Mark R. Bachman
Well, the increase in some of the investments for organic growth is quite a mute otherwise getting for from some of that growth match. So that was incorporated in terms of the investment backend of the business in the range of investment rates of 41% to 43% of SDNA. I think you said tax rate was 37% to 39%. It was actually 36% to 38% is what we believe the tax rate would be for this fiscal year.
Matt McCole – BBNT Capital Markets
Okay. That’s helpful. On this supply chain strategy … I am sorry about … Didn’t hear this. Is this kind of a result of this new look? Is it kind of the result of this success you have had, maybe outsourcing some of the products tossed to fire and you beside took a fresh look here, I just didn’t understand the progression there?
Mark R. Bachman
No, not really. Jeff would join us about 3 to 4 years ago, has a lot of experience in chemicals supply chain, especially you know packaged goods such as ours and since he has been here he is continually being evolving the supply chain. We made several acquisitions. We have shed the equivalent of all the capacity that has been acquired during this period of time. We continue to consolidate distribution centers to larger and fewer and Jeff believes and I agree that there is still excess capacity within our four walls that we need to continue to work towards and it’s time to take a bigger bite of the transformation. So has very little to do with outsourcing. In fact, we have clearly learned from outsourcing in the past but our manufacturing cost capabilities are in most product cases better than we can when we outsource. It’s just that we have too much capacity.
Matt McCole – BBNT Capital Markets
Okay. Thank you John, thank you, Mark.
Mark R. Bachman
Thanks Ben.
Operator
Our next question comes from Mike Saison from Key bank. Please go ahead.
Mike Saison – Key Bank
Happy new year, guys. In terms your outlook for organic sales growth from the first quarter, we talked about the fire impact but you know extra fire is more like mid single digits. Is the fire going to cause … Is this still a delta heading for 2016 and is really the run rate that you are generating on an organic basis mid single digits in nature?
John K. Morgan
Ex fire and ex foreign exchange, you would be correct. It would be higher in quarter would be about 5% and we are detracting from that sort of 5% to 6% range by the residual. Let me be clear what I mean what I say the residual effects of the fire. Early on head to the fire we lost some customers. That negative impact we think will go on into the future. Now we have been very fortunate with the great recovery effort that that team is executed against. We have actually grown aerosol sales in number of other areas during the same period of time.
The other thing that Mark just pointed out to me is in the first quarter we also benefited from promotions in the quarter in retails and as you probably recall Mike, we can fluctuate from time to time from quarter to quarter because retail promotions going to have significant impact on us either positively or negatively prompting against the previous year. At the end of Q1 we did benefit from that and so if we sort of mentally adjust that out, and benefits of that out, I would conclude that we are really more low single digit growth for the next few quarters including the negative impact of the fire over the couple of next three quarters.
