Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of John Nobile with Taglich Brothers.
John Nobile - Taglich Brothers
Good afternoon and I just want to thank you, lot of my questions are actually, already in your comments, but in regard to the manufacturing plant in India, which I believe you said was in late 2008, you anticipated being completed. What type of CapEx can we expect from this project?
Pat Cavanagh
John, we're going to start out by leasing our facility there. And as we go forward we'll decide on final strategy, but right now I think the CapEx is going to be minimal.
John Nobile - Taglich Brothers
All right. And leasing could continue for many years going forward?
Pat Cavanagh
Well, it depends on how the market develops. We're quite excited about the Indian market. We think that we're in real south position there right now. And our production equipments and that kind of thing would be brought into that plant. Production volumes will be lower, obviously than what we're doing in China right now. So, it's not going to be a large CapEx expenditure, but we will lease for a while and then make final determination on what we think we're going to need. I could absolutely see us leasing for two years.
John Nobile - Taglich Brothers
Okay. I just wanted to back up to earlier comments: did you say that industry estimates were calling for NAFTA sales in 2008, I believe calendar or is that your fiscal year?
Pat Cavanagh
John, what I typically do is I put all of those kinds of figures in our fiscal year format. And if you go look at 2007, we had at the end of 2006, which was very, very strong and the carry over into the first quarter of 2007, so the first half of our fiscal year was very, very strong, the second half was lower than any of the analyst had predicted, it was quite a difficult time, the last two quarters of our 2007. And if I look forward, the current estimate, and some of these are very recent, show that they do not expect to rebound, of any significance in 2008, for the truck market. So, we expect that in our fiscal year, if the current estimate fall in, and they are estimates, it could be in a low 400,000 range from around 400 and we figured in our fiscal 2007 we had 484,000 heavy trucks build, we think in 2008 it’s probably going to be in the low 400,000 range.
- To read the full transcript on Seeking Alpha, click here »
