Earnings Call Excerpt
Material Sciences Corp. (MSC)
F3Q08 Earnings Call
January 9, 2008, 10:00 am ET
Executives
Cliff Nastas – Chief Executive Officer
Jim Froisland – Senior Vice President, Chief Financial Officer
Analysts
Steve Schwartz - First Analysis Securities Corporation
Tom Spire – Spire Capital Management
Presentation
Operator
Greetings and welcome to the Material Sciences Corporation third quarter 2008 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Mr. Cliff Nastas, Chief Executive Officer of Material Sciences Corporation. Thank you, Mr. Nastas, you may now begin.
Cliff Nastas
Thank you, Jackie. I would like to thank everyone for joining us today. Also on the call with me are Jim Froisland, Senior Vice President and Chief Financial Officer; and Bob Rogowski, Corporate Controller.
Jim will review our results for the third quarter ended November 30, 2007 and then I will discuss the quarter and provide an update on our strategy. After that, we would be happy to take your questions.
Now let me turn the call over to Jim.
Jim Froisland
Thanks, Cliff.
The results that I will be reviewing were presented in a press release issued earlier today and are discussed in more detail on our Form 10-Q, both of which are available on our website www.MatSci.com.
Before I begin, I must remind everyone that this conference call may contain certain forward-looking statements that are subject to Safe Harbor language contained in the news release and that the information and statements made during the call are made as of this date and that MSC undertakes no obligation to publicly update forward-looking statements. Let’s now review the quarter’s results.
Net sales increased 7.3% to $65.1 million in the third quarter of fiscal 2008. This is up from $60.7 million in the third quarter of fiscal 2007. Sales of acoustical applications, which are mainly to automotive manufacturers, increased 7.2% in the third quarter to $32 million, up from $29.9 million in last year’s quarter.
Sales of body panels grew 10.3% to $19.2 million in the quarter, up from $17.4 million in the prior period primarily due to new QuietSteel applications.
Brake sales continue to be impacted by the weakness in the domestic auto industry and a reduction in the quantity of inventory carried by our customers. Brake sales declined 20% in the third quarter of fiscal 2008 to $6.8 million from $8.5 million in the third quarter of last year. Continued strength in Europe brake sales partially offset this decline, growing nearly 60% in the third quarter.
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