Question-and-Answer Session
Thank you, sir. The phone lines will now be open for questions. [Operator Instructions] And we'll take our first call, I am sorry, our first question today from David Strauss of UBS.
David Strauss - UBS
Good morning. Thanks.
Mark Donegan - Chairman and Chief Executive Officer
How far did you hear the first go-around? Did I missed anything or did?
David Strauss - UBS
No. No. You backed up a little bit past where you had gone. But it was fine.
Mark Donegan - Chairman and Chief Executive Officer
Okay. Good. Thanks.
David Strauss - UBS
It was fine. Mark, your discussions with your customers on the aerospace side, kind of what are you hearing at this point? What are you seeing as far as order activity? Any indication of production rates maybe coming down as far out as you can see, I guess you can see out 9 to 12 months at this point?
Mark Donegan - Chairman and Chief Executive Officer
Yes. On the programs we're on, no, we're not seeing any softening. Again, 787 is one that's kind of through really Q4 and kind of falling over into Q1 we have continued to see some easing of kind of the demand from that standpoint. If I look at overall the programs we're on, we're not seeing any softening. Our customers are still feeling good about their schedules. And I have been with most of them in the course of the last three or four months, and all of them still say certainly from the engine side, which is a key indicator for us, that as the demand still stays very strong at this point in time. Their kind of schedules are locked again that year, year and a half timeframe.
David Strauss - UBS
And if aerospace production rates would come down, how quickly could you transition some of that capacity to some of your other end markets? And how do you think about that in terms of trying to manage what kind of dawn side you might see your margins?
Mark Donegan - Chairman and Chief Executive Officer
Well, I can answer that a couple different ways. The overlap in terms of ... if I look at castings, you know, and look at the two primary end markets would be IGT and aerospace, there is no real ability to swap the two. They're different assets from that standpoint. But again, that tends to be a business we can be very responsive in that. Certainly a large portion of the cost is labor. If I look at forging, the same would hold true on the Wyman-Gordon side that there is some overlap but not to a great degree. We use different assets to same looks really quite than we do for the turbine side. But in our U.K. facility, we would be able to put more pipe through that. That is the same complex; we're just changing between turbine and pipe. That's one we could utilize the assets on.
- To read the full transcript on Seeking Alpha, click here »
