.
I would say that that's probably the most appropriate reference point, <UNK>.
I don't believe there is a lot of downside risk in pricing over the next six months to 12 months.
The margin degradation is going to be more related to just lower operating levels.
Well, restructuring reserves, and there was ---+ in addition, there was inventory reserves that are classified as part of restructuring.
So there's about $1.4 million of inventory reserves that were taken in Distribution & Storage, both in China and the US, lower cost of market reserves that we recorded in the quarter, that impacted the margin.
So that's above and beyond the $4.9 million of restructuring expenses that we incurred in the quarter.
Yes.
Yes, the majority of it is.
There's a small piece in BioMed, but nominal.
They have enough equity capital to ---+ and have committed to buy this equipment in order to give them the ability to get online faster.
You have to direct that question to them.
Our position hasn't changed.
It's a topic of regular discussion with the board.
We do have the ability to do that with our balance sheet and credit facility.
But markets are tough, and we'll continue to evaluate and do what's best for shareholders, keeping a balance between share buyback as a potential, an investments in the business.
Hi.
Yes, less than $10 million.
Yes.
Although, as <UNK> pointed out, they continue to give us new orders and they continue to take equipment from the backlog that we have.
We are seeing offers of companies or assets for sale that are in financial distress.
We evaluate all of them carefully.
However, with the discipline that we exercise and the constraints on market share, I don't expect an enormous amount of acquisitions in that area.
The blended rates, there is significant dispersion of the range of gross margins or pricing levels, but the blended rates would be comparable to that.
Well, I would guess that at this point something like 75% or 80% of our revenue and backlog is industrial gas related non-LNG.
That goes all over the map from the ---+ depending on the application and the level of equipment we're providing in addition to a tank.
But it could be anywhere from $0.25 million to $10 million or $15 million.
So it's a pretty wide dispersion.
Thank you.
Yes.
There are potential facility closures.
We continue to evaluate them.
The new facility in China, in Changzhou, will be operating ---+ only parts of it will be operating at relatively low levels in 2016.
It is a dynamic situation.
The customer consolidation that I talk about are in the home healthcare service provider space where you've seen a fairly regular stream of announcements of acquisitions and consolidation in that space.
It's a ---+ the market demand, the overall unit volume of respiratory concentrators is stable and growing at single-digit, mid-single-digit rates, but there is significant competitive pressure.
So it depends how successful we are in the marketplace and in providing superior products at the right pricing levels.
Pricing in that market is very sharp and competitive.
Thank you, Chanel.
With the economic and energy price issues we've talked about quite a bit now being more persistent and expect to be longer than previously expected, we're actively working to continue to adjust our cost structure to reflect these challenging conditions.
Chart provides excellent value to our customers, and we remain confident in the fundamental drivers of our business.
We remain steadfast in our pursuit of our strategic goal of delivering long-term growth.
Thank you everyone for listening today.
Good bye.
