Superior Essex Inc. Q4 2007 Earnings Call Transcript

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2008-02-15 10:14:07.0

Tags: Superior Essex Inc.

Question-and-Answer Session

Operator

(Operator Instructions). Your first question comes from Curtis Woodworth with JPMorgan.

Warren Chang - JPMorgan

Hi, good morning. This is [Warren Chang] on line for Curt. Congratulations on a quarter.

Stephen Carter

Hi, Warren.

Warren Chang - JPMorgan

Hi.

Stephen Carter

How are you?

Warren Chang - JPMorgan

Good, how are you?

Stephen Carter

Yeah, very well. Thank you.

Warren Chang - JPMorgan

Good. You mentioned that you think you can get some substantial enrichment in your cable margins going forward?

Stephen Carter

Yes.

Warren Chang - JPMorgan

And that's on top of some pretty good improvement in Q4. So I was wondering if you could comment a little bit about where you see that improvement comings from?

Stephen Carter

Well, I think as I mentioned in my script, we see two trends, I guess, continuing. One, in terms of manufacturing processes, we continue to have a very heavy emphasis on improving the way in which we manufacture, looking for ways to take cost out of that process while still producing an equally good products or even better products.

I think the other aspect to margin improvement comes from the fact that our mix of products is changing and as the market moves itself up into the more technologically superior products, we're seeing margin enhancement there.

Warren Chang - JPMorgan

Okay. And I was also wondering what you see for pricing in Magnet Wire going forward and maybe if you could comment little about that?

Stephen Carter

I think that what we're seeing at the moment is that certain of the Magnet Wire segments are extremely strong where demand and capacity are pretty evenly matched. There are some segments were it softer and where there is some capacity floating around. And as you would expect prices tend to reflect that equation.

So in the areas where we've got short capacity in the market is struggling to deliver what's needed. Pricing tends to be very strong. It tends to be richer in the areas where there is overcapacity.

Warren Chang - JPMorgan

Okay. And my last question, could you comment a little bit about your acquisition pipeline going forward and where you're looking opportunities and what size you are potentially looking at?

Stephen Carter

Clearly, I can't comment on specifics. But I can tell you that we continue to look at both acquisition opportunities that would enhance the existing core businesses but yet remain open to opportunities that would make sense that might be peripheral to the core businesses.

 

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