Question-and-Answer Session
Operator
(Operator Instructions). And we’ll go first to Alex Hamilton with Jesup & Lamont.
Alex Hamilton - Jesup & Lamont
Hi! Good morning. I don't know if you went through it, so I apologize if I am making you go through something that you already did.
You suspended '08 guidance, yet you reiterated '09. Can you kind of explain that? Because I would think that if there is an impact to '08 there would certainly be an impact to '09.
Ron Saks
Well, I'm not sure I agree, in this sense. Our markets for the Gulfstream and Black Hawk products continue in the Aerostructures division as they have been. And D3 revenues appear to be unaffected by the Boeing strike.
However, the Boeing strike has had an impact on us. It started in September and in a recent investor conference, we mentioned also that there was a potentially considerable shortfall in revenue where the strike to continue through the end of the year, in both components assemblies and tooling.
Now that the strike has been resolved, and this lasted for two months, during September we were still shipping some product and what we don't know is the extent of the ramp-up period for Boeing to resume production on commercial models. If they are going to delay the ramp-up of that production until the first of the year and utilize whatever inventory they have, selectively. We believe that some of the impact sectors at rates that we previously predicted.
So 2008, we don't know exactly the impact yet and that’s why we withdrew. But we believe it will be a one-quarter occurrence.
Alex Hamilton - Jesup & Lamont
Great, thank you for the explanation.
Operator
We’ll go next to Gary Liebowitz with Wachovia.
Gary Liebowitz - Wachovia Securities
Good morning, gentlemen. Ron, can you remind us what your lead time typically is on the 737 for your leading edge and the fuselage work that you do? In other words, you have recognized revenue how many months in advance of eventual customer delivery?
Ron Saks
You know, as far as I know on the leading edge, which is a segment which has affected one of our plants pretty significantly and I will just digress for a moment and mention in the case of that plant, we did build inventories up to two months levels. We aren't quite there yet, but we are getting there, so that we have adequate inventory when they ramp up.
- To read the full transcript on Seeking Alpha, click here »
