Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Myles Walton – Oppenheimer & Co.
Myles Walton – Oppenheimer & Co.
Very good cash flow performance in the quarter and curious if you can give us, Dave, an update on your outlook for the full year and noticed you pulled back on the CapEx and just wondering how much that is sustainable at that pulled-back level on a go forward basis.
David Kornblatt
I think our cash flow should remain strong in Q4. We’ve been pretty steady throughout the year so I’d be disappointed to see us not deliver a solid amount of cash flow in the fourth quarter, and we will continue to dial back the CapEx from maybe our original guidance. I think we would see ourselves coming out in that $40 to $50 million, perhaps, for the year. But we clearly have dialed back some of the spending.
Myles Walton – Oppenheimer & Co.
You had previously talked about maybe a $40 or $50 million sales hit from the Boeing strike and I think year-to-date we’re looking at $30. Is there lingering effect to come in the 4Q period in the $10 to $20 million range or did it kind of under run what your expectations were going to be?
Richard Ill
I don’t think it was $40, $50 million I think it was $0.40, $0.50 per share, and I think that there has been that’s why I referred to a little longer lingering affect on the two months we had projected on our last call. And as anything like this, it took Boeing a longer time to ramp us up and tell us to start delivering again after the strike ended. And I think there’s still somewhat of a lingering effect there but it should not, barring anything new, should not affect us any in the fourth quarter.
David Kornblatt
I think what we’re seeing, Myles, there will be a little bit, as Rick said, nothing significant in the fourth quarter, but I think what we’re seeing is some of the product we sell indirectly to Boeing, it appears to us that perhaps either they’re a little slower to gear up or perhaps they’re managing their inventory levels. But there’s a couple of our clients that their production won’t be at the same level that Boeing’s production is at maybe until February, and in one case, March. So there are some linger affects, but nothing even remotely close to what we saw Q3.
- To read the full transcript on Seeking Alpha, click here »
