It's weaker than expected due to the decline of inventories, but final demand is quite strong. Basically, it's a strong report despite the weak headline number. Consumption and all domestic demand is firm. Exports are also strong, showing that demand is quite balanced.

The worldwide market for semiconductors in 2001 is expected to decline 31 percent due to excessive inventories and price pressure on a wide range of products, ... However, recent data indicates inventory is now largely in balance and prices are rebounding in some product categories.

While we have expected weaker trends in orders, we were surprised by the magnitude of the 20% decline in the quarter given the significant community growth.

The forecast may suggest weaker-than-expected computer monitor demand.

Margins and revenue were better than feared. Inventories did go up as we expected but they basically are not far off from where they were last year.

We have high crude prices. We have low inventories. We have strong demand. All of that would be a recipe for a taut market even with refineries (running at full capacity).