Let me talk a little bit about resin, clearly it’s a huge issue to AEP and everybody in our business it’s our number one cost. The way we have described resin over last couple years is that it’s a very volatile market. I’ve already told you that we had 23 cents and continuous price increases and negative effects it has on the company. I am happy to report that as of November of this year resin prices are down 3 cents, in December they fell another 4 cents. We are anticipating 4 cents additional in January and in February we expect resin cost to come down again although we are not putting a number on it, we are really evaluating it as we speak. Those who follow the market understand that the world market is— basically polyethylene is produced out of oil, not natural gas and you can see what’s happened to the oil market, it has collapsed, this is making resin cost in foreign operations much cheaper and it’s really limiting the ability of the North American companies to export. That in itself is enough to create a turnaround on this and some give back on this continuous increases that we’ve suffered over the last couple of years.
For our capex — I would like to start by acknowledging that we have invested a huge amount of money in the company over the last 2 years and I just told you about some of the capacity increases that we are making. We get it, we understand that we’ve made a lot of investments, they didn’t look too good to us in 2014 and again resin had a huge amount to do with that. We are correcting that now, we do not need any more capacity, and our capex for the year is projected to be about $23 million. We have nothing on order other than one line I told you that comes in March and we have no anticipation for any additional equipment. I can also tell you confidently that we do not need any capacity, we are not holding back on expansion at any business because we are not willing to make the investment, we don’t need it we just need to increase sales and we will increase sales significantly in 2015. Management is absolutely confident that the steps we have taken to lower cost and increase our capacity will really create significant shareholder value in 2015. That concludes my portion of program I will turn it over to Paul Feeney.
Paul: Good Morning Ladies and Gentlemen. Just a few financial highlights and then I will go to questions. I will start with net sales, in the 4th quarter they are increased $17.4 million to $316.7 million. The increase was a result of a 5% increase in average selling prices combined with 0.5 % increase in sales line. The selling price increase was a result of partial pass through of higher resin prices to customers in the current quarter. Volume in the quarter was 250 million pounds an increase of 1.2 million pounds from the 248.8 million pounds sold in the fourth quarter of fiscal 2013. Net sales of $1,193,000,000 in fiscal 2014 was an increase of $49 million of 4.3 % over the $1,144,000,000 recorded in the prior fiscal year. This increase was a result of a 6 % increase in average selling prices partially offset by 1.2% decline in sales line. Fiscal 2014 volume was 948 million pounds down 11.5 million pounds from 959 million pounds sold in fiscal 2013.
We believe this year to date, decline in sales volume was a result of a number of factors including increasing customer resistance to unprecedented sale price increases over a sustained period of time, inclement weather in our first and second quarters and the failure of segments of our economy to fully participate in the recent recovery that we’ve experienced. We are happy that we are able to report volume increases in our third and fourth quarters and although we expect our market price to continue to be extremely competitive we think we will record market share gain in 2015.
