Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Ned Armstrong of FBR Capital Markets. Please proceed.
Ned Armstrong – FBR Capital Markets
My question entailed the process solutions arena and I heard you mention some very strong chemical markets but nothing about pharmaceutical markets and that led me to ponder whether it was just the performance was based on overwhelming strength in the chemical markets that overshadowed the pharmaceutical or whether there’s still maybe some spending weakness on the pharmaceutical side.
Peter C. Wallace
I guess the way I’d address that Ned is that it’s really the overwhelming strength that we’ve seen in the chemical side. We’ve seen some pretty nice projects come through in pharma historically in our reactor portion of the business we’d end up seeing about a 50/50 split between chemical and pharma and that is hued much in favor of chemical in this past year. So, it’s really the strength that we’re seeing in chemical versus a falling off the cliff of pharma.
Ned Armstrong – FBR Capital Markets
Is that underlying strength in chemical really more the shift in capacity towards the Middle East and Asia we’ve seen over the past couple of years? Or, is there something more than that like market share gains or now product gains?
Peter C. Wallace
I’d say it’s probably more of the former Ned where there are significant projects still taking place principally in China for chemical and then there’s still ongoing investment in India for the pharmaceutical portion of the business and those continue to go forward. As you know we are supporting growth in China through our joint venture in China as well as exports coming out of both Europe and the US. So, we’re really benefiting around the globe still from that migration of customers going into Asia.
Ned Armstrong – FBR Capital Markets
Now, on a more detailed basis Chris do you have the break out of depreciation and then separately amortization and then capital spending as well?
Christopher M. Hix
I think in the press release we would give the historical or the D&A for the quarter. Ned, do I understand your question correctly?
Ned Armstrong – FBR Capital Markets
I was thinking depreciation and then separate from depreciation the amortization and then the capital spending as well.
Christopher M. Hix
I think the last couple of years our amortization –well, first of all our D&A is running at about a $16 million run rate which is I think fairly similar to last year and that’s overwhelmingly depreciation versus amortization. Off the top of my head I would say that the amortization is maybe a couple of million of that. And, what we had stated earlier was that we expected cap ex of $20 to $25 million and I don’t think we have an update to that figure for the year. I think we’re still sticking to the $20 to $25 million.
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