Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Katherine O’Connor - Deutsche Bank.
Katherine O’Connor - Deutsche Bank
Could you talk a little bit about what your expectations are for you end-market goods through the second half of the year? And then how do you think you match up versus end-market performance whether or not you have new business coming online that would help you outperform or have business that would be rolling off that way you might sort of underperform what the end-market will do.
George Strickler
I don’t think there’s any business that we have that would roll off. Of course if there is some de-contenting, that might be, but I don’t think we see anything in our plans or anything from our customer that would have things rolling off that we haven’t already factored in. We’re looking at the markets and we’re looking North American production of cars and light trucks to be down around 14.3, which is below what we had our original plans together for.
Our operations are looking to make sure there is structure to a level of around that $14.3 million. I think the bigger issue is the mix, and the issue for us will be the examination of left impact of the switch from trucks. You saw GM’s announcement of the GMC-900 and the production cuts, and we’re going to assess that impact on our operation because we knew that product could go on into those platforms.
On the commercial vehicle, I think as we’ve indicated, we see that performing in the range that we talked, 25% to 35% decline. One of our bigger customers internationally happens to be doing slightly better than that right now. We expect that to continue and we expect to get some benefit from that. On the European side, that market still remains very robust and we’re anticipating well, but we don’t see any significant downside in that market either.
Katherine O’Connor - Deutsche Bank
I know that the first half the military sales should be stronger than the second half. Could you just give us an update on that, and then speak to whether or not the content you have for military sales, do you have content with all the OEMs or only certain OEMs where there are end-market contracts?
George Strickler
We have had an initiative here to expand our presence into the government sales but they include military sales through the opportunities that we’ve afforded ourselves that first came on the military platform. We don’t have a significant exposure, although across the broad front we have many customers on that as we discussed before. We do think you will see continuing emphasis on our part to expand our presence in government sales, and so we would expect that maybe this year, we might see some decline in the second half based on the builds in the first half. Overall, we think that’s going to be a growing channel for us.
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