Question-and-Answer Session
Operator
(Operator Instructions). Your first question is from the line of Ben Andrew with William Blair. Please proceed.
Ben Andrew - William Blair
Good morning, Brain. I guess good afternoon to you guys.
Brian Moore
Oh, yeah, that is true.
Ben Andrew - William Blair
Couple of questions about the UK and maybe John can jump in. Can you talk about how you look at the contribution overall from a revenue standpoint for that facility and particularly this year, and how substantial the changes in operations are that are required to get back to a more normalized gross margin there?
Brian Moore
Okay. Fred, do you want to deal with the financials and then I am going to talk about the operational improvements.
Fred Hite
Yeah. So the size of that facility is approximately 60 million on an annualized basis.
Ben Andrew - William Blair
Right. And so, is that likely to continue on this year as a rate or do you think it grows with the overall business because you have got Clamonta there?
Fred Hite
Well, that 60 million of Sheffield alone. It is not - that does not include Clamonta and we do absolutely see revenue growth from that facility continuing in 2008 with the rest of our business.
Ben Andrew - William Blair
So you do not need to make any changes to Clamonta separately, these are results of the Sheffield issues that you are?
Brian Moore
Clamonta is almost completely standalone operation. It has dedicated parts on engines. It is under the management umbrella of Sheffield. We have a new operations guy, going now in who is actually looking after operations here and there. And what we have done here in terms of operational improvement is, John has got a very distinguished background in operational management improvement. He has been working with some of the best companies in the world, Rolls-Royce and automotive and large company in the UK in particular, and he is particularly a global supply chain specialist.
So he brought already into the play a lot of good manufacturing improvement processes and practices. And we have just had a major customer visit literally this morning, where they have said, it is night and day from what they saw pre-John's time. So, John, do you want to add anything to what you found and the way you are thinking?.
John Hynes
Yeah, I mean just briefly, I mean we have taken the view that we needed a broad strategy of improvement, no single area. So we are sort of going across the base.
- To read the full transcript on Seeking Alpha, click here »







