Company-wide gross profit for the quarter was $17.4 million, or 26.8% of sales, as compared to $17.3 million, or 22.1% of sales, for the same period in the prior fiscal year. Gross profit for the Industrial segment was $8.8 million, or 21.3% of sales, for the quarter, as compared to $10.9 million, or 20.2% of sales, for the same period in the prior fiscal year. The lower gross profit dollars were primarily caused by reduced profitability on the sale of bulk chemicals resulting from declining commodity chemical prices and lower volumes, and lower demand in the agriculture market, partially offset by an increase in sales of value-added manufactured and specialty chemical products. Gross profit for the Water Treatment segment was $8.6 million, or 36.5% of sales, for the quarter, as compared to $6.5 million, or 26.1% of sales, for the same period in the prior fiscal year. The increase in gross profit dollars was primarily driven by increased demand for value-added specialty chemicals and sales from our new branches.

Gross profit for the six months ended September 30, 2009 was $33.3 million, or 24.0% of sales, as compared to $30.8 million, or 21.8% of sales for the same period in the prior fiscal year. Gross profit for the Industrial segment was $17.3 million, or 18.9% of sales, for the six months, compared to $18.0 million or 18.9% of sales in the same period a year ago. The decrease in gross profit was primarily attributable to the sale of previously purchased, higher cost inventory during a period of declining commodity chemical prices as well as lower sales volumes for our bulk products. The decreases were partially offset by increased sales of value-added manufactured and specialty chemical products. Gross profit for the Water Treatment segment was $16.0 million, or 33.7% of sales, for the six months compared to $12.8 million, or 27.7% of sales, in the same period a year ago. The Water Treatment segment’s gross profit increase was primarily driven by increased sales of value-added specialty chemicals, favorable weather conditions in the first quarter of fiscal 2010 and sales from our new branches.

Selling, general, and administrative expenses increased $502,000, or 8.3%, for the quarter and $824,000, or 6.8% for the six months, as compared to the same periods in the prior fiscal year. The increases were primarily a result of an increase in variable pay plan compensation expense.

Hawkins, Inc. distributes, blends and manufactures bulk and specialty chemicals for its customers in a wide variety of industries. Headquartered in Minneapolis, Minnesota, and with 19 facilities in 10 states, the Company creates value for its customers through superb customer service and support, quality products and personalized applications.

The discussion above contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements by their nature involve substantial risks and uncertainties. Actual results may differ materially depending on a variety of factors, including, but not limited to, the following: our ability to pass through cost increases in raw materials and energy, the inability of our suppliers to provide us with sufficient quantities of key raw materials at contracted prices and delivery dates, cyclical downturns in our customers’ industries, competition from other chemical companies, seasonality and weather conditions that may affect customer demand and river and rail transportation, the hazards of chemical manufacturing, natural disasters, actual growth in our products’ markets, changes in our customers’ products, compliance with applicable laws and regulations, our ability to meet quality specifications, the adequacy of our insurance coverage, our ability to attract and retain key personnel, our ability to complete and integrate future acquisitions, and future terrorist attacks or natural disasters. Additional information with respect to the risks and uncertainties faced by Hawkins may be found in, and the prior discussion is qualified in its entirety by, the Risk Factors contained in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended March 29, 2009, as updated by subsequent SEC filings.