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As we continue to discuss business with foreign customers and partners, we clearly see that the world financial distress is far from over.
We have bid contracts in Greece for firefighting with the S-61s and are having daily status reports with our partners about their current situation and sadly the fact that they have been experiencing rioting and deaths in the streets based on the "mandated" financial cuts by government.
It is becoming clearer every day that countries belonging to the European Union are in a deep financial crisis and no one seems to know where this is going to lead.
Out of all the industrialized countries in the world, we see Canada as being the most stable primarily because it has a very good banking system and the lenders are much more advanced in the financial due diligence process they go through in order to lend money to clients.
The US housing market continues to struggle as there is another round of houses being turned back to the banks causing continued unrest in the housing marketplace.
Over the past several decades the second quarter has traditionally seen an upswing in cedar log prices followed by a brisk lumber market for cedar products, and this year so far the upswing has not materialized.
Most lumber manufacturers are operating at 50% of capacity or less and we are in the best market we will see this year, so unfortunately there will be further overall curtailments as the year deepens.
We continue to monitor both the controllable and uncontrollable variables that surround us daily and continue to put all our focus and efforts into finding solutions for our Group of Companies.