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#Those are the two biggest pieces, <UNK>, but we've also undertaken some internal initiatives to improve our working capital in all the businesses, and are starting to see the benefits of that.
So really what the rest of the year and that change in number is attributable largely to this initiative and seeing the full realization of those benefits, both within working capital and outside of working capital the remainder of the year.
We are probably on a net basis, taking into consideration some of these initiatives, down to the lower end of that.
I'll take that, <UNK>.
First of all, in terms of impact of lower steel prices, we really haven't seen much lift in production at our customers' sites.
Even though prices are firmed, and that of course is reducing the risk of further site closures, the LST was still down on a like basis I think 8% in the first quarter.
We expect it to be down about 3% for the full year.
So certainly improving over the course of the year, but that has been implicit in our guidance.
So no, we haven't.
We have seen nickel prices pop a little, and that is providing some bit of tailwind, but they are quite low and mostly consistent with our forecast.
With respect to high risk sites, we are spending an awful lot of time analyzing the sites from that perspective and understanding what options we may have to mitigate those risks.
If you look at the sum of the sites that we view as high risk, they would account for less than 10% of our earnings.
So while we are of course quite concerned about those sites, I think it is fair to say there wouldn't be a material impact on our sales and profits going forward if they were all to close, and we certainly don't expect that.
Sure.
So the Hammco acquisition has far exceeded the expectations that we had when we bought the business.
As you know, it's oriented more towards the downstream segment of the market, which has held up quite well.
And in particular, given our capacity expansion at our facility in Tulsa and moving the Hammco products into that facility, we now have the ability to produce much larger quantities of Hammco coolers, which is what the customer is looking for.
We believe we are taking market share in the downstream sector of the market with Hammco, and we expect revenues in Hammco to grow 30% to 50% this year.
This is <UNK>.
The margins that we're going to see are pretty much going to be slightly down for the rest of the year compared to the prior year basically attributable to the mix, but should improve in the latter quarters from what the first quarter experienced.
That is true, and in fact you'll recall this quarter last year we had some pretty good margin part kits aftermarket sales that affected the comp as well.
Yes, that's correct.
I think that we are still very much at the bottom.
You've seen the rig count continue to decline.
The rig count is now at an all-time low since they've been tracking that metric here in North America.
And as we look into our Qs three and four, we're not yet where we'd like to be with our order book, to be honest.
We are maintaining our view for the full year in Air-X-Changers, but there is risk.
There's just not a lot of activity in the upstream and midstream sectors of the market.
So we would expect there to be a healthy rebound in 2017.
I think that it is really all going to come down to that rig count beginning to move up again, and it certainly has not done that.
<UNK>, this is <UNK>.
We also told you on the last call that there was some inventory in the channel.
Even when the confidence is locked in in terms of the oil price and manifests in additional rig count, there may be a little bit of a lag before we start seeing that in our order book as well.
That's correct.
For the quarter the revenue impact was $24 million.
The total savings from Orion were about $60 million.
About two-thirds of that would be headcount related, the other one-third benefits from triage efforts and so forth.
Internally we view Orion as largely finished.
We've had three waves of significant cost reduction, the process changes that we've made are now embedded in the business, including the triage process.
So Orion as we laid it out two years ago on this call is largely complete.
But of course given that the changes were so dramatic in terms of process and structure, they of course remain part of the business.
In terms of additional cost reduction, we're focused very heavily on reducing our cost of sales through lower maintenance spend, more effective utilization of the equipment, and driving a number of metrics to show consistent performance in operational areas across the site.
We have not quantified those.
We are driving it very hard.
We have a global head of operations who is leading that as well as other initiatives.
It is not an amount that's let's say included in our guidance, but we continue to push very hard to reduce the cost of sales in M&M.
In terms of SG&A, we certainly continue to push on SG&A.
Part of the reason why the M&M results in Q1 were better than our projection was SG&A.
So I think we will hopefully continue to see favorable variances relative to our plan for the year in SG&A.
The asset sales that we're focused on are largely within M&M.
We have a number of idle assets and even perhaps some real estate that we are looking at, but really nothing of size and certainly not a business unit.
