Steel issues are also impacting the Water Transmission Group. Historically , we have had firm  quotes for steel when we bid on individual projects. In the current envir onment, it is not always  clear what the steel price will be when steel is actually ordered. We are wor king with our  vendors and modifying our bidding practices in order to manage this issue. To date, we have  had limited negative impacts from changing prices. How well we manage  this issue today and  in the future will be key to our 2004 results. We are also concerned about supply issues in the Water Transmission Gr oup. It is important to  our profitability to run at relatively high utilization levels. We will not be  able to maintain this without an adequate steel supply. Supply issues, like pricing, have already  had some impact  on us. As we look ahead, we expect our supply situation to stabilize. How ever, this situation is  very dynamic and predictions are difficult. There is an often-used saying that wishes, “May you live in interesting times.” T he unprecedented activities in the steel markets, slow economic recovery, and political uncertainties make t hese, indeed, very interesting times. At Northwest Pipe Company, we are committed to working together to  make the most of these interesting times. We believe our strategy is sound, our progress in refining our  operations encouraging,  and our outlook favorable. We are looking forward to a better year in 2004. Conclusion We thank our customers and suppliers for their continued partnership. To  our employees,  I say thank you for your efforts to make Northwest Pipe the strong compa ny it is. And to our  shareholders, I thank you for your continued confidence and support. Sincerely, Brian W. Dunham President and Chief Executive Officer