Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes from the line of Curt Woodworth with JP Morgan.
Curt Woodworth
Hi. Good afternoon.
Salvatore Fazzolari
Hi, Curt.
Curt Woodworth
Sal, can you provide a little bit more color on your outlook for the Access Business in the second half of the year? You delineated your view for the Minerals Group for 3Q and 4Q. Could you give us a sense of what you’re expecting in terms of organic growth for Access in the back half of the year?
Salvatore Fazzolari
Sure, Sure. I’ll be happy to try to give you a similar outlook like we did for the Minerals and Rail as well. We expect, double digit revenue growth in the third quarter for Access Services and pretty high single digit to low double digit for the fourth quarter as well. So, on balance for the second half, we’re looking at, probably mid teens revenue growth. So again, consistent with what we’ve seen all along, we expect operating income to continue to grow. We probably more likely the third quarter obviously stronger than the fourth quarter, which is traditionally the case.
Margins are pretty much like we said we expect the margins for the year to end up very comparable to last year and that’s what we’ve been saying consistently and we believe that’s where we’re going end up the year. So, if you look at where we are investing the money as Steve indicated we spent considerable amount of money in the first half on growth CapEx for Access, lot of it going to the emerging markets so we just entered as I mentioned for new geographies, we started to see some activity there. The UAE, Saudi Arabia going very strong as is Singapore, Malaysia and even Australia. And so, we were seeing good balance then if you look at Europe I know there is some concern over Europe, well believe it or not we looked the way our European business is broken down, its made, the strength of Europe is for example in Holland. Holland is mostly industrial that work is pretty much consistent year-over-year, there is really very little ?construction? that’s more on the industrial side.
Germany, which is more balanced, we see continued good performance there, France pretty much the same thing you just saw recent announcement where we announced a few new contracts and geographies. The UK again, if it wasn’t for a balance in the UK yeah one would be a little concerned about the recent downturn in the multi-family side but our business in the UK is extremely well balanced between industrial, infrastructure and commercial and some multi-family partners so forth. So, we think on balance it’s not going to be all that bad. If you look at the way the portfolio is evolving also as I indicated now almost 20% of that business now is in emerging markets. We’ve come a long way in the last couple years to almost nothing to 20% almost. Then we should end up probably around the 20% mark. That’s good progress, roughly another 20% for North America and the rest is scattered through Europe. But again, you got to look at Europe very closely like I indicated, it’s principally when you look at Europe the main drivers of Europe is France, Germany, UK, and Holland. Those are the primary, the big four countries if you will. So, if you look at it on balance, we are cautiously optimistic. And also, we’re investing quite a bit of money in this merger if you will the three businesses into one. As we took incurred costs incrementally about $2.3 million in the second quarter. There’ll be some additional costs in the second half that’s baked into the guidance that we gave. And so, because you can appreciate the costs of changing all the names and closing some offices and doing this and doing that. It takes quite a bit of money to affect the merger of three into one. So, that’s underway.
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