You can see from our decline in margins that while we have continued to hammer away on our structure, actually increasing sales per employee by 6.6% in Q3 versus last year's Q3 and worked hard to pass along as much of our cost increases as we can, we've not been able to offset all of the pressures with either cost reductions or increased pricing. I expect this pressure will evade slightly, with decline in oil prices but the lag time between oil prices at the wellhead and the price of yarn seems to be about 9 months. Rubber, the other major commodity we purchased, has seen no decline in pricing and it is negatively impacting our roll cover businesses.Our margins are also impacted by our increasing revenue derived from emerging markets such as Asia.
Xerium Technologies' CEO Discusses Q3 2011 Results - Earnings Call Transcript
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