Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Ingrid Aja - Merrill Lynch.
Ingrid Aja - Merrill Lynch
Could you quantify how much of a Q2 sales outlook is due to seasonality versus new design wins?
Philip G. Franklin
Ingrid, we typically have a seasonal increase, sequential increase in the second quarter probably closer to about a 5% increase. So, some of the increment over that would be due to new design wins. I think in addition it’s just, we had a relatively weak first quarter for sales in the electronics business, and we’re starting to see a much better order flow as we talked about for Q2, some of that related to new design wins, I think some of it’s related to just improving fundamentals.
Ingrid Aja - Merrill Lynch
Are you able to quantify what increase you’re expecting from design wins in the rest of the year, I know you highlighted some new products. Is there any way to quantify that?
Philip G. Franklin
We haven’t really quantified it because it’s a little bit difficult, because some of them are new design wins that bring us incremental sales, some of them are new products that are replacing older products. But I think we’ve talked about in electronics that being mostly in the back half of the year, but we haven’t really quantified that number.
But I think certainly if you look at our back end-loaded sales guidance, it is largely, the improvement in the second half is largely due to the design wins both in electronics and in the automotive business, as well.
Ingrid Aja - Merrill Lynch
Has there been any change to your cost-saving estimates that you are expecting starting to, you are going to start to see that at the back half of the year, and I just wanted to know if you had any update on that?
Philip G. Franklin
Yes, as Gordon mentioned we are very much on track on our cost programs. We are hitting our dates, and the savings numbers are still the same as we’ve given previously.
Ingrid Aja - Merrill Lynch
On the auto sales, is there any way to break down those auto sales or regions you mentioned that you were seeing headwinds in North America, that Europe is still progressing? I was just trying to get an idea of how the penetration in the Asian market how that’s growing.
- To read the full transcript on Seeking Alpha, click here »
