Hercules, Inc. Q1 2008 Earnings Call Transcript

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2008-04-22 13:37:06.0

Tags: Hercules Inc.

Question-and-Answer Session

Thank you [Operator Instructions] Our first question is coming from David Begleiter with Deutsche Bank.

David Begleiter - Deutsche Bank Securties

Good morning.

Unidentified Company Representative

Good morning Dave.

David Begleiter - Deutsche Bank Securties

Hey Craig can you just go over again the impact of the Doel outage and the Tianpu outage on dollar basis and earnings per share basis?

Craig A. Rogerson - President and Chief Executive Officer

On a dollar basis from a EBIT perceptive it's about $2 million at Doel and about $1 million at Tianpu. So $3 million overall that's $0.02 I guess.

Unidentified Company Representative

About $0.02.

Craig A. Rogerson - President and Chief Executive Officer

Again the Doel shut down we had planned and obviously the TMPO was unplanned, but fortunately it started up well and it kind of what we expected, in fact hoped for there would only be $1 million impact in it, turned out that was the case. They both were up and running and running well now.

David Begleiter - Deutsche Bank Securties

And Craig what's your Tianpu make earn in Q2?

Craig A. Rogerson - President and Chief Executive Officer

Its to you Allen.

Allen A. Spizzo - Vice President and Chief Financial Officer

Sales should be in the neighborhood of $10 million to $15 million in that range, again depending on how quickly we ramp up as Craig mentioned we are tailoring to make the higher grade products at the facility.

Craig A. Rogerson - President and Chief Executive Officer

We would you know... that product should be in the range of 30% to 35% gross margin. The MC that product, again its not the same as it would be in the rest of the world yet because we are making the... we had to make in the easier products to make during the startup, that's the same situation at Jiangmen with the CMC as one of the negative products in the product mix issues that we are making the easier products startup and are just qualifying as we ended the first quarter in April here as a more sophisticated products that I mentioned. So we would hope to get some product mix improvement as we produce and qualify those products in the second quarter but it's not insignificant at those kind of margins with that kind of volume in the quarter.

Allen A. Spizzo - Vice President and Chief Financial Officer

 

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