Leslie LundquistAFT Income FundAFT.UN.TODON'T BUYOct 07, 2004

Historically enjoyed high margins, 27/28% EBITDA margins. Came under a lot of competitive pressure in 2004. Margins are now around 20%. Expect there will be more distribution cuts.

Strong Cdn$ and very strong competition and strong stainless steel costs affected the price and are still in place.

Had to cut distributions by about 50% due to increased competition and higher costs. Had margin pressures.